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Y 15 1968 



BERKEUeY 



STACK'4 



^ 



\ 

89fh Congress COMMITTEE \ 

2d Session PRINT 

1966 

FEDERAL HANDBOOK 

FOR 
SMALL BUSINESS 



A SURVEY OF SMALL BUSINESS PROGRAMS 

IN THE 
FEDERAL GOVERNMENT AGENCIES 





JANUARY 31, 1966 



PRINTED FOR THE USE OF THE 
SENATE SELEa COMMIHEE ON SMALL BUSINESS 

AND THE 

HOUSE SELECT COMMIHEE ON SMALL BUSINESS 



U.S. QOVBRNMENT PBINTINQ OFFICB 
M-M8 WASHINGTON : 1906 



For tale by the Superlntendeiit of Docmnenftt, U.8. Qoytfnment Flrlntlnc OlDce 
Wtfhlngton, D.C., 20408 - Firioe 06 oenU 



SELECT COMMITTEE ON SMALL BUSINESS 

n.S. Senate 
[Created Pursuant to S. Res. 58, 81st Cong.] 

JOHN SPARKMAN, Alabama, Chairman 



LEVERETT SALTONSTALL, 

Massachusetts 
JACOB K. JAVITS, New York 
JOHN SHERMAN COOPER, Kentucky 
HUGH SCOTT, Pennsylvania 
WINSTON L. PROUTY, Vermont 
NORRIS COTTON, New Hampshire 



RUSSELL B, LONG, Louisiana 

GEORGE A. SMATHERS, Florida. 

WAYNE MORSE, Oregon 

ALAN BIBLE, Nevada 

JENNINGS RANDOLPH, West Virginia 

E. L. BARTLETT, Alaska 

HARRISON A. WILLIAMS, Jr., 

New Jersey 
GAYLORD NELSON, Wisconsin 
JOSEPH M. MONTOYA, New Mexico 
FRED R. HARRIS, Oklahoma 

LEWIS G. ODOM, Jr., Staif Director and General Cownael 

BLAKE O'CONNOR, Assistant Staff Director 

ROBERT R. LOCKLIN, Associate General Covmel 

WILLIAM T. McINARNAY, Cmmsel 

ELIZABETH A. BYRNE, Chief Clerk 



SELECT COMMITTEE ON SMALL BUSI 
U.S. House of Representatives 

JOE L, EVINS, Tennessee, Chau 
WRIGHT PATMAN, Texas ARCH A. Mj 

ABRAHAM J. MULTER, New York 
TOM STEED, Oklahoma 
JOHN C. KLUCZYNSKI, Illinois 
JOHN D. DINGELL, Michigan 
NEAL SMITH, Iowa 
CHARLES L, WELTNER, Georgia 
JAMES C. GORMAN, California 

BRYAN H. JACQUES, Staff Director 
RICHARD L. MITCHELL, General Counsel 



H. ALLEN 
RALPH HARV^t. 
SILVIO O. CON^" 
JAMES T. BROY 
FRANK J. HORTON, 




ts-Cs 



tiK^arolina \ 




n 



FOREWORD 

Tliis is the second edition of the Federal Handbook for Small 
Business. The first edition was published in 1962 and was enthu- 
siastically received by the American small business community. 

Its purpose is to provide in one comprehensive volume information 
on all the Federal programs of interest to small business. 

Each agency of the Federal Government having a program benefi- 
cial to small business firms has participated in the preparation of the 
data contained herein. The publication of this Handbook is spon- 
sored jointly by the Senate Small Business Committee and the House 
Small Business Committee. 

John Spakkman, 
Chairman^ Senate Small Business Corrmiittee. 

Job L. Evins, 
Chairnfian^ House Stnall Business Cormnittee. 
January 31, 1966 

III 



Table of Contents 



SMAU BUSINESS ADMINSTRATION 

Fase 

General 1 

Business Loans 1 

Special Participation Plans 1 

Small Loan rrogram « 2 

Simplified Bank Participation Plan 2 

Early Maturities Participation Plan.. 2 

Pool I^ans 2 

Areas of Unemployment 2 

Eligibility Requirements 2 

Indirect Financing ' 3 

Small Business Livestment Companies . . 3 

Eligibility Requirements 3 

Local Development Companies 4 

State Development Companies 4 

Additional Information on Loans and 

Loan Sources 4 

Economic Opportunity Loans 4 

Disaster Loans 5 

Physical Damage Loans 5 

Economic Injury Loans 5 

Major or Natural Disaster 5 

Diseased Products Loans 5 

Displaced Small Businesses 5 

Government Buying and Selling 6 

Government Purchase Contracts and 

Subcon trac ting 6 

Small Business Set-Asides 6 

Potential Sources Program 6 

Subcontract Program 6 

In VCD tory of Small Plan t Facilities 7 

Prime Contract Referral 7 

Contract Financing 7 

Process Payments 7 

Eligibility Requirements 7 

Government Procurement 7 

Government Subcontracting 7 

Sales of Government Property 7 

Certificates of Competency (COC).. 8 

Buying From the Government 8 

Management Information 8 

Retired Executives Assist Small Busi- 
ness Owners 8 

Management Courses and Conferences-. 8 

IMP Hdps Business Help Itself 9 

SBA Workshops Assist Prospective Busi- 
nessmen _ 9 

Management Publications 9 

Free Series 9 

For-Sale Series, 9 

SBA AS Small Business Spokesman 9 



Small Business Defense Production pm* 

Adjustment Program 10 

Publications 10 

Free From SBA 10 

For Sale _-. 11 

Employee-Employer Relationships 11 

Field Offices 11 

Branch Offices (Footnote) 11, 12 

GENERAL SERVICES ADMINISTRATION 

Agency Responsibilities 13 

GSA Business Service Centers 13 

Federal Procurement Regulations 

System ' 14 

Public Buildings Service 14 

Contracts for Design 14 

Construction Contracts 15 

Leasing of Space 15 

Building Maintenance and Repair Pro- 
curements. 15 

Defense Materials Service 15 

Procurement 15 

Disposal 15 

Transportation and Communications 

Service 16 

Automobile Repair Contracts, Rentals __ 16 

Utilization and Disposal Service 16 

Sales of Personal Property 16 

Kinds of Property Sold 16 

Where Government Property Is Sold- 16 

How to Obtain Sales Information 17 

How Property Is Sold 17 

G^ieral Conditions of Sale 17 

Sales of Real Property 18 

What Real Property Does the Gov- 
ernment Sell? 18 

How Is Sales Information Obtained?— 18 

How Is Surplus Real Property Sold?. 18 

Property Rehabilitation Program 18 

Federal Supply Service 18 

GSA Supply Depot Program... 18 

Federal Supply Schedule Contracts 19 

Consolidatea Purchase Program 19 

Special Purchase Programs 19 

Simplified Procedures Aid Small Busi- 
ness -- 20 

Inspection of Purchased Commodities., 20 
Relationship of Federal Specifications 

and Standards to Small Business.. 20 

Evaluation of New Items . 20 

Availability of Federal Specifications, 

Standards, and Handbooks 20 



VI 



CONTENTS 



Organizational Ghart op GSA 21 

GSA Regional Offices and Business 

Service Centers 22 

Bibliography of GSA Publications 22 

Map of GSA Regional Offices and 

Business Service Centers 23 

DEPARTMENT OF DEFENSE 

Selling to the Military 24 

Introduction _ _ _ 24 

Making Your Capabilities Known 24 

Commerce Business Daily 24 

Subcontracting 25 

Local Purchases 25 

Military Exchange Services 25 

Military Commissary Stores 25 

Sources of Information on Defense Pro- 
curement 25 

Federal Procurement Information Offices 

m Washington, D.C 26 

Bidder's Mauing List Application 27 

Bidder's Mailing List AppUcation Sup- 
plement 29 

Department of the Army Major Pur- 
chasing Offices 30 

Army Materiel Command 30 

Corps of Engineers 35 

Army Medi^ Service 36 

Department of the Navy Major Pur- 
chasing Offices 40 

Bureaus and Offices 40 

Navy Purchasing Offices 41 

Navy Supply Centers and Depots 42 

Navy Shipyards and Repair Facilities— 43 

Navy Aviation Activities 44 

Na\'y Ordnance Activities 46 

Marine Corps Activities 47 

Navy Construction 48 

Department of the Air Force Major 

Purchasing Offices 50 

Base Procurement Offices 54 

Defense Supply Agency 60 

Surplus Personal Property 65 

Introduction 65 

Why There Is Military Surplus 65 

Types of Surplus Available 65 

Condition of Property 65 

Methods of Selling Surplus 65 

Scaled Bid Sale 66 

Auction Sale 66 

Spot Bid Sale. 66 

Negotiated Sale 66 

Retail Sale 66 

Defense Surplus Sales Offices 66 

Specialized Defense Surplus Sales Offices. 66 

Principal Conditions of Sale 67 

I nspec tion 67 

Deposits and Payment of Balances 67 

Bid Deposit Bonds _. 67 

Awards 67 

Removal of Property 67 

Withdrawal Pohcy 67 



Surplus Personal Property — Continued 

Sale of Foreign Excess and Export of Paw 

Domestic Surplus 67 

Defense Surplus Sales Offices and As- 
signed Military Installations, Conti- 
nental United States.,. 67 

Mailing Addresses of Selling Activities 
Located Outside of Continental United 

States . 70 

Surplus Property Bidders Last 72 

Classes of Surplus Personal Property 

Sold by Department of Defense 73 

Geographical Areas and Assigned Codes. 80 

NATIONAL AERONAUTICS AND SPACE 
ADMINISTRATION 

Introduction 82 

Organization 82 

NASA Procurement Regulation 82 

What NASA Buys _ 82 

Where NASA Buys __ 82 

Subjects OF Special Interest 83 

Unsolicited Research Proposals 83 

Patents _.. 83 

Quality Control 83 

Small Business Program 83 

Technology Utilization. 83 

DEPARTMENT OF COMMERCE 

General 85 

Office of Field Services 85 

List of Field Offices 85 

Business and Defense Services Ad- 
ministration 86 

Government-Business Relations 87 

Trade Associations Liaison 87 

Clearinghouse for Technical Services 87 

Bureau of International Commerce — 87 

National Export Expansion Council. . 88 

Trade Centers.. _ 88 

Trade Missions. __ 88 

Trade Fairs 88 

Office of Business Economics 88 

Economic Development Administra- 
tion 88 

United States Travel Service 89 

Environmental Science Services Ad- 
ministration — ^Weather Bureau 89 

Weather Wise in Business. 89 

Observations and Daily Forecasts 89 

Five-day Extended Forecasts _.. 90 

Thirty-day Outlook 90 

Special Forecasts 90 

Climatological Records 90 

Using Weather Information 90 

Chart — Time Scales and Tools for 

Weather-Related Decisions 91 

Chart — ^Recommended Action 91 

Industrial Meteorological Services 91 

Office of State Technical Services. , 92 



CONTBaNTS 



vn 



Tng9 

Patent Office 92 

BUBEAU OF THE CbNSUB 92 

National Btjbeau of Stanpabds 93 

Selected Publications . 93 

Office of Field Services... 93 

Bureau of International C!ommerce 93 

Office of Business Economics 94 

Business and Defense Services Adminw- 

tration 94 

Nonperiodical Publications 94 

Periodical Publications 95 

Clearinghouse for Federal Scientific and 
Technical Information (formerly 

Office of Technical Services). 96 

Bureau of the Census 95 

National Biureau of Standards 95 

U.S. Travel Service 96 

Patent Office 96 

DEPARTMENT OF LABOR 

General. 97 

Bureau of Apprenticeship and Train- 
ing 97 

Services 97 

Publications : _ 97 

Bureau op Employment Security 98 

Services... 98 

Office of Labor-Management and 

Welfare-Pension Reports 99 

Labor-Management Reporting and Dis- 
closure Act 99 

Labor Relations Consultants 99 

Wdfare and Pension Plans Disclosure 

Act 99 

Bureau of Labor Standards. 99 

Services 99 

Publications 100 

Bureau of Labor Statistics 100 

Publications 101 

Services 101 

Office of Veterans' Reemployment 

Rights 101 

Office of Manpower, Autobcation, and 

Training — 102 

Wage and Hour and Public Contracts 

Divisions 102 

Publications 102 

Services—.- _ 103 

Regional Offices of the U.S. Depart- 
ment OF Labor 103 

DEPARTMENT OF THE INTERIOR 

General 104 

Procurement Assistance to Small 

Business 104 

Geological Survey 105 

Topographic Maps and Investigations. 105 

Eesearch Activities — - 105 



Geological Survey — Continued p««t 

Information and Inquiries 105 

Map Information Office 105 

Libraries 105 

Photographic Library 105 

Public Inquiries Offices 105 

Publications 105 

Office of Minerals Exploration, Ge- 
ological Survey.. _ 105 

Financial Assistance to Explore for Cer- 
tain Minerals 105 

Regional Offices _ . 106 

Publications.. 106 

Bureau of Mines.— 106 

Advice and Guidance to the Mineral 

Industries, Including Fuels .« 106 

Publications 106 

Office of Coal Research 107 

Development of New and Expanded 

Coal Markets 107 

Publications 107 

Office of Saline Water 107 

Low Cost Processes for Salt Water 

Conversion 107 

Small Business Competence 107 

Pubhcations 107 

Office of Oil and Gas _. 107 

Advice and Assistance on Oil and Gas 

Matters 107 

Requests for Information. 108 

Bureau of Reclamation 108 

Engineering and TechnologicaJ Data 108 

Pubhcations 108 

Business Opportunities in Reclamation 

Construction Camps and Towns 108 

Bonneville Power Administration 108 

Set-Asides of Procurement Contracts for 

SuppUes and Materials 108 

Low R)wer Rates for Industry 108 

National Park Service. __ 109 

Opportunities in National Park Areas.. . 109 

Pubhcations 109 

Bureau of Land Management 109 

Timber Set-Asides and Land Use 109 

Contacts 109 

Pubhc Land Laws. 109 

Bureau of Indian Affairs 109 

Indian Industrial Development Program. 109 

Technical Assistance. 110 

Financial Assitance 110 

Contacts 110 

Printed Materials 110 

Bureau of Commercial Fisheries 110 

Fishery Loans 110 

Mortgage Insurance 110 

Fishing vessel Construction Subsidies. . . Ill 

Technical Research 111 

Exploratory Fishing « 111 

Economic Studies 111 

Foreign Fisheries 111 

Marketing... 111 



vin 



CONTENTS 



Bureau op Commerical Fisheries — Con. 

Statistics 112 

Principal Field Offices .- 112 

Publications 112 

Market News -- 112 

Publications.... 112 

Bureau of Sport Fisheries and Wild- 
life 112 

Objectives 112 

Organization 113 

Activities 113 

Migratory Birds 113 

Sport Fisheries 113 

National Wildlife Refuges 113 

Wildlife Services 113 

Federal Aid to States and Possessions. 113 

River Basin Studies 113 

Regional Offices — Bureau of Sport Fish- 
eries and Wildlife 113 

Office of Territories 114 

Loans to Small Business 114 

Tax Incentives 114 

DEPARTMENT OF AGRICULTURE 

Introduction 115 

Rural Areas Development 115 

Contact 115 

General Information 115 

Soil Conservation Service 115 

Location of Addresses of State Offices 
AND Regional Technical Service 

Centers 116 

State Offices 116 

Regional Technical Service Centers 116 

Farmers Home Administration :. 117 

General 117 

Loans 117 

General Information Bibliography 117 

Rural Electrification Administration. 118 

General 118 

Loans 118 

Contact 118 

Current Information Bulletins 118 

Forest Service 118 

Agricultural Stabilization and Con- 
servation Service 119 

Relationships with Business 119 

Extent of Services and Relationships 119 

Conservation 120 

Storage 120 

Where and How Services May be Ob- 
tained by Businessmen 120 

Grain Offices 120 

Processed Commodities Office 121 

Cotton Offices 121 

Consumer and Marketing Service 121 

General 121 

Marketing Services 121 



Consumer and Marketing Service — 

Continued p»k« 

Regidatory Programs 121 

Consumer Protection 121 

Consumer Food Programs 121 

Contact 121 

CoMMODiTT Exchange Authority 122 

CEA Regional Offices 122 

Federal Crop Insurance Corporation. 122 

Economic Research Service 122 

Statistical Reporting Service — 123 

National Agricultural Library 123 

Agricultural Research Service 123 

Foreign Agricultural Service. ._ 124 

How THE Department of Agriculture 

Serves You 125 

How It Started -, 125 

How It Works 125 

Relationship to Land-Grant Colleges 125 

Activities op USDA 125 

Research 125 

Agricultural Research Service 125 

Cooperative State Research Service.- 125 

Economic Research Service 125 

Farmer Cooperaitve Service 125 

Forest Service. .. 125 

Education 125 

Farmer Cooperative Service 126 

National Agricultural Library 126 

Information 126 

Marketing 126 

Consumer and Marketing Service 126 

Commodity Exchange Authority 126 

Consumer Services 126 

International AflFairs 126 

Foreign Agricultural Service 126 

International Agricultural Develop- 
ment Service 126 

Economics 126 

Economic Research Service 126 

Statistical Reporting Service 126 

Conservation 126 

Agricultural Stabilization and Con- 
servation Service 126 

Soil Conservation Service 126 

Forest Service 126 

Stabilization 127 

Commodity Credit Corporation 127 

Federal Crop Insurance Corporation. . 127 

Rural Areas Development 127 

Rural Community Development Serv- 
ice 127 

Farmers Home Administration 127 

Rural Electrification Administration. . 127 

Emergency Programs 127 

How USDA Is Organized 128 

How to Get Information 129 

Organizational Chart op Department 

op Agriculture 132 



CONTENTS 



IX 



DEPARTMENT OF THE TREASURY 
Internal Revenue Service 

Pact 

General _ 133 

Mr. Businessman's Kit 133 

Tax Quide for Small Business 133 

Participation in Tax Climes 133 

DEPARTMENT OF JUSTICE 

Antitrust Activities 134 

Violations of Antitrust Laws 134 

Form of Complaint 134 

Processing of Complaints 135 

FEDERAL TRADE COMMISSION 

Antitrust and Trade Regulation Laws. 136 

Requests for Commission Action 136 

Advisory Opinions 137 

Export Opportunities for Small Busi- 
ness - -- 137 

Field Offices 137 

VETERANS ADMINISTRATION 

General _ 139 

Contracts 139 

Architectural and Professional Engi- 
neering Design Services.- 139 

Construction Services 140 

Veterans' Loans - 140 

Real Estate Loans -- 140 

Non-Real Estate Loans 140 

Direct Loans 140 

Contacts 140 

List of VA Hospitals by States 141 

List of VA Regional Offices 142 



ATOMIC ENERGY COMMISSION 

Location of Principal Offices 143 

Operation of AEC Plants and Labora- 
tories 143 

Research 143 

Security Requirements 144 

Patents 144 

Radioisotopes 144 

Licensing Requirements 144 

Regulations 145 

Nuclear Reactors Built, Being Built, 

OR Planned 145 

TENNESSIE VALLEY AUTHORITY 

Management Services and Counsel 146 

Fertilizer Production Technology 146 

Forest Resources j 146 

TVA Fisheries Investigations 146 

TVA Assistance on Navigation Matters. 146 
Assistance is Available on Regional and 

Local Economic Analyses 146 

TVA Sells Power 146 

Engineering Information 146 

Topographic Maps 147 

Government Contracts 147 

New Business Opportunities 147 

Research and Development 147 

General Information Bibliography. _ . _ 1 47 
Office of Agricultural and Chemical 

Development Publications 147 

Division of Forestry Development Pub- 
lications 147 

Office of Power Publications 147 

EXPORT-IMPORT BANK 

Export Credit Insurance. - 148 

Commercial Bank Guarantee Program. 148 

Long-Term Capital Loans. 149 

Other Programs 149 



Small Business Administration 



GENERAL 

Although various Government departments and 
agencies provide services to small business, the 
Small Business Administration (SBA) is the one 
a^ncy that was created by Confess solely to ad- 
vise and assist the Nation's smaUousinesses. This 
action recognized that while the more than 4.5 
million small businesses play a distinct and vital 
role in the national economy, they generally oper- 
ate at a distinct disadvantage as compared with 
large business. Larger firms can more readily 
finance growth and research, find it easier to deal 
with the Government — ^the Nation's lai^gest cus- 
tomer — and have less difficulty overcoming man- 
agement and related problems. 

The SBA serves small business in six ways : 

1. By lending money to small businessmen, di- 
rectly or indirectly. 

2. By helping small business get a fair share of 
Government contracts and surplus Government 
property. 

3. By providing information and assistance re- 
garding management, and by sponsoring research 
into the management problems of small firms. 

4. By developing and presenting helpful ma- 
terial in the foreign trade field. 

5. By providing production and products assist- 
ance. 

6. By providing informative publications on 
subjects of interest to small business. 

The SBA assists all types of small business — 
manufacturing, wholesabng. retailing, service, and 
other firms — and has estaolished diflferent size 
standards for different types of business. Ccm- 
gress defined a smaU business as one that is inde- 
pendently owned and operated and not dominant 
m its field, and instructed SBA to establish more 
detailed standards. 

The SBA complied by spelling out specific 
standards which govern eligibility of firms for 
business loans, for financial aid through SBA- 
licensed small business investment companies and 
SBA loans to State and local development com- 
panies, and for help in obtaining Government con- 
tracts, and property bein^ sold by the Govern- 
ment Under SBA's definition, al>out 95 percent 
of all business is classified as small business. 

BUSINESS LOANS 

An essential part of the service SBA offers 
small businessmen is counseling by financial ex- 
perts. Sometimes a specialist can show a busi- 



nessman that it would be inadvisable or unneces- 
sary for him to borrow money. 

If borrowing does appear to be the answer to a 
firm's problems, the SBA may participate with a 
bank in a loan, or mav make a "direct'' (100 per- 
cent) loan, for the following purposes: 

• Purchase of machinery, equipment, facilities, 
supplies, materials. 

• Working capital. 

• Business construction, conversion or expan- 
sion. 








While most business loans are small — some are 
even under $1,000 — ^the SBA, under its statute, 
may lend a small business as much as $350,000 as 
the Agency's share of a participation or a direct 
loan. 

Before SBA may make a direct loan, it must 
make certain that the firm applying for the loan 
cannot secure adequate financmg at a reasonable 
rate from a bank or other private source. 

When a small businessman can secure some^ but 
not all, of the money he needs from a private 
source, SBA may participate in the loan for as 
much as 90 percent of the loan. However, SBA 
may not provide its share of the loan immediately 
if the private lender is willing to lend its own 
funds, with a portion guaranteSi by SBA. 

Generally, a loan may be for as long as 10 years 
with interest on SBA's share set at a maximum of 
5V^ percent. When a bank or private lender par- 
ticipates with the SBA in a loan it may, and f re- 
<iuently does, set a rate higher than 5% percent on 
its share of the loan, providing the rate is legal 
and reasonable. (If the private institution will 
set a rate lower than 5^ percent, SBA will also 
lower its rate, but not below 5 percent.) 

Where SBA's participation involves a guaranty, 
the private lender, who initially advances all the 
loan funds, may set the interest rate on the entire 
loan. 

SPECIAL PARTICIPATION PLANS 

To provide increased assistance to small firms 
and to encourage greater bank participation in 

1 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



loans, SBA has devised several special participa- 
tion loan plans. Although the interest rate re- 
mains the same, the loans vary somewhat from the 
regular participation loans as follows : 

Small Loan Program. The Small Loan Pro- 
gram is designed specifically to meet the needs of 
very small businesses, including new enterprises, 
many of which have in the past oeen unable to ob- 
tain loans because of lack of adequate collateral. 
Under this program great stress is put on the char- 
acter of the applicant, his past record for handling 
obligations, and his future business prospects. 
Loan may be made in amoimts not to exceed $15,000 
for direct SBA loans, or bank participation loans 
where tlie SBA portion does not exceed $15,000, up 
to 6 years. 

Simplified Bank Participation Plan. This is a 
streamlined plan in which the small businessman 
deals entirely with the bank and follows the bank's 
instructions in preparing and submitting credit 
information. Because the SBA depends largely 
on the bank's judgment of the soundness of the 
proposed loan, quick action can be taken on appli- 
cations. 

Under this plan, SBA's share may be up to 
$350,000 or 75 percent of the total loan, whichever 
is smaller. Maximum maturity is usually 10 years. 

Early Maturities Participation Plan. The SBA 
recognizes fully the value of local financing of 
small businesses. At the same time it is aware 
that banks often are accustomed to lending money 
only for short periods of time. The SBA there- 
fore devised the "Early Maturities Participation 
Plan" under which a bank may participate for as 
little as 2 years and SBA will continue its share 
of the credit for as much as an additional 8 years. 
The SBA's share of the loan may be up to $350,000. 

Another plan combines some of the "early matur- 
ities" and "simplified participation" advantages. 
POOL LOANS 

The SBA makes loans to corporations formed 
by "pools" or groups of small businesses to: (1) 
obtam raw materials, equipment, inventory or 
supplies for use by group members, (2) obtain 
the oenefits of research and development for the 
members of the group, or (3) establish facilities 
for these purposes. 

The maximum amount that SBA can advance 
alone or as its share is $250,000, multiplied by the 
number of small businesses which are members of 
the pool. 

Tne interest rate on pool loans is 5 percent and 
loans may be made for as long as 20 years. 
AREAS OF UNEMPLOYMENT 

As a means of stimulating business activity and 
thereby increasing job opportunities in areas of 
substantial unemployment, SBA makes loans at 4 

?3rcent interest to small firms in these areas, 
his rate applies to a direct SBA loan uid to the 
Agency's share of an immediate participation loan. 
The 4-percent rate is applicable m areas which had 



been designated as redevelopment areas by the 
Area Redevelopment Administration or desig- 
nated by the Department of Labor as having sub- 
stantial unemployment. 

ELIGIBILITY REQUIREMENTS 

To be considered for an SBA loan, a small busi- 
ness must meet certain general credit requirements. 
For example, as required by the Small Business 
Act, a loan must be "of such sound value or so 
secured as reasonably to assure repayment." An 
applicant must be of good character, and must 
have enough capital in the business so that^ with 
SBA assistance, it will be possible for him to 
operate on a sound financial basis. 

As a public agency responsible for taxpayers' 
money, SBA has unique aaditional responsibilities 
as a lender. For example, it will not make loans 
tx) an individual who derives anjr part of his gross 
income from gambling activities. Nor wUl it 
make loans for speculation in any kind of real or 
personal property. 

The size requirements for firms and their affili- 
ates for business loans generally are as follows: 

• Manufacturing: Small if 260 or fewer em- 
ployees, large if more than 1,000 emplovees, and 
either small or large, dependun^ on industry, if 
between the 250 and 1,000 limits. Special size 
standards are established for various manufactur- 
ing industries. 

• Retail : Annual sales of $1 million or less. 

• Wholesale: Annual sales of $5 million or less. 

• Service trades: Annual receipts of $1 million 
or less. 

• Trucking: Annual receipts of $3 million or 



• Construction : Average annual receipts of $5 
million or less for preceding 3 fiscal years. 

Special size stanaards have been worked out as 
the result of studies of certain businesses. 

Food canning, for example, is small if the firm 
has 600 or fewer employees excluding agricultural 
eniployees. 

Other examples: A retail grocer that handles 
fresh meats is a small business if his annual sales 
are $2 million or less; a retail automobile dealer is 
small if his limit is $3 milion or less; a retail 
aircraft dealer is small if his annual sales are $3 
million or less; a department store is considered 
small if its annual sales do not exceed $3 mil- 
lion. 

In general, a business that provides services 
is small if its annual receipts are $1 million or 
less. However, there are exceptions, for example : 
Hotels, motels, and power laimdries, are consid- 
ered small business if they do no more than $2 
million worth of business annually; trailer courts 
or parks for transients, $100,000 or less; hospitals, 
100 beds or less, excluding cribs and bassinets; 
motion picture production and picture services, 
$5 million. 



FEDERAL HANDBOOK FOR SMALL BUSD^SS 



Shopping centers are considered small if their 
assets oo not exceed $5 million; net worth, $2% 
million ; ayera^ net income, after Federal income 
taxes, for apphcants preceding 2 fiscal years, $250,- 
000 ; and it does not lease more than 25 percent of 
the gross leasable area to lar^ businesses. 

A warehousing business is considered small if 
its annual receipts do not exceed $3 million. A 
business engaged in air transportation is small 
if its employees do not exceed 1,000 persons. A 
grain storage business is considered small if it 
does not have in excess of 1 million bushels ca- 
pacity and annual receipts of $1 million. 

Inasmuch as the standards are general and sub- 
ject to change, the small business owner should 
consult the nearest SBA field office for current 
standards. 

INDIRECT HNANCING 

The SBA has two other basic but indirect ways 
of providing small business with necessary fi- 
nances. These are (1) through the Agency's Small 
Business Investment Company program, and (2) 
through its program of loans to State and local 
development companies. 

SMALL BUSINESS INVESTMENT COMPANIES 

^ Under the Small Business Investment Act, SBA 
licenses, regulates, and helps to provide financing 
of privately and publicly owned small business 
investment companies, conmionly termed SBIC's. 

These investment companies have the function 
of providing equity capital and long-term loans to 
small businesses, and may furnish advisory and 
consulting services as well. 

An SBIC may begin operations with as little as 
$300,000 paid-in capital and surplus, which the 
SBA may match by the purchase of the SBIC's 
subordinated debentures. Under exceptional cir- 
cumstances, as, for instance, in an area where no 
SBIC's are now located or where the operating 
expenses of the SBIC are to be subsidized, the 
beginning capital requirement may be as low as 
$150,000. To help with the growth of the SBIC, 
SBA may purchase additional subordinated de- 
bentures from the SBIC, up to a total of $700,000 
on a matching basis with Hie private capital in the 
company. 

After an SBIC has invested or lent a substantial 
part of its monejr to small businesses, it may borrow 
operating funcfe from SBA. These loans may 
total as much as 50 percent of the company's paid- 
in capital and surplus, but may not exceed $4 
million. Subordinated debentures sold to SBA 
are considered part of Uie SBIC's capital and sur- 
plus for this purpose* Thus $700,000 in private 
capital makes an SBIC eligible for $700,000 in 
subordinated deb^iture funds, plus another 
$700,000 in operating loans from SBA, for a total 
of $2,100,000 availfPble for investment in small 
concerns. 

The interest rate on subordinated dei)enture8 is 



5 percent per annum. For operating loans, it 
ran^ from 5^^ |>ercent if a bank or other financial 
institution participates with SBA in the loan to the 
SBIC, to 6% percent if SBA makes a direct loan 
from its own funds. 

SBIC's are encouraged to borrow operating 
loans from private sources. The maximum per- 
mitted ratio of debt to an SBIC's capital and sur- 
plus is four to one. 

Liberal tax provisions have helped SBIC's to 
flourish and to provide money for small businesses 
as well as to attract investors. An SBIC has a 100 
percent exemption on taxes for dividends it re- 
ceives from investments in small businesses, and 
may deduct from ordinary income losses sustained 
through sales of convertible debentures or stock 
obtained through conversion, or by exercising 
warrants. Also, in some circumstances an SBIC 
may qualify for "pass-through" treatment, so that 
the individual investor can treat profits received 
from SBIC operations as capital gains, taxed at 
the maximum rate of 25 percent. On the other 
hand, losses sustained by the investor in the sale 
of his SBIC stock may he deducted from ordinary 
income. 

Financing agreements by an SBIC must provide 
for financing lor at least a 5-year period and loans 
may be for as long as 20 years. Loans of less than 
5 years' maturity may be made when they are nec- 
essary or desirable to protect previous SBIC 
investments, or, to a liimted extent, as part of a 
sound financing package for the small concern. 

An SBIC may furnish financial assistance to a 
single small enterprise in an amount not exceeding 
20 percent of the investment company's capital 
and surplus. 

If a small firm needs more funds than one SBIC 
can provide, several SBIC's may participate in 
meeting the firm's requirements. However, no 
financing for more than $500,000 may be made by 
more than 5 SBIC's without SBA approval. 

A small business investment company may fi- 
nance a small business by any of uie following 
methods, including various combinations : 

1. By purchasiQg debentures which are converti- 
ble into stock of the small firms. 

2. B^ purchasing capital stock in the small busi- 
ness, witti or without warrants to purchase addi- 
tional stock. 

3. By purchasing debt securities, with or with- 
out warrants to purchase stock. 

4. By any other acceptable instrument of equity 
financing. 

5. Through long-term loans to the business. 

A list of SBIC's may be obtained from any SBA 
office. 

Eligibility Requirements. For purposes of SBIC 
financing, a company qualifies as small if (a) it 
meets the business loan size standards indicated 

Previously or (b) it does not have assets exceeding 
5 million, does not have a net worth exceeding 
$2.6 million, and its average net income, after 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Federal income taxes, for the preceding 2 years 

did not exceed $260,000. 

LOCAL DEVELOPMENT COMPANIES 

An additional SBA method of helping small 
business with its long-term financing problems is 
through the local development company which as- 
sists in the financing of small business concerns in 
their area. 

A local development company is incorporated 
under the laws of the State of operation for the 
purpose of furthering the economic development 
of tne community ana its environs, with authority 
to promote and assist the growth and development 
of small business concerns in a specific area within 
the State covered by its operation. It may be 
organized as a profit or nonprofit corporation and 
shall be principally composed of and controlled by 
local persons residmg or doing business in the area 
of operation. The local development company 
may borrow up to $360,000 for a period of 25 years 
to assist any identifiable small ousiness concern. 
The proceeds of the loans may be used for the 
acquisition of land, construction, expansion 
or modernization of buildings and the purchase of 
machinery and equipment. The local develop- 
ment company may be required tx) furnish no less 
than 20 percent of the project cost and SBA will 
loan up to 80 percent. SbA's interest rates are 
5V^ percent but thej will be reduced to 6 percent 
if a bank will participate at a similar lower rate. 
If the area is an area of substantial unemployment, 
the interest rate will be 4 percent. 

STATE DEVELOPMENT COMPANIES 

A State development company is an enterprise 
incorporated under and pursuant to special legis- 
lative act to operate on a statewide basis with au- 
thority to promote and assist the growth and devel- 
opment of small business concerns within the State. 
It is organized and controlled by mdiyiduals and 
corporations (usually lending institutions) resid- 
ing or doing business in the State. The prime pur- 
pose of the State development company shall be to 
assist the economic development and rehabilitation 
of the State and any monetary profits to the share- 
holders of members must be merely incidental to 
its primary purpose. SBA may lend to this type 
of aevelopment company as much as the company's 
total outstanding ^borrowings from all other 
sources. Maturities may be for as long as 20 years 
with interest rate at 5 percent except that SBA will 
charge only 4 percent whea the development com- 
pany uses the funds for long-term loans in areas 
of substantial unemployment. 

ADDITIONAL INFORMATION ON LOANS 
AND LOAN SOURCES 

The SBA programs described briefly above are 
set out in more detail in various publications 
available without charge from any SBA field ofSce 
or from the SBA, Washington 25, D.C. 



In addition, the Small Business Administration 
has publidied a pamphlet, "Loan Sources in the 
Federal Government," which is available upon 
request. Eevised and expanded in August 1963, it 
lists loan sources believed to be of major interest 
to the small business owners under the following 
six classifications : 

1. Corwmercial^ Industrials and Financial 
Loans. In addition to the Small Business Ad- 
ministration, this section lists the Treasury De- 

Eartment, Federal Reserve System, Federal Home 
lOan Banks, Maritime Administration, and the 
Economic Development Administration of the 
Department of Commerce. 

2. Agrioitltural Loans. This section includes 
Farm Credit Administration, Bural Electrifica- 
tion Administration, Farmers Home Adminis- 
tration, and Commodity Credit Corporation. 

3. Hovsina and Commvwnity Development 
Loans. Included are Commxmity Facilities Ad- 
ministration, Public Housing Administration, 
Urban Renewal Administration, and Federal 
Housing Administration. 

4. Veterans Loans made by the Veterans Ad- 
ministration. 

5. Natural Resources Loans made by the De- 
partment of the Interior include loans by the Bu- 
reau of Reclamation, Bureau of Commercial 
Fisheries, and Bureau of Indian Affairs. 

6. International Loans are made by the Export- 
Import Bank of Washington and the Agency 
for International Development. 

For further information check the loan entries 
in the Index of this publication. 

ECONOMIC OPPORTUNITY LOANS 

In connection with the Anti-Poverty Program, 
SBA is responsible for imj^lementation of tiUe IV 
of the Economic Opportimity Act of 1964. Under 
this program, comprehensive assistance is avail- 
able to low-income persons or those who wiU hire 
them, who cannot secure credit from any other 
source. Emphasis is on expansion of business and 
job opportimities. 

Community-organized-and-operated Small Bus- 
iness Development Centers (SBDC's) are the 
prime means bv which the program is executed. 
The Board of Directors of the SBDC is drawn 
from a broad base of business, banking^ and other 
local leaders. It includes representatives of the 
people who are to be helped. Wherever possible, 
the SBDC operates in conjunction with an over- 
all Community Action Program. The SBDC pre- 
screens loan applications, helps arrange for man- 
agement trainmg, identifies unmet demands which 
can be met by small concerns, and promotes the 
interests of local small business community and 
economic development generally. 

The final credit decision remains in the hands 
of SBA. Economic Opportimity Loans may be 
made for up to $25,000 at a maximum maturity 



FEDERAL HANDBOOK FOR BBIALL BUSINESS 



of 15 years. The interest rate on SBA's sliare 
of the loan is ordinarily 6^ percent except in lo- 
calities classified by the Area Kedevelopment Ad- 
ministration as areas of substantial and persistent 
unemployment, where the rate is 4 percent. Cred- 
it standards for Economic Opportunity Loans are 
more liberal than in other SBA lending programs. 
Prime emphasis is placed on the character of the 
applicant and the projected performance of the 
firm. No loan applications will be denied solely 
because of insufficient collateral. The applicant 
must, however, furnish reasonable assurance that 
the loan will be repaid. 

Equal in importance to financial assistance to 
small firms under the program is the management 
assistance available. Where necessary, a loan ap- 
plicant may be required — ^in some cases as a pre- 
condition of the loan — to undertake management 
training to upgrade his skills and improve his busi- 
ness. Management training may take a varietv of 
forms. One-to-one coimseling may be oflfered by 
SBA specialists, the volunteer Swvice Corps of 
Retired Executive (SCORE), or local groups like 
the SBDC itself. Other regular SBA Manage- 
ment Assistance programs — workshops, courses, 
and the like^are also available. 

DISASTER LOANS 

The Small Business Administration has a dis- 
aster loan program available to small businessmen 
and others. Cme type of loan covers physical dam- 
age; others cover economic injury. The maxi- 
mum maturity of all types is 20 years and SBA 
may advance the entire amount or may join in a 
loan with a bank or other private lending institu- 
tion. There is no statutory limitation on the dol- 
lar amount of disaster loans. 
PHYSICAL DAMAGE LOANS 

Individuals, businesses, and nonprofit organiza- 
tions, including churches, are eligiole for loans in 
storm, flood, and other major disaster areas to 
help repair or rebuild homes and profit and non- 
profit institutions, and to help replace lost or dam- 
aged furnishings or business machinery, equip- 
ment, and inventory. Loans are conditioned on 
tangible property losses in areas designated dis- 
aster areas by SBA. 




The loan limit is determined by the actual tan- 
gible loss. 

The interest rate on SBA's share of this type 
of disaster loan and on the private lender's slxaxe 
for home construction or repair is 3 percent per 
annum. On other than home loans, the private 
lender may establish its own TdJte on its snare of 
the loan, providing it is within reasonable limits. 

In disaster areas, rehabilitation assistance is of- 
ten given jointly b^ the American Bed Cross and 
SBA. with part of the applicant's loss being cov- 
ered oy a grant from the Ked Cross and part by a 
loan from SBA. 

ECONOMIC INJURY LOANS 

Maior or Natural Disaster. When the President 
of the United States or the Secretary of Agri- 
culture declares a major disaster area llecause of a 
major or natural disaster^ a small business suflfer- 
ing a substantial economic injury directly attrib- 
utable to the disaster is eligible lor a loan to pro- 
vide ordinary working capital, replenish normal 
inventories, and pay miancial obligations (except 
bank loans) which the borrower would have been 
able to meet had it not been for the resulting loss 
of revenue. 

The amount of a loan is determined by the work- 
ing capital needs of the apj>licant, taking into 
account possible economies which would be appro- 
priate during a period of reduced business. 

The borrower is charged 3 percent for SBA's 
share of the loan while a participating financial 
institution may fix its own rate on its share, within 
reasonable limits. 

Diseased Products Loans. The SBA also makes 
loans to snaall business firms suffering sutetantial 
economic injury as the result of inability to process 
or market a product for human consumption be- 
cause of disease or toxicity through natural or un- 
determined causes. Such loans are made to help 
small firms to reestablish their businesses, at the 
3 percent interest rate, up to 20 years. 

Displaced Small Businesses. The SBA also 
makes low-interest disaster loans to eligible small 
businesses physically displaced by Federally-aided 
urban renewal, highway, and other construction 
programs. The loans provide financial assistance 
in relocating applicants in a suitable and reason- 
able location, comparable to that which they pre- 
viously occupied, including limited upgrading and 
necessary modernization. 

The interest rate on SBA's share of this type of 
loan is established annuaUy on a statutory formula 
based on the average annual interest rate on all 
interest-bearing obligations of the United States. 
The rate through June 30, 1966, is 3% percent 

Nonprofit, charitable, eleemosynary, homes, 
apartment houses, and other investment proper- 
ties, and religious institutions, as well as small 
businesses established after the Federal project 
was approved, are not eligible for this type of loan. 



& 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



GOVERNMENT BUYING AND SELLING 

Each year the U.S. Government does billions of 
dollars worth of business with private companies, 
both in buying needed goods and services and in 
disposing of surplus Government property. The 
SBA is charged with assisting small businessmen 
to secure a fair share of that business. 

It has been a natural tendency, over the years, 
for Government representatives to buy from or 
sell to large organizations that have national repu- 
tations and that can deal in lar^^ amounts. For 
example, it is simpler to a^:^e to a single contract 
with a well-known big business than to negotiate 
smaller sales or purchase contracts with several 
small businesses. 

Also, while it is comparatively easy for large 
companies to keep informed on Government ac- 
tivities and to deal directly with the Government, 
it has traditionally been difficult for small busi- 
nessmen — without Washington representatives and 
Government contacts — to Team what the Govern- 
ment is in the market to buy, and what it has to 
sell. 

The Small Business Administration tries in var- 
ious ways to minimize the disadvantages the small 
businessman faces when dealing with the 
Government. 

GOVERNMENT PURCHASE CONTRACTS AND SUB- 
CONTRACTING 

The U.S. Government is the world's largest buy- 
er and SBA provides assistance to small firms so 
they can secure a fair share of the Government's 
prime contracts and subcontracts. 

Specialists in SBA field offices advise small busi- 
nessmen which Government agencies are prospec- 
tive customers. The small businessmen are told 
how to have their names placed on bidders lists 
and how to obtain drawings and specifications for 
specific contracts. 

In addition to answering specific questions, SBA 
publishes "The U.S. Government Purchasing, 
Specifications and Sales Directory," which lists 
principal goods and services bought by each Gov- 
ernment agency. The directory is sold by the Gov- 
ernment Printing Office; see the "For Sale" sec- 
tion, page 11. Another booklet, "Selling to U.S. 
Government," explains how to sell to the Govern- 
ment and how to find subcontract opportimities. 
It is available from SBA field offices. 

Small Business Set-Asides. Government pro- 
curement officials at military and civilian purchas- 
ing offices review proposed contracts to determine 
which ones can be set-aside for competitive bid- 
ding by small business. Before a purchase may be 
set aside, there must be a reasonable expectation 
that a sufficient number of small firms will bid so 
the Government is assured of receiving a satisfac- 
tory price. 




Potential Sources Program. SBA representa- 
tives review proposed Government purchase con- 
tracts for which there has been inadequate small 
business competition. If the representatives be- 
lieve small firms are capable of performing the 
contracts, they have SBA offices find small com- 
panies that want to bid on tliem through the 
facilities inventory and recommend that contract- 
ing officials solicit the firms for bids. 

Subcontract Program. The SBA develops sub- 
contract opportimities for small businesses by 
encouraging prime contractors to increase their 
subcontractmg to small concerns. In addition, 
SBA informs small firms of these opportunities 
and assists them in properly presenting their ca- 
pabilities to contractors. 

The most important part of the program is ar- 
ranging cooperative subcontracting programs for 
small business with prime contractors and large 
subcontractors. 

In its efforts to secure a larger percentage of 
subcontracts for small business, SBA continually 
works with the largest contract-awarding agen- 
cies, the Department of Defense and the General 
Services Administration. 

The SBA obtains from these and other appro- 
priate procurement agencies information and rec- 
ords concerning subcontracting by the procuring 
agency's prime contractors. In addition, when 
requested to do so, Government prime contractors 
must consult with SBA through the appropriate 
purchasing agency to provide subcontract oppor- 
tunities for small business. Regulations direct 
contractors to keep records of their subcontract- 
ing work. 

The SBA is empowered to suggest small con- 
cerns as subcontractors when it appears that they 
might not otherwise be solicited. 

Although it varies somewhat with each con- 
tractor, the cooperative subcontracting programs 
for small business generally cover the following 
points : (1) placing a fair proportion of the prime 
contractor's total purchase of materials, supplies 
and services with small businesses; (2) extending 
invitations to bid to small firms whenever there 
aPB known small business sources through the fa- 
cilities inventory ; (3) permitting SBA to review 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



requirements and rcK^ominend small concerns to 
participate; (4) furnishing adequate specifica* 
tions^ drawings, or purchase descriptions so that 
small firms can prepare bids intelligently; (5) 
specifying reasonable delivery schedules, allow- 
ing sufficient time for preparm^ bids, and when 
economically feasible, purchasmg in quantities 
which can be furnished by smafl business; (6) 
providing SBA with sufficient information tor 
evaluation of the results. 

Inventory of Small Plant Facilities. The Small 
Business Act empowers SBA to make a complete 
inventory of all productive facilities of small busi- 
ness concerns. In carrying out this activity, the 
Agency maintains a centralized facilities register 
of small business productive facilities. This in- 
ventory is used prmcipally in assisting the reg- 
istered companies in their eiflforts to obtoin prime 
and subcontracts, in locating new sources for Gov- 
ernment purchasing offices, in locating scarce or 
specialized machine tools and equipment when 
calls are received for them, also, concerns with re- 
search and development capabilities, and small 
business firms in the forestry and forest products 
industry for use in connection with the timber sales 
set-aside program. Small firms may register by 
completing a questionnaire available at any SBA 
office. 

Prime Contract Referral. Small firms interested 
in selling to the Government should have their 
names placed on contracting a^ncies bidder lists 
so they will receive notices of Government pur- 
chases directly from the contracting office. How- 
ever, until a small business is placed on the bidders 
lists, the SBA, if requested, will notify the firms 
of current bidding opportunities which are suited 
to their facilities. 

Contract Financing. The simplest form of con- 
tract financing under a fixed price contract is that 
of partial payments. Partial payments are made 
for material delivered, received, and accepted; 
thus as a contractor makes partial delivery of com- 
pleted items, he receives payment to finance con- 
tinuing production costs. 

Progress Payments. Progress payments may be 
made under a fixed-price contract that involves a 
long tooling up period, a long production run 
before any deliveries can be made, or a product 
which cannot be delivered in units. Progress 
payments do not require delivery and payments 
may be made on the oasis of a certain amount of 
work done or a percentage of costs incurred. 
Small business firms may request progress pay- 
ments whether or not the invitation for bid 
(IFB) provides for them, without jeopardizing 
their bid. 

Eligibility Requirements. A small business con- 
cern for the purpose of Government procurement 
is a concern, including its affiliates, which is inde- 
pendently owned and operated, is not dominant in 
the field of operation in whidi it is bidding on 



Government contracts and can further qualify un- 
dMT the criteria set forth below. 

GOVERNMENT PROCUREMENT 

The following definitions are applicable to con- 
cerns bidding on a Government procurement con- 
tract: 

(a) Manufacturing : Concerns are considered as 
small if number of employees do not exceed 500 
persons and large if its number of employees ex- 
ceeds 1,000 persons. Within this range, the size 
standards vary from industry to industry. In the 
petroleum industry a concern is considered small 
if its employees do not exceed 1,000 persons and" 
its crude oil capacity does not exceed 30,000 barrels 
per day. 

(b) C^m^^n^^ion : A concern is considered small 
if its average annual receipts do not exceed $Ti/^ 
million for 9ie preceding 3 fiscal years. 

(c) Nonmanufacturer: Small if the number of 
employees does not exceed 500 persons and must 
furnish products manufactured in the United 
States by small business manufacturers. 

(d) Services : A concern is classified as small if 
its annual recipts do not exceed $1 million for the 
preceding 3 fiscal years j engineering services or 
naval architectural services — ^$5 miUion; motion 
picture production or motion picture services — $5 
million. 

(e) Transportation: A concern is classified as 
small if its number of employees does not exceed 
500 persons, except air transportation — ^not exceed- 
ing 1,000 employees, and trucldng and/or ware- 
housing-— annual receipts do not exceed $3 million. 

(f ) Tiesearch, development, and testing : A con- 
cern is classified as small if its number of employ- 
ees does not exceed 500 persons. 

GOVERNMENT SUBCONTRACTING 

A concern bidding on government subcontracts 
is considered as small under the following condi- 
tions : 

(a) Subcontracts of $2,500 and less (all indus- 
tries) number of employees do not exceed 500 per- 
sons. 

(b) Subcontracts exceeding $2,500. except non- 
manufacturing — qualifies as a small Dusiness con- 
cern if it meets the size standards as indicated in 
(a) through (f) above; nonmanufacturers — num- 
ber of employees does not exceed 500 persons. 

SALES OF GOVERNMENT PROPERTY 

In the submission of a bid or proposal for the 
purchase of Government-owned property, a con- 
cern must meet the following size standards to be 
considered as a small business concern: 

(a) General — manufacturers: Number of em- 
ployees does not exceed 500 persons; nonmanufac- 
turers: average annual sales or receipts for Did- 
der's preceding 3 fiscal years do not exceed $5 
million; and stockpile purcJiasers: (primarily en- 
gaged in purchase of materials not domestically 
produced) average annual sales or receipts for bid- 



8 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



der's preceding 3 fiscal years do not exceed $25 
million. 

(b) Timber: Number of employees do not ex- 
ceed 600 persons and primarily engaged in the log- 
ging or forest products industry. 

Certificates of Competency. A certificate of 
competency — frequently called a "COC" — ^is a 
statement that a small business, or a "small busi- 
ness pool," is technically and nnancially capable 
of carrying out a specific Government contract 

On occasion^ when a small business submits the 
lowest competitive bid, the Government contract- 
ing officer questions the ability of the manage- 
ment, the physical facilities, and other factors re- 
lating to capacity or financial resources which 
would affect the firm's ability to perform a con- 
tract of that size, and produce the quality required 
in the time allotted. 

After rejecting the lowest bidder for such 
reasons, the contracting officer advises SBA. The 
Agency, in turn, contacts the small firm to find 
out if it wishes to apply for a certificate of 
competencv. 

If the nrm applies, SBA specialists make an 
on-site study of the company's resources, manage- 
ment, i)erformance record, and financial status. 
The company's plans to secure financing, personnel 
and equipment to perform the contract are re- 
viewed. ^ At times the company may submit an 
application for an SBA loan along with its request 
for a certificate of competency, and SBA would 
take this into consideration. 

Then, if SBA is convinced that the company 
possesses or has access to the necessary credit or 
productive capacity to perform the contract suc- 
cessfully, the Agency issues a certificate of com- 
petency that is binding on the contracting officer. 

The COG is valid only for the specific contract 
involved. A firm fully capable of handling one 
contract, does not necessarily have the qualifica- 
tions to handle another. Each case is treated 
individually. 

When a company is awarded a contract as the 
result of a COG, SBA requires the company to 
report regularly on the performance of the con- 
tract. If the firm encounters difficulties, SBA 
assists by providing help in obtaining needed fi- 
nancing, by providing engineering advice and as- 
sistance, and by locating scarce materials and 
equipment 

BUYING FROM THE GOVERNMENT 

Each year the U.S. Government sells, leases, and 
otherwise disposes of considerable amoimts of real 
and personal property and natural resources. It 
is the responsibility of the Small Business Admin- 
istration to advise and assist small businesses in 
obtaining a fair proportion of the total sales. 

Property of almost every kind and variety, from 
machine tools to minerals, may be found m the 
Federal Government's stockpile and inventory. 



These items are made available for purchase by 
businessmen when thev are declared surplus. 

General Services Aoministration supervises the 
disposition of civilian agency goods and the De- 
partment of Defense handles the disposal of sur- 
plus developed by the military. GS A handles the 
sale of real property for all Government agencies. 
Sale of natural resources, such as timber and sur- 
face minerals, are conducted by the Federal agen- 
cies responsible for the Nation's public resources 
program. 

Regional SBA offices are apprised of available 
Government surplus items through sales brochures 
and bid invitations. When small businesses regis- 
ter with these regional offices and make their needs 
and interests known, tliOT are informed of the lo- 
cation and sales dates of suitable production and 
construction equipment, and natural resources 
such as timber. 

By SBA agreements with the Forest Service of 
the Agriculture Department, the Bureau of Land 
Management of the Interior Department, and the 
Department of Defense, small logging and milling 
concerns are afforded the opportunity to bid on 
those sales of Federally owned timber. 

MANAGEMENT INFORMATION 

In addition to providing information in con- 
nection with its loan program and selling to— and 
buying from — ^the Government, the SBA also pro- 
vides information and assistance to small business- 
men to help them do a better job of starting or 
managing a small business. 

The SBA efforts to supply this type of informa- 
tion and assistance are tuxjomplished through indi- 
vidual counseling, management courses and confer- 
ences, workshops, and publications. 

RETIRED EXECUTIVES ASSIST SMALL BUSINESS 
OWNERS 

A Service Corps of Retired Executives 
(SCORE) was established by SBA on a national 
basis in October 1964. This is an effort to utilize 
the skills and knowledge of retired business execu- 
tives who are willing to work with small business 
owners needing their advice and assistance. 

The essence of SCORE is a "Businessman-to- 
Businessman Advisory Relationship." SCORE'S 
objective is to make the small owner/operator a 
better manager by helping him reach a balanced 
approach to his business. 

SCORE volunteers will, with the guidance of 
SBA personnel, counsel SBA borrowers, recipients 
of certificates of competency and other business- 
men seeking advice and guidance. They will also 
be used as instructors or discussion leaders in 
SBA's management courses, conferences and 
workshops. 

MANAGEMENT COURSES AND CONFERENCES 

The successful operation of a small business calls 
for. considerable kiiowledge of management sidlls 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



9 



and techniques, and SBA has arranged with lead- 
ing educational institutions thit>^ghout the 
Nation, trade and professional associations and 
local business and civic ^oups, to present a pro- 
gram of helpful administrative management 
courses. 

Designed to broaden and strengthen manage- 
ment abilities, the courses are generally taught by 
experienced educators and successful businessmen, 
and cover business planning, organizing, staffing, 
directing, and controlling. Another form of as- 
sistance is through 1-day management conferences 
arranged on some subject of current interest, such 
as the tax laws. Small business owners and man- 
agers may secure current information about 
courses and conferences in their area from their 
SBA field office. 

IMP HELPS BUSINESS HELP ITSELF 

SBA's Intraindustry Management Program 
(IMP) is designed to make use of the natural rela- 
tionships which exist between large and small 
businesses and between trade associations and 
their members. Large manufacturers, whole- 
salers and trade associations are being encour- 
aged to share their management knowledge with 
their suppliers, distributors, dealers, and members 
by offermg programs of management guidance and 
assistance for the small firm owner-manager. SBA 
has developed packaged materials which are used 
as guidelines for the development of new and im- 
provement of existing management training 
programs. 

SBA WORKSHOPS ASSIST PROSPECTIVE BUSINESS- 
MEN 

To help prevent the high proportion of casual- 
ties £Lmong new businesses and recognizing that 
many difficulties experienced by small business 
owner-manager^ are due to inadequate preparation 
and analysis prior to opening a business, SBA con- 
ducts l-day workshops. 

The workshops, which have been conducted by 
agency specialists, are designed to deal with fun- 
damentals of good management which can be ap- 
plied to new businesses of all kinds. They empha- 
size the need for both technical and managerial 
experience, for understanding what is required in 
the fields of financing, law, and management, and 
where to go for assistance. Discussions are held 
on subjects such as personal qualifications for 
successful business management ; initial capital re- 
quirements and sources of financing; locating a 
business ; buying a going concern ; types of business 
organizations; business regulations; tax and in- 
surance; and management requirements of a small 
business. 

MANAGEMENT PUBLICATIONS 

The SBA publishes a wide range of manage- 
ment and technical publications of value to estab- 
lished or prospective operators of small businesses. 



They include a series of free publications obtain- 
able from SBA offices and a series of publica- 
tions which are sold for a small charge by the 
Superintendent of Documents, Washington 25, 
D.C. Lists of both are available from SBA of- 
fices. 

Free Series. The five series whose individual 
titles are distributed without charge by SBA's 
field and Washington offices are as follows: (1) 
"Management Aids for Small Manufacturers," de- 
signed to supply information on soimd business 
administration; typical title — ^''Steps in Incorpo- 
rating a Business^'; (2) "Small Marketers Aicfe," 
prepared for owners of small retail, wholesale^and 
service enterprises; typical title — "Are You Kid- 
ding Yourself About Profits"; (3) "Technical 
Aids for Small Manufacturers," covers significant 
developments in such fields as materials, processes, 
equipment, and maintenance; typical title — "Is 
Worker Fatigue Costing You Dollars?"; (4) 
"Small Business Bibliographies" reference sources 
for owners and managers ; typical title — ^"Selling 
bv Mail Order"; (6) "Management Research 
Grant Program"; typical title— "Small Business 
and Pattern Bargainmg." 

For-Sale Series. The four series whose individ- 
ual titles are sold at nominal prices by the Super- 
intendent of Documents are as follows : (1) "Aids 
Annuals," updated versions of the Management, 
Technical^ and Small Marketers Aids no longer 
available individually; (2) "Small Business Man- 
agement Series," discussions-in-depth of manage- 
ment subjects, usually prepared on a contract basis 
by recognized authorities on important manage- 
ment subjects; (3) "Starting and Managing 
Series," basic, general book on starting a business, 
followed by books on starting and managing serv- 
ice stations, credit and collection services, etc. ; (4) 
"Small Business Research Series," results of aca- 
demic studies of small business problems including 
procedures and techniques; typical title — ^"The 
First Two Years: Problems of Small Firm 
Growth and Survival." 

SBA AS SMALL BUSINESS SPOKESMAN 

SBA champions the cause of small business be- 
fore other Government agencies. It tries to assure 
that these other agencies consider the welfare and 
interests of small business firms in their policies, 
programs, regulations, and actions. 

Whether SBA will actually intercede with 
another agency on behalf of small business will de- 
pend on its determination that the proposed action 
will directly result in a sufficiently adverse eco- 
nomic disadvantage to the small business commu- 
nity compared to large business and that the action 
will not result in a substantial conflict of economio 
interest within the small business community 
itself. 



10 



FEDERAL HANDBOOK FOR SldALL BUSINESS 



SMALL BUSINESS DEFENSE PRODUCTION 
ADJUSTMENT PROGRAM 

The present trend toward shifts in Government 
defense spending necessitates measures to insure 
that these shifts do not unduly aflfect the small 
business community. Small Concerns are more 
severely affected by the shifts than larger com- 
panies, and they require guidance and help. 

The problem of adjustment to changing defense 
requirements necessitates positive steps by the 
small business concerns to obtain and to retain a 
fair proportion of Government contracts and sub- 
contracts in accordance with declared congres- 
sional policy. These steps, embodied in Small 
Business Production Adjustment Program are de- 
signed to accomplish the following : 

1. Upgrading of small business capabilities, i.e., 
building up existing small business industrial com- 
petence in order to enable small business concerns 
to undertake production of defense items for which 
they were hitherto lacking in capabilities. 

2. Diversification : Where upgrading is neither 
impossible nor insufficient to occupy the full pro- 
ductive capabilities of a small business concern, 
assistance will be rendered in order to enable the 
small company to manufacture new products, in 
addition to those presently made. 

In order to carry out this diversification, a New 
Product Development Program will provide tech- 
nical, marketing, and financial assistance to small 
concerns. 

3. Conversion : Where the above measures do not 
appear useful, small firms will be rendered varied 
assistance to enable them to convert their facilities 
to new products (military or civilian) altogether. 

4. Extension of Procurement Assistance: Rec- 
ognizing that tliere will be a steadily decreasing 
Government subcontract workload, the Procure- 
ment Assistance Program will be extended so as to 
encourage large commercial product manufac- 
turers to undertake a voluntary small business 
subcontracting program, similar to the one now 
mandatorily in effect under Public Law 87-305. 




PUBUCATIONS 

FREE FROM SBA 

The SBA publishes a wide variety of helpful 
publications tnat are available free from any oBA 
office: 

SBA— What It Is— What It Does. Summar- 
izes SBA assistance to small businesses, describes 
Agency organization, and lists field office loca- 
tions. 

SBA Fact Sheet No. i-SBA Services to Small 
Businesses. One-page synopsis of services avail- 
able from SBA. 

SBA Business Loans. Explains SBA loan 
policies and programs, eligibility requirements 
and loan application jjrocedures. 

Limited Loan Participation Plan. Describes a 
loan plan of special interest to small retail, whole- 
sale, sendee and other businesses with sound man- 
agement, good earnings and credit records, but 
limited tangible collateral. 

Bank-SB A Participation Loan Plans. A guide 
for banks witli an explanation of the types of 
SBA-bank participation loans, loan procedures 
and requirements, and the advantages these loans 
give to small firms, banks, and communities. 

Here^s How America's Banks Can Strengthen 
Their Communities and the Nation. A leaflet for 
banks explaining SBA's Simplified Bank Loan 
Participation Plan. 

SBA Fact Sheet No. 1 — Simplified Bank Loan 
Participation Plan. One-page qrnopsis of this 
special loan plan, how it works, and advantages 
it offers banks. 

II ow An SBA Loan Can Help Tour Business. 
A leaflet containing facts on how SBA loans help 
small manufacturing, retail, service, and whole- 
sale firms. 

SBA Loans to Privately Owned Health Facili- 
ties. A leaflet explaining SBA financial assistance 
available to privately owned hospitals, convales- 
cent and nursing homes, and medical and dental 
laboratories. 

Key Features of SBA Lending Programs. A 
chart describing the various SBA business and 
disaster loan programs — who is eligible, amounts 
available, interest rates, maturities, and collateral 
requirements for each type loan. 

SBIC Financing for SmaU Bimness. Explana- 
tion of how SBIC's provide money for growth to 
small business concerns. 

ABC of Selling to US. Government. Informa- 
tion on Government buying methods, locating pur- 
chasing agencies and learning what they buy, and 
how to have an opportunity to bid on Govern- 
ment contracts and orders. 

SBA Disaster Loans for Businesses and Homes. 
Describes SBA assistance available to victims of 
natural disasters such as storms and floods, and 
to small business suffering economic injury from 
drought or excessive rainfall. 



FEDERAL HANDBOOK FOR SMAI^ BUSINESS 



11 



SB A Fact Sheet No. 3— SB A Loans for pis- 
placed SmaU Btisinesses. One-page synopsis of 
liow SBA helps small firms displaced by Feder- 
ally-aided urban renewal, highway and other con- 
st miction projects. 

Loans to State and Local Development Cotw- 
panies. Explains SBA loans available to State 
and Local Development Companies that use the 
loans to help q^uamied small businesses or to es- 
tablish new busmesses. 

Does Small Biisiness in Tour Com/munity Need 
Capital? A leaflet explaining how SBA loans 
help local development companies assist small 
busmesses with plant construction, expansion, 
modernization, or conversion. 

Long-Term Cavital for Sm/ill Business, A 
leaflet explaining now small businesses can obtain 
long-term capitiQ through SBA loans to State de- 
velopment companies. 

SBA Services for Com/munity Economic Devel- 
opment. Plow SBA helps low-income rural com- 
munities and substantial unemployment areas 
increase employment, strengthen and diversify 
business and assist small firms hurt by economic 
dislocations. 

STnall Business — A Keystone of Rural Area De- 
velopment. A leaflet describing how Federal and 
State Governments are cooperating to achieve bal- 
anced farm, industry and community development 
in underdeveloped rural areas. 

Small Business Pooling for Defense Production^ 
Research and Development. The purpose, forma- 
tion, approval, and operation of "pools" or groups 
of small businesses desiring to undertake defense 
production or research and development. 

List of Small Firms Interested in Performing 
Research and Development. Classification of 
firms according to fields in which they have indi- 
cated they are interested in performing contract 
research for the Government or private enter- 
prise. Also contains data on firms facilities, and 
scientific staffs. 

SBA Services for the Forest Products Indus- 
tries. Explanation of SBA programs of interest 
to small loggers, sawmills, planing mills, plywood 
and veneer plants, wood products manufacturers 
and distributors and lumber yards. 

How SBA Helps Sm/ill Construction Firms. 
An outline of how SBA can assist small construc- 
tion contractors. 

The Facts . . . Construction Set-Asides for 
Sm^l Business. A leaflet explaining the joint ef- 
forts of SBA and other Government agencies in 
giving small firms a better opportunity to obtain 
Government construction contracts through com- 
petitive bidding. 

FOR SALE 

In addition the UJS. Government Purchasing^ 
Specifications and Sales Directory was sold for 
600 (new edition expected to be priced higher) 



by the Government Printing Office in Washington, 
p.C. This publication lists Government purchas- 
ing and sales offices, what they buy or sell, and the 
specifications for goods or services bought or sold. 

EMPLOYEE-EMPLOYER RELATIONSHIPS 

SBA's management and technical publications 
include studies relating to various phases of em- 
ployee-employer relationships. 

Examples in tlie personnel management field in- 
clude "Is Your Labor Turnover Cost Too High?" 
"Incentive Techniques for Small Businesses," 
"Saving Manpower m Industry," "Reducing Acci- 
dent Costs in Small Plants," "Reducing Accident 
Costs Through Safe Working Conditions," "Using 
Deferred Compensation in Small Business," "Em- 
ployee Relations for Small Retailers," "Managing 
Women Employees in Small Business." AU of 
these are available free from SBA offices. 

Others available for a small cost from the Su- 
perintendent of Documents, Washington 25, D.C., 
are "Employee Suggestion System for Small 
Plants," 150; "Sales Training for the Smaller 
Manufacturer," 20^; "Health Maintenance for 
Greater Efficiency," 250; "Personnel Management 
Guide for Small Business," 250. 

SBA FIELD OFFICES 



NOBTHEASTEBN ABEA 

Boston, Mass. 02210, Shera- 
ton Building, 470 Atlantic 
Avenue 

Augusta, Maine 04330, 20 
Willow Street 

Ck>neord, N.H. 03301, 18 
School Street 

Hartford, Conn. 06103, Fed- 
eral Oface Building, 450 
Main Street 

Montpelier, Vt. 05001, Fed- 
eral BuUding, Poet Office 
and Courthouse, 2d Floor, 
87 State Street 

Providence, R.I. 02903, 611 
Smith Building, 57 Eddy 
Street 

NEW YORK ABEA 

New York, N.Y. 10004, 42 
Broadway 

Santurce, Puerto Rico 
00908, San Alberto Con- 
dominio Building, 1200 
Ponce de Leon Avenue, 
Post Office Box 9442 

St Thomas, U.S. Virgin la- 
lands 00802*, Post Office 
Box 806 

Syracuse, N.Y. 13202, 
Chimes Building, Room 
711, 500 South Salina 
Street 

Buffalo, N.Y. 14203*, Fed- 
eral Building, Room 9, 
121 ElUcott Street 



MIDDLE ATLANTIC ABEA 

Philadelphia, Pa. 19107, 
Jefferson Building, 1015 
Chestnut Street 

Baltimore, Md. 21202, 521 
Calvert Building, Fayette 
and St. Paul Streets 

Clarksburg, W. Va. 26301, 
Old Post Office Building, 
227 West Pike Street 

Charleston, W. Va. 25301*, 
3000 U.S. Courthouse and 
Federal Building, 500 
Quarrier Street, Room 
3000 

Cleveland, Ohio 44113, 
Standard Building, 1370 
Ontario Street 

Toledo. Ohio 43602*. Fed- 
eral Office Building, 234 
Summit Street 

Columbus, Ohio 43215, Bea- 
con Building, 50 West 
Gay Street 

Cincinnati, Ohio 45202*, 
4515 Federal Building 

Newark, N. J. 07102, 10 Com- 
merce Court 

Pittsburgh, Pa. 15222, Fed- 
eral Building, 1000 Lib- 
erty Avenue 

Richmond, Va. 23226, Post 
Office Box 8565, 1904 
Byrd Avenue 

Washington, D.O. 20417, 
1321 H. Street NW. (Mez- 
zanine) 



*Branch office. 



12 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



SOUTHEASTERN ABKA 

Atlanta, Ga. 30303, 52 Fair- 
lie Street NW. 

Birmingham, Ala. 35205, 
South 20th Building, 908 
South 20th Street 

Charlotte, N.C. 28202, Amer- 
ican Building, 201 South 
Tryon Street 

Columbia, S.C. 29201, 1801 
Assembly Street 

Jackson, Miss. 39201, 322 
U.S. Post Office and 
Courthouse Building, 
Capital and West Streets 

Jacksonville, Fla. 32202, 47 
West Forsyth 

Louisville, Ky. 40202, 1900 
Commonwealth Building, 
Fourth and Broadway 

Miami, Fla. 33130, 912 Fed- 
eral Office Building, 51 
SW. First Avenue 

Nashville, Tenn. 37219, Se- 
curity Federal Savings & 
Loan Building, 500 Union 
Street 

KnoxvlUe, Tenn. 37902*, 233 
West Cumberland Build- 
ing, 301 West Cumber- 
land Avenue 

MIDWESTERN AREA 

Chicago, 111. 60604, Federal 
Office Building, Room 437, 
219 South Dearborn 
Street 

Des Moines, Iowa 50309, 850 
Insurance Exchange 

Building, Fifth and 
Grand Avenue 



MIDWESTERN AREA — COU. 

Detroit, Mich. 48226, 1200 
Book Building, 1249 
Washington Boulevard 

Marquette, Mich. 49855*, 
502 West Kaye Avenue 

Indianapolis, Ind. 46204, 
Century Building, 36 
South Pennsylvania 

Street 

Kansas City, Mo. 64106, 911 
Walnut Street 

Madison, Wis. 53703, Com- 
mercial State Bank 
Building, 114 North Car- 
roll Street 

Milwaukee, Wis. 53203*, 
Straus Building, 238 West 
Wisconsin Avenue 

Minneapolis, Minn. 55402, 
Lewis Building, 603 2d 
Avenue South 

St. Louis, Mo. 63102, Fed- 
eral Building, 208 North 
Broadway 

SOUTHWESTERN AREA 

Dallas, Tex. 75201, May- 
flower Building, 411 
North Akard Street 

Albuquerque, N. Mex. 87101, 
102 U.S. Courthouse, 
Fifth and Gold Streets, 
SW. 

Houston, Tex. 77002, 802 
Federal Office Building, 
201 Fannin Street 

Little Rock, Ark. 72201, 377 
Post Office and Court- 
house Building, 600 West 
Capital Avenue 



SOUTHWESTERN AREA— COn. 

Lubbock. Tex. 79401, 204 
Federal Office Building, 
1616 19th Street 

Marshall, Tex. 75671, Mar- 
shall National Bank, Post 
Office Box 1315, 101 East 
Austin Street 

New Orleans, La. 70130, 845 
Federal Office Building, 
610 South Street 

Oklahoma City, Okla. 73102, 
807 U.S. Post Office Build- 
ing, Third and Robinson 

San Antonio, Tex. 78204, 410 
South Main Avenue 

ROCKY MOUNTAIN AREA 

Denver, Colo., 80202, Fed- 
eral Office Building, 1961 
Stout Street 

Casper, Wyo. 82601, West- 
em Building, 300 North 
Center 

Fargo, N. Dak. 58102, 300 
American Life Building, 
207 North Fifth Street 

Helena, Mont. 59601, Post 
Office Box 1690, 205 
Power Block, Comer 
Main and 6th Avenue 

Omaha, Nebr. 68102, 7425 
Federal Building, 215 
North 17th Street 

Salt Lake City, Utah 84111, 
2237 Federal Building, 
125 South State Street 

Sioux Falls, S. Dak. 57102, 
402 National Bank of 
South Dakota Building, 
8th and Main Avenue 



ROCKY IfT. AREA — COB. 

Wichita, Kans. 67202, 301 
Board of Trade Building, 
120 South Market Street 

PACIFIC COASTAL AREA 

Ban Francisco, Calif. 94102, 
Federal Building, 450 
Golden Gate Avenue, Box 
36044 

Anchorage, Alaska 99501, 
682 Sixth Avenue, Suite 
450, Post Office Box 099 

Boise, Idaho 83702, Room 
408, Idaho Building, 216 
North Eighth Street 

Honolulu, Hawaii 96813, 
1149 Bethel Street, Room 
402 

Agana, Guam 96910*, Ada 
Plaza Center Building, 
Post Office Box 927 

Los Angeles, Calif. 90013, 
312 West Fifth Street 

Las Vegas, Nev. 89104*, 
1721 East Charleston 
Street 

Phoenix, Ariz. 85004, Cen- 
tral Towers Building, 
2727 North Central Ave- 
nue 

Portland, Oreg. 97205, 330 
Pittock Block, 921 SW. 
Washington Street 

San Diego, Calif. 92101, 110 
West C Street 

Seattle, Wash. 98104, 1206 
Smith Tower, 506 Second 
Avenue 

Spokane, Wash. 99201, 
American Legion Build- 
ing, Room 300, North 108 
Washington Street 



^Branch office. 



General Services Administration 



AGENCY RESPONSIBILITIES 

The General Services Administration is respon- 
sible for a wide variety of Government- wide func- 
tions pertaining to procurement, supply, storage, 
distrioution, and mamtenance of real and personal 
property and nonpersonal services; utilization and 
disposal of real and personal surplus property; 
transportation, traffic, and public utilities manage- 
ment and services; and records and paperwork 
management. These responsibilities are carried 
out by assigning, regulating^ or performing such 
functions for executive agencies in accordance with 
the dictates of economy, efficiencv, or improved 
service, or when otherwise in the best interests of 
tlie Government GSA is responsible for man- 
aging assets valued at over $11 oillion. 

Different segments of the agency's overall re- 
ponsibility are delegated by the A(uninistrator to 
each of the six Services of GSA, as shown on the 
organizational chart on page 21. 

The primary functions of interest to the small 
businessman include: 

1. Prescribing Government-wide procurement 
policies through the issuance of Federal Procure- 
ment Begulations applicable to all executive 
agencies. 

2. Procurement and contracting for require- 
ments which are common to two or more Federal 
agencies. These requirements include a wide 
variety of categories, such as office supplies, office 
furniture and equipment; hardware and hand 
tools J plumbing, neating and electrical supplies; 
lighting fixtures and lamps; nonmilitary vehicles 
and motor vehicle parts and accessories; refrij^ra- 
tors, air conditioners and water coolers; fire^ht- 
ing equipment, paper and paper products; pamts, 
waxes, adhesives, and brushes; janitorial supplies; 
floor coverings and household and quarters lumi- 
ture, etc. 

(The procedures for contacting GSA are for 
information on the sale of such items described 
under the subsequent heading of GSA Business 
Service Centers.) 

3. Contracts for design and construction of 
Government buildings throughout the country, 
and supplies and materials necessary for their re- 
pair, remodeling, and maintenance. 

4. Contracts for the appraisal, leasing, and dis- 
posal of real property. 

5. Contracts for the disposal of (jovemment- 
owned surplus personal property. 



6. Contracts for procurement and disposal of 
strategic and critical stockpile materials. 

7. Contracts for special services, such as win- 
dow washing, stenographic reporting, furniture 
repair and refmishing, sound recording and repro- 
ducing, repair of tires, tubes, office machines, etc. 

A (tetailed description of the above functions is 
contained under subsequent headings for each of 
the GSA Services. 

GSA BUSINESS SERVICE CENTERS 

In dealing with GSA, the businessman has the 
distinct advantage of convenient contact points, 
strate^caUy located in major cities throughout 
the United States, which provide factual informa- 
tion, counseling, and assistance on Gk)vemment 
business opportunities (see map on page 23 for lo- 
cations) . 

These centers are daily engaged in providing 
small busines^nen with the following services: 

• Information concerning procurement of Gov- 
ernment goods and services. 

• Counseling on how to do business with the 
Government — the facts on what steps to take, what 
forms to use, and whom to contact. 

• Detailed information and guidance on such 
subjects as : 

Locations of contracting offices; 
How to get on Bidders' Mailing Lists; 
How and where to obtain Government speci- 
fications; 
How to establish Government-consumer de- 
mand and promote sales ; 
How to introduce new products to Govern- 
ment supply systems ; 
How to keep informed on current bidding op- 
portunities. 
^ Assistance by trained personnel, whose pri- 
mary function and interest is to make available 
their time and ability to fit the needs of the indi- 
vidual businessman requesting their help. 

• Providing reference copies of Government 
regulations, catalogs, bid invitations, and other 
materials of interest, and supplying copies of mail- 
ing list applications, specifications, and related 
forms and publications. 

In addition, these centers continuously seek to 
stimulate and maintain the small businessman's 
interest and capability in doing business with GSA 
and other Government agencies by : 

13 



14 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



• Publication of bidding opportunities in trade 
and other news media — in addition to the Depart- 
ment of Commerce "Commerce Business Daily." 

• Distribution of publications which are helpful 
to small business concerns interested in obtaining 
contracts, including such recent booklets as : 

Doing Business with the Federal Government 
Sale of Government Personal Property 
Disposal of Surplus Real Property 
Public Building Design and Construction 
Leasing Space to the Government 
A Guide to Specifications and Standards of 
the Federal Government 

• FoUowup contacts with individual small 
firms previously counseled to identify their suc- 
cesses, failures, problem areas, etc., to determine 
what further action should be taken to increase 
their opportunities and capacity to compete effec- 
tively lor Government contracts, and to encourage 
future participation in Government procurement 
and sales opportunities. 

• Participation in local business opportunity 
meetings sponsored by State and local business, or 
g^ovemmental groups. 

^ • Maximum utilization of trade journals, the 
local press, chambers of commerce, trade associa- 
tions, State development corporations, mayors' and 
governors' advisory groups, local business and 
civic organizations, small Dusiness councils, etc. 

FEDERAL PROCUREMENT REGULATIONS 
SYSTEM 

In order to better understand the policies of the 
Federal Government with regard to small business 

Participation in Government procurement, the 
usinessman should be familiar with the Federal 
Procurement Regulations System. 

The Federal Procurement Regulations System 
consists of two major elements: (a) the Federal 
Procurement Regjulations, which contain basic 
procurement policies and procedures applicable to 
all Government agencies, and (b) implementing 
and supplementing reffuli^tions of individual pro- 
curement agencies. Both the Federal Procure- 
ment Regulations and the agency implementing 
and supplementing regulations are published in 
Title 41 of the Code of Federal Regulations. Such 
codification and publication make it easier for all 
business concerns, and especially small business, 
to readily attain and understand the Government's 
"contracting ground rules" and to participate in 
Government procurement These regulations 
cover procurement from commercial sources bv 
all executive agencies, and generally provide uni- 
form policies and procedures for worldwide 
application. 

Examples of policies and procedures which are 
significant to the smaJl businessman are : 

• Small business concerns shall be afforded an 
equitable opportunity to compete for prime con- 
tracts and subcontracts. 



• Bidders' mailing lists shall include all estab- 
lished and potential small business suppliers who 
have made acceptable application for mclusion, or 
who appear from other information (including 
recommendations by the Small Business Adminis- 
tration representative) to be qualified for inclusion 
therein. 

• Procurement of property and services shall 
be divided into reasonably small lots (not less tlian 
economic production runs) in order to permit 
bidding on quantities less than the total require- 
ments. 

• Applicable specifications, plans, and draw- 
ings either shall be furnished with invitations for 
bids and requests for proposals or, when not so 
furnished, information as to locations where they 
may be obtained or examined shall be furnished. 

• Any individual procurements or class of pro- 
curements, or any appropriate part thereof, snail 
be set aside for the exclusive paiticipation oi small 
business concerns on the basis of an appropriate 
(1) joint determination by a Small Business Ad- 
ministration representative and the contracting 
officer, or (2) a unilateral determination by the 
contracting officer. 

• In the event of equal low bids, preference 
shall be given to small Dusiness concerns in each 
priority category established for award. 

• Proposed procurements and contract awards 
shall be published in the Department of Commerce. 
"Commerce Business Daily .^' 

• The maximum amount of time practicable 
shall be allowed for preparation and submission 
of bids and proposals. 

• Delivery schedules shall be established on a 
realistic basis which will encourage small business 
participation to the extent consistent with the 
actual requirements of the Government. 

• Each contractor having a prime contract 
which exceeds $500,000 and which, in the opinion 
of the contracting officer, involves substantial 
subcontracting opportunities shall be required to 
establish a small business subcontracting program. 

PUBLIC BUILDINGS SERVICE 

CONTRACTS FOR DESIGN 

Almost all new construction and larger altera- 
tion projects for which GSA has responsibility are 
designed by architect-engineer firms or individual 
architects and individual engineers. Architect- 
engineers are selected from those who inform GSA 
of their interest in designing Federal buildings. 
The architect for the particular project usuaUy 
contracts for site topographical surveys and soil 
tests. Professional engineering services axe in- 
cluded in the design contract for new construction 
and major extensions. Separate contracts may be 
made for professional engineering services where 
the requirements are basically of an engineering 
nature. 



FEDERAL HANDBOOK FOR SMALL BUSQ^SS 



15 



During fiscal year 1964, GSA awarded 534 de- 
si^ contracts to small business concerns which 
resulted in designs with a total improvement cost 
of approximate^ $413 million. 

CONSTRUCTION CONTRACTS 

Construction contracts are awarded to the low- 
est responsible bidder on the basis of competitive 
bids received after public advertising. Wlien bids 
are solicited for new construction projects, a notice 
is placed in a newspaper in the city in which the 
work is to be performed. Notices also appear in 
various trade journals, contract notices and report 
publications, and technical publications serving 
the construction industry, and the Department oi 
Commerce publication, "Commerce Business 
Daily." 

Preinvitation notices are mailed to firms and in- 
dividuals who have indicated an interest in bidding 
on the larger new construction and alteration proj- 
ects. Notices are also sent to postmasters and 
building custodians, chambers of commerce, and 
bid rooms in the area in which construction work 
is to be performed. 

GSA construction and alteration projects esti- 
mate to cost $500,000 and under, with few excep- 
tions, are set aside for exclusive bidding by small 
businesses. 

In fiscal year 1964, GSA negotiated locally ap- 
proximately 11,000 projects which cost under 
$2,000 at a total cost of almost $7 million. In addi- 
tion, formally advertised contracts for almost 2,000 
projects were awarded at a total cost of over $166 
million. All but a few of the very largest of 
these projects were awarded to small business. 



'-'^'^i^T^f^^^^^^fl^'?^ 




LEASING OF SPACE 

Greneral purpose space needed for office, storage, 
or special use, is leased by GSA in urban centers 
throughout the United States and in Puerto Rico. 
GSA does not lease any property in foreign coun- 
tries, nor does it lease new construction, privately 
built, for Postal purposes. 

Outside of urban centers, the Departments of 
A^culture, Commerce, and Defense lease gen- 



eral purpose space under authority granted by 
GSA. 

Leases are obtained by soliciting offers for nego- 
tiation or by advertising for sealed bids. In either 
case, GSA encourages the broadest possible partici- 
pation among owners and managers of acceptable 
commercial space. Owners and managers inter- 
ested in offering commercial space to GSA may 
contact the regional office having jurisdiction over 
the area in which the space is located. See GSA 
regional map, page 23. 

BUILDING MAINTENANCE AND REPAIR PROCURE- 
MENTS 

In the maintenance and operation of buildings 
and space, GSA purchases a wide variety of equip- 
ment, supplies, materials, and services. Purchases 
from other than Government sources of supply are 
usually contracted for by authorized buildings 
management officials from local businessmen 
throughout the United States. 

DEFENSE MATERIALS SERVICE 

PROCUREMENT 

GSA procures materials for the national stock- 

Eile in accordance with purchase directives issued 
y the Office of Emergency Planning. Most stock- 
pile objectives have l^en met, and current procure- 
ment of materials for the stockpile by GSA is 
limited to one item — jewel bearings. In addition, 
some materials in the stockpile are being upgraded 
to higher use forms. 

Stockpile programs which have assisted small 
business include rotation to prevent deterioration 
of materials such as cordage fibers where many of 
the companies involved are small units. In addi- 
tion, most of the contracts for supplies and for 
handling, testing, maintenance, and other services 
are made with small business concerns. 

DISPOSAL 

Programs to dispose of excess materials in the 
national stockpile. Defense Production Act, and 
other inventories also are designed to encourage 
small business participation. These excess ma- 
terials inventories primarily are the result of a 
change in stockpile policy some years ago by the 
Office of Emergency Planning, to provide for a 3- 
year emergency rather than the previous 5-year 
basis, but also may result from changes in supply- 
requirements estimates, development of substitute 
materials, and other factors. 

Disposal plans are developed by GSA as author- 
ized by OEP, and must avoid serious disruption of 
the usual markets of producers, processors, and 
consumers and adverse effects on the international 
interests of the United States. In developing dis- 
posal plans, GSA consults the Departments of the 
Interior, Commerce, State, Agriculture, Defense, 
Labor, and other governmental agencies concerned. 



16 



Fj&DEnAh HANDBOOK FOB SMALL BUSINESS 



Disposals are made over a sufficient period of 
time so that sales in any one year are limited to a 
prudent and reasonable percentage of total annual 
consumption. 

All sales to industry are on a competitive basis, 
with GSA retaining the right to reject any or 
all bids considered unacc^table. In planning 
sales of each material, GSA selects the specific 
method which will maximize competition and the 
consequent return to the Government Care is 
exercised to insure that sales are made at prices 
which would not be disruptive of markets. 

While most materials are offered on a sealed- 
bid basis, the public auction method has been used 
in a number of cases, such as feathers and down 
and silk waste. Sales of rubber and some other 
materials are negotiated by phone, just as the 
commodity exchanges operate, on the basis of pre- 
vailing market prices, which fluctuate during the 
course of any given day, and are subject to al- 
lowances for quality and condition. 

In order to maximize participation by small bus- 
iness concerns, some portions of the disposal of 
excess materials have been restricted to, or set 
aside for, small business bidders, as in the solicita- 
tions for the sale of cadmium, aluminum, and 
nickel. To obtain maximum competition and bid- 
ding from all segments of the trade including 
small business, all materials offered for sale are 
described in detail and divided into appropriate 
size lots. 

Sales of excess materials totaled $167.1 mil- 
lion in fiscal year 1964. Rubber, tin, and aluminum 
accounted for almost 80 percent of the total, and 
various lots of some 25 other excess metals, min- 
erals, ores, and agricultural commodities made up 
the rest. 

GSA gives advance notice to the trade of pro- 
posed procurements and sales under these pro- 
grams. Procurement upgrading, rotation and 
sales of materials are handled oy the Defense 
Materials Service, Central Office, in Washington, 
D.C., and procurement of supplies and services 
is mainly arranged by the GSA regional offices. 

TRANSPORTATION AND COMMUNICATIONS 
SERVICE 

The Federal Procurement Regulations require 
the inclusion in all contracts, in amounts exceed- 
ing $5,000, a clause covering^ the Utilization of 
Small Business C!oncems. Further, the clause 
with regard to Utilization of Small Business Con- 
cerns is contained in Standard Form 32 (June 1964 
edition) under item 21 thereof. Consequently, in 
any transportation contract awarded through 
formal advertising or through negotiation, ^e 
clause pertaining to the Utilization of Small Busi- 
ness Concerns becomes a part of the contract. 

With respect to movements of public prop- 
erty under Government bills of lading (contracts) , 
it is the policy of TCS to place with small car- 



riers a fair proportion of the total traffic move- 
ment by each mode of transportation. 

Each Regional TCS Director collaborates with 
his respective GSA Business Service Center in 
the advertisement of invitations to bid for trans- 
portation services and utilizes their services in the 
public opening of sealed bids. Detailed informa- 
tion re^rdiag these services may be obtained by 
contacting the nearest Business Service Center 
(seemap, p. 23). 

AUTOMOBILE REPAIR CONTRACTS, RENTALS 

At present tliere are 90 motor pools in opera- 
tion by GSA, which total is expected to exceed 
100. At each interagency motor pool location, 
GSA enters into automobile repair contracts. 
Repair contracts are also entered into in other 
cities within the region where there is a high 
concentration of federally owned vehicles. 

In addition, the GSA mteragency motor pools 
contract for short-term rental of U-drive vehicles. 
These contracts provide for commercially rented 
vehicles at each motor pool location and each 
major trading or population center in each of the 
10 regions. 

UTILIZATION AND DISPOSAL SERVICE 

Programs of the Utilization and Disposal Serv- 
ice of concern to the small businessman primarily 
involve the sale of real and personal property, and 
the repair and rehabilitation program. 

SALES OF PERSONAL PROPERTY 

The General Services Administration and the 
Department of Defense are the principal Gov- 
ernment outlets for the sale of personal property. 
Sales include thousands of dilfferent technical and 
common-use type items ranging from shoes to air- 
planes — ^and in quality, from unu^d to scrap. 

Kinds of Property Sold. Personal property 
offered for sale by the Government is property 
that is no longer needed bv any agency of the 
Federal Government to discharge its responsibili- 
ties or not required for nonfederal use by the 
States for education, public health, civil defense, 
or public airport purposes. 

A wide variety of personal property is being 
sold periodically. Included are automotive and 
other vehicles, aircraft, hardware, pkimbing and 
heating equipment, paper products, office supplies 
and equipment, drugs and medical items, wearing 
apparel, textiles, industrial equipment, and many 
others. 

The property which is offered for sale may be 
unused or used. It may be in good condition ; may 
require minor or extensive repair or rehabilitation ; 
or may be offered for sale as scrap. 

Where Government Property Is Sold. The mili- 
tsLTV installations of the Army, Navy, Air Force, 
and Marine Corps hold the greatest portion of the 
Federal Government's inventory of personal prop- 
erty, and thus they generate the largest quantities 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



17 



of pf operty which become available for sale. Such 

Sroperty is sold by the military services through 
defense Surplus Sales Offices that have been as- 
signed specinc geographic areas of responsibility 
in the United States. 

The General Services Administration conducts 
sales of personal property for many civil agencies 
of the Government. These sales usually include a 
wide variety of consumer-type items. Such sales 
may be conducted where the property is located or 
from a consolidated sales point. 

How To Obtain Sales Information. As property 
becomes available for public sale, catalogs or other 
types of announcements are distributed to those 
on the mailing list who have expressed an interest 
in bidding on the types of property being offered 
within designated geographical areas. 

Each of the ten GSA Regional Offices maintains 
a mailing list for its sales of property located in 
the geographical area which it serves. For general 
information about sales conducted by GSA, a 
businessman may have his name placed on the 
mailing list by writing to the GSA Business Serv- 
ice Center which serves the geographical area in 
which he is interested in participating in personal 

f)roperty sales. The addresses of these offices are 
istwi on page 22. 

The Department of Defense maintains a cen- 
tralized mailing list for sales conducted by th« 
Defense Surplus Sales Offices. For inquiries con- 
cerning such property and to have his name placed 
on the mailing list, a businessman should write to 
the Defense Surplus Bidders Control Office, The 
Federal Center, Battle Creek, Mich., 49016. 

Mailing lists are broken down by types of com- 
modities and also by geographical areas of buyer 
interest. Therefore, requests for inclusion on the 
mailing lists should provide : 

1. Full name of individual or business concern. 

2. Complete address. 

3. Commodities or types of property desired 
(i.e., passenger automobiles, construction equip- 
ment, machine tools, etc.) . 

4. Greogruphical area in which it is desired to in- 
spect and i)ia on property. 

The catalogs received will describe the property, 
indicate its specific location, include daises ana time 
for inspection, and give other detailed information 
regarding the sale. 

In addition to sales catalogs which are mailed 
to potential buyers appearing on mailing lists, no- 
tice to the public of sales may also be provided in 
one or more of the following ways : 

1. Through newspapers, radio or television an- 
nouncements. 

2. In trade journals and periodicals. 

3. Through notices placed in public buildings, 
such as post offices, town halls, administrative of- 
fices at county seats, and others. 

4. Through announcement in the Department 
of Commerce publication "Commerce Business 



Daily." This daily publication contains a listing 
of the larger current sales of personal property. 
It mav be obtained at a subscription rate of $15 a 
year ($57 for airmail delivery) by writing to the 
U.S. Department of Commerce, Administrative 
Service Office, Room 1300, New Post Office Build- 
ing, 433 West Van Buren Street, Chicago, 111., 
60607. 

How Property Is Sold. Personal property is 
normally sold on a competitive basis to the highest 
responsible bidder. 

Sales are open to the general public and prop- 
erty is offered in quantities calculated to encourage 
particij)ation by business concerns of all sizes, as 
well as individuals. 

The principal competitive sales methods used 
in Government selling are : 

Sealed Bid in which "Invitations for Bid" con- 
taining all sales terms and conditions, description 
of the property, and understandable instructions 
are mailed to potential buyers. Notice to the pub- 
lic is given through one or more of the several ways 
mentioned above. Bidders enter on the "Invita- 
tion for Bid" form the prices they are willing to 
offer, sign, and return it to the Government (mce 
specified along with the required deposit These 
bids are opened publicly on the announced date, 
awards are made, and successful bidders are 
notified. 

Public Auction in which the traditional com- 
mercial auctioning methods are followed. Cata- 
logs which include instructions are provided po- 
tential buyers, and public notice is given in the 
usual manner. Professionally qualified auction- 
eers are used. 

Spot Bid in which the buyer writes out his bid 
and places it in a bid box. Successful bidders are 
then determined and awards made for each item 
or lot. The buyer then arranges for prompt re- 
moval of the property. Here, again, information 
regarding the property and instructions for plac- 
ing bids are supplied to those on mailing lists and 
the usual public notice is provided. In many cases 
a provision is made which enables prospective pur- 
chasers who find it impossible to attend the sale in 
person to submit mailed bids. 

General Conditions of Sale. Close attention 
should be given to the instructions provided in 
sales brochures and announcements concerning 
scheduled sales. 

Bidders are customarily required to submit a 
deposit with their bids, generally amounting to 20 
percent of the total bid. For successful bidders 
the sales brochure will describe the steps necessary 
to complete payment and remove the property. 
For unsuccessful bidders, deposits will be refunded 
promptly. 

All bidders are urged to inspect the items on 
which they plan to bid since the property is offered 
on an "as-is, where-is" basis. 



18 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



SALES OF REAL PROPERTY 

Real property offered for sale b^ the Govern- 
ment is known as surplus ; that is, it is property no 
longer needed by any agency of the Federal Gov- 
ernment to perform its fonctions. 

The General Services Administration is the 
principal Government agency responsible for the 
sale of sui'plus real property to the public. Sales 
for fiscal year 1964 were approximately $340 mil- 
lion, based on acquisition cost to the Govenmient. 

What Real Property Does the Government Sell? 
The typ^ of real property available for sale range 
from unimproved rural and urban land to im- 
proved commercial and industrial facilities. This 
surplus property consists of residences, residential 
lots, factories, office buildings, warehouses, and 
nearly every type of property sold on the com- 
mercial market. 

How Is Sales Information Obtained? Scheduled 
sales of real property are widely publicized 
through paid advertising and announcements and 
are listed daily in the publication, "Commerce 
Business Daily." (See pp. 17, 24-25 for informa- 
tion on where to obtain copies.) 

Mailing lists are maintained in each GSA re- 
gional office of persons or firms who have indicated 
an interest either in a particular property or a type 
of property which might become availaole for sale 
wiuiin the region. Each GSA regional office also 
has a complete list of real property available for 
sale throughout the Unitea States, the Common- 
wealth of Puerto Rico, and the Virgin Islands. 

To obtain information or to have his name 
placed on a mailing list for specified real or per- 
sonal property or for particular types of property 
which might become available for sale, the ousi- 
nessman should write to or visit the Business 
Service Center at the General Services Admin- 
istration office nearest him (see map, p. 23) or 
to tlie Utilization and Disposal Service, General 
Services Administration, "Washington, D.C., 20405. 

A pamphl^ "Disposal of Surplus Real Prop- 
erty," describing the real property sales program 
and how property may be obtained is available, 
w^ithout cnarge, from any office of the General 
Services Adnunistration. 

How Is Surplus Real Property Sold? Surplus 
real property is normally sold on a competitive 
basis to the highest acceptable bidder, either by 
sealed bid or puolic auction. Sales are open to the 
general public and property is parcelea for sale 
in a manner which makes it attractive to the widest 
available market, including individuals and small 
business concerns whenever possible. 

PROPERTY REHABILITATION PROGRAM 

The Property Rehabilitation Division of UDS 
is r^ponsible for the rehabilitation (repair and 
refinishing) of items of personal proper^ such as 
office furniture^ household and quarters nimiture, 
hospital and mstitutaonal fumitoie, <^oe ma- 
chines, i.e., typewriters, adding machines, major 



household appliances, i.e., kitchen ranges, refriger- 
ators, washers, dryers^ etc., and mattresses and 
other items as may be included in the future. 

For this purpose^ the program depends pri- 
marily on small busmess concerns for the actual 
repair and refinishing of the items described. 

Contracts are obtained through competitive 
bidding procedures released by individual re^onal 
offices E)cated in nfiajor cities of the United States 
(see map, p. 23) . Tliese contracts involve, for the 
individual business concern, a sales volume that 
ranges from several thousand dollars to more than 
a hundred thousand dollars a year, depending upon 
the volume of business present in a given area and 
the size of the establishment 

The general trend is toward expansion of the 
number of contracts to be utilized and the volume 
of work involved. The type of rehabilitation per- 
formed is comparable to that practiced commer- 
cially and usually includes furnishing transporta- 
tion of items to and from customer agencies within 
an acceptable transportation range. 

FEDERAL SUPPLY SERVICE 

The Federal Supply Service contracts for or 
purchases more than a billion dollars worth of 
material or services eachyear, to supply the needs 
of executive agencies. This purchasmg is carried 
out by buying divisions located in each of GSA's 
10 remonal <3ices and by a Procurement Opera- 
tions Division in GSA's Central Office in Wash- 
ington, D.C., with a branch office in New York 
City. 

An extremely wide varietv of goods and serv- 
ices is purchased by these buying activities but 
only a relatively small portion of the total pur- 
chases are for items used by GSA itself. The 
Service's primary responsibility is to keep other 
agencies supplied with the materials and services 
they need to carry out their respective program 
operations. Vast quantities of ^neral products 
and items, other than strictly military material, 
areprocured and supplied to military activities. 

These supply support programs are accom- 
plished through the following types of procure- 
ment and supply activities. 

GSA SUPPLY DEPOT PROGRAM 

GSA supply depots are located in each of the 
regional omces shown on the map on page 23, and 
stock thousands of items of general commodities 
repetitively required by Federal agencies. 

The items carried in Stores Stock are those which 
are consumed or needed in the day-to-day opera- 
tions of Federal agencies, and which can be most 
advantageously furnished through storage and 
issue. 

Keplenishment of stores stock items is accom- 
plished through definite quantity purchases, or 
through the establishment of term contracts 
against which replenishment orders are issued as 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



19 




stocks are depleted. As in the case of the Federal 
Supply Schedule Contracts Program mentioned 
below, contracting is handled on either a central 
or regional basis depending upon the character of 
the commodity mvolved. When term contracts 
are awarded centrally particular attention is given 
to the issuance of mvitations on a zone basis in 
order to provide maximum opportunities for small 
businesses to complete. When consolidated definite 
quantity contracting is found to be the most ad- 
vantageous method of procurement, large lots are 
carefmly scrutinized and adjusted with the objec- 
tive of making maximum reasonable use of the pro- 
duction and distribution capacities of small busi- 
ness concerns. 

A majority of the items shown in the Stores 
Stock Catalojg are replenished either through local 
purchase action on a definite quantity basis by the 
regional offices, or by the issuance of delivery or- 
ders against regional or national term contracts. 
Regional term contracts are particularlv advan- 
tageous to small business concerns since they cover 
a continuing requirement which can reasonably be 
estimated in advance. A lar^ proportion of the 
local purchasing which is not mclud!ed in regional 
term contracts is handled through small purchase 

Srocedures prescribed in the Federal Procurement 
^gulations which are specifically designed to 
simplify procurements from small business 
concerns. 

Prospective suppliers may review the items car- 
ried in the GSA Stores Stock Catalog by referring 
to copies of the catalog which are available for in- 
spection at any of the regional Business Service 
Cjenters, or copies may be purchased through the 
Superintendent of Documents, Government Print- 
ing Office, Washington, D.C., 20402. 

FEDERAL SUPPLY SCHEDULE CONTRACTS 

In terms of dollar value and range of items 
covered, the Federal Supply Schedule Program is 
the largest program carried out by the Federal 
Supply Service. The Federal Supply Schedules 
are an organized listing of contracts against which 
Federal agencies may place delivery orders as 
needs develop. These schedules are published by 
GSA and msule available to all agencies having an 



anticipated need. They cover a definite range of 
items which are available for direct delivery from 
the supplier to the requisitioning or using agency 
at prices, and under contracting conditions, which 
have been established in advance. They do not 
obligate the Government to purchase any definite 
quantity. Each is a reauirea source for some spe- 
cified group of Federal agencies, or for Federal 
agencies located in a specified area. Schedule con- 
tracts are available as an alternate source of supply 
for Federal agencies which are not required by 
regulation to use them on a mandatory basis. 

Federal Supply Schedule contracts are handled 
on either a central or regional basis depending 
upon the character of tlie conmiodity involved. 
Schedule contiucts awarded centrally are zoned to 
provide maximum opportunities for small busi- 
nesses to compete. 

Under this program "indefinite quantity" or 
"term" contracts are awarded for items which are 
in common and recurring use by the various Fed- 
eral agencies. Information concerning the range 
of commodities involved in this program can be 
obtained from a review of the Federal Supply 
Schedule Checklist and Guide, published quar- 
terly, which contams a general index of the com- 
modities and a list of me schedules currently in 
effect. More detailed information concerning the 
contracting policies for specific items may fe se- 
cured from regional GSA Business Service Cen- 
ters. 

CONSOLIDATED PURCHASE PROGRAM 

Certain Federal agencies' requirements, such as 
motor vehicles, household and quarters furniture 
and coal, constitute a large and easily predictable 
volume that can be consolidated into periodic pro- 
curement cycles. The total quantities needed are 
incorporated into definite quantity invitations for 
bids for direct delivery to the ordering agency. 
This program is also conducted on both a national 
and regional basis, depending on the character of 
the commodity involved. Whenever feasible, por- 
tions of these procurements are set aside for small 
business concerns. 

SPECIAL PURCHASE PROGRAMS 

In addition to the regular programs discussed 
above, the Federal Supply Service on a continuing 
basis undertakes special purchase programs which 
normally involve onlv the requirements of a single 
agency. For example, purchases of a wide variety 
of supplies are made on behalf of the Agency for 
International Development for shipment overseas. 
In addition to a special program carried out by 
AID to publicize the procurements, the Federal 
Supply Service has adjusted its techniques to en- 
courage small business participation. For ex- 
ample, the purchasing is decentralized and handled 
through simplified open market procedures when- 
ever x>o6sible. Export arrangements have been 
established so that the small business supplier de- 



20 



FEDERAI/ HANDBOOK FOR SMALL BnSINES& 



siring to participate does not have to be an export 
merchant and in many cases may offer his domestic 
item as packaged for domestic use with GSA 
handling all matters of export packing and 
shipping. 

SIMPLIFIED PROCEDURES AID SMALL BUSINESS 

Contract forms, methods, and procedures have 
been simplified to make it easier for small business 
concerns to participate in FSS programs. An up- 
to-date list of commodities normally purchased is 
available and streamlined methods of placing new 
suppliers' names on mailing lists have been de- 
veloped. Certain types of contracts are personal- 
ly delivered to small business contractors at which 
time terms and conditions are reviewed to help 
them avoid pitfalls and difficulties which might 
otherwise occur. In addition, quality control m- 
spectors assist small business firms in meeting con- 
tract requirements and in solving production, de- 
livery, and quality control problems. 

The Federal oupply Service is interested in 
keeping the Federal Supply System up-to-date 
through the introduction or new and improved 
items. For this purpose counseling services are 
provided at each GSA's Business Service Centers 
and special procedures are used to assure prompt 
and receptive processing of supplier applications 
to introduce new and improved items into the Fed- 
eral Supply System. 

INSPECTION OF PURCHASED COMMODITIES 

Government procurement regulations require 
that materials and services purchased be inspected 
prior to acceptance and pavment by the Govern- 
ment This inspection may be performed at source 
(supplier's plant) or at destination (consignee lo- 
cation). 

The supplier, prior to submitting a bid, should 
thoroughly review the contractual requirements. 
Specialattention should be given to any referenced 
technical specifications in order to insure that the 
supplier thoroughly understands what will be re- 
quired, and evfQuates his capability of meeting 
wiese requirements before submitting a bid. 

Effort is made to prevent costly errors in con- 
tracting for Government supplies by^ having a 
preproduction meeting between a cognizant dov- 
emment inspector and the supplier. At such a 
meeting a thorough review should be made of the 
govemmg specifications. 

It has been the experience of Government 
inspection activities that most rejections of con- 
tractor's materials are due to an incorrect inter- 
pretation of the technical specifications by the 
contractor. It is a requirement in contracts that 
suppliers establish proper quality controls over 
production of the required product, and submit to 
the Government inspection representative for ac- 
ceptance only materials that have been inspected, 
tested, and found to comply with contract specifi- 
cation requirements. 



RELATIONSHIP OF FEDERAL SPECIFICATIONS AND 
STANDARDS TO SMALL BUSINESS 

Small business concerns are often unfamiliar 
with the purpose and use of the various types of 
specifications and standards in use in the Fed- 
eral Government. The following explanation is 
intended to provide a better understanding of this 
important phase of Federal Government supply 
operations. 

Wherever feasible, the Federal Government 
makes its procurements on a competitive basis. 
Federal specifications and standards provide the 
basis for achieving this objective. Specifications 
provide clear and accurate descriptions of the 
product or service being procured, and specify the 
minimum requirements tor quality and construc- 
tion of materials and equipment necessary for an 
acceptable product. Standards reduce to a mini- 
mum the number of qualities, sizes, colors, varie- 
ties, and types of materials and commodities being 
procured. 

Federal avecificationa and standards are de- 
signed for tne protection of the Government, in 
that it must secure the best product at the low- 
est competitive price to meet the service needs 
of the Federal agencies. Participation by large 
and small suppliers on an equal basis in supply- 
ing Government requirements broaden sources of 
supply and assures greater supplier participa- 
tion. 

In order to assure that small business gets its 
fair share of Government procurements. Federal 
specifications are thoroughly coordinated with all 
segments of industry, small as well as large, lo- 
cated in representative geographical areas of the 
country. By this means, the small producer plays 
a part in the development of the specifications and 
his interests are reflected. In addition. Federal 
specifications are coordinated with technical so- 
cieties and associations, trade associations, and 
with using Federal agencies. 

Evaluation of New Items. Firms interested in 
having new products included in the Federal Sup- 
ply System may fill out the appropriate applica- 
tion at any GSA regional omce. If evaluation 
indicates procurement of the item would be in the 
best interest of the Government, the item will be 
included in the Federal Supply System. 

Availobility of Federal Specifications, Standards, 
cmd Handbooks. An index of all current specifi- 
cations, standards, and handbooks is issued as of 
January 1, each year with cumulative monthly sup- 
plements being issued during the year. Copies of 
the Index and Supplements may be purchased on 
a subscription basis from the Superintendent of 
Documents, U.S. Government Printing OflSce, 
Washington, D.C., 20402. The current domestic 
subscription cost is $1.50 and checks or money or- 
ders should be made payable to "Superintendent 
of Documents." 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



21 



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22 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Copies of current Federal Specifications and 
Standards needed by business concerns for Gov- 
ernment bidding and contracting purposes are 
available without charge from any of the GSA 
Business Service Centers (see map, p. 23). Com- 
plete libraries, and copies wanted by individuals 
or organizations not involved in Government bid- 
ding and contracting, may be purchased through 
the GSA Business Service Center in Washington, 
D.C., at the prices shown in the index or supple- 
ment thereto. Orders should be accompanied by 
cheeky postal money order, cash, or Government 
Printmg Office coupons in the proper amounts for 
the particular documents and quantities needed. 
Checks and money orders should be made payable 
to the "Gteneral Services Administration." Gov- 
ernment Printing Office deposit account numbers 
will be honored. Government bidders who are not 
certain exactly what specifications are needed 
should make mquiry directly to the particular 
Government agency contracting office which is re- 
questing bids. 

GSA REGIONAL OFFICES AND BUSINESS 
SERVICE CENTERS 



Frank J. O'Connor 
Regional Director of 

Business Affairs 
General Services 

Administration 
U.S. Post Office and 

Courthonse 
Boston, Mass. 02109 
Tel: 223-2868 

John F. Clark 
Regional Director of 

Business Affairs 
General Services 

Administration 
30 Church Street 
New York, N.Y. 10007 
Tel: 294-1234 
William F. Donlin, Jr. 
Regional Director of 

Business Affairs 
General Services 

Administration 
7th and D Streets SW. 
Washington, D.O. 20407 
Tel: worth a-4147 

William W. Barron 
Regional Director of 

Business Affairs 
General Services 

Administration 
1776 Peachtree Street NW. 
Atlanta, Ga. 30309 
Tel : 526-5661 



John F. Daley 
Regional Director of 

Business Affairs 
General Services 

Administration 
219 South Dearborn Street 
Chicago, 111. 60604 
Tel: 828-5383 

Thomas W. Lacy 
Regional Director of 

Business Affairs 
General Services 

Administration 
1500 East Bannister Road 
Kansas City, Mo. 64131 
Tel : EMerson 1-7200 

Randolph M. Jackson 
Regional Director of 

Business Affairs 
General Services 

Administration 
1114 Commerce Street 
Dallas, Tex. 75202 
Tel: Riverside 9-3355 

Price J. George 
Regional Dii-ector of 

Business Affairs 
General Services 

Administration 
Denver Federal Center, 

Building 41 
Denver, Colo. 80225 
Tel: 233-6689 



John J. Murphy 
Regional Director of 

Business Affairs 
General Services 

Administration 
Federal Office Building 
909 First Avenue 
SeatUe, Wash. 96104 
Tel: 583-5558 



Robert J. Ireland 
Regional Director of 

Business Affairs 
General Services 

Administration 
49 Fourth Street 
San Francisco, Calif. 

94103 
Tel : 556-2114 

Mrs. Margaret Bayless, 

Manager 
Business Service Center 
General Services 

Administration 
417 South Hill Street 
Los Angeles, Calif. 90013 
Tel: 688-3210 



BIBLIOGRAPHY OF GSA PUBLICATIONS 

The following publications are available, with- 
out charge, from neld offices of GSA, Small Busi- 
ness Administration and Department of Com- 
merce: 

Doing Business With the Federal Government 
A Guide to Specifications and Standards of 
the Federal Government 
The following guides are available, without 
charge, from GSA Business Service Centers : 

Sales Promotion in Selling to the Federal 

Government 
LeasingSpace to the Government 
Public Building Design and Construction 
Government Business Opportunities 
Federal Supply Schedule — Checklist and 

Guide 
Disposal of Surplus Eeal Property 
Sale of Government Personal Property 
The following publications may be purchased 
from the Supermtendent of Documents, Govern- 
ment Printing Office, Washington, D.C.« 20402 : 
Federal Procurement Be^ations, ^7.50 
Index of Federal Specifications, Standards 

and Handbooks, $1.50 
Common Shipping Faults and Their Reme- 
dies, 25^ 
Help Prevent Loss and Damage, 30^ 
How To Prepare and Process U.S. Govern- 
ment Bills of Lading, 850 
Stores Stock Catalog, $2.25 



FEDERAL HANDBOOK FOR SBAALL BUSINESS 



23 



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64-64a' 




Department of Defense 



SELLING TO THE MILITARY 

INTRODUCTION 

To sell to the Department of Defense, business 
finns must identify those offices wliich buy the 
supplies or services the firm has to offer, or has 
a capability to offer. 

Business firms must compete for Defense work 
and meet terms of contracts awarded, just as 
is the case in selling to commercial firms. 

Tlie Department of Defense wants to do busi- 
ness with all competent firms in order to get com- 
petition among those who offer products or serv- 
ices that are required. Purchasing activities par- 
ticularly want small business firms and firms in 
labor-surplus areas to offer their products to sup- 
ply Defense needs. 

Business firms, too, must help themselves by 
learning how the Department of Defense con- 
ducts its business, and by seeking out those mili- 
tary purchasing offices which buy supplies and 
services the firm can supply. 



Remember . . . basic principles followed in 
selling within the commercial business field equal- 
ly apply in selling to the Department of Defense. 

• Learn your customer's needs, his buying pol- 
icies and practices, and where buying is done. 

• Follow leads to search out selling opportuni- 
ties in all segments of Defense organization. 

This pamphlet is intended to provide business 
firms, which have little or no experience in selling 
their products or serv-ices to the Department of 
Defense, w^ith basic steps and initial contacts for 
locating sales oppoi*t unities. 




PART I 



MAKING YOUR CAPABILITIES KNOWN 

• Complete "Bidder's Mailing List Application" 
(p. 27), along with "Bidder's Mailing List Ap- 
plication Supplement" (p. 29) . Additional copies 
of these forms are available at all Defense pro- 
curement offices. 

• Send completed forms to each Defense pro- 
curement office that has buying responsibility for 
products or services you can furnish. 

• Principal purchasing offices of Department 
of Defense and the types of commodities and serv- 
ices they buy are listed under part II. 

Many procurement offices will supply a check- 
sheet of the commodities and services they buy 
so you can specifically identify those which your 
firm can produce. Care should be exercised in 
completing the forms and in describing supplies 
or services you have to offer. If possible, the 
number of the Government specification your sup- 
plies meet or can be made to meet should be 
indicated. 

Specificatimis for items used by the military 

are generally available at procurement offices 

whicli have responsibility for buying the item. 

Specifications can also be secured from the Naval 

24 



Supply Depot {ATTN: Code DCI), 5801 Tahor 
Avenue^ Philudelphia^ Pa,^ 19120 (Telephone: 
KAndolph 8-1212, ext. 528 or 530). The partic- 
ular specifications desired should be identified by 
number and title in your request. 

Each procurement office that has your firm 
on its "bidders' lists" will forward "Invitations 
for Bids" (IFB's) or "Requests for Proposals" 
(RFP's) as requirements develop for supplies or 
services you have offered. When your firm re- 
ceives IFB's or RFP's, a bid or proposal should 
be offered or the purchasing office should be in- 
formed that the firm is unable to bid but desires 
to remain on the active bidder's list. Otherwise, 
the firm may be dropped from the bidders' list. 

Opportumties should he sought cmitinuously to 
he in^hided on the hidders^ lists of the varwus De- 
fense procurement offices lohich hai^e huying re- 
sponsihiUty for supplies and services your fnn 
lias to offer, 

COMMERCE BUSINESS DAILY 

The "COMMERCE BUSINESS DAILY" is 
a valuable source of information to businessmen 
in identifying products and services which in- 
dividual procurement offices currently plan to 
buy. This Federal publication lists : 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



25 



• Current Defense Department proposed pro- 
curements estimated to exceed $10,000 and civilian 
agency procurement expected to exceed $5,000; 

• Recent contract awards — which provide 
''leads'' to subcontracting opportunities; 

• Surplus sales information; and other infor- 
mation helpful to businessmen who seek to partici- 
l>ate in Federal procurement activities. 

The "Commerce Business Daily" is published 
Monday through Friday and may be purchased on 
annual subscription for $15 by regular mail or $42 
for an airmail edition. Checks or money orders 
should be made payable to the "U.S. Department 
of Commerce" and mailed to: 

U.S. Department of Commerce 

Administrative Services Office 

Room 130a New Post Office Building 

433 West Van Buren Street 

Chicago, 111., 60607 
The "Daily" is also available for inspection at 
each of the 60 field offices of the Small Business 
Administration, the 34 field offices of the Depart- 
ment of Commerce and at approximately 700 co- 
operating offices, including many local chambers 
of commerce. 

SUBCONTRACTING 

One of the greatest opportunities small business 
firms have for participating in Dej>artment of 
Defense business, other than contracting directly 
with a Defense Agency, is by subcontracting with 
firms that have Department of Defense contracts. 
Opportunities in the subcontracting field are often 
overlooked by small business firms. 

Department of Defense contracts in the amount 
of $500,000 or more, having substantial subcon- 
tracting possibilities, require that the contractor 
maintain a Defense Small Business Subcontracting 
and Labor Surplus Area Program. Such con- 
tractors are required to designate a Small Business 
Liaison Officer who administers the company sub- 
contracting program. These programs are de- 
signed to assist small business firms and to afford 
them opportunities to participate in Defense work 
as subobntactors. The Commerce Business Daily 
is useful in identifying firms which offer subcon- 
tracting opportunities. 

LOCAL PURCHASES 

Certain needs of each military camp, post, base, 
station, or installation are met by a purchasing 
office at the installation. Such purchases are 
generally for small quantities of items or specific 
services needed by the installation initiating the 
purchase. For the most part such purchases are 
made from sources near the purchasing installa- 
tion. Business firms should investigate the re- 
quirements of military installations within their 
geographical area. 

MILITARY EXCHANGE SERVICES 

Each military exchange located at installations 
in the United States purchases or contracts for its 



own needs. The exchange (^cer, or his representa- 
tive, should be contacted at each military installa- 
tion where business firms desire to offer their 
products or services. This may be accomplished 
by writing or telephoning the exchange officer at 
each military installation. 

MILITARY COMMISSARY STORES 

Items sold through military commissary stores 
are purchased by either (1) Defense Personnel 
Support Center, 2800 South 20th St., Philadel- 
phia, Pa., 19101, or (2) individual military com- 
missai'y stores at installations where stores are 
located. Information on how to participate in 
supplying needs for commissary stores may be 
obtained oy writing or telephoning the Defense 
Subsistence Supply Center or the Commissary 
Store Officer at the nearest military installation. 




SOURCES OF INFORMATION ON DEFENSE PRO- 
CUREMENT 

There are many offices within the Department of 
Defense, and in other Grovemment agencies, that 
provide guidance and information to assist busi- 
ness firms and individuals who seek opportunities 
to participate in supplying Department of Defense 
requirements. There are one or more military 
procurement offices in virtually every major city 
in the United States. These offices are equipped 
to provide information and guidance to individuals 
and business firms on how they can compete for 
Defense work. Small Business Specialists on the 
staff of these major military procurement offices 
are anxious to assist small business firms in obtain- 
mg information on (1) military procurement ; (2) 
being placed on appropriate bidders' lists; and (3) 
identifying subcontract opportunities. 

Other Government agency field offices, including 
those of the Small Business Administration, Gen- 
eral Services Administration, and the Department 
of Commerce are also equipped to assist business 
firms in locating opportunities to participate in 
military procurement. Further, many local cham- 
ber of commerce offices have facilities to provide 
similar guidance. 



26 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



FEDERAL PROCUREMENT INFORMATION OFFICES 
IN WASHINGTON, D.C. 

These o-fficea do not let contracts or make jmr- 
rJuises but are available for the jmrpose of provid- 
ing information and guidance on Federal procure- 
ment activities. 

Defense Procurement Information Ofl9ce, Office of the 
Assistant Secretary of Defense ( Installation and Ix)gis- 
tics), Washington, D.C. Room 3D777, Pentagon, Tel: 
Oxford 7-1481. 

Army Small Business Adviser, Office of the Assistant Sec- 
retary (Installations and Logistics), Department of the 
Army, Washington, D.C. Room 2Ed91, Pentagon, Tel : 
Oxford 7-8113. 

Navy Small Business Adviser, Office of Naval Material, 
Department of the Navy, Washington, D.C. Room 
2203A, 18th and Constitution Avenue. Main Navy Build- 
ing, Tel : Oxford 6-7612. 



Air Force Small Business Adviser, Office of the Deputy 
Chief of Staff (Systems and Logistics), Directorate of 
Procurement Policy, Department of the Air Force, Wash- 
ington, D.C. Room 4C279, Pentagon, Tel: OXford 
7-4126. 

Defense Supply Agency Small Business Adviser, Director- 
ate of Procurement and Production, Defense Supply 
Agency, Cameron Station, Alexandria, Va. Room 119A, 
Building 4, Cameron Station, Tel : OXford 8-1471. 

Director of Business Services, General Services Admin- 
istration, Region No. 3, 7th and D Streets SW., Wash- 
ington, D.C. Room 7604, Tel : WOodley 3-4147. 

Small Business Advisory Service Center, Small Business 
Administration, 811 Vermont Avenue NW., Washington, 
D.C. Main Lobby, Tel : DUdley 2-3848. 

Business Service Center, Department of Commerce, 14th 
and Constitution Avenue NW., Washington, D.C. Main 
lobby, Tel : WOodley 7-5201. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



27 



BIDDER'S MAILING LIST APPLICATION 



mm/U. APPLICATION 



REVISION 



All answers should M typed or printed. See reverse for information and instructions. 


TO; ■ 


DATE OF THIS APPLICATION 


1. NAME OF APPUCANT 


2. ADDRESS TO WHICH BIDDING FORMS ARE TO BE MAILED 


3. AOORGSS OF MAIN BUSINEB OFFICE 


4. HOW LONG IN PRESENT BUSINESS 


8. TYPE OF ORGANIZATION (CAmA <mm) 

D MPMOUM. LJ rMmCRSNIP LJ coworation 


6. IF INCORPORATED. INDICATE IN WHICH STATE 



7JIAMES OF OFFICERS. MEMBERS OR OWNERS OF^ONCERN. PARTNERSHIP. ETC 



(B) VKE PRESlOOfT 



(D) TItCASUIIEII 



q ^ i mf OH fMCIMSS 



S. AFRLIATED CONCERNS (JV«aM. iacmtion, mn4 h% dtmU, cantroUing inimft in moA) 



S. PERSPNS OR CONCERNS AUTHORIZED TO SIGN BIOS AND CONTRACTS IN YOUR NAME (J/ mgtti. m apuoUy} 


NAME 


OPPKML OMGITV 
















NAME 


omoAL CAMcrrv 


nUTNONCNO. 





















II. INDICATE GLASSeS OF EQUIPMENT. SUPPLIES. MATERIAL. ANCHOR SERVICES ON WHICH YOU DESIRE TO BID (Vm mtfck^ Uai, M mg^} 



12. CATEGORY i/tm ^•Mnitiant on thm rwmm c/ thh form mad chtok 
LJ (A) MiWUPACTWai OR MOOUCBt 



bmiom th0 oaNJofjr wUeh mppUM to I 
LJ (C) MSUUW DEAUR <7>p« J) 
U (tt) atHVICE EETAMSMMgirr 



II. NUMBER OF PERSONS NOW EMPLOYED 



14. FLOOR SPACE (Svuato #m«) 



WAKHOmC 



IS. NET WORTH 



TWS. SPACE rOR USE lY THE ttOVERNMENT 



17. Z certify that the information euppUed herein {inoiuding a// 
pmgem attaeh^d) i* correct and that neither the applicant 
nor any person (or oonearn) In any* connection with the 
applicant aa a principal or oflioer, ao far aa it known, it now 
deDarred or otherwise declared ineligible by any agency of the 
Federal Qovemment from bidding for fumiahing materials, 
supplies or services to the Oovemment or any agency thereof. 



SIGNATURE OF PERSON AUTHORIZED TO SIGN THIS APPLICATION 



It. NAME AND TITLE OF PERSON SIGNING (PImm trfotpHnti 



28 FEDERAL HANDBOOK FOB SMALL BUBINB8S 



INFORMATION AND INSTRUCTIONS 

Penont or concerns wUhing to be added to a particular agency's bidder's mailing list for supplies 
or services shall file this properly completed and certified Bidder's Muling List Application* together 
with such other lists as may be attached to tiie application formi with each procurement office of 
the Federal agency with which they desire to do business. The application eh^ll ba aubmittad 
and aigned by tha principal aa diatintuiahad from, an agant, howavar oonatitated^ 

After placement on the bidder^s mailing list of an agency, a suppli er 's fii^nre to req^ond (aub* 
miaaion oi bid, cr notice in writing that you are unable to bid on that particular trana^" 
action but wiah to remain on the active bidder' a mailing Hat for that particular item) 
to Invitations for Bids will be understood by the agency to indicate lack of interest and concurrence 
in the removal of the supplier's name from the purchasing activity's bidder's mailing list for the 
items concerned, 

CATEGORY DEFINITIONS 

(Sm Item Ho, 12) 

A. MANUFACTURER OR PRODUCER means a person (or concarn) owning, operating, or 

maintaining a factory or establishment that produces, on the pwmisss, tha materials, supplies^ 
artides, or e quipmen t of the general character of those listed in item Nb« lU 

B. REGULAR DEALER (Type 1) means a person (pr concern) who owns, operates, or main* 

tains a store, warehouse, or other establishment in which the materials, supplies, articles, 
or eq uipme nt of the general character listed in item No. U are bought, kept in stock, and sold 
to the public in the usual course of business* 

C. REGULAR DEALER (Type 2) in the case of supplies of particular kinds (at preaant, petro* 

leum, lumber and timber producta, coal, machine toola, raw cotton, green coffee, 
or hay, grain, feed, and atraw) "Regulak Dbalbr" jlheans a person (or concern) satis- 
fying the requirements of article 101 (b) of the regulations, as amended jfrom time to time, 
prescribed by the Secretary of Labor under the Walsh-Healey Public Contracts Act (41 U. S. 
Code 35-45). 

D. tSBRVICE ESTABLISHMENT means a concern (pr paraon) which owns, operates, or nudn* 

tains any type of business which is principally engaged in the furnishing of no np ersonal senr- 
kes, sttdi as (but not limited to) repairing, cleaning, redecorating, or rental of personal 
p roperty, including the furnishing of necessary repair parts or other scqiplies aa part of the 
■enrices performed. 



INDERAL HANDBOOK FOB SMAU< BXTSINB88 



29 



IFofin AppfDvod 
Bu48et Bunm No. 22- 



BIDDER'S MAILING LIST APPLICATION SUPPLEMENT 



R09U 



IF ADDITtONAL SPACE tS REQUtRED, ATTACH SKPARATK SHBBT AND RBFBR TO tTBtt NUUBBR 



NUMB BR 

OF 

EMPLOVeCS 



MAXIMUM UKVKU 



OPgWATiOMS AT 



MiN IMUM (Dufing Immt 2 yr;i 



PftCtCNT UKVKI. 



KNOINCeillNO 



FWOPUCTIOli 



OTHEWt 



CONTRACTS NKLD WITH ARMCD SCRVICCS DURING PAST » YEARS fU«« mupmrnfly) 



CONTRACT NUMSKR 



DCSCRIPTION OP ITEMS 



DOLLAR VALUE 



9. JV^K> OfJ10UIPM|mT, COMPONKNTS. MATERIAL OR SKRVICKt NOW •K|N« MANUFACTURED. PBRrORMBD, OR OBVBLOPBO. 



4. PLOORBPACI 



/a?x3 



SN9INBBRIN0 



UASORATORY 



TOTAL PLOOR SPACE fJhffutflntf W>h UW 4 



TOTAL FLOOR SPA* 

■MMiMclunM^ •pace/ 



B. RRIEF DESCRIPTION OF EUILOINES <Typ* ot CMltflfWCMMl Mrf CM«|) 



•• MACHINERY AND EQUIPMENT^ 



'• TESTIHE AND/ OR kAOORATORY FACILITIES' 



t. ADDRESSES (lh«lllrfin« •Oimttoil^ OF FACTORIES, FOUNDRIES. MINES, OR YARDS. IF ANY (SfCilr) 



SECURITY CLEARANCE ffl ^ppllesMsi. aA»cfc hl0»—t cl— raw mHHartmmd Sy claming —socrJ 



FOR KEY PERSONNEL 



FOR PLANT ONLY 



TOP SECRET 



I CONFIDENTIAL 



CONFIDENTIAL 



LIST DEPARTMENTS WHICH HAVE ORANTBD SECURITY CLEARANCE AND DATES CRANTBD 



IS. INCLOSURESfCftCS^ O FINANCIAL STATEMENTS. INCLUOINO OPSRATINS STATEMENTS O DBSCRiPTIVB LITERATURE 
D ADDITIONAL INFORMATION ATTACHED □ OROCHURE FH CATALOO □ RNOTOSRARNS 



II. 
OATE 



I CERTIFY THAT THE INFORMATION SUPPLIED HEREIN (tfhtding my aitmchmmf) jS CORRECT 
NAME AND ADDRESS OF APPLICAHT 



SISNATURE 



/Olv* Srfsi; tmprmumnfilw ovtllM a# typm and Mnrflf J«i •# atthlnmrr, 
■MRl ($}, m»4 ImUhi— (V •«Mtokf« If ROf •MMtf by fllmi, giwm mtmm 



DD.75r.558-1 



EDITION OF I JAN S4 IS OSSOLBTB. 



30 FEDERAL HANDBOOK FOR SMALb BVSINBSS 

PART II 
DEPARTMENT OF THE ARMY MAJOR BUYING OFFICES 

The Department of the Army's missions for Research and Development, and Procurement and 
Prodnction, are the responsibility of the Assistant Secretary of the Army (Research and Develop- 
ment) and the Assistant Secretary of the Army (Installations and Logistics) respectively. Both 
of these offices are jwlicy offices. No actual contracting is accomplished by either of these offices, 
nor do they maintain bidders lists. 

The U.S. Army Materiel Command has responsibility for the major part of the research and 
development and materiel procurement functions formerly assigned to the Army technical services. 
However, there are certain missions and functions assigned to other elements of the Army, which 
are as follows : 

The UjS. Aiiiiy Corps of Engineers is responsible for contracting for military construction, 
maintenance, and repair of buildings, structures and utilities, and civil works such as river and 
harbor impravemeat, flood control, hydroelectric power, public utility services and related projects. 

Tlie Army Medical Service provides supplies and services for the support of Army Medical 
Centers and General Hospitals under the command jurisdiction of The Surgeon General. The 
Army Medical Service does not procure standard items of medical material. Such items are 
purchased by the Defense Medical Supply Center, a procuring activity of the Defense Supply 
Agency. Procurcment responsibilities remaining at the Army Medical Service consist of the 
following : 

1. Contracts for supplies and services in direct support of missicMis at major hospitals and 
medical centers. Mission support items for the Army Medical Service consist of medical, dental, 
laboratory and hospital equipment and supplies; X-ray and photographic equipment and supplies ; 
hospital furnishings ; kitchen equipment^ drugs and chemicals ; occupational and physical therapy 
supplies ; equipment, supplies, and services required for plant maintenance. 

2. Contracts for research and development in areas of basic and applied medical and scientific 
research applicable to medical treatment supplies and equipment 

3. Contracts for medical and hospitalization services under the provisions of the Medical Care 
Act (Public Law 85-861) . 

The Continental Annies: Purchases in this area (generally identified as "local purchases'') 
consist of the many items needed in the daily operations of posts, camps, and stations of the Depart- 
ment of the Army. Most of these items are obtained from local business sources or from stocks of 
other Government agencies. Items purchased are generally commercial type rather than military ; 
are not complex or are less complex than items procured by major procurement offices. Post, camp, 
and station procurement also includes minor construction, repairs, and utilities, painting, and other 
supplies and services incidental \o the "housekeeping*' activity of the installation concerned. 

Headquarters, U.S. Army Materiel Commond 

Woshinglon, D.C. 
T«l»phen«: Cedt 202, OXford 7-4447 or 7-5978 

The U.S. Army Materiel Command, with headquarters in Washmgton, D.C., has materiel 
procurement f imctions formerly assigned to the Army teclmical services. Except for those items 
procured and furnished the Army under Department of Defense single-department procurement 
programs or hj the Defense Supply Agency, or authorized for procurement from the General 
Services Administration, the U.S. Army Materiel Command supervises all Army procurement 
which is accomplished at the Separate Activities and Detachments listed on page 31 or the 
"Commands" listed on pages 32 to 34. 



FEDERAL HANDBOOK FOR BMALL BtTBINEBS 3] 



SEPAiATE Acnvmis 

U.S. Army Harry Diamond Laboratories U.S. Army Pictorial Cent^ 

Washington, D.a 20438 35-11 35th Avenue 

Area Code: 202 244-7700 Long Island City, N.T. 11106 

U.S. Army Natick Laboratories Area Code: 212 AStoria 4^100 

Natick, Mass. 01702 *Watertown Arsenal 

Area Code: 617 653-1000 Watertown, Mass. 02172 

Area Code: 617 926-1900 

PROCUREMENT DETACHMENTS 
U.S. Army Chicago Procurement Detachment U.S. Army Southwest Procurement Agency 

623 South Wabash Avenue 55 South Grand Avenue 

Chicago, 111. 60605 Pasadena, CaUf. 91109 

Area Code: 312 WEbstor 9-6000 Area Code: 213 SYcamore 6-X)471 

U.S. Army Cincinnati Procurement Detachment U.S. Army Northwest Procurement Agency 

Federal Office Building 1515 Clay Street 

550 Main Street Oakland, Calif. 94604 

CincinnaU, Ohio 45202 Area Code: 415 834-4121 

Area Code: 513 381-2200 

•Closing. 
U.S. Army New York Procurement Detachment 

207 West 24th Street 

New York, N.Y. 10011 

Area Code : 212 ORegon 7-3030 

Major subordinate commands of the U.S. Army Materiel Command responsible for procure- 
ment and the types of materiel they procure are : 

Headquarters, U.S. Army Mobility Command 

Buildtne 230, Dttroit Arscnol, Worrsn, Mich. 
Telephone: 756-1000 Areo Cede 313 

Mission: Exercises integrated commodity management of tactical wheeled and general- 
purpose vehicles and aeronautical, air delivery, surface transportation, mapping, geodesy, electric 
power generation, construction and services, barrier^ bridging, stream crossing, petroleum handling, 
and general support equipment and supplies, including design and development; product, pro- 
duction, and maintenance engineering; procurement, production, industrial readiness planning; 
and cataloging. 

U.S. Army Mobility Equipment Center U.S. Army Transportation Research (Command 

4300 Goodfellow Boulevard Fort Eustis, Va. 23604 

St Louis, Ma 63120 Area Code: 703 878^^06 

Area Code: 314 BVergreen 2-8200 », „ a m , . * x, /^ . 

U.S. Army Tank-Automotive Center 
U.S. Army Engineer Research & Development Labora- Detroit Arsenal 

tories Warren, Mich. 48090 

Fort Belvoir, Va. 22060 Area Code: 313 756-1000 

Area Code: 703 781-8200 

U.S. Army Aviation Materiel Command 

12th and Spruce Streets 

St Louis, Mo. 63166 

Area Code: 314 MAin 2-2688 

Headquarters, US. Army Missile Command 

Rtdston* An«nQl, Alo. 35809 

T«l«plion« 876-5441 or 876-3567 Araa Cod* 205 

The XJ.S. Army Missile Command is responsible for integrated commodity management of 
free rockets, guided missiles, ballistic missiles, target missiles, air defense missile fire coordination 
equipment, related special purpose and multisystem test equipment, missile launching and ground 



32 FEDERAL HANDBOOK FOR SMALL BUSINESS 



support equipment, missile fire control equipment, and other associated equipment including (1) 
design and development, (2) product, production, and maintenance engineering, (3) procurement, 
production, and industrial mobilization planning, (4) cataloging and standardization, (5) whole- 
sale inventory management and supply control, (6) new equipment training, design of pertinent 
training devices, and technical assistance to users. The Missile Command is responsible for 
conducting or managing basic and applied research with respect to assigned materiel development 
Major Commodity Areas 

Free rockets, guided missiles, ballistic missiles, target missiles, multisystem test equipment, and 
associated equipment. 

Buying offices : 

Directorate of Procurement and Production Purchasing and Contracting Division 

U.S. Army Missile Command U.S. Army Missile Support Command 

Redstone Arsenal, Ala. Redstone Arsenal, Ala. 

Headquarters, U.S. Army Weapons Command 

Rock Island Areenal, Rock Islond, III. 61202 
Tolophono: 794-5336 Ar«a Cod* 309 

The U.S. Army Weapons Command is a major subordinate Command of the U.S. Army 
Materiel Command and contracts for weapons system, including artillery weapons, infantry 
weapons, secondary armament for vehicles, crew-served weapons, and aircraft weapons systems; 
combat vehicles including tanks, armored personnel carriers, self-propelled artillery and missile 
launchers, tank bulldozers, flamethrowers, armament adaption kits and associated equipment. 
Also, research, design and development; product production, and maintenance engineering; pro- 
curement, production and industrial mobilization planning; cataloging and standardization; whole- 
sale inventory management and supply control; such stock control, storage, distribution, surveil- 
lance, and depot maintenance as may be assigned; new equipment training, design of pertinent 
training devices, and technical assistance to users. 
Major Commodity Areas 

Weapons and combat vehicles : 
Rock Island Arsenal Contracts for replenishment 8i>are parts for artillery, artillery mounts, recoil 

Rock Island, III. 61202 mechanisms, carriages, limbers, and loaders ; handcarts ; arms racks ; 

Area CJode: 309 794-5336 target materiel (except aerial drones) ; training devices and associated 

equipment for the foregoing items ; common tools ; tool sets ; shop equip- 
ment; and raw materials, and hardware items used In arsenal manufac- 
turing operations. 

Springfield Armory Contracts for replenishment spare parts for individual weapons, machine- 

Springfield, Mass. 01101 guns, grenade launchers, secondary armament for combat and tactical 

Area Code: 413 REpublic 9-6911 vehicles, aircraft armament subsystems (gun type), spotting weapons 

mounts and pods ; clips ; links ; linkers ; delinkers ; training devices, and 
associated equipment for the foregoing items; and raw materials and 
hardware items used in arsenal manufacturing operations. 

Water vliet Arsenal Contracts for mortars ; recollless rifles ; cannon assemblies and components ; 

Watervliet, N.Y. 12189 training devices, associated equipment, and replenishment spare parts for 

Area Code : 518 ARsenal 3-4610 the foregoing items ; and raw materials and hardware items used in 

arsenal manufacturing operations. 

Heodquarters, U.S. Army Munitions Command 

Dov«r, N.J. 07801 
Td*phon»: 328-^040 or 328-3011 Arao Codt 201 

The U.S. Army Munitions Command is responsible for integrated commodity management of 
nuclear and non-nuclear munitions. This responsibility includes research, design, and develop- 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



3; 



ment; product, production, and maintenance engineering: procurement and production; proeur^- 
ment, production, and industrial mobilization planning ; related activities. 
Moior Commodity Areos 

Nuclear and non-nuclear ammimition, rocket and missile warhead sections, and demolition 
items; chemical, biological and radiological materiel; propellants and explosives; flamethrowers 
and agents and incendiaries; fire control; mines, non-nuclear bombs, grenades and pyroteclmics; 
meteorological and propellant actuated devices. 



U.S. Army Edgewood Arsenal 
Edgewood Arsenal, Md. 21010 
Area C5ode : 301 : 676-1000 

U.S. Army Biological LaboratorieB 

Fort Detrick, Frederick, Md, 

Area Code : 301 MOnument 3-4111 

Frankford Arsenal 
Bridge and Tacony Street 
PhUadelphia, Pa. 19137 
Area Code: 215 535-2900 

JoUet Arsenal 

Joliet, lU. 60436 

Area Code: 815 423-5511 (El wood, lU.) 



InttalloKont 

Picatinny Arsenal 
Dover, N.J. 07801 
Area Code: 201 328-4106,328-4104 

U.S. Army Ammunition Procurement and Su^ly 

Agency 
Joliet, lU. 60436 
Area Code : 815 423-5511 (Elwood, 111.) 

U.S. Army Pine Bluff Arsenal 

Arsenal, Ark. 71603 

Area Code: 501 JEfferson 4-4600 

U.S. Army Rocky Mountain Arsenal 

Denver, Colo. 

Area Code : 303 ATlas 8-0711 



Headqiiqiters, U.S. Army Electronics Commond 

Fort Menmovth, N.J. 07703 

• 535-1997 Areo Cod* 201 



Tlie mission of the U.S. Army Electronics Command includes the research and development 
and the procurement and production of electronic materials for the Army. 
Maior Commodity Areos 

Communications, Electronic Warfare, Combat Surveillance, Night Vision, Automatic Data 
Processing, Radar, and Meteorological Materiel. 

Inttallotiont 



U.S.. Army Electronics Command 

Fort Monmouth Procurement Division 

Directorate, Procurement and Production 

Fort Monmouth, N.J. 07703 

Area Ck>de: 201 535-1729 

U.S. Army Electronics Command 
Fort Meade Procurement Division 
Directorate, Procurement and Production 
9600 Savage Road 
Fort George O. Meade, Md. 20755 
Area Code : 301 PArkway 5-i400 



U.S. Army Electronics Command 
Philadelphia Procurement Division 
Directorate, Procurement and Production 
225 South 18th Street 
Philadelphia, Pa. 19103 
Area Code: 215 KI 6^200 

U.S. Army Electronics Command 
Washington Procurement Division 
Directorate, Procurement and Production 
814 North St Asaph Street 
Alexandria, Va. 22314 
Area Code: 202 OXford 5-5369 



Headquarters, U.S. Army Test and Evaluation Command 

AbM«fo«i PwvliHI Ground, Md. 21005 
T*l«phon0i 272-4000 Araa Codt 301 

The mission of the U.S. Army Test and Evaluation Command is to command those assigned 
research activities, proving grounds, installations, boards, and facilities required to test equipment, 
weapons, and materiel systems; to plan and conduct tests of materiel intended for use by the 17.8. 



34 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Army or developed by the Army for use by other depaitments of the Government and to assure 
efficient and economic use of test facilities. 



Aberdeen Proving Ground 

Maryland 21005 

Area Code: 301 272-4000 

U.S. Army Electronic Proving Ground 
Fort Huachuca, Ariz. 
Area Code : 002 458-3311 

Dugway Proving Ground 
Dugway Procurement Division 
Salt Lake City, Utah 
Area Code: 801 524-2097 



Installationt 

Jefferson Proving Ground 

Madison, Ind. 

Area Code: 812 273-1423 

White Sands Missile Range 
New Mexico 88002 
Area Code: 915 678-1401 

Yuma Proving Ground 

Yuma, Ariz. 85364 

Area Code : 602 783-8321 



Headquarters, U.S. Army Supply and Maintenance Command 

Wqshlneten, D.C. 20315 

T«l«phon»: OXford 7-5978 Arao Cod* 202 

The mission of the U.S. Army Supply and Maintenance Command is the supervision of supply, 
transportation, and maintenance functions at approximately 150 field installations and activities 
formerly administered by the headquarters of the 7 technical services. 



D«poft 



Atlanta Army Depot 
Forest Park, 6a. 30050 
Area Code: 404 36^-5460 

New Cumberland Army Depot 
New Cumberland, Pa. 17070 
Area Code : 717 234r-4961 

Sharpe Army Depot 
Lathrop, Calif. 95330 
Area Code: 209 46^-6071 

Anniston Army Depot 
Anniston, Ala. 36202 
Area Code: 205 237-6611 

Blue Grass Army Depot (see Lexington Army Depot) 
Richmond, Ky. 40475 
Area Code: 606 623-2210 

Letterkenny Army Depot 
Chambersburg, Pa. 17201 
Area Code: 717 264-^111 

Navajo Army Depot 
Flagstaff, Ariz. 86003 
Area Code: 602 774r-7161 

Pueblo Army Depot 
Pueblo, Colo. 81001 
Area Code : 303 947-3341 

Red River Army Depot 
Texarkana, Tex. 75502 
Area Code : 214 792-7122 

Savanna Army Depot 
Savanna, III. 61074 
Area Code : 273 273-2211 



Seneca Army Depot 

Romulus, N.Y. 14541 

Area Code: 15 585-4481 (Geneva, N.Y.) 

Sierra Army Depot 
Herlong, Calif. 96113 
Area Code: 916 827-2111 

Tooele Army Depot 
Tooele, Utah 84074 
Area Code: 801 882-2550 

Umatilla Army Depot 
Hermiston, Oreg. 97838 
Area Code: 503 567-6421 

Fort Wingate Army Depot 
GaUup, N. Mex. 87301 
Area Code: 505 863^6891 

Lexington Army Depot 
Lexington, Ky. 40507 
Area Code: 606 299-1221 

Sacramento Army Depot 
Sacramento, Calif. 95801 
Area Code : 916 456-7841 

Tobyhanna Army Depot 
Tobyhanna, Pa. 18466 
Area Code: 717 894r-8301 

Charleston Army Depot 
North Charleston, S.C. 29406 
Area Code : 803 SHerwood 7-5241 

Granite City Army 

Granite City, lU. 

Area Code : 618 GLenview 2-7300 



7EDERAL HANDBOOK FOB SIilAUi BUSINESS 



Bl 



Corps of Engineers 

The Corps of Engineers contracts with civilian contractors for construction, maintenance, and 
repair of buildings, structures, and utilities for the Department of the Army. The Corps of Engi- 
neers also is resi)onsible for civil works such as river and harbor improvement, flood contol, hydro- 
electric power, and related projects. Inquiries concerning military construction or civil works 
should be sent to the following offices : 



Office 



MftU and/or offiee address 



Office of Chief of Engineers ._ 

USA Engineer Waterways, Experiment 

Station. 
USA Engineer Division, Lower Mississippi 

Valley. 

USA Engineer District, Memphis. 

USA Engineer District, New Orieans 

USA Engineer District, St. Louis 

USA Engineer District, Vicksburg 

USA Engineer Division, Missouri River 

USA Engineer District, Kansas City 

USA Engineer District, Omaha 

USA Engineer Division, New England 

USA Engineer Division, North Atlantic 

USA Engineer District, Baltimore 

USA Engineer District, New York _ 

USA Engineer District, Norfolk 

USA Engineer District, Philadelphia 

USA Engineer Division, North Central 

USA Engineer District, Buffalo 

USA Engineer District, Chicago 

USA Engineer District, Detroit 

USA Engineer District, Rock Island _ 

USA Engineer District, St. Paul 

USA Engineer Division, North Pacific 

USA Engineer District, Alaska 

USA Engineer District, Portland 

USA Engineer District, Seattle. _ 

USA Engineer District, Walla Walla 

USA Engineer Division, Ohio River 

USA Engineer District, H untington 

USA Engineer District, Louisville 

USA Engineer District, Nashville 

USA Engineer District, Pittsburgh 

USA Engineer Division, South Atlantic 

USA Engineer District, Charleston 

USA Engineer District, Jacksonville 



Building T-7, Washington, D.C. 

Post Office Box 631, Vicksburg, Miss., Halls Ferry R.D., Vicksburg, 
Miss. 

Post Office Box 80, Vicksburg, Miss., Mississippi River Commission 
Building, Vicksburg. 

Post Office Box 97, Memphis 1, Tenn., West Memphis, Ark. 

Foot of Prytania Street, New Orleans 9, La. 

420 Locust Street, St. Louis 2, Mo. 

Post Office Box 60, Vicksburg, Miss., U.S. Post Office and Court- 
house Building, Vicksburg. 

Post Office Box 1216, Omaha, Nebr., 215 North 17th Street. 

1800 Federal Office Building, 911 Wakiut Street, Kansas City 6, Mo. 

215 North 17th Street, Omaha 2, Nebr. 

424 Trapello Road, Waltham, Mass. 

1216 Federal Office Building, 90 Church Street, New York 7. 
Post Office Box 1715, Baltimore 3, Md., 24th and Maryland 

Avenues, Baltimore IS, Md. 
Ill East 16th Street, New York 3, N.Y. 

Post Office Box 119, Norfolk, Va., foot of Front Street, Norfolk, Va. 
Post Office Box 8629, Philadelphia, Second and Chestnut Streets, 

Philadelphia, Pa. 
536 South Clark Street, Chicago, 111. 
Engineer Park, foot of Bridge Street, Buffalo, 7, N.Y. 
536 South Clark Street, Chicago, 111. 
Post Office Box 1027, Detroit 31, Mich., 150 Michigan Avenue, 

Detroit-26. 
Clock Tower Building, Rock Island, 111. 

1217 U.S. Post Office and Customhouse, 180 East Kellogg Boulevard, 
St. Paul, Minn. 

210 Customhouse, Portland 9, Oreg. 

Box 7002, Anchorage, Alaska. 

628 Pittock Block SW., 10th Avenue and Washington Street, 

Portland 5, Oreg. 
1519 South Alaskan Way, Seattle, Wash. 
Building 602, City-County Airport, WaUa Walla, Wash. 
Post Office Box 1159, Cincinnati, Ohio, Cincinnati Gas and Electric 

Annex, 315-335 Main Street, Cincinnati, Ohio. 
Post Office Box 2127, Huntington 19, W. Va., 502 Eighth Street, 

Huntington, W. Va. 
Post Office Box 59, Louisville, Ky., 830 West Broadway, Louisville, 

Ky. 
Post Office Box 1070, Nashville, Tenn., 306 Federal Office Buildmg, 

Seventh Avenue and Broadway, Nashville, Tenn. 
564 Forbes Avenue, Manor BuUding, Pittsburgh, Pa. 
Post Office Box 1889, Atlanta, Ga., 30 Pryor Street, Atlanta, Ga. 
Post Office Box 905, Charleston, S.C, Municipal Marina, Charles- 
ton, S.C. 
Post Office Box 4970, Jacksonville, Fla., 575 Riverside Avenue, 

Jacksonville, Fla. 



36 



FEDERAL HANDBOOK FOR SMALL BUSmBSS 



1 


Office 


Mall and/or office addiMs 


USA Engineer Dfetrict, Cape Canaveral 

USA Enidneer 'Dfetrict. MoMh?.. . . 


Post Office Box 1042, Merritt Island, Fla. 

Poat Office Box 1169, Mobile^ Ala.^ 2301 Airport Boulevard, 

MobUe 7, Ala. 
Post Office Box 889 Savannah, Ga., 200 East St. Julian Street, 

Savannah. 
Post Office Box 1890, Wilmington, N.C., 308 Customhouse, Wil- 
mington. 
U.S. Appraisers Building, 630 Sansome Street, San Francisco, Calif. 
Post Office Box 1739, Sacramento, Calif., 660^ Capital ATeiHie> 

Sacramento 8, Calif. 
180 New Montgomery Street^ Saa Franciaco. 
Santa Fe Building, 1114 Commerce Street, Dallas 2, Tex. 
Post Office Box 1538, Albuquerque, N. Mez., 517 Gold Avenue, 

Albuquerque, N. Mex. 
Post Office BoE 1000, Fort Worth, Tex., 100 West Vickery; Fort 

Worth. 
Post Office Box 1229, Galveston, Tex., 60a Santa Fe Buflding^ 

Galveston. 
Post Office Box 867, Little Rock, Ark., 700 West Capital, Little 

Rook, Ark. 
Post Office Box 17277, Foy Station, 751 South Figueroa Street, Los 

Angeles 17, Calif. 
Post Office Box 61, Tulsa, Okla., 616 South Boston Avenue, Tulsa, 

Okla. 
6600 Brooks Lane N W., Washington, D.C. 


USA Finginefir Pistxietv Savannah .., . 


USA Enorineer District. Wilminirton 


USA Engineer Division, S«ith Pacific. 


USA E^igineer District^ San Francisco -. 

USA Engineer Division, Southwestern 

USA Engineer District* Albaquerque 

USA Engineer District, Fort Worth — 


USA Engineer District, Galveston 


USA Engineer District, Little Rock 


USA Engineer District, Loe Angeles 

USA Engineer District, Tulsa 


Array Map Serviee 




Army Medical Service 

The Army Medical Service provides health services for the Army and, as assigned, for ih» 
Navy and Air Force; develops and supervises policies and plans, provides and conducts programs, 
establishes standard, technical procedures, organization and doctrine, and conducts medical research 
and development relating to the health of the Army and develops, provides and services medical 
materiel required by the^ Army, and as assigaed, for the Navy and Air Force and for foreign aid 
progmms; and prescribes the curricula of the Army Medical Service schools and separate courses 
of instruction which are composed predominantly of medical professional material. 

Office of tlie Surgeon General, Wosliington, D.C. 

U.S. Army M«dlcql R. A D. Command, Omc« of Hie Surgeon Gonerol (A) 
18»h Street and Conttitution AvemM- NW. 20315 

Makes contracts for research in medical sciences, devices, processes, and techniques. 

Walter Reed Medical Center, Washington, D.C. Madigaji Army Hospital^ Tacoma, Wash. 

RAndolph 3-1000 JUnipei: g-5611 

Valley Forge Army Hospital, PhoenixvlUe, Pa. Fltzsimons Army Hosi)ital, Denver, Colo. 

WElUngton 3^863 EMpire^G-5311 

Letterman Army Hospital, Presidio of San Francisco, Brooke Army Medical Center, Fort Sam Houston, Tex. 

OaliL CApltaL2-84U 
Jordan 1-2211 WiUiam Beaumont Army Hospital, El Paso, Tex. 

LOgan 5-4611 
Ijocal procurement of : 

Nonstandard medical supplies and equipments 

Besearch equipment. 

Animals for research. 

Limited quantities of drugs and biological* 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



3' 



Heodquorffers, U.S. Continental Army Command 

Fort Monro*, Vq. Td; 737-3221 
(Local Procuromont Qt Pottt, Camps, and Sfotiont) 

Posts, camps and installations under the Continental Army Command are authorized to buy 
from local sources of supply such as : 

Automotive: Spare parts for vehicles; automotive tools; reconditioning of motors; target 
frames; miscellaneous hardware. 

HouaekeepiTig : Supplies such as food, petroleum products, miscellaneous office supplies and 
equipment, small kitchen utensils and appliances and services, such as laundry, drydeaning and 
alterations, office madiine rentals and repairs, burials, commissary store equipment. 

Chevfhicdh: Phosphates, ammonia, denatured alcohol — parts for decontamination units, gas 
mask parts. 

Electrical: Communications equipment, such as telephone and telegraph equipment, including 
such subcomponents, as adapters, amplifiers, controls dials, generators, wet^ and dry-type batteries, 
interconmiunication equipment such as sound recording and reproduction equipment (reproducing 
tape, turntables, microphones) and television equipment. 

Construction: Minor construction (repairs and rehabilitation), custodial services, air-condi- 
tioning packing and crating of household goods, miscellaneous hardware, such as handtools, nails, 
screws, and electrical fixtures; miscellaneous plumbing and heating items, building construction 
items such as paint, lumber, cement blocks, bricks, glass; agricultural items, such as grass seed, 
weed killer, tree sprays, insect and rodent control and chemicals. Major subordinate commands of 
the U.S. Continental Army Command, responsible for procurement and the locations of the posts, 
camps and stations imder their command are : 



Boston Army Base 
666 Summer Street 
Boston, Mass. 

Fort Devens 
Ayer, Mass. 

U.S. Army Training Center 
Port Dix 
Wrightstown, N.J. 

Camp Drum 
Watertown, N.Y. 

Fort Hamilton 
Brooklyn, N.Y. 

Fort Jay 

Governors Island 

New York, N.Y. 

First U.S. Army Recruiting District 

Governors Island 

New York, N.Y. 

U.S. Army Support Center 
Niagara Falls, N.Y. 

Fort Slocom 

New Bochelle, N.Y. 



Hoadquartors, 1st U.S. Army 
Fort Goorige O. M«ad«, Md. 

Fort Totten 

Bayside, Long Island, N.Y. 

Fort Wadsworth 
Staten Island, N.Y. 

U.S. Army Armor Center 
Fort Knox, Ky. 

Fort George G. Meade 
Md. 

Fort Miles 
Lewes, DeL 

Fort Monroe 
Hampton, Va. 

Carlisle Barracks 
CarUsle, Pa. 

Headquarters, XXI U.S. Azmy Corps 
Indiantown Gap Military 

Reservation 
AnnviUe, Pa. 

U.S. Army Engineer Center 

and Fort Belvoir 
Fort Belvoir, Va. 



38 



FEDBBAL HANDBOOK FOB SMALL BU8INCSS 



U.S. Army Transportation 




XX U.S. Aemy e»EpB 




Center and Fort Bustis 




Foi:t Hayes- 




Fort Eustls, Va, 




Columbus IS^ Ohio 




U.a. Army QnarteFmaster Corpfr 




U.S. Army Intelligence Center 




and Fort Lee 




and Fort Holabird 




Fort Lee, Va. 




Baltimore 19, Md. 












Fort lAcPlMrion, Go. 




Fort Benning 




Fort Mcdeltain 




Columbii8» Ga. 




Anniston, Ala. 




Fort Stewart 




Fort McPherson 




mnesville, Ga* 




Atlanta, Ga. 




Fort Gordon 




XII U.S. Army Corps 




Augusta, Ga. 




Atlanta, Ga. 




Fort Jackson 




IV U.S. Army Corps 




Colnmbia, S.O. 




Birmingham, Ala. 




Fort Bragg 




Fort Rucker 




FayetteviUe, N.C. 




Ozark, Ala. 




Fort Campbell 








Fort Campbell, Ky. 












4lh U.S. Army 










Fort Polk 




Fort ChaflFee 




LeesYille, La. 




Fort Smith, Ark. 




Fort Sam Houston 




Fort Hood 




Bast Grayson Street and North New 




Killeen, Tex. 




Braunfels Avenue 
San Antonio, Tex. 

Fort Sill 




Fort Wolters 
Mineral Wells, Tex. 




Law ton, Okla. 




Headquarters, VIII U.S. Army Corp8 




Fort Bliss 
El Paso, Tex. 




708 Colorado Street 
Austin, Tex. 








5Hi U.S. Amy 




1660 


Eost Hydt Park 






Fort Riley 




Fort Benjamin Harrison 




Junction City, Kans. 




Indianapolis 16, Ind. 




Fort Sheridan 




Fort Carson 




Highwood, 111. 




Colorado Springs, Colo. 




Fort Wayne 




Camp McCoy 


^ 


6301 West JefiCerson Avenue 




Sparta, Wis. 




Detroit, Mich. 

U.S. Army Support Center 




Headquarters, XIV U.S. Army Corps 
1006 West Lake Street 




St. Louis, Mo. 




Minneapolis, Minn. 




U.S. Army Support Detachment 




Fort Custer 




Chicago, IlL 




Battle Creek, Mich, 




Camp Atterbury 




Fort Leavenworth 




Bdinburg, Ind. 




Leavenworth, Kans. 





7BDEBAL HANI^OOK FOR BMALL BUSINESS 



Fort Leonard Wood Headquarters, YI U.S. Army Corps 

Waynesville, Mo. Battle Creek Federal Center 

Headquarters, XVI U.S. »**"^^ ^""^^^^ M*^'^' 

Army Corps 
Omaha, Nebr. 

Haodquorton, 6tfi U.S. Army 
ProticHo of San Francisco, Calif. 

Fort Lawton Foi:(; Irwin 

Seattle, Wash. Barstow, Calif. 

Fort Douglas Fort MacArthur 

Salt Lake aty, Utalk San Pedro, Calif. 

Presidio of San Francisco Fort Ord 

San Francisco, Calif. Monterey, Calif. 

Fort Lewis 
Tacoma, Wash. 

Itoodqiiorton, MUifory District of Washington 
U.& Army, Washlngfloiib IKC. 

Fort Lesley J. McNair Cameron Station 

4th and P Streets SW. 5010 Duke Street 

Washington, D.C. Alexandria, Va. 

Fort Myer 
Arlington^ Va. 



54-643* 



40 



FEDERAL HANDBOOK FOR BMALL BUSINESS 



DEPARTMENT OF THE NAVY MAJOR PURCHASING OFFICES 



Bureaus ond Offices 



Chief, Bureau of Naval Weapons 
Department of the Nayy 
Washington, D.G. 20360 
Tel : 202 Oxford 5-7470 



Guided missiles, airframes, aircraft engines, propellers, instruments, arma- 
ment and*flre-control systems, ground handling equipment for aircraft and 
missiles, electronic equipment, antisubmarine equipment, parachutes, flight 
clothing, navigation equipment, high-energy fuels, photographic equipment 
and services, meteorological equipment, aircraft training equipment, cata- 
pults, naval guns, torpedoes, and research and development needs for these 
items. 



Chief, Bureau of Ships 
Department of the Navy 
Washington, D.C. 20860 
Tel : 202 OXford e-3362 



Ships and ship repair, minesweeping gear, shipboard and deck machinery, 
propellers and shafting, internal combustion and gas turbine engines^ 
refrigeration and air-conditioning equipments, motors and motor-generator 
sets, interior communication systems, and electronic equipment including 
radar, radio, radiac, etc., navigation systems, sonar, and small boats includ- 
ing research and development needs for these items. 



Chief, Bureau of Yards and Docks 
Department of the Navy 
Washington, D.C. 
Tel: 202 OXford 6-3281 



Cranes, powerplants, piledrivers, dredges, major boiler plants and electrical 
generators, and permanent facilities (including acquisition and disposal of 
real estate) . This Bureau is responsible for the Navy's construction proj- 
ects, as well as station maintenance and repair, including public utilities 
services. Contracts for such projects, however, are let through the Direc- 
tors, District and Area Public Works Offices. (See subsection on Navy 
Construction, pp. 48 and 49.) 



Commandant of the Marine Corps 

(Ck)de CSG) 
Headquarters, U.S. Marine Corps 
Washington, D.C. 
Tel : 202 OXford 4r-1919 



Electronics equipment, construction equipment, specialized vehicles and 
equipment peculiar to the Marine Corps such as landing vehicles, trailer- 
mounted compressors, welders, generators, floodlight sets, etc., repair parts 
for specialized Marine Corps equipment. 



Chief of Naval Research 
Department of the Navy 
Washington, D.C. 
Tel : 202 OXford 6-6650 



Responsible for basic and applied research, including fundamental studies, in 
such fields as electronics, chemistry, and physics, and serves to coordinate 
the research programs of the technical bureaus. 



Chief, Bureau of Naval Personnel 
Department of the Navy 
Washington, D.C. 
Tel: 202 Oxford 4r-2835 



Responsible for procurement of training services from educational institutions 
and of training publications. 



Chief, Bureau of Supplies and 

Accounts, 
Department of the Navy 
Washington, D.C. 
Tel: 202 OXford e-4680 



Does not do any actual procurement or let contracts, but exercises technical 
control over the field purchasing activities— including all of those listed 
except the technical bureaus, the Marine Corps, the Military Sea Trans- 
portation Service, Office of Naval Research, Administrative Office, and Navy 
Training Devices Center. 



Administrative Office 
Department of the Navy 
Washington, D.C. 
Tel : 202 OXford 6-7666 



Services and material for the internal operation of the Navy Bureaus and 
Offices. Office services, office equipment rmtal, computer services and 
rental, printing, binding, and editing services. 



FEDERAL HANIAOOE FOR SMALL BtTSINSSS 



Nav^ Piirch«9lftg Offices 

Machine toolfl (metal and wood working, portable and statfonary), iadoatrial 
eqaipmeBt for AtrpB, inelndfBg boOers, ovens, electric motora, tranafonaers, 
and generators, f orgfngs, metallnrglcal testing, welding, wareliousdng, pnmps, 
test stands: Mosical instrumeBts, electrical measuring or indicating 
instruments; steel plates and shapes, air-conditioning and refrigeration 
eqtdpment (industrial and d<Mnestic). Missile containers, missile compo- 
nents, electric and electrofdeeomponents, antennas, radar components, mine 
components: Reseanrh, dereiopment, test and analytical senrices and 
material as requested by naval actirities in the Washington, D.C., area. 



Navy Purchasing OfBce 
WiKidkington ^fa▼J' Tsid 
Builffiig'20(r 
Washtngton, DvCt 20890- 
Tefr202^ OXftwd 8-295T/»-2958^ 



Officer ia Charge 
N&V7 Purchasing Office 
Third Ave. and 29th St. 
Brooklyn, N.Y. 11232 
Tel: 212 STerling 8-^000 

Officer tn (Hiarge 
Navy Purchasing Office 
d29 South Broadway 
Los Angeles, Calif. 90015 
Tel: 213 688^2721 



Research, development, test and analytical material and services. Ships 
machinery and hardware. Engineering and technical servicea Also 
general procurement for activities in the New Tork area (e.g., ships' store 
Items, nonstandard equipment and supplies, training devices, etc.). 



Resi)onslble for purchasing requirements of all Naval activities in the 11th 
Naval District In excess of their local purchase authority (normally $2,500). 
Majority of purchases are Items of a technical nature, including research 
and development requh'^^m^nts, and supplies and services for support of 
R. & D. Naval activities in Southern California. 



Commanding Officer 
Navy Aviation Supply Office 
700 Bobbins Ave. 
PhUadelphIa, Pa. 19111 
Tel: 215 RAndolph 8^1212 



Inventory Control Points 

Weapons; aircraft gunnery fire^ontrol components; airframe structural 
components; aircraft components and accessories; aircraft launching, 
landing, and ground handling equipment ; small craft ; marine hardware 
and hull items, buoys ; tire rebuilding and tire and tube repair materials ; 
gas turbines and Jet engines, aircraft, and components; engine accesso- 
ries; mechanical power transmission equipment; bearings; metalworking 
machinery ; wrapping and padcaging machinery ; special industry mach- 
Jjnary ; materials handling equipment, non-self-propelled ; rope, cable, chain 
and fittings; firefighting; rescue and safety equipment; pumps and com- 
pressors ; furnace, steamplant,. and drying equipment and nuclear reactors ; 
plumbing fixtures and aeeesioiries ; pipe, tubings hose and fittings ; valves, 
nonpowered; nuUiitenanAe and repair shop equipment; handtools, hard- 
ware and abrasives-; prefabricated and portable buildings ; lumber, mill- 
work, plywood* and veneer ; wallboard, building paper and thermal insula- 
tion materials ; communication equipment ; electrical and electronic equip- 
ment components; electric wire, and power and distribution equipment; 
lighting fixtures and lamps ; miscellaneous alarm and signal systems ; in- 
struments and laboratory equipment; photographic supplies; chemicals 
and chemical products; armament training devices; furniture; house- 
hold and commercial furnishings and appliances; food preiUiration and 
serving equipment; office supplies; books, maps, and other publications; 
floor polisheve and vacuum deaners ; paint and artiste brashes ; eontalners, 
packaging and iiadcing suppUee; textiles, leathet and fur»( clothing and 
individual equipment; beverages^ nonalcoholic; fuels, lubricants, oils and 
waxes, nonmetaUlc fabricated materials; metal bars, sheets and shapes; 
chemical reproductions ; printing and related services ; technical publica- 
tions. 



42 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Oommandiiig Offlteer 
NaTj Ships Parts Control Center 
Hechani<»biirg, Pa. 17065 
Tel: 717 766-«ll 



Commanding Officer 
Navy Bleetronlc Supply Office 
Great Lakes, 111. 60068 
Tel: 312 896-3500 



Electrical and mecbanical assemblies; power distribution equipment; trans- 
formers; alarms and signal systems; communication equipment; electrical 
fittings and fixtures; precision machine work; flreflghting and safety 
equipment; drafting equipment; ferrous blooms and billets; ammunitiim 
and rockets and related products and components ; ro<±et launchers, mis- 
siles and component parts ; bombs, weapons and weapon parts ; chemical 
products, cutting tools for machine tools and other machine tool acces- 
sories; gages and therm<Hneters, minesweeping gear and repair parts; 
marine hardware and hull items; navigation equipment; gaskets, pack- 
ing materials and assemblies ; pipes and tubes; surrival at sea equipment ; 
vales; friction and nonfriction bearings; heaters; shipboard furniture; 
hose and hose assemblies; non ferrous ingots and pigs; optical compon- 
ents; motors; batteries; handsaw blades; welding, flame-cutting and 
metallizing equipment and supplies. 

Antennas and antenna accessories; amplifiers; attenuators; batteries; 
bearings ; cable ; cable assemblies ; cabinets and test benches ; capacitors ; 
cavities ; circuit breakers ; coils ; conduit and conduit fittings ; connectors ; 
contacts; brushes and electrodes; converters; crystals, filters; fusee and 
fuse holders; generators; hardware; handsets; indicators; insulation; 
insulators ; Jackbozes ; keyers ; lami>s and lighting fixtures ; loudspeakers ; 
meters and measuring equipment; microphones and accessories; mixers; 
modulators ; modules and printed circuit assemblies ; motors ; networks ; 
oscillators ; instrument panels ; receivers ; recorders and components ; pres- 
sure regulators; relays, contactors and solenoids; resistors; semiconduc- 
tor devices ; tube shields and insert ; sockets ; sound recording equipment ; 
stuffing tubes; switches; terminal boards; terminals and lugs; trans- 
formers; transmitters; tubes, tuners; waveguides and accessories; wire. 



Commanding Officer 
U.S. Naval Supply Center 
Naval Base 
Norfolk, Va. 23511 
Tel: 703 444-^051 

Commanding Officer 
U.S. Naval Supply Center 
Oakland, Calif. 94614 
Tel : 415 TWinoaks 3-4224 



Commanding Officer 
U.S. Naval Supply Depot 
ATTN : Purchase Department 
Great Lakes, 111. 60088 
Tel: 812 DElta 6-3500 

Commanding Officer 
U.S. Naval Supply Center 
Charleston, S.C. 29408 
Tel : 803 SHerwood 7-4171 

Commanding Officer 
U.S. Naval Supply Depot 
Newport, RJ. 02840 
Tel: 401 841-2686 



Novy Supply Centers and Depots 

General procurement for Naval activities and ships in the Fifth Naval 
District and Atlantic Ocean Areas (e.g., operating supplies ; maintenance 
and lepaiT components and equipment; laboratory and test equipment; 
communications equipment ; some research, development, test and evalua- 
tion). 

General procurement for Naval activities in the Twelfth Naval District and 
Pacific Ocean Area overseas ships and bases (e.g., miscellaneous ship 
and marine equipment; engine accessories; communication equipment; 
electrical and electronic equipment and components; pipe, tubing, hose, 
and fittings ; cable, chain, and fittings ; various services including funeral, 
printing, laundry, and equipment repair ; general supply-type items ; ship 
stores' resale items, etc.). 

General procurement for Naval activities in the Michigan, Indiana, Illinois, 
Wisconsin, Minnesota, Iowa, Missouri, North Dakota, South Dakota, 
Nebraska, Kansas, Colorado, and Wyoming area (e.g., chemicals and 
chemical products; laboratory equipment; toiletries; books, maps, and 
other publications; general supply-type items, etc.). 

General procurement for certain Naval activities in the North Carolina, 
South Carolina, Georgia, Florida, Alabama, Tennessee, and Mississippi 
area (e.g., chemicals and chemical products ; electrical motors ; electrical 
control equipment; miscellaneous furniture and fixtures; general supply- 
type items, etc.). 

General procurement for certain Naval activities in the Maine, New Hamp- 
shire, Vermont, Massachusetts, Rhode Island area (e.g., electronic and 
electrical components ; chemicals and chemical products ; automotive sup- 
plies; galley equipment and supplies; general supply-type items, etc.). 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



4J 



Commanding OflScer 
U.S. Nayal Sapply Depot 
Seattle, Wash. 98119 
Tel : 206 ATwater 3-^200 

Commanding Officer 

U.S. Naval Supply Center 

Pearl Harbor, Hawaii 

Tel: 808-4711, Ext 54161 

(Mail Address: Box 300, Navy No. 

128, FPO, San Francisco, Calif. 

96614) 
Commanding Officer 
U.S. Naval Supply Depot 
Guam, Mariana Islands 
Tel: 33^111 
(Mail Address : Navy No. 926, FPO, 

San Francisco, Calif. 96635) 



General procurement for Naval activities in the Washington, Oregon, Idaho, 
Montana area and Alaska (e.g., artists' supplies, chemicals and chemical 
products; blueprinting services; corrosion preventive compounds; divers* 
equipment ; electrical hardware ; laboratory equipment and supplies ; gen- 
eral supply-type items, etc.). 

General procurement for Naval activities in the Hawaiian Islands and other 
Pacific Ocean area activities and operating forces as may be required. 



(Commander 
Boston Naval Shipyard 
Bo(9ton, Mass. 02129 
Tel : 617 242-1400 



Commander 

Puget Sound Naval Shipyard 
Bremerton, Wash. 98314 
Tel : 206 478-7355 



Ck>mmander 

Charleston Naval Shipyard 

Naval Base 

Charles, S.C. 29408 

Tel: 803 SHerwood 7-4171 

Commander 

Philadelphia Naval Shipyard 

Naval Base 

PWladelphia, Pa. 19112 

Tel: 215 HOward 5-1010 

Commander 

Portsmouth Naval Shipyard 

Portsmouth, N.H. 03804 

Tel: 207 439-1000 



General procurement for ashore and afloat activities in the Mariana Islands 
area (e.g., bakery and dairy products, fresh shell eggs; automotive and 
heavy equipment repair parts ; tires and tubes ; building and construction 
materials ; hardware ; electrical, plumbing and safety equipment ; prescrip- 
tion glasses; diving gear; office machines and supplies; air-conditioning 
units and parts ; various gases ; electronic parts ; paint ; periodicals, print- 
ting; rubber stamps; lubricants; plywood; photographic supplies; EAM 
cards and forms ; washing machines ; refrigerators ; tape recorders. Serv- 
ices include repair of office machines; outboard motors; tire recapping; 
renovation of recreational areas ; packing and crating of household goods ; 
termiteproofing of military quarters ; laundry and drycleaning and steve- 
doring. 
Navy Shipyards and Repair Facilities 

General procurement for certain Naval activities in the New England area 
(e.g., electrical wire and cable; welding wire and electrodes; chemicals; 
hardware; refrigeration and air-conditioning equipment; electronic test 
equipment; power-distribution equipment; measuring instruments; non- 
icing windows ; sound-detecting equipment ; abrasives ; aluminum ladders ; 
food preparation and serving equipment). 

General procurement for Naval activities in Northwest United States, includ- 
ing major shipboard components Including pumps, davits, hoisting equip- 
ment, metal sheets, and switcfagear. Also shipboard repair components 
including special valves, piping, and electrical items; normal shipyard 
requirements for production shops and maintenance items; special elec- 
tronic components Including oscillographs, pressure transducers, program- 
ers, rate gyrotest turntables, and power supplies. 

General procurement for ojperation and maintenance of Charleston Naval 
Shipyard (e.g., chemicals, electrical and electronic equipment, hardware, 
gangways, blasting sand, liquid oxygen, deck coverings, lead ballast 
weights, submarine equipment and supplies). 

General procurement for certain Naval activities in the Pennsylvania, South 
New Jersey, Delaware, and Ohio area (e.g., shipboard doors, latches and 
scuttles, shipboard airvent covers and manhole covers, gangways, hy- 
draulic cylinders, boat davits, slipring assemblies, blasting sand, liquid 
oxygen, lithographic forms). 

Procurement of materials required in the development, construction, repair 
and alteration of submarines, including hull steel, special corrosion resist- 
ing steel, pipe and tubing, valves and fittings of all types, castings, pumps 
and motors, antenna masts, propellers, controllers and panels, alarm and 
signal systems, metal furniture, air compressors, gages, test equipments, 
power transmission equipments, etc. Contracting for services include de- 
sign engineering printing of instruction booklets, piping fabrications, office 
machine repair and maintenance, laundry services, transportation of house- 
hold goods, etc. General procurement of plant operation and maintenance 
items for Naval activities in the northern New England area. 



44 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Ck>mmanding Officer 
U.S. Naval Submarine Base 
New London, Conn. 06342 
Tel: 203 449-3011 



Commanding Officer 
U.S. Naval StaUon 
Key West, Fla. 33040 
Tel : 305 296-3511 

Commanding Officer and Director 
U.S. Navy Underwater Sound Lab. 
Fort Trumbull 
Port London, Conn. 06321 
Tel: 204 443-8361 



Submarine equipment and supplies, alarm and signal systems, compressed 
gases, dairy and bakery provisions for various activities and vessels in the 
New London area ; repair parts for miscellaneous equipment ; disposal of 
radioactive waste material; safety equipment; electrical hardware; lab- 
oratory supplies; automotive repair parts; sandblasting supplies; mis- 
cellaneous equipment for maintenance and repair aiho^ ; stone and gravel. 

Communication equipment, electrical equipment, engine accessories and 
components, ship and marine equipment, laundry supplies, sundries. 



Instrumentation for research and development. 



Commanding Officer 

Naval Air Engineering Center 

Philadelphia, Pa. 19112 

Tel : 215 HOward 5-1000 or 5-1020 



Navy Aviation Activities 

Research, development, test and analytical services and materials for air- 
craft launching, recovery and landing-aid systems (carrier and land- 
base) ; spare parts for catapult and arresting gear ; machine tools and 
metalworldng machinery. Electronic environmental and laboratory test- 
ing equipment to support research, development, test and evaluation of 
aerospace pilot protective survival equipment; aeronautical accessories, 
powerplants, structure and materials; technical representative services 
for aviation systems and equipment; and technical documentation and 
engineering services for naval weapons. 

Conunanding Officer Procurements for research and development In the fields of antisubmarine 

U.S. Naval Air Development Center warfare, aeronautic electronics, aeronautical instruments, aeronautical 

Johnsville, Pa. 18974 photography, aviation medicine, and attendant equipment and support 

Tel: 215 OSborne 5-7000 services. 



Commanding Officer 
Naval Avionics Facility 
21st St. and Arlington Ave. 
Indianapolis, Ind. 46218 
Tel: 317 FLeetwood 7-8311 or 
7-^129 

Commanding Officer 
Naval Air Station 
Jacksonville, Fla. 32212 
Tel: 305 389-7711 



Procurement of materials and services required for development, preproduc- 
tion manufacturing, repair and overhaul of airborne fire-control hard- 
ware and test equipment. 



Aircraft components and accessories; ship and marine equipment; vehicular 
equipment components ; tires and tubes ; engines, turbines and components ; 
engine accessories ; mechanical power transmission equipment ; bearings ; 
woodworldng machinery and equipment; service and trade equipment; 
special industry machinery ; rope, cable, chain, and fittings ; refrigeration 
and air-conditioning equipment ; fireflghting, rescue and safety equipment ; 
pumps and compressors; plumbing, heating, and sanitation equipment; 
water-purification and sewage-treatment equipment; pipe, tubing, hose, 
and fittings ; valves, maintenance, and repair shop equipment ; handtools ; 
measuring tools, hardware and abrasives; lumber, millwork, plywood, 
and veneer; construction and building materials; communicatictt equip- 
ment; electrical and electronic equipment components; electric wire and 
power and distribution equipment ; lighting fixtures and lamps ; alarm and 
signal systems; medical, dental, and veterinary equipment and supplies; 
Instruments and laboratory equipment; photographic equipment; chemi- 
cals and chemical products ; furniture ; household and commercial furnish- 
ings and appliances ; food preparation and serving equipment ; office ma- 
chines and data-processing equipment ; office supplies ; cleaning equipment 
and supplies; brushes, paints, sealers, and adhesives; containers, pack- 
aging, and packing supplies ; textiles, leather and furs ; subsistence ; fuels, 
lubricants, oils, and waxes, and miscellaneous items. 



FEDERAL HANDBOOK FOR SMAUU BUSINESS 



4{ 



Commanding Officer 
U.S. Naval Air Station 
Memphis, Tenn. 88115 
Tel: 901 872-1711 

Commanding Officer 
U.S. Naval Air Station 
Patnzent River, Md. 20670 
Tel: 301 VO 3-3111 

Commanding Officer 
U.S. Naval Air Station 
Penaacola, Fla. 32508 
1^1: 306 OLendale £^-^11 



Commanding General 
Marine Corps Air Station 
Cherry Point, N.C. 28533 
Tel: 910 447-2111 



Commanding Officer 
U.S. Naval Air Station 
Corpus Ohrlstl, Tex. 78419 
Tel : 512 TErminal 5-82U 



Engine accessories, flreflghting and safety equipment, chemical and chemical 
products, metalworking machinery. 



Communication equipment, compressed gases, flreflghting equipment and 
supplies, chemical products, barometers, electrical supplies and components. 



General procurement for certain Naval activities in the Florida, Alabama, 
Mississippi, and Louisiana areas (e.g., hardware, plumbing, and electric 
wire and power and distribution equipment ; flreflghting, rescue, and safety 
equipment ; electrical and electronic equipment components ; aeronautical 
material ; tools and attachments for metalworking and woodworking ma- 
chinery ; chemicals and chemical products ; miscellaneous maintenance and 
repair-shop specialized equipment; lubrication and fuel dispensing equip- 
ment; paint; etc.). 

Weapons ; guided missiles, launchers and handling and servicing equipment ; 
airframe structural components ; aircraft components and accessories ; air- 
craft ground servicing equipment ; small craft ; marine hardware and hull 
items ; railroad track materials ; bicycles ; vehicular equipment components ; 
engine accessories; mechanical-power transmission equipment; bearings; 
tools and attachments for woodworking machinery; metalworking ma- 
chinery ; service and trade equipment ; special industry machinery ; service 
and trade equipment ; gardening implements and tools ; materials handling 
equipment ; rope, cable, chain, and flttings ; refrigeration and air-condition- 
ing equipment ; maintenance and repair-shop equipment ; handtools ; meas- 
uring tools; office machines and data-processing equiiMnent; office supplies 
and devices; flreflghting, rescue and safety equipment; pumps and com- 
pressors ; furnace, steamplant and drying equipment, and nuclear reactors ; 
plumbing, heating, and sanitation equipment ; water puriflcation and sew- 
age treatment equipment ; pipe, tubing, hose, and flttings ; valves ; hardware 
and abrasives ; prefabricated structures and scaffolding ; lumber, millwork, 
plywood, and veneer ; construction and building materials ; medical, dental, 
and veterinary equipment and supplies; photographic equipment; chem- 
icals and chemical products; food preparation and serving equipment; 
books, maps, and other publications; containers; packaging and packing 
sappUes ; tires and tubes ; excavating and highway maintenance ; communi- 
cations equipment; electrical and electronic-equipment componerts; 
electric wire, and power-distribution equipment; lighting flxtures and 
lamps ; alarm and signal systems ; instruments and laboratory equipment ; 
training aids and devices; furniture; household and commercial furnish- 
ings and appliances; musical instruments, phonographs, and home-type 
radios; cleaning equipment and supplies; brushes, paints, sealers, and 
adhesives ; textiles, leathers, and furs ; clothing and individual equipment ; 
agricultural supplies; dairy foods and eggs; fuels, lubricants, oils, and 
waxes; nonmetallic fabricated materials; metal bars, sheets, and shapes; 
signs, advertising displays and idenUflcation plates ; smokers' articles and 
matches. 

General procurement for certain Naval activities in the Louisiana, Arkansas, 
Oklahoma, Texas, and New Mexico area (e.g., flreflghting, rescue, and 
safety equipment ; electrical and electronic equipment components ; aircraft 
engine fuel-system components; aircraft engine electrical system com- 
ponents ; miscellaneous aircraft engine accessories, and all commercial-type 
items used by the Navy). 



46 



FEDERAL HANDBOOK FOB SMALL BU8INS8S 



Commanding Officer 
Naval Ammunition Depot 
Crane, Ind. 47522 
Tel: 812 854r-2511 

Commanding Officer 
U.S. Naval Ordnance Plant 
Forest Park, 111. 60130 
Tel: 312 FO 6-2700 

Commanding Officer 
U.S. Naval Ordnance Plant 
Louisville, Ky. 40214 
Tel : 502 361-2641 

Commanding Officer 
U.S. Naval Ordnance Plant 
Macon, Ga. 31201 
Tel: 012 788-6700 



Commanding Officer 
U.S. Naval Ammunition De];)ot 
McAlester, Okla. 74501 
Tel : 018 GArden a-6330 

CoDunanding Officer 
U.S. Naval Propellant Plant 
Indian Head, Md. 20640 
Tel: 301 743-2111 

Commander 

U.S. Naval Weapons Laboratory 

Dahlgren, Va. 22448 

Tel: 703 NOrth 3-2511 

Commanding Officer 
U.S. Naval Ordnance Laboratory 
Silver Spring, Md. 20010 
Tel : 301 434-7100 



Commanding Officer 
U.S. Naval Ordnance Test Station 
China Lake, Calif. 93557 
Tel: (via Rldgecrest, Calif.) 
FR 7-7411 

Commanding Officer 
U.S. Naval Torpedo Station 
Keyport, Wash. 98345 
Tel: 206 478-8434 



Novy Ordnonc« AcHvHi«f 

Pyrotechnics, some conventional ammunition and components parts and 
ezplofiives ; electrical and electronic equipment and supplies ; Instmments 
and laboratory equipment; special metallic and nonmetallic fabricated 
materials. 

Electrical and electronic components ; test equipment ; castings and f orgings 
(ferrous and nonferrous), raw materials (ferrous and nonferrous), mis- 
cellaneous machine tools; bearings, laboratory equipment and supplies; 
electric motors, torpedo components ; torpedo and automotive batteries. 

Wood and steel containers ; production Jigs and fixtures ; ferrous and non- 
ferrous castings and forgings ; parachute packs ; bomb fins ; guided missile 
warheads; boosters and sustainers; mine parts; solonoid and control 
valves ; and manufactured ordnance parts. 

Metals and plastics (powders, bars, stampings, extrusions, and ammunition 
component parts) , chemicals (polyvinyl chloride, strontium nitrate, barium 
nitrate, silicon, etc.), explosives (priming mixtures, delay compositions, 
high explosives, and propellants), paper and wood packaging (boxes and 
nestings). 

Conventional ammunition and component parts and explosives; electrical 
and electronic eqfuipment and supplies ; instruments and laboratory equip- 
ment ; special metallic and nonmetallic fabricated materials. 



Inorganic chemicals ; precision tools ; engine accessories ; defusers ; explosive 
devices such as ignitors, initiator assemblies and squibs; metalworking 
machinery ; intercommunication equiinnent ; electrical equipment ; liquid- 
and gas-flow measuring Instruments; laundry services. 

Experimental research and development services; missile warheads and 
explosive components; engine accessories; woodworking machinery and 
equipment ; metalworking machinery. 



Research and development in naval ordnance items, particularly in the area 
of underwater devices and fuzing. Various mechanical and electronic 
items, as well as test equipment to support the research and development 
effort A wide variety of small imrchase items generally procured in the 
local trade area. 

Research and development and testing equipment in connection with missiles, 
rockets, etc. 



Electrical and electronic equipment and supplies, testing instruments, metals, 
plastics, torpedo components, chemicals, hardware, machine-shop equip- 
ment and miscellaneous maintenance supplies. 



Commanding Officer and Director Underwater sound equipment ; sound-recording and reproducing equipment ; 

U.S. Navy Mine Defense Laboratory electrical-control equiinnent ; radio and television equipment ; instruments 

Panama City, Fla. 82402 and laboratory equipment ; lubricating and fuel-dispensing equipment. 
Tel: 305 234r-2281 



FBDERAI< HA2n>B00E FOR SSCALL BUSINESS 



CkMumanding Officer boblA Dixectoe 
U.S* Nttval Training Device Oenter 
Port Waabington^ N.Y. 



Director 

U.S. Naval Research Laboratory 
Wadiington, D.C. 20800 
Tel: 202 JOhnaon 8^^600 



Commander 

U.S. Naval Oceanographic Office 
Washington, D.G. 20390 
Tel: 301 REdwood 6-2700 

Superintendent 
U.S. Naval Academy 
Annapolis, Md. 21402 
Tel: 301 268-7711 

Commanding Officer and Director 
David W. Taylor Model Basin 
Wasliington, D.C. 20007 
Tel: 301 EMpire 5-2600 



Commanding General 
Marine Coips Supply Activity 
1100 South Broad St 
Philadelphia, Pfl. 10146 
Tel: KIngsley 6-2000 

Commanding General 

Marine Corps Supply Center 

Albany, Ga. 31704 

Tel : 012 435-3451, Ext. 511 or 512 

Commanding General 
Marine Cosps Supply Oenter 
Barstow, Calif. 92312 
Tel : 831-1445. Ext. 224 or 821 

Commanding General 
Marine Cori)s Base 
Camp Lejeime, N.C. 28542 
Tel: 231-3540, Ext 75570 

Commanding General 
Marine Corps Base 
Camp Pendleton, Calif. 92056 
Tel : 714 722-4111, Ext 2922 or 



Other Navy Acllvifief 

Be0p<Hisible for the procurement ol training aids and devices for personnel of 
the Army, Navy, Marine Coarps, and other DOD aetivitleft Includea pro- 
curemenfc o€ hardware and research and development effort necessary for 
training devices designed to simulate actual conditions in areas such as 
shiphandling, communications, gunnery, fire-control, operational flight 
training, weapons systems trainers, human engineering. Engineering serv- 
ices for various devices. 

Environmental chambers ; nuclear instrumentation ; systema such as optical, 
infrared, radar, sonar, radioastronomy, reactor, radiation stabilizer, telem- 
etry, memory, environmental, vacuum, and cryogenics with associated in- 
strumentation and components; equipments for crystal processing; data 
processing; materials testing and navigation; antennas; lasers, masers; 
research and cryogenic magnets ; instrumentation for satellites and oceano- 
graphic research; machine tools; metallurgical instruments; laboratory 
instruments; equipment and supplies; communication equipment; elec- 
tronic components; chemicals, insulating materials; special and routine 
metals ; and maintenance services. 

Experimental research and defvelopment services for Oceanographic Ship- 
board Survey Systems ; data processing ; various types of test equipment, 
sound-recording and reproduction equipment; instrument and laboratory 
equipment ; photographic, lithographic and all types of printing equipment 

Pennants and flags ; boat repairs (small craft) ; aluminum and wood boat 
masts; study desks; drafting supplies, diploma cases; Janitor supplies; 
motion-picture machines; optical supplies and services; sails for small 
craft; sailcloth (duck or cotton, dacron, nylon) ; radio materials. 

Sound-recording and reproducting equipment ; electrical control equipment ; 
cameras; instruments and laboratory equipment; electronic components; 
radio hardware ; underwater television equipment; fasteners; machine and 
hand tools ; optical equipment ; metals ; insulating materials ; photographic 
supplies ; and Janitorial supplies. 

Marine Corps Activities 

Repair parts for tactical equipment and vehicles; electronic components; 
engineering components and spare parts ; athletic equipment 



Automotive spare parts and accessories; electronic components and spare 
parts; miscellaneous electrical and plumbing supplies; safety equipment; 
abrasives; s^re parts fOr materials-handling equipment; packing and 
PBCkaging equipment and anpplles ; food for resale. 

Automotive spare parts and accessories; electronic components and spare 
I>arts ; miscellaneous electrical and plumbing supplies ; safety equipment ; 
abrasives; spare parts for materials-handliqg equipment; packing and 
packaging equipment and supplies ; food for resale. 

Repair parts for maintenance of buildings, grounds and equipments ; plumb- 
ing, heating and sanitation equipment; pipe, tubing, and flttings; valves; 
hardware and abrasives ; construction and building materials ; books and 
publications ; recreational and athletic ; food for resale. 

Repair parts for maintenance of buildings, grounds and equipment ; plumb- 
ing, heating and sanitation equipment ; pipe, tubing, and flttings ; valves ; 
hardware and abrasives ; construction and building materials ; books and 
publications ; recreational and athletic equipment ; food for reeale. 



48 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Hardware, plambing, electrical, building and groundkeeping eupplies in sap- 
port of Marine Oorps Bducaticmal Center including office and training 
BuppIieSi training aids and technical boidus; specialized equipment and 
supplies for test and evaluation ; special rifle team equipment and related 
supplies in support of the Marine Corps Marksmanship Training Unit ; 
schools, supplies, and equipment for five dei)»idents' schools ; commercial 
yehicle parts; laundry supplies and equipment; items for Marine Corps 
museums and common grocery-type items for the Sales Commissary. 

Plumbing and heating fixtures and accessories; fire-fighting and safety 
equipment and components; books, publications, and periodicals; con- 
diments; vehicular and construction equipment; repair parts (conmier- 
cial) ; general housekeeping supplies; alteration services for military 
clothing ; stevedoring and local drayage services ; periodic service inspec- 
tion on various typea of office machines. 

Plumbing and heating fixtures and accessories ; firefighting and safety equip- 
ment and components; books, publications, and periodicals; condiments; 
vehicular and construction equipment ; repair parts (commercial) ; general 
housekeeping supplies ; alteration services for military clothing, stevedoring 
and local drayage services; periodic service im^pection on various types 
of ofllce machines. 

Repair parts for maintenance of buildings, grounds, and equipmoit ; plumb- 
ing, heating and sanitation equipment ; pipe, tubing, and fittings ; valves ; 
hardware and abrasives ; construction and building materials ; Ixx^s and 
publications ; recreational and athletic equipment ; food for resale. 

Novy Construction 

Contracts for construction projects and major station maintenance and repair are awarded by 
the following area offices: 



Commandant 

Marine Corps Schools 

Quantico, Va. 22134 

Tel: 703 875-9706, Ext. 2-0721 



Commanding General 
Marine Corps Recruit Depot 
Parris Island, S.C. 29906 
Tel : JA 4-2111, Ext. 4602 



Commanding General 
Marine Corps Recruit Depot 
San Diego, Calif. 
T^: 831-1540 



Commanding General 
Marine Corps Base 
Twentynine Palms, Calif. 
Tel: 831-1350, Ext. 813 



District Public Works Officer 
1st Naval District 
495 Summer St. 
Boston, Mass. 02210 

Tel: Liberty 2-6100 
(Maine, New Hampshire, Vermont, Massachusetts, and 

Rhode Island Including Block Island.) 

District Public Works Officer 

8d Naval District 

90 Church St. 

New York, N.T. 10007 

Tel : REctor 2-9100 

(Connecticut, New York, also the northern part of 
New Jersey, including the counties of Monmouth, 
Middlesex, Somerset, Hunterdon, and all counties 
north thereof.) 

District Public Work Officer 

4th Naval District 

Building No. 1, Naval Base 

Philadelphia, Pa. 19112 

Tel : 756-8955 

(Pennsylvania, Ohio and Delaware, also the southern 
part of New Jersey, including the counties of Mercer, 
Burlington, Ocean, and all counties south thereof.) 



Area Public Works Office, Chesapeake 

U.S. Naval Station, Washington Navy Yard Annex 

Washington, D.C. 20390 

Tel: 202 OXford 8-^3300 

(District of Columbia, the counties of Anne Arundel, 
Prince Georges, McAtgomery, St. Marys, Calvert, and 
Charles in Maryland and the comities of Arlington, 
Fairfax, Stafford, King George, Prince William, and 
Westmore and the city <tf Alexandria in Virginia.) 

Director, Atlantic Division 

Bureau of Yards and Docks 

Naval Base 

Norfolk, Va. 28511 

Tel :MAdison 2-8211 

(Atlantic Area — ^Biaryland, West Virginia, Virginia, 
Kentucky, and eastern part of North Carolina, in- 
cluding counties of Gates, Chowan, Washington, 
Beaufort, Craven, Jones, Onslow, and all counties 
east thereof, except counties indicated in APOW, 
Ches.) 



FEDEBAL HANDBOOK FMt SMAUr BUSINESS 



49 



Director, Southeast Division 

Bureau of Yards and Docks 

U.S. Naval Base 

Charleston, S.G. 29408 

Tel : SHerwood 7-4171 

(North Carolina, less those counties listed in the At- 
lantic Division, South Carolina, Georgia, Florida, 
Alabama, Mississippi, and Tennessee;) 

Director Public Works Oflace 
8th Naval District 
Building; No. 16, Naval Station 
New Orleans, La. 70140 
Tel: FOrest 0-2311 

(Louisiana, Arkansas, Oklahoma, Texas, and New 
Mexico.) 

District Public Works Officer 

9tk Na^I District 

Banding Na lA 

Great Lakes, DL 00088 

T^: 386-3500 

(Micliigan, Indiana, Ulfaiols, Wisconsfai; Minnesota, 
Iowa, Missouri, North Dakota^ South Dakota, Ne- 
brasifca, Kansas, Colorado, and Wyoming.) 

Area Public Works Officer, Caribbean 
Navy No. 116, Fleet Post Office 
New York, N.X. 00502 
Tel: San Juan 72-20080 

(Puerto Rico, Virgin Islands, Trinidad, and Panama 
Canal Zone.) 



Director, Southwest Division 

Bureau of Yards and Docks 

1220 Pacific Highway 

San Diego, Calif. 92132 

Tel : BElmont 2-3871 

(Arizona, Clark County in Nevada; southern part of 
California including the counties of Santa Barbara, 
Kern, and San Bernardino, and all counties south 
thereof.) 

District Public Works Officer 

12th Naval District 

San Bruno, Calif. 04067 

Tel : JUno 3-1640 

(Utah, Navada, less Clark County; northern part of 
California, including the counties of San Luis Obispo, 
Kings, Tulare, Inyo and all counties north thereof.) 

IMreetor,. Northwest Division 

Bureau <tf Yards and Docks 

Seattle, Wash. 08119 

Tel: ATwater 3-5200 

(Washington; Oregon; Idaho; Montana; also: 

Officer iB Charge 

Bureau of Yards and Docks 

Contracts in 17th Naval District ) 

District Public Works Officer 

14tk Naval District 

Navy No. 128, Fleet Post Office 

San Francisco, Calif. 96614 

Tel : Pearl Harbor 4711 

(Hawaiian Islands and islands to the westward and 
southward including the Midway Islands, Jure, 
Wake, JTohnston, and Palmyra Islands, Kingham Reef 
and Kwajaleln Atoll (Marshall Islands).) 



50 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



DEPARTMENT OF THE AIR FORCE MAJOR PURCHASING OFFICES 



San Antonio Air Materiel Area 
Kelly Air Force Base 
San Antonio, Tex. 78241 
Tel : 92a-6411, Ext 64192 



Nuclear bombs; nuclear projectiles; nuclear warheads and warhead sec- 
tions ; nuclear demolition charges ; nuclear rockets ; conversion kits, nuclear 
ordnance; fuzing and firing devices, nuclear ordnance; nuclear compo- 
nents; high explosive charges, propellants and detonators, nuclear ord- 
nance; specialized teert and handling equipment, nuclear ordnance; 
miscellaneous nuclear ordnance; airframe structural components; para- 
chutes and aerial pickup, delivery and tiedown equipment; miscellaneous 
aircraft accessories and components ; aircraft arresting barrier and barri- 
cade equipment ; aircraft launching equipment ; aircraft ground servicing 
equipment ; airfield specialised trucks and trailers ; gasoline reciprocating 
engines, except aircraft and components; gasoline reciprocating engines, 
aircraft and components for engines assigned to San Antonio AM A ; diesel 
engines and components ; steam turbines and components ; gas turbines and 
jet engines, aircraft and components for turbines and jet engines assigned 
to San Antonio AMA ; miscellaneous engines and components ; engine fuel 
system components, nonaircraft ; engine fuel system components, aircraft ; 
engine electrical control components, nonaircraft; engine electrical sys- 
tem components, aircraft ; engine cooling system components, nonaircraft ; 
engine air and oil filters, strainers and cleaners, nonaircraft ; miscellaneous 
engine accessories, nonaircraft; torque converters and speed changers; 
gears, pulleys, sprockets and transmission chain ; belting, drive belts, fan 
belts and accessories; miscellaneous power transmission equipment; gas 
generating equipment; self-contained refrigeration units and accessories; 
refrigeration and air conditioning plants and components; fans and air 
circulators, nonindustrial ; nuclear reactors; motor vehicle maintenance 
and repair shop, specialized equipment; aircraft maintenance and repair 
shop, specialized equipment; lubrication and fuel dispensing equipment; 
miscellaneous maintenance and repair shop, specialized equipment ; motors, 
electrical; electrical control equipment; generators and generator sets, 
electrical airborne; transformers, distribution and power station; con- 
verters, electrical; rectifying equipment, electrical; batteries, primary; 
batteries, secondary; miscellaneous electrical power and distribution 
equipment; indoor and outdoor electrical lighting fixtures; electrical 
vehicular lights and fixtures (aeronautical) airborne; electric portable 
and handlighting equipment; electric lamps; ballasts, lampholders and 
starters ; nonelectrical lighting fixtures ; traffic and transit signal systems ; 
shipboard alarm and signal systems ; aircraft alarm and signal systems ; 
miscellaneous alarm and signal systems; electrical and electronic proper- 
ties measuring and testing instruments; chemical analysis instruments; 
physical properties testing instruments; laboratory equipment and sup- 
plies ; time measuring instruments ; optical instruments ; geophysical and 
astronomical instruments; hazard detecting instruments, and apparatus; 
scales and balances; drafting, survey, mapping instruments; liquid and 
gas fiow, liquid level and mechanical motion measuring instruments; 
pressure, temperature and humidity measuring and controlling instru- 
ments; combination and miscellaneous instruments; chemicals; dyes; 
gases, compressed and liquefied; pest control agents and disinfectants; 
miscellaneous chemical specialties ; storage and shipping containers appli- 
cable to aircraft jet engines ; storage and shipping containers applicable to 
aircraft reciprocating engines assigned to San Antonio AMA; boxes and 
containers, recruiting and advertising ; gas cylinders ; tents and tarpaulins ; 
specialized flight clothing and accessories; liquid propellants, fuels and 
oxidizers. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



51 



Warner Robins Air Materiel Area 
Bobins Air Force Base 
Warner Robins, Oa. 81004 
Tel : 020-5871 



Mobile Air Materiel Area 
Brookley Air Force Base 
Mobile, Ala. 86615 
Tel : 43S-6011, Bxt 7271 



Oklahoma City Air Materiel Area 
Tinker Air Force Base 
Oklahoma City, Okla. 73145 
Tel: 732-7321, Bxt 2601 



Guns through 30 millimeter, support items, launchers, rockets, and pyro- 
technics; miscellaneous weapons; aircraft gunnery fire control compo- 
nents/replacement parts; aircraft bombing fire control components/re- 
placement parts; guided missile components (MGM-13B, C6M-13C), 
guided missile remote control systems (MGM-13B, CGM-13C) ; launchers, 
guided missile (MGM-13B, CGM-13C) ; guided missile handling and 
servicing equipment (MGM-13B, CGM-13C) ; airframe structural compo- 
nents; miscellaneous aircraft items; special services aircraft structural 
components; aircraft propellers; trucks and truck tractors; trailers; 
tractors, wheeled ; metal working machinery ; road clearing and cleaning 
equipment; flrefighting equipment; decontaminating and impregnating 
equipment; safety and rescue equipment; driers, dehydrators, and 
anhydrators; air purification equipment; guided missile maintenance, 
repair, and checkout specialized; equipment (MGM-13B, CGM-13C) ; 
radio and television communication equipment, airborne; radio naviga- 
tion equipment, airborne; radio navigation equipment, airborne-special 
services ; intercommunication and public address systems, airborne ; radar 
equipment, airborne; miscellaneous communication equipment, airborne; 
sets, kits, outfits of measuring tools ; food preparation and serving equip- 
ment (special purpose). 

Ck>mpreesors and vacuum pumps ; power and hand pumps ; heat exchangers 
and steam condensers ; industrial furnaces, kilns, lehrs and ovens ; indus- 
trial fan and blower equipment ; plumbing fixtures and accessories ; space 
heating equipment and domestic water heaters ; pipe and tube ; hose and 
tubing, fiexible ; fittings and specialties : hose, pipe and tube ; valves, pow- 
ered; valves, nonpowered; hand tools (special purpose) ; hardware and 
abrasives; prefabricated and portable buildings; bridges, fixed and float- 
ing; storage tanks; scaffolding equipment and concrete forms; prefabri- 
cated tower structures; miscellaneous prefabricated structures; ammuni- 
tion and explosives (except items assigned to Army Ordnance) guided 
missile components (Titan II) ; guided missile remote control systems 
(Titan II) ; launchers, guided missile (Titan II) ; guided missile han- 
dling and service equipment (Titan II) ; tires and tubes, pneumatic, 
aircraft; ammunition maintenance and repair shop specialized equip- 
mait; guided missile maintenance, repair and checkout specialized 
equipment ; re^stors ; capacitors ; filters and networks ; circuit breakers ; 
switches; connectors, electrical; lugs, terminals, and terminal strips; 
relays, contactors, and solenoids; colls and transformers; piezoelectric 
crystals ; electron tubes, transistors, and rectlf!ying crystals ; miscellaneous 
electrical and electronic components; cameras, motion picture; cameras, 
still picture; photographic projection equipment; photographic develop- 
ing and finishing equipment; photographic equipment and accessories; 
photographic sets, kits, and outfits; training aids; armament training 
devices; o];)erational training devices; communication training devices; 
ammunition boxes, packages, and special containers. 

Guided missile ; aircraft fixed wing ; aircraft hydraulic vacuum and deicing 
system comi)onents; aircraft air conditioning, heating, and pressurizing 
equipment; gas turbine and Jet engines; and components, nonaircraft; 
engine cooling system components, aircraft; engine air and oil filters* 
strainers, and cleaners, aircraft ; turbosuperchargers ; miscellaneous engine 
accessories, aircraft; telephone and telegraph equipment, ground; tele- 
type and facsimile equipment, ground; radio and television communica- 
tion equipment, ground; radio navigation equipment, ground; intercom- 
munication and public address systems, ground; sound recording and 
reproducing equipment, ground ; underwater sound equipment ; visible and 
invisible light communication equipment; miscellaneous communication 
equipment, nonairfoome; navigational instruments; fiight instruments; 
automatic pilot mechanisms and airborne gyro components; engine instru- 
ments; meteorological instruments and apparatus, ground; engine con- 
tainers. 



52 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Sacramento Air Materiel Area 
McOlellan Air Force Base 
Sacramento, Calif. 96662 
Tel : 022-1511, Ext 2«219 



Wright-Patterscm AF Base 
2750tli Air Base Wing 
Dayton, Ohio 45433 
AC 513 257-1110 

2802 Inertial Ouidance and 
Calibration Oronp 
Newark Air Force Station 
Newark, Ohio 43065 
AC 513 344-9481 

Hq. Military Airlift Command 
Scott Air Force Base 
BelleviUe, 111. 62226 
AC 618 266-2123 

Military Airlift Command 
1350 Motion Picture Squadron 
Wright-Patterson Air Force Base 
Dayton, Ohio 45433 
AC 613 25&-5728 

Aeronautical Systems Division 
Wright-Patterson Air Force Base 
Ohio 45433 
Tel: 257-1110, Ext. 55322 



Guided missile components (Atlas, Titan I, and Thor) ; guided missile re^ 
mote control systems (Atlas, Titan I, and Thor) ; launchers, guided mis- 
sile (Atlas, Titan I, and Thor) ; guided missile handling and s^ryice equip- 
ment (Atlas, Titan I, and Thor) ; tanks, auxiliary fuel, and compcments 
(external) and airframe structural components; space TChicle remote con- 
trol systems ; space Tehicle handling and serricing equipment ; rocket en- 
gines and component spares (Atlas, Titan I, and Thor) ; guided missile 
maintenance, repair, and checkout specialized equipment (Atlas, Titan I, 
and Thor) ; radar equipment (ground) ; resistors; capacitors; filters and 
networks ; circuit breakers ; switches ; connector, electrical ; lugs, terminal, 
and terminal strips; relays, contactors, and solenoids; coils and trans- 
formers ; pieasoelectric crystals ; electron tubes, transistors, and rectifying 
crystals ; headsets, handsets, microphones, and speakers ; electrical insula- 
tors and insulating materials ; electrical hardware and supplies ; electrical 
contact brushes and electrodes ; antennas, waveguides, and related equip- 
ment ; synchros and resolvers ; cable, cord, and wire assemblies, communi- 
cation equipment ; miscellaneous electrical and electronic components ; gen- 
erator and generator sets, electrical ; wire and cable, electrical. 

Contract technical services; specialized procurement. 



Specialized test equipment 



Airlift 



Motion picture production ; script ; foreign translations ; commercial prints. 



Complete development and acquisition program for aeronautical systems 
and their components and related Government-furnished aerospace equip- 
ment (GFAE) including but not limited to aircraft engines, aircraft 
wheels and brakes, airborne communication systems, aircraft bombing 
and navigation systems, aircraft instruments; Department of Defense 
central procurement responsibility for ground and aerial cameras, photo- 
graphic processing equipment Responsible for AFSC planning for limited 



Research and Technology Division 
Systems Engineering Group 
Wright-Patterson Air Force Base 
Ohio 45433 
Tel : 253-7111 



Ballistic Systems Division 
Norton Air Force Base 
San Bernardino, Calif. 02409 
Tel: 382-8553 



Exploratory and advanced development programs in air breathing, electric, 
and advanced propulsion, fuels, and lubricants, flight vehicle power, site 
support electronic components, Optronics and photo material, inertial 
components, vehicle electromagnetic environment aerospace vehicle ap- 
plications such as reconnaissance, navigation and guidance, electronic 
warfare, materials, sciences, metals and ceramics, nonmetalllc materials, 
manufacturing technology, and materials application, flight vehicle dy- 
namics, performance, control, launching, alighting, and structures, crew 
station, environmental control, and escape, aerodynamic and decelerators. 
Basic and applied research in bioastronautics, in human engineering, 
training, environmental stress criteria and life support Basic research in 
selected areas of physical and mathematical science. 

Development and acquisition of all BSD ballistic missile systems, activa- 
tion of designated missile sites, related studies to determine feasibility of 
future systems and advanced ballistics weaponry state-of-the-art 



FEDERAL HANDBOOK FOR 8MALL BUSINESS 



55 



Sl)ace Systems Division 
Air Force Unit Post Office 
Ix>s Angeles, Calif. 90045 
Tel : 643^2855 

Elec'tronic Systems Division 
L. G. Hanscom Field 
Bedford, Mass. 01731 
Tel : 274-6100, Ext. 2244 
Aerospace Medical Division 
Brooks Air Force Base 
San Antonio, Tex. 78235 
Tel : 532-8811, Ext. 6227 
Air Force Flight Test Center 
Edwards Air Force Base 
Muroc, Calif. 93523 
Tel : 258-2111, Ext. 6227 



Air Force Special Weapons Center 
Kirtland Air Force Base 
Albuquerque, N. Mex. 87117 
Tel : 247-1711, Ext. 2917 



Air Force Eastern Test Range 
Patrick Air Force Base 
Cocoa, Fla. 32925 
Tel: 485-7545, Ext. 6151 

Air Force Western Test Range 
Vandenberg Air Force Base 
Lompoc, Calif. 93437 
AC-805 866-3818 
Rome Air Development Center 
Grifflss Air Force Base 
Rome, N.Y. 13442 
Tel: 330-4020 



Air Force Missile Development 

Center 
Holoman Air Force Base 
Alamogordo, N. Mex. 88330 
Tel : 473-6511, Ext. 3861 



Air Proving Ground Center 
Eglln Air Force Base 
Valparaiso, Fla. 32542 
Tel : 881-6668, Ext. 2843 
Arnold Engineering Development 

Center 
Arnold Air Force Station, Tenn. 

37389 
Tel: 455-2611, Ext 509 



To plan program and manage qualitatively superior space systems and re- 
lated equipment ; acquisition of space syst^ns and equipment and manages 
the research, development engineering and test, on orbit tracking, teleme- 
try control, recovery, installation and che<*k out of assigned space systems. 
(SSD) 

Complete acquisition program for electronic elottroinnguelic information 
and communications systems and equipment. 



Life sciences, himian factors, aerospace medicine, biosciences, bioniedicine, 
behavioral sciences, space medicine, biotechnology, human engineering, 
human resources, aviation medicine, and sjMice biology. 

Complete test and evaluation of new and research aircraft, parachute and 
deceleration devices. Research and development of rocket propulsion 
systems, rocket engines and new propellant formulations (liquid and solid) 
with as.sociated fuel flow and capative test support equipment. Flight 
test instrumentation, simulation, tracking and data acquisition and reduc- 
tion equipment. 

Testing and engineering in the field of nuclear weapons and associated 
equipment. Si)ecific engineering interests include : telemetry ; instrumen- 
tation; weai)ons/aircraft flight characteristics; high-speed camera tech- 
niques. Provides air support to the Atomic Energy Commission in the 
conduct of live nuclear tests in the Zone of Interior and in preparation 
for the Air Force support role in oversea testing. 

Test range instrumentation involving radar, trajectory computers and re- 
corders, tracking and target analysis, wire communications, radio com- 
munications, programing timing and firing systems, telemetry receiving; 
data storage, data separation and presentation, optics and telemetry data 
reduction. 

Specializes in polar orbit launches of satellites and supports the operational 
training launches of the Strategic Air Command missiles. (WTR) 



Surveillance, electronic intelligence, communications, computer and data- 
processing techniques, textual data-processing, intelligence, extraction 
from aerial reconnaissance, data presentation, high-power electromagnetic 
generators, receivers, transmission Hue components, microelectronics ap- 
plications, reliability and maintainability, survivability, propagation, 
vulnerability reduction, electronic countermeasures and electromagnetic 
weapons. 

AFMDC : Conduct of category II testing of aircraft reconnaissance systems 
operation of the central inertial guidance test facility, support of flight 
and static test of ballistic missile nose cones, and reentry systems. Opera- 
tion of ballistic missile reentery system data center. Operation of AFSC 
high-speed test track. Horizontal rocket engine testing up to 500,000 
pounds thrust. R. & D. and human factors and execution of Air Force 
responsibilities at the White Sands Missile Range. 

Research, development, test, and evaluation of guns and other aircraft 
weapons, ammunition, rockets, bombs, and fire-control components and 
systems. 

Aerodynamics, research and development of powerplants related to operation 
and tests of air breathing propulsion systems, i.e., turbojet, ramjet, and 
turboprop. Problems associated with high-temperature materials and the 
unique mechanical, electrical, and thermodynamic problems all related to 
the construction of large and complex engine-test facilities and wind tun- 
nels involving heavy construction of complicated machinery and associated 
ducting. 



54 



nSDBRAL HANDBOOK FOB SMALL BXIBIMB6S 



Bos« Procuremant 


This consists of supplies and services^ 


induding minor construction, required for the daily 


oi)eration of Air Force bases, worldwide. 


In the United States, those bases are under various 


commands: Tactical Air Command, Military Air Transport Service, Air Defense Command, Air 


Training Command, Strategic Air Command, Alaskan Air Command, etc. At each conmiand 


headquarters there is an Executive for Small Business. Each individual base also has a designated 


small business specialist. These bases are listed below : 


Alobomo 


CalifQffnki 


Montgomery: 


Cafnarillo: 


MaxweU Air Force Ba.se (AF) 


Oxnard Air Force Base ( AF) 


Base Procurement OflBice 


414 Combat Support Squadron 


Mrs. Ruth R. Hunter 


Mrs. Zella A. Haug 


Area CJode: 205 265-5021, Ext 7201 


Area Code: 805 486-1631, Bxt 3216 


Selma: 


Fairfield: 


Craig Air Force Base ( AF) 


Headquarters Western Transport Air Force ( AF) 


3616 Pilot Training Wing 


Procurement Division 


Capt. Chester A. Holland 


Travis Air Force Base 


Area Code : 205 TR 4-7431, Ext. 53206 


Capt Arvld G. Shaw 


Alaska 


Area Code: 707 438-2516 


Anchorage: 

Elmendorf Air Force Base 


Travis Air Force Base (AF) 
1501 Air Base Group 


Lt. Eldon R. Gunderson 


Mr. Donald R. Bertholdi 


APO Seattle 98733 


Area Code: 707 438-2811 


Tel: 373-4230 




Fairbanks: 


Jgnacio: 


Eielson Air Force Base 


Hamilton Air Force Base ( AF) 


Mr. Donald M. Smith 


28 Air Division 


APOSeattie 98742 


Lt. Stephen D. Thomas 


Tel : 754-2209 


Area Code: 415 884-7711. Bxt 3324 


Arizona 


Lompoc: 


Chandler: 


Vandenberg Air Force Base ( AF) 


Williams Air Force Base ( AF) 


Base Procurement Office 


3525 Pilot Training Wing 


Mr. William C. Key 


Mr. Matthew A. Jannuzzi 


Area Code: 805 866-5001 


Area Code: 602 YU 8-2611, Ext. 667 




Phoenix: 

Luke Air Force Base ( AF) 
Base Procurement Office 


Los Angeles: 

Lookout Mountain Air Force Station 
1352 Photo Group 
Mrs. Florence A. Thorn 


Mr. John J. Anderson 


Area Code : 213 654-4100, Ext 44 


Area Code : 602 WE 5-9311, Ext 2629 




Tucson: 


MarysviUe: 


Davis Monthan Air Force Base ( AF) 


Beale Air Force Base ( AF) 


Base Procurement Office 


456 Combat Support Group 


Mr. Eugene L. Sierras 


Mr. Louis A. Fields 


Area Code : 602 793-3131 


Area Code: 916 C34r-2t>41 


Arkonias 


Merced: 


Slythevillc: 


Castle Air Force Base ( AF) 


Blylheville Air Force Base ( AF) 


Base Procurement Office 


Base Procurement Office 


Mr. William R. Mann 


Mr. Francis M. Nordeen 


Area Code: 209 RA 3-1611, Bxt. 2802 


Area Code : 501 PO 3-^931, Ext. 246 


Riverside: 


Jacksonville: 


March Air Force Base (AF) 


Little Rock Air Force Base (AF) 


22 Combat Support Group 


825 Combat Support Group 


Mr. Ralph 0. Ohristiansen 


Mr. James M. Hull 


Area Code: 714 Moreno Long DlBt Qper. 20, 


Area Code: 501 TU 5-3301 


Bxt 2046 



TBDEBAL HiCNBBOOK ¥0B fiOiALL BUSINESS 



56 



CoHfomlci CwiHnptd 

Baoramcnto: 

Mather Air Force Base (AF) 

3535 Navigator Training Wing 

Mr. John Solberg 

Area Code: 916 EM 3^161, Ext 2740 

VictorvUlc: 

George Air Force Base (AF) 

Base Procurement Office 

Mr. Paul Waas 

Area Code : 714 CH 6-8611, Ext 2337 



Colorado Springs: 

USAF Academy Procurement Office 
Mr. Lester A. Shoemaker 
Area Code: 303 472-2332 

Ent Air Force Base 

4600 Air Base Wing 

Mr. Robert S. Nevroth 

Area Code : 303 63»-8811, Ext. 6641 

Denver: 

Lowry Air Force Base (AF) 

Lowry Technical Training Center 

Mr. Joe P. Piccola 

Area Code : 303 DU 8-5411, Ext 44471 

Connecticut 
Windsor Locks: 
Bradley Field 

905 Troop Carrier Group (AF) 
Mrs. £^nestyne E. Clark 
Area Code : 203 NA 3^3377, Ext. 68 

Dolowar* 
Dover: 

Dover Air Force Base ( AF) 

1607 Air Base Group 

Capt Wm. F. McGovem 

Area Code : 302 734-8211, Ext 617 

Florida 
Bowcstead: 

Homestead Air Force Base (AF) 
19 Combat Support Group 
Mr. Jack Ford 
Area Code: 305 ED 6-7327 

Orlando: 

Hq. Air Photographic and Charting Service (AF) 

Procurement Division 

Orlando Air Force Base 

Mrs. Edith C. Light 

Area Code : 305 841-5611, Ext. 2002 

McCoy Air Force Base ( AF) 

306 Combat Support Group 

Mr. Lloyd F. Kruckemyer 

Area Code: 305 855-3210, Ext 438 



Florida Conrtnwd 
Pamana City: 

Tyndall Air Force Base ( AF) 

73 Air Division 

Mr. Ray P. Gatliff 

Area Code : 805 286-2111, Ext. 25261 

Tampa: 

MacDill Air Force Base (AF) 

Base Procurement Office 

Maj. John Colianna 

Area Code : 813 836-1411, Ext. 3232 

Goorgia 

Albany: 

Turner Air Force Base ( AF) 
484 Combat Support Group 
Mr. Edwin J. MulhoUand 
Area (>>de : 912 432-3000 

Marietta: 

Dobbins Air Force Base ( AF) 
918 Troop Carrier Group 
Irene V. Rogers — Mr. Joseph Nix 
Area Code : 404 428-4461, Ext 795 

Savannah: 

Hunter Air Force Base (AF) 

63 Troop Carrier Wing 

Lt Eddie G. Freret 

Area Code: 912 234-4461, Ext 28141 

Valdosta: 

Moody Air Force Base ( AF) 

3550 Pilot Training Wing 

Lt. Robert A. Law 

Area Code: 912 ED 3-4211, Ext 453 

Hawaii 
Honolulu: 

Hickam Air Force Base ( AF) 
Pacific Air Force Base Command 
Maj. Lloyd E. Bell 



Mountain Home: 

Mountain Home Air Force Base ( AF) 
9 Strategic Aerospace Wing 
Mr. Herbert J. Pennings 
Area Code: 208 828-2470 



Illinois 



Belleville: 



Scott Air Force Base ( AF) 
1405 Air Base Group 
Mr. Leonard R. Pranger 
Area Ck)de: 618 256-3036 



M-548* 



56 



FEDERAL HANDBOOK FOR SMALL BUSINESS 





Maina 


Chicago: 


Banff or: 


0*Hare International Airport 


Dow Air Force Base 


928 Troop Carrier Group 


Base Procurement Office 


Mrs. Ethel C. Tonkin 


Mr. Lloyd G. Sargent 


Area Code : 312 296-4411, Ext. 583 


Area Code : 207 989-2300. Ext. 2121 


Kantoul: 


Limestone: 


Chanute Air Force Base ( AF) 


Loring Air Force Base ( AF) 


Technical Training Center 


42 Combat Support Group 


Mr. Thomas G. Stark 


Lt. Phillip J. Carney 


Area Code: 217 TW2-3111, Ext. 4112 


Area Code : 207 FA 8-7311, Ext 2284 


Indiana 




Columhua: 


Chicopce Falls: 


Bakalar Air Force Base 


Westover Air Force Base (AF) 


930 Troop Carrier Group 


814 Combat Support Group 


Mr. Robert M. Bardin 


Mr. Edward J. Kennedy 


Area Code : 812 373-2501, Ext. 351 


Area Code : 413 557-3507 


Peru: 


Falmouth: 


305 Combat Support Group 


Otis Air Force Base ( AF) 


Bunker Hill Air Force Base (AF) 


551 Combat Support Group 


Mr. Howard E. Smith 


Mr. Robert L. Marelli 


Area Code : 317 MU 9-2211, Ext. 2131 


Area Code: 617 968^461 


iQwa 
Sioux City: 


MIchigon 

Kinross: 


Sioux City Municipal Airport (AF) 
4644 Support Squadron 
Mr. Jeffrey Dargis 


Kincheloe Air Force Base (AF) 
507 Combat Support Group 
Mr. Gilbert F. Peterman 


Area Code : 712 252-4141, Ext. 308 


Area Code : 906 495-5611, Ext 2380 


Kansas 




Salina: 


Marquette: 


Schilling Air Force Base (AF) 
Base Procurement Office 


K. I. Sawyer Air Force Base ( AF) 
Base Procurement Office 


Mr. Clifford L. Nyberg 
Area Code: 913 AV 5-3285 


Mr. Morris E. Woodridge 

Area Code: 906 346-6511, Ext 2300 


Topeka: 


Mt. Clemens: 


Forbes Air Force Base (AF) 


Self ridge Air Force Base (AF) 


815 Combat Support Group 


1st Combat Support Group 


Mr. A. H. Stratton 


Helen M. Bourdage 


Area Code : 913 UN 2-1234, Ext 5431 


Area Code : 313 463-0511, Ext 24206 


Wichita: 


Oscoda: 


McConnell Air Force Base (AF) 


Wurtsmith Air Force Base (AF) 


Base Procurement Office 


Base Procurement Office 


Capt Marvin G. Spallina 


Mr. Roy L. Lemons 


Area Code: 316 685-1151 


Area Code : 517 SE 9-3611, Ext 2132 






Alcrandria: 


Duluth: 


England Air Force Base (AF) 


Duluth Municipal Airport (AF) 


Base Procurement Office 


343 Fighter Group 


Mr. Wm. H. Dunn 


Maj. Joseph Gambucci 


Area Code : 318 443-4561, Ext. 553 


Area Code : 218 727-8211, Ext 240 


Shrcveport: 


St. Paul: 


Barksdale Air Force Base ( AF) 


Minneapolis-St Paul International Airport (AF) 


2 Combat Support Group 


934 Troop Carrier Group 


Mr. James L. Ingram 


Mrs. Julia S. KulmaU 


Area Ck)de : 318 425-3117 


Area Code : 612 PA 1-2915, Ext 270 



FEDERAL HANDBOOK FOR BWOJj BUSINESS 



5^ 



MissUslppi 


♦ 


Biloa^l: 


Reno: 


Keesler Air Force Base < AF) 


Stead Air Force Base (AF) 


Technical Training Center 


3636 Flying Training Wing 


Mr. Barnard R. Cheyalier 


Mr. Forrest F. Glenn 


Area Code: 601 ID 2-1561, Ext. 38081 


Area Code: 802 FI 9-0711, Ext 285 


Columhua: 




Columbus Air Force Base (AF) 


Manchester: 


454 Combat Sui>port Group 


Grenier Field, Manchester Municipal Airport ( AF) 


Mr. Fred B. Gilliland 


002 Troop Carrier Group 


Area Code: 601 434-7517 


Mr. Arthur J. Clare 




Area Code: 603 NA 4-4031. Ext 362 








Portsmouth: 


Blchards-Gebaur Air Force Base (AF) 


Pease Air Force Base 


328 Combat Support Group 


817 Combat Support Group 


Mr. Leonard W. Shriver 


Mr. Paul E. Weller 


Area Code: 816 331-1200, Ext. 526 


Area Code: 603 GE 6-0100, Ext 336 


Knoh Noster: 


N*w J*rs«y 


Wbiteman Air Force Base 


Wright stolen: 


351 Combat Support Group 


Headquarters Eastern Transport Air Force 


Mr. Orrille D. Meyer 


Procurement Division 


Area Code: 816 LO a-5511, Ext. 267 


McGuire Air Force Base 




Sgt. Stanley R. Gerst 


OlasffOic: 

Glasgow Air Force Base (AF) 


Area Code: 609 724-2100, Ext 2024 


McGuire Air Force Base (AF) 


Base Procurement Office 


1611 Air Base Group 


Mr. Louis W. Blanchette 


Capt. Wm. D. Bell 


Area Code: 509 CH 7-2161, Ext. 4419 


Area Code: 609 724-2100, Ext 3120 


Great FalU: 


N«w Mexico 


Malmstrom Air Force Base ( AF) 


Clovis: 


341 Combat Support Group 


Cannon Air Force Base (AF) 


Mr. Angus W. Clunie 


Base Procurement Office 


Area Code : 406 731-3743 


Mr. Dominic A. Schreiber 




Area Code : 505 SU 4-3311, Ext. 203 


N*brasko 




Lincoln: 


Roswell: 


Lincoln Air Force Base (AF) 


Walker Air Force Base (AF) 


818 Combat Support Group 


6 Strategic Aerospace Wing 


Mr. Glen B. Carrigan 


Mr. n. L. Gremlllion 


Area Code: 402 GR 7-6011, Ext. 2128 


Area Code: 505 348-8383 


Omaha: 


N«w York 


Offutt Air Force Base (AR) 


Long Island: 


3002 Air Bnse Wing 


West Hampton Beach (AF) 


Mr. William W. Vaugban 


Suffolk County Air Force Base 


Area Code: 402 294-4351 


52 Combat Support Group 




CWO Howell L. Broxton 


Ntvada 


Area Code: 516 28S-1900, Ext 472 


Las Vegas: 




Nellis Air Force Base ( AF) 


VewWrgh: 


Base Procurement Office 


Stewart Air Force Base (AF) 


Mr. Vance C. Taylor 


4603 Air Base Group 


Area Code : 702 DU 2-1800, Ext. 22151 


Mr. Joseph T. Curry 




Area Code: 914 562-1300, Ext. 560 



58 



FEDERAL HANDBOOK FOR SMALL BUSINESS 







Niagara Falls: 


Wilmington: 


Niagara Municipal Airport (AF) 


Clinton County Air Force Base (AF) 


4621 Air Base Group 


906 Troop Carrier Group 


Mr. Roderic R. Madore 


Mr. George R. Goodman 


Area Code: 716 297-4100, Ext 294 


Area C^e : 513 FU 2^3811, Ext 3138 


Plattshurffh: 




Plattsburgh Air Force Base (AF) 


Alius: 


Base Procurement Office 


Altus Air Force Base ( AF) 


Mr. Paul R. Pierson 


Base Procurement Office 


Area Code : 518 565-5218 


Mr. Ernest L. Sadler 




Area Code: 405 HU 2-8100, Ext 7320 


NQrth CorQlIno 






Bums Flat: 


Fayetteville: 


Clinton Sherman Air Force Base (AF) 


Pope Air Force Base 


Base Procurement Office 


Base Procurement Office 


Mr. Glen D. Peck 


Mr. Roger L. Hawley 


Area Code : 405 LO 2-3121, Ext. 342 


Area Code : 919 396-4111, Ext 51155 




Ooldaboro: 

Seymour- John son Air Force Base (AF) 


Enid: 

Vance Air Force Base (AF) 
Base Procurement Office 


Base Procurement Office 


Mr. A. H. McMuUen 


Mr. Battle R. Tunstall 


Area Code: 405 AD 7-2121, Ext 210 


Area Code : 919 RE 5-1121, Ext 275 






Oroflon 


North Dakota 


Klamath Falls: 


Grand Forks: 


Kingsley Field (AF) 


Grand Forks Air Force Base (AF) 


408 Combat Support Squadron 


Base Procurement Office 


Virginia A. Brower 


Lt A. D. Berquist 


Area Code : 503 882-4411, Ext 420 


Area Code : 701 594-6571 


Portland: 


Minoi: 


Portland International Airport (AF) 


Minot Air Force Base (AF) 


337 Combat Support Squadron 


862 Combat Support Group 


Helen T. Barber 


Mr. William W. Pirkle 


Area Code: 503 288-5611, Ext 354 


Area Code: 701 TE 7-1161, Ext 5054 






Ponntylvania 


Ohio 


Corapolis: 


Columbuft: 


Greater Pittsburgh Airport (AF) 


Lockbourne Air Force Base ( AF) 


911 Troop Carrier Group 


801 Combat Support Group 


Miss Lavema R. Cerceo 


Mr. R. H. Brown 


Area Code : 412 FE 1-2609, Ext. 253 


Area Code : 614 491-8211, Ext 7341 


Willow Grove: 


Dayton: 


Willow GroTe Air Reserve Facility (AF) 


Wright-Patterson Air Force Base (AF) 


912 Troop Carrier Group 


Base Procurement Office 


Mr. George L. Zwolak 


Mr. Henry T. Brown 


Area Code : 215 OS 2-4300, Ext 386 


Area Code : 513 257-1110, Ext. 72324 


South Carolina 


Vienna: 


North Charleston: 


Youngstown Municipal Airport (AF) 


Charleston Air Force Base ( AF) 


910 Troop Carrier Group 


1608 Air Transport Wing 


Mrs. Mary Jean Michael 


Mr. Robert C. McCollister 


Area Code: 216 FR 4-1551, Ext 212 


Area Code : 803 747-4111, Ext 2063 



FEDERAL HANDBOOK VOR BMALL BUSINESS 



6! 







Myrtle Beach: 


Houston: 


Myrtle Beach Air Force Base ( AF) 


EUingston Air Force Base ( AF) 


Base Procurement Office 


2578 Air Base Squadron 


Mrs. Marie J. Repec 


Mrs. Mary Y. Kerr 


Area Code: 803 HI 8-3131, Ext 444 


Area Code : 713 HU 7-1400, Ext. 667 


Sumter: 


Laredo: 


Shaw Air Force Base ( AF) 


Laredo Air Force Base (AF) 


Base Procurement Office 


Base Procurement Office 


Capt. VirgU V. Oarlsen 


Mr. Forest Morris 


Area CJode: 803 775-1111 


Area Code : 512 RA 3-9121, Ext 681 


South Dokofla 


lAibltock: 


Rapid City: 


Reese Air Force Base 


Ellsworth Air Force Base (AF) 


3500 Pilot Training Wing 


821 Ck>ml>at Support Group 


Maj. Joseph V. Sullivan 


Mr. Donald S. Galbralth 


Area Code : 806 885-4511, Ext 314 


Area Code: 005 39^2721 


San Antonio: 


T«nn*tMO 
Smyrna: 

Sewart Air Force Base (AF) 
Base Procurement Office 


Lackland Air Force Base (AF) 


Lackland Militery Training Center 

Lt G. H. Madeley 

Area Code : 512 OR 4-3411, Ext. 33?^ 


Capt Lonnle J. Rowln 


Sherman: 


Area Code: 615 675-0211 


Perrin Air Force Base 




4780 Air Defense Wing 


T*xat 


Mr. S. J. Hallett 


Alnlene: 


Area Code : 817 787-2971, Ext 8295 


Dyess Air Force Base ( AF) 




Base Procurement Office 


Waco: 


Mr. Roy J. Bishop 


James Connally Air Force Base (AF) 


Area Code : 915 OW 6-2581 


3565 Navigator Training Wing 




Mrs. Ethel S. Morrow 


Amarillo: 


Area Code : 817 SW 9-3611, Ext. 563 


AmarlUo Air Force Base 




Amarillo Technical Training Center 


Wichita Falls: 


Mrs. Mildred F. Walker 


Sheppard Air Force Base (AF) 


Area Code : 806 DI 9-1511, Ext 8138 


Technical Training Center 
Mrs Arti«» flanpr 


Austin: 


Area Code: 817 881-2511, Ext 2005 


Bergstrom Air Force Base ( AF) 




Base Procurement Office 


Vli^lnlo 


Miss Vivian A. Anderson 


Hampton: 


Area Code: 512 EV 5-4100, Ext 420 


Langley Air Force Base (AF) 


Big Spring: 

Webb Air Force Base 


Base Procurement Office 


MaJ. Kenneth A. Clark 


Base Procurement Office 


Area Code 703 764r-3246 


Mr. Floyd A. Henderson 




Area Code : 915 AM 4-2511, Ext. 606 


Everett: 


Bl Paso: 


Pain^ Field (AF) 


Biggs Air Force Base ( AF) 


57 Combat Support Squadron 


95 Combat Support Group 


Mr. Robert F. Ck)llin8 


Mr. Thomas J. Smith 


Area Code 206 353-1161, Ext 258 


Area Code: 915 LO 6-6711, Ext 24201 


Moses Lake: 


Fart Worth: 


Larson Air Force Base ( AF) 


Carswell Air Force Base 


4629 Strategic Aerospace Wing 


824 Combat Support Group 


Mr. Thomas F. Mortenaen 


Miss Donythy G. CarroU 


Area Code 609 76&-7081 


Area Code: 817 PE &-3511, Ext 253 









F1SD8BAL HANDBOOK FOR SMALL BUSINSSS 



Wi 



Spokane: 

Fairchild Air Foice Base (AP) 
92 Combat Support Group 
Mr. Walter J. Anderson 
Area Code 50d CH 7-2161 

Tacoma: 

McChord Air Force Base ( AF) 

25 Air Division 

Mr. Charles L. Wilk 

Area Code 206 588-2121, Ext 2531 

Wisconsin 
Afadi8on: 

nqs. 327 Fighter Group ( AF) 

Truax Field 

Mr. G. H. Hagren 

Area Code : 008 249-5311, Ext. 153 



Wiscomin-^Contim#«d 

Madison — Continued 
Truax Field (AF) 
30 Air Division 
Mr. Theodore R. Carey 
Area Code: 608 249-5311, Ext. 663 

Milwaukee: 

General Billy MitcheU Field ( AF) 

933 Troop Carrier Group 

Mrs. Alice E. Ward 

Area Code : 414 HU 1-6400. Ext 251 

Wyoming 

Cheyenne: 

Francis E. Wariaeii Air Force Base ( AF) 

809 Combat Support Group 

Mr. L. B. Nelson 

Area Code : 307 775-2947 



DEFENSE SUPPLY AGENCY 

Comeron Station, Alexandria, Vo., 22314 

The mission of tlie Defense Supply Agency (DSA) is to provide common supplies andser\ac«s 
to the Military Departments, other elements of the Defense Depadment, and to Federal civil 
agencies, as assigned by the Secret ai^y of Defense. 

The Agency is the supplier to the Military Departments and otlier customers of such neces- 
sities as food, clothing and textiles, medical, chemical, general, industrial, construction, fuel, and 
electronics supplies^ It manages an inventory of idle industrial plant equipment and maintains 
central records of all plant equipment owned by the Defense Departmant. It procures and dis- 
tributes food and sanitation supplies and medical kits for the Civil Defense fallout shelter program. 

In the service field, DSA admmisters the Federal Supply Catalog for the Defease Establish- 
ment, Federal civil agencies, and other users and supervises Defense-wide programs for materiel 
utilization, technical documentation sei-vices, coordinated procurement, and surplus property 
disposal. 

In 1964 the Secretary of Defense directed that contract administration services also should 
come under management of DSA. This consolidation of some 200 Army^ STavy, Air Force, and 
DSA field contract offices is engaged in such functions as quality assurance, production expediting, 
industrial security, and payment of contractors. 

Interested bidders and suppliei-s should deal directly with appropriate Supply Centers and 
Depots. 

Defense Personnel Support Centers 

Hospital and surgical clothing and textiles; household f urni^hing^a ; textile 
fabiics ; yarn and thread ; notions and apparel findings ; padding and stuff- 
ing materials ; leather ; shoe findings and solins material ; tents and tar- 
paulins; flags and pennants; underwear and outerwear; footwear; ho- 
siery ; badges and insignia ; luggage ; and, i^ieeialiBed fUg^t idoUiiag. 

Drugs, medicines, biologicals, official reagents ; surgical dressings materials ; 
medical, surgical, dental, and opticians instruments, equipment, and sup- 
plies, X-ray equipment and supplies; hospital furniture, equipment, uten- 
sils, and supplies ; and, medical sets, kits, and outfits. 



Commander 

Defense Personnel Support Center 

2800 South 20th Street 

Philadelphia, Pa. 101D1 

Area Code: 215 HOward 5-2000, 

Ext. 023, 638 
AUTO VON : 231-1460 



k 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



61 



Subsistence of all types, perishable and nonperishable for distribution in 
the United States and overseas. The range and variety of such purchases 
cover all types and kinds of meat and meat products, fresh fruits and 
vegetables, dehydrated items, seafood or watw foods, cereals, dairy prod- 
ucts, poultry, and other related food items. Canned, packaged fresh, 
froasen items are purchased in car-lot and less-than-car-lot quantities. 
Large quantities are purchased after nationwide competition, while less- 
than-car-lot quanties are procured locally by the individual regional 
headquarters. 

Diesel engines and components ; gardening hnplements and tools ; construc- 
tion, mining, excavating, and highway maintenance equipment; convey- 
ors, winches, hoists, cranes, and derricks ; fireflghting equipment ; pumps 
and compressors ; plumbing, heating, and sanitation equipment ; water puri- 
fication and sewage treatment equipment ; pipe, tubing, hose, and fittings ; 
valves; prefabricated structures and scaffolding; lumber, millwork, ply- 
wood, and veneer; other construction and (building materials; and, sup- 
plies, repair parts, and miscellaneous items applicable to automotive and 
construction equipment, warehouse trucks, and trailers. 

Sub-OfRcef (Specializing in Lumber) 

Atlanta Regional Procurement Sub-Oflace Portland Regional Procurement Sub-Offlce 

Defense Construction Supply Center 
Defense Supply Agency 



€k)nunander 

Defense Construction Supply Center 

3900 B. Broad St 

Columbus, Ohio 48216 

Area Code: 614 236^3541 

AUTOVON: 231-^120 



Defense Construction Supply Center 
Defense Supply Agency 
Post Office Box 1889 
Atlanta, Ga. 30301 
Area Code : 404 526-6044 



783 Pittock Block 
Portland, Oreg. 97205 
Area Code : 503 227-7681 



Commander 

Defense Electronics Supply Center 

1507 Wilmington Pike 

Dayton, Ohio 46401 

Area Code: 518 252-6551, Ext. 

26218 
AUTO VON: 551-1530 



Resistors ; capacitors ; filters ; networks ; relays ; contactors ; solenoids ; coils 
transformers; piezoelectric crystals; electron tubes; transistors; rectify- 
ing crystals; headsets; handsets; microphones; speakers; antennas 
waveguides and related equipment; synchros; resolvers and miscellan- 
eous electronic components; fuses; lighting arresters; circuit breakers 
and, switches. 



Commander 

Defense Fuel Supply Center 

Cameron Station 

Alexandria, Ya., 22314 

Area Code : 202 OXf ord 8-8401 

Commander 

Defense General Supply Center 

Bellwood, Petersburg Pike 

Richmond, Ya. 23212 

Area Code: 703 275-3617 

AUTOYON : 556-3370 



Chemicals and si}ecialties including cleaners, solvents, and fluids having a 
petroleum base; gasoline and Jet fuel; fuel oils; packaged petroleum prod- 
ucts; cutting, lubricating, and hydraulic oils and greases; miscellaneous 
waxes, oils, and fats; pest control agents and disinfectants; petroleum 
base liquid proi)ellants and fuels; natural and synthetic minerals; and 
solid fuels. 

Service and trade equipment; furniture; food preparation and serving 
equipment ; office supplies ; musical instruments ; recreational and athletic 
equipment; cleaning equipment and supplies; toiletries; materials han- 
dling equipment ; self-contained refrigeration units and accessories ; fans 
and air circulators ; photographic supplies ; floor coverings ; miscellaneous 
household and commercial furnishings and appliances; bags and sacks; 
drums and cans ; boxes, cartons, and crates ; bottles and jars ; packaging 
and packing bulk materials; paper and paperboard; rubber fabricated 
materials ; plastic fabricated materials ; glass fabricated materials ; refrac- 
tories and fire surfacing materials; electrical hardware, lighting equip- 
ment, and supplies ; cable, cord, and wire assemblies ; lugs, terminals, and 
terminal strips; electrical insulators and insulating materials; electrical 
contact brushes and electrodes ; chemicals ; compressed gases ; dyes ; pest 
control agents and disinfectants. 



62 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Commander 

Defense Indiiiitrial Supply Center 

700 Robhins ATenue 

PhUadelphla, Pa. 19111 

Area Code: 215 BAndoliih 8-1212, 

Ext 7019 
AUTOVON : 231-3840 



Hardware and abrasives; metal bars, rods, sheets, and shapes; bearings; 
chain and wire rope and fittings; electrical wire and cable; fiber rope, 
cable^ and twine; blocks, tackle, slings, and rigging; rivets, nails, screws, 
and bolts ; metal screening ; packing and gasket materials ; and, knobs and 
pointers. 



Subsistence Regional Headquarters 



Chicago Subsistence Regional Hdqrs, DPSC 
536 South Clark Street 
Chicago. III. 60605 
Area Code : 312 828-5009 

Columbia Subsistence Regional Hdqrs, I)I»SC 
1813 Main Street 
Columbia, S.C. 29201 
Area Code : 803 254-1006 

Fort Worth Subsistence Regional Ildiirs, DPSC 
Felix at Hemphill Streets 
Fort Worth, Tex. 76115 
Area Code : 817 WA 4-2261 

Kansas City Subsi.stcnce Regional Hdqrs, DPSC 
623 Hardesty Avenue 
Kansas City, Mo. 04124 
Area Code : 816 221-7000 

Los Angeles Subsistence Regional Hdqrs, DPSC 

929 South Broadway 

Los Angeles, Calif. 90015 

Area CVide : 213 688-3555 



New Orleans Subsistence Regional Hdqrs, DPSC 
4400 Dauphine Street 
New Orleans, La. 70140 
Area Code: 504 947-5571 

New York Subsistence Regional Hdqrs, DPSC 
Third Avenue end 29th Street 
Brooklyn, N.T. 11232 
Area Code : 212 ST 8-5000 

Oakland Subsistence Regional Hdqrs, DPSC 
2155 Webster Street 
Alameda, Calif. 94505 
Area Code: 415 523-4252 

Richmond Subsistence Regional Hdqrs, DPSO 

% Defense General Supply Center 

Bellwood, Petersburg Pike 

RicfamoDd, Va. 23219 

Area Code : 703 275-3651 Autovon : 555-^11 

Seattle Subsistence Regional Hdqrs, DPSC 

Pier 91 

Seattle Wash. 98119 

Area Code : 206 AT 3-5200 



Defense Supply Agency Depots 

Procurement of local support supplies and services is effected at the following DSA-operated 
activities : 



Defense Deiwt Memphis 
Memphis, Tenu. 38115 
Area Code : 901 458-1411 
AUTOVON : 631-1490 



Defense Depot Ogden 
Ogden, Utah 84401 
Area Code: 801 399^474 
AUTOVON : 553^1460 



Defense Depot Tracy 
Tracy, California 95376 
Area Code : 209 835-1180 
AUTOVON : 831-1490 



Special Assistants for Small Business — Defense Contract Administration Services 



Headquarters, DC AS: 
Mr. George C. TOlton 
Mr. John V. Weesner 
Headquarters, Defense Supply Agency 
Cameron Station 
Alexandria, Va. 22314 
Area Code: 202 OX 8-8606 

DCASR, Atlanta: 

Mr. Adee F. Thompson 

3100 Maple Drive NB. 

Atlanta, Ga. 30305 

Area Code : 404 261-7310, Ext 295 



DCA8D, Orlando: 

Mr. DeFarest A. Long, Jr. 

Orlando Air Force Base 

Building 2516 

Orlando, Fla. 32813 

Area C^de : 305 841^611, Ext. 2077 

DCASR, Boston: 

Mr. Edward Fitzgerald 

Mr. John McManus 

666 Summer Street 

Boston, Mass. 02210 

Area Code: 617 542-6000, Ext. 876 



FEDERAL HANDBOOK VOR SMALL BX7SINESS 



63 



DCASD, Rochester: 

Mr. Robert A. McMillan 
317 Child Street 
Rochester, N.Y. 14611 
Area Code : 716 828-7670 

DCASR, Chicago: 

Mr. Victor J. Rlpp 

Mr. John C. Mraz 

O'Hare International Airport 

Post Office Box 8758 

Chicago, 111. 60666 

Area Code: 312 296-4411, Ext. 2388 

DCASD, IndianapoUs: 
Mr. Robert Raney 
Finance Center, U.S. Army 
Building 1 

Fort Benjamin Harrison, Ind. 46249 
Area Code : 317 LI 6-9211 

DCASD, Milwaukee: 
Mr. Dean Stevenson 
744 North Fourth Street 
Milwaukee, Wis. 53202 
Area Code : 414 BR 2-4003 

DCASR, Cleveland : 

Mr. Harold A. Johns 

Mr. Robert W. Livingston 

1367 East Sixth Street 

Cleveland, Ohio 44114 

Area Code : 216 861-4960, Ext. 403 or 464 

DCASD, Cincinnati: 
Mr. Gene Luke 
Federal Office Building 
550 Main Street 
Cincinnati, Ohio 45202 
Area Code: 513 684-2200, Ext. 3914 

DCASD, Dayton: 

Mr. Paul E. Birkhold 

Bldg. 70, Area C 

Wright-Patterson AFB 

Dayton, Ohio 45433 

Area Code: 513 253-711, Ext. 70240 

DCASR, Dallas: 

Mr. George R. Phillips 
Mr. George Koury, Jr. 
500 South Ervay Street 
Dallas, Tex. 75201 
Area Code : 214 RI ^-3207 

DCASR, Detroit: 

Mr. Donald B. Leahy 
Mr. Norman Rautio 
1580 E. Grand Boulevard 
Detroit, Mich. 48211 
Area Code : 313 923-0100, Ext. 307/516 



DCASD, Grand Rapids, Mich. : 

(To be serviced by DCASR, Detroit) 



DCASR, Los Angeles: 

Mr. Edgar L. Harris, Jr. 
11099 So. LaCienega 
Los Angeles, Calif. 90045 
Area Code : 213 643-1000 

DCASD Phoenix : 

Mr. Charles P. Fink 
3800 North Central Avenue 
Phoenix, Ariz. 85012 
Area Code: 206 261-4391 

DCASR, New York: 

Mr. Theodore M. Everett 

770 Broadway 

New York, N.Y. 10003 

Area Code : 212 OR 7-3030, Ext 494 or 498 

DCASD Garden City : 

Mr. Wilbur V. Gould, Jr. 

605 Stewart Avenue 

Garden City, Long Island, N.Y. 11533 

Area Code : 516 PI 1-8000 

DCASD Newark : 

Mr. Vincent J. Farrell 
240 Route 22 
Springfield, N.J. 07081 
Area Code : 201 37^7950 

DCASR, Philadelphia: 

Mr. Albert B. Feldman 

Mr. John F. Malley 

Mr. John A. Walter 

2800 South 20th Street 

Philadelphia, Pa. 19101 

Area Code : 215 271-3371 or 271-3372 

DCASD Pittsburgh : 
Mr. George Kuhn 
1610 South Federal Building 
1000 Liberty Avenue 
Pittsburgh, Pa. 15222 
Area Code : 412 644-5972 

DCASR, St Louis : 

Mr. Harold W. Nutt 

Mr. Kenneth E. Kichline 

4300 Goodfellow Boulevard 

St Louis, Mo. 63120 

Area Code : 314 EV 2-8200, Ext. 525 or 748 

DCASD Twin Cities: 

Mr. Roma T. Schumacher 

2305 Ford Parkway 

St Paul, Minn. 56116 

Area Code : 612 690-1721, Ext. 214 



64 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



DCASO Denver : 

Mr. Ralph E. Wilson 
3800 York Street 
Denver, Oolo. 80205 
Area Code : 303 825-1161 

DCASR, San Francisco : 
Mr. William R. Graham 
866 Malcolm Road 
Burlingame, Calif. 94010 
Area Code : 415 692-0300 



DCASD SeatUe: 

Mr. Arthur W. Perry 
Building 5D 
U.S. Naval Air StaUon 
Seattle, Wash. 98115 
Area Code: 206 523-0550 



FEDERAL HANDBOOK FOR BACALL BUSINESS 



65 



SURPLUS PERSONAL PROPERTY 

INTRODUCTION 

This pamphlet is prepared to assist individuals, 
business concerns, and other organizations of all 
sizes and classifications, desiring to participate in 
the sale of surplus and foreign excess property of 
the Department of Defense and U.S. Coast Guard, 
excludmg real property, and to answer questions 
which lo^cally arise concerning such property, 
and how it may be purchased. 

Department of Defense property originates at 
Defense Supply Agency, Army, NaTryr, Air Force, 
and Marine Corps installations. The Defense 
Supply Agency has been assigned primary respon- 
sibility for the Department of Defense sales pro- 
gram. For the purpose of this publication the 
terms "surplus" and '^foreign excess" are synony- 
mous except that surplus refers to property located 
in the United States, Puerto Bico, and the Virgin 
Islands and foreign excess refers to property in all 
other areas. 

This pamphlet applies to the sale of Depart- 
ment of Defense property of g^Gieral commercial 
use either in its original form or as scrap. It does 
not apply to real estate, contractor inventory 
(property in the possession of contractors perform- 
ing military contracts) , or to material of primarily 
military application. Normally, property classi- 
fied as arms, ammunition, and implements of war 
is not sold in its original form to the general pub- 
lic; it is either demilitarized or reduced to scrap 
to preclude the possibility of reconditioning it 
for further use or sale and to safeguard security 
information. 

The GJeneral Services Administration has over- 
all responsibility for the disposal of real estate, 
including both land and buildings. Information 
on the disposal of surplus real property for public 
or private use may be obtained from the General 
Services Administration, Washington 25, D.C. 
. Information on the disposal of contractor inven- 
tory by the military services may be obtained from 
one or more of the following offices of the Army, 
Navy or Air Force : 

Commanding General 
Army Materiel Command 
Attention: AMCPP-PS 
Washington, D.C. 20315 

Chief of Naval Material 

Field Contract Administration Division 

CodeMAT255 

Washington, D.C* 20360 

Contract Management Division (SCILAP) 
Directorate of Contract Management 
■ Headquarters, Air Forces Systems Command 
Andrews Air Force Base 
Washington, D.C. 20331 



Prospective buyers are encouraged to use avail- 
able facilities described herein for mf ormation and 
assistance. 

WHY THERE IS MILITARY SURPLUS 

The Department of Defense retains only usable 
property for which there is a current or foreseeable 
requirement. Property is declared surplus when 
it (1) becomes excess to military requirements be- 
cause of changes in defense needs or unsuitable be- 
cause of wear and tear or obsolescence, and (2) 
cannot be used by any other Federal Government 
activity. 

The property is thereafter made available for 
donation to certain designated recipients author- 
ized by law to obtain such property. Information 
on how to acquire Federal surplus personal prop- 
erty for health, educational, and civil defense pur- 
poses and Federal surplus real property for health 
and educational purposes under the donation pro- 
gram administered by the Department of Health, 
Education, and Welfare may be obtained from the 
U.S. Department of Health, Education, aud Wel- 
fare, Office of Field Administration, Surplus 
Property Utilization Division, Washington, D.C, 
20201 or the General Services Administration, 
Washington, D.C, 20405. 

Only that property which survives rigid utiliza- 
tion and donation screening is oiBFered for sale to 
the general public. 

TYPES OF SURPLUS AVAILABLE 

Surplus property sold by the Department of 
Defense is grouped into 496 classes to correspond 
with commercial and private buying interests. 
Ten of these classes are for scrap (property having 
value for its basic material content) and waste 
(garbage, trash, and other refuse generated in the 
normal course of operations). The remaining 
classes are for usable property (property suitable 
for use either as complete items or for recovery 
of usable parts). All classes are described on 
pages 7a-80. 

CONDITION OF PROPERTY 

Surplus property is usually sold without any 
warranty as to condition or fitness for any pur- 
pose. However every eflPort is made to adequately 
describe its condition by the use of such descrip- 
tive terms as "unused," "used-reconditioned," 
"used-usable without repair," *Sised-repair re- 
quired," "used-suitable for recovery of parts," 
"scrap," or "waste." 

METHODS OF SELLING SURPLUS 

Sales are conducted whenever there is sufficient 
surplus property to interest prospective buyers and 
to warrant the cost of disposal. Sales are open to 
the general public and property is offered in such 
reasonable quantities as to encourage participation 
by business concerns of all sizes, as well as individ- 



66 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



uals. As a rule, the property is sold by one of the 
following methods : 

Sealed Bid Sale. Normally, this method is used 
to sell large quantities of individual items of sur- 
plus property having a commercial or technical 
application which are of interest to divergent 
buyer groups on a local, regional, or national mar- 
ket area basis. Scrap and waste materials are 
usually sold by this method. 

Prospective bidders are notified by Standard 
Forms 114, "Sale of Government Property, Invita- 
tion, Bid and Acceptance," normally referred to 
as "Invitations for Bid" or "IFB's." These forms 
list and describe the property and specify the place 
and conditions of sale, location of property, inspec- 
tion and sale dates, and the person to contact for 
further information. Invitations for bid are 
mailed well in advance of the date of sale (bid 
opening date) to allow sufficient time for inspec- 
tion of the property. The prospective buyers 
enter the prices tliey will pay for tne property on 
the "Invitation for Bid," sign and return it to the 
si)ecified selling activity along with the required 
deposit. Tliese bids are then publicly opened on 
the specified date of sale. Suosequently, awards 
are made and the bidders are notined. 

Auction Sale. This method is used when a sub- 
stantial quantity or variety of property having 
wide commercial application is being offered for 
sale. Catalogs listing and describing the property 
and specifying the conditions of sale, location of 
property, and inspection and sales dates are dis- 
tributed well in aavance of the sale to prospective 
buyers. In auction sales, "mailed in" bids are not 
acceptable ; bidders must be present to participate. 
Qualified auctioneers assist in lotting, advertising, 
and conducting the auction. 

Spot Bid Sale. Normally, this method is used 
when there is a variety of commercial type prop- 
erty for which there is substantial interest and de- 
mand in a local or regional market area. The 
prospective buyers inspect the property and sub- 
mit bids on forms provided by the selling activity. 
In spot bid sales, "mailed in" bids are acceptable 
and awards are made item by item as the sale 
progresses. 

Negotiated Sale. While the majority of sur- 
plus personal property is sold by publicly advertis- 
ing for bids, negotiated sales are authorized in 
certain limited circumstances, as, for example, 
where acceptable bids have not been received after 
public advertising or where the particular disposi- 
tion is necessary because of public exigency, public 
health, safety or national security. All negotiated 
sales of property located in the continental United 
States with proceeds in excess of $l,O0O must be 
submitted to the appropriate committees of Con- 
gress before tlie contract is made. Negotiated sales 
may also be used where the disposal will be to 
States, territories, possessions, political subdivi- 
sions thereof, or tax-supported agencies therein 



where the estimated fair market value of the prop^ 
erty and other satisfactory terms of disposal are 
ob^ined by negotiation. States or municipalities 
who are interested in acquiring specific items of 
surplus by this method snould get in touch with 
the nearest Defense Surplus Sales Office for assist- 
ance. The specific items you desire should be accu- 
rately described in detail as much as possible in 
order that you may be afforded prompt service. 
States and municipalities can also participate in 
the competitive bid method of sale (sealed bid, spot 
bid, and auction) with the general public. How- 
ever, once surplus property nas been cataloged for 
a competitive Did sale and offered to the public, it is 
no longer available for negotiated sales. 

Retail Sale. Retail sales are conducted at cer- 
tain military installations that generate property 
having appeal to the general public. This method 
of sale offers small quantities of individual items 
of property at fixed prices based on the current 
market value. Persons interested should contact 
the Defense Surplus Sales Office which serves the 
geographical area in which they are located to 
find out the nearest military installation that con- 
ducts retail sales. 

DEFENSE SURPLUS SALES OFFICES 

Surplus property of the Department of Defense 
located in the United States is sold through De- 
fense Surplus Sales Offices located throughout the 
continental United States. Each Defense Surplus 
Sales Office (DSSO) is assigned a given number of 
military installations within a geographical area 
and is responsible for conducting the sale of sur- 
plus personal property held by these installations. 
This includes preparation of invitations for bid 
combining related types of property, bid openings, 
making awards, and concludmg all contractual 
arrangements. The addresses of the DSSO's and 
their assimed military installations are listed on 
pages 67-70. 

SPECIALIZED DEFENSE SURPLUS SALES OFFICES 

The Defense Surplus Sales Office, Tucson, Ariz., 
conducts sales of all Army, Navy, Air Force, Ma- 
rine Corps, Defense Supply Agency and U.S. 
Coast Guard aircraft on a national basis. The 
Defense Surplus Sales Office, Brooklyn, N. Y., con- 
ducts the sale of naval vessels stricKen from the 
Naval Vessel Register on a worldwide basis and all 
barges, regardless of size, and powerdriven or self- 
propelled vessels exceeding 40 feet in length within 
the continental United States. Other vessels are 
sold by the Sales Offices presently serving the mili- 
tary installations having custody of such vessels. 
The Defense Surplus Sales Office, Philadelphia, 
Pa. and the Defense Surplus Sales Office, Pueblo 
Army Depot, Pueblo, Colo., conduct sales of pre- 
cious metals such as silver, amalgam, platinum, 
palladium, and rhodium, including platinum tip- 
ped spark plugs. In addition these four Defense 
Surplus Sales Offices sell other classes of surplus 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



67 



property for the military installations assigned to 
them. See pages 67-70 for addresses. 

PRINCIPAL CONDITIONS OF SALE 

Inspection. The condition of surplus proi)erty 
is described as accurately as possible in the invi- 
tation for bid or catalog. However, you are urged 
to inspect property carefully before bidding to 
satisfy yourself concerning its condition. De- 
partment of Defense surplus property is not sold 
by sample. 

Deposits ond Payment of Bolonces. The invi- 
tation for bid will specify the amount of deposit 
(normally 20 percent of bid) , if required, and the 
time by which the balance must be paid. Be sure 
that your deposit^ when required, is adequate to 
cover your total bid. Deposits and payments may 
be made in cash, or if authorized by the Invitation 
For Bid in any form of credit instrument payable 
to the Treasurer of the United States, including 
personal checks. 

Bid Deposit Bonds. Bid deposit bonds may be 
used in lieu of a bid deposit, providing the invi- 
tation for bid permits tlieir use. Most mvitations 
do permit the use of the bonds but they are not 
permitted in certain types of sales involving un- 
usual contractual arrangements. Bid deposit 
bonds afford a convenience to the buyer who in- 
tends to bid frequently for the purchase of sur- 
plus or foreign excess property. They eliminate 
the need for handling substantial amounts of mon- 
ey and attendant risks. The types of bid deposit 
l>onds available are: (1) Deposit Bond — Individ- 
ual Invitation. Sale of Government Personal 
Property (Standard Form 150) and (2) Deposit 
Bond — ^Annual Sale of Government Personal 
Property (Standard Form 151). These forms, 
along with instructions for their use, may be ob- 
tain^ from the nearest Defense Surplus Sales 
Of&ce or from the Defense Surplus Bidders Con- 
trol Office, The Federal Center, Battle Creek, 
Mich., 49016. 

Deposit Bond — Individual Invitation (SF 150) 
is required each time a bid is submitted. This type 
of deposit bond must be executed by an approved 
surety company listed in Treasury Department 
Circular 570, "Companies Holding Certificates of 
Autliority as Acceptable Sureties on Federal 
Bonds and as Acceptable Re-insuring Companies," 
or by individual sureties each time a bid is sub- 
mitted. ITie Deposit Bond — Individual Invita- 
tion is then forwarded with the bid to the sales 
office conducting the sale for approval and ac- 
ceptance in lieu of the required bid deposit up to 
the amount specified in the Dond. 

The Deposit Bond— Annual (SF 161) maj be 
used instead of the bid deposit reauired by the mvi- 
tation for bid for any and all bids submitted 
throughout a fiscal year (from July 1 of the cur- 
rent year through June 30 of the following year) . 
This bond must also be executed by an approved 
surety ccMnpany listed in Treasury Department 



Circular 570 or by individual sureties. Whencom- 

Eleted, an original and one executed copy of the 
ond must be mailed to the Defense Surplus Bid- 
ders Control Office, The Federal Center, Battle 
Creek, Mich., 49016, for approval. Applicants 
will be notified whwi the bona has been approved 
and be given the serial number assigned. All sales 
offices will be notified of the approved Annual Bid 
Bond and serial number. Thereafter, in submit- 
ting bids, the serial number of the bond may be 
shown in the space provided for giving the form 
of the bid deposit This will be accepted as ade- 
quate security provided the penal sum of the bond 
is sufficient to cover the deposit requirements of the 
total bid submitted. 

Awards. Awards normally are made to the 
highest responsible and responsive bidder. 
Awards are not made when the oids received do 
not represent a fair price to the Grovemment and 
are not commensurate with the market value of 
the property offered. In such cases, the property 
may be reoftered at a later date. 

Removal of Property. Property may not be 
removed from Government premises until full pay- 
ment is made. Arrangements must be made by the 
successful bidder to remove the property from 
Government premises within the time limit pre- 
scribed in the invitation for bid. 

Withdrawal Policy. The Government reserves 
the right to withdraw any surplus property from 
sale when it is determined to be in the best inter- 
ests of the Government. 

SALE OF FOREIGN EXCESS AND EXPORT OF DO- 
MESTIC SURPLUS 

The sale of "foreign excess" (defined in the in- 
troduction) is conducted under procedures similar 
to those used for domestic surplus. The sale of 
foreign excess and the export of domestic sur- 
plus into foreign countries must, by law, conform 
to the foreign policy of the United States. Ad- 
dresses of overseas sales offices are listed on 
pages 70-72. 

DEFENSE SURPLUS SALES OFFICES AND ASSIGNED 
MILITARY INSTALLATIONS, CONTINENTAL 
UNITED STATES 

Defense Surplus Sales OflRce 

U.S. Naval Supply Depot, Post Office Box 660, 
Newport, R.I., 02844. (Sells property located 
in Maine, New Hampshire, Massachusetts, 
Rhode Island and Connecticut). 



Military in»tallatum 
Nayal Air Station 
Dow Air Force Base 
Loring Air Force Base 
Portsmoath Naval Ship- 
yard 
Pease Air Force Base 
Boston Army Base 
Fort Devens 
Springfield Armory 
Watertown Arsenal 



Location 

Brunswick, Maine 
Bangor, Maine 
Limestone, Maine 
Portsmouth, N.H. 

Portsmouth, N.H. 
Boston, Mass. 
Ayer, Mass. 
Springfield, Mass. 
Watertown, Mass. 



68 



TEDHRilL HANDBOOK FOB SMALL BUSINESS 



LocaUotk 
Bofitozu Masfl. 
Bedford MaB& 
FftlmoHth, Haas. 
Chleopee FIsIIb, BiassL 

BQStoxi» Mas& 

Quonset Point. R.I. 
DaTisvill«, R J. 



Miiitaru iMtanaUam 
Boston Naval Shipyard 
L. G. Hanaconk Field 
Otis Air Fore© Base 
Westover Air Foro» 

Base 
Boston Procurement 

District 
U.S. Naval Air Station 
U.S. Naval Constmc- 

tion Battalion Oen« 

ter 
U.S. Naval Supply 

Depot 
U.S. Naval Sutunarine 

Base 

Federal Building, 830 Third Avenue, Brooklyn, 
N.Y. 11232. (Sells property located in New 
York.) 



Newport, R.I. 

New London, Groton, 
Conn. 



MilUanf IfufalloHon 

New Tork Naval Shipi^ard 

Fort Tilden 

Suffolk County Air Force Base 

Schenectady Army Depot 

Seneca Army Depot 

Watervli^ Ars^ial 

U^ Army Support Center 

Camp Drum 

Grifliss Air Force Base 

Plattsburgh Air Force Base 

Stewart Air Force Base 

U.S. Military Academy 



Location 
Brooklyn, N.Y. 
Long Island, N.Y. 
Long Island, N.Y. 
Schnectady, N.Y. 
Romulus, N.Y. 
Watervliet, N.Y. 
Niagara Falls, N.Y. 
Watertown, N.Y. 
Rome, N.Y. 
Plattsburgh, N.Y. 
Newburgh, N.Y. 
West Point. N.Y. 



Philadelphia Naval Shipyard, Building 652, Phil- 
adelphia, Pa^ 19112- (Sells property located in 
Pennsylvania, New Jersey, and Delaware.) 



MiUtanf Installation 
PhUadelphia Naval Shipyard 
U.S. Naval Supply Depot 
Frankf ord Arsenal 
Tobyhanna Army Depol 
U.S. Naval Supply Center 
U.S. Naval Air Station 
U.S. Naval Ammo Depot 
FortBU 
Fort Monmouth 
Ptcatinny Arsenal 
McGuire Air Force Base 
Dover Air Force Base 



Location 

Philadelphia^ Pa. 
Philadelphia, Pa. 
PhitadelpMa* Pa. 
Tobyhanna. Pa. 
Bayonne, N.J. 
Lakehurst, N.J. 
£arle. N.J. 
Fort Dix, N.J. 
Red Baak» N.J. 
Dover, N.J. 
Wrightstown, N.J. 
Dover, Del. 



Fort Holabird, Baltimore, Md., 21219. (SeUs 
property located in Pencisylvania, District of 
Columbia, Maryland, and Virginia.) 

Xoootio* 
Marietta, Pa. 
Chambersburg, Pa. 
New Cumberland, Pa. 
Mechanifisburg, Pa. 
Washington, D.G. 
Washington, D.C. 
Aberdeen, Md. 
Brandywine» Md. 
Edgewood, Md. 
Baltimore, MdL 
Qdenton, Md. 
Annapolis, Md. 
Patttxent River, MdL 
Indian Head, Md. 
Bainbridige. Md. 
Fort B^voir» Ta. 
Qoantico, Ta. 



Military installation 
Marietta Air Force Station 
Letterkenny Army Depot 
New Cumberland Army Depot 
Defense Depot* Mechanicabttig 
Harry S. Diamond Laboratory 
U.S. Naval Station 
Aberdeen Proving Ground 
Andrews Air Force Base 
Edgewood Arsenal 
U.S. Coast Guard 
Fort George G. Meade 
U.S. Naval Academy 
U.S. Naval Air Station 
U.S. Naval PropeUant Plant 
U.S. Naval Training Center 
Fort BekvQlr 
U.S. Marine Corps School 



UilHary Inatallatiom Location 

U.S. Marine Corps Air Station* Quantlco, Va. 

Fort Myer Arlington, Va, 

U.S. Naval Weapons Labosatory Dahlgren, Va. 

T7.S. Naval Supply Center, Building SDA-224, 
South Annex, Norfolk^ Va., 28511. 7 Sells prop- 
erty located in Virginia and North Carolina.) 

Military instaHation 

U.S. Naval Supply Center 

Norfolk Naval Shipyard 

U.S. Naval Air Station 

U.S. Naval Amphibious Base, 
Little Creek 

U.S. Naval Weapons Station 

Fort Eustis 

Fort Lee 

Hampton Roads Army Terminal 

Richmond Defense, General Sup- 
ply Center 

Langley Air Force Base 

Fort Bragg 

Pope Air Force Base 

Seymour Johnson Air Force Base 

Camp Lejeune 

U.S. Marine Corps Air Station 



Location 
Norfolk, Va. 
Portsmouth, Va. 
Norfolk, Va. 
Norfolk, Va. 

Yorktown, Va. 
Fort Eustis, Va. 
Fort Lee, Va. 
Norfolk, Va. 
Richmond, Va. 

Hampton, Va. 
Fort Bragg, N.C. 
Fayettevme. N.C. 
Goldsboro, N.C. 
Camp Lejeune, N.C. 
Cherry Point, N.O, 



U.S. Naval Air Station, Post OfBce Box 1261, 
Yukon Branch, Jacksonville, Fla., a223a 
(Sells property located in Alabama and 
Florida.) 



Military installation 

Brookley Air Force Base 
Eglin Air Force Base 
Tyndall Air Force Base 
U.S. Naval Air Station 
U.S. Navy Mine Defense 

Laboratory 
U.S. Naval Air Station 
U.S. Naval Air Station 
7th Coast Guard DUtriet 
U.S. Naval Station 
Patrick Air Force Base 
Orlando Air F6rce Base 
MacDiU Air Force Base 
Homestead Air Force Base 
U.S. Army Aviation Center, 

Fort Rucker 
Moody Air Force Base 
Turner Air Force Base 
U.S. Naval Air Station 
Marine Corpa Supply Center 



Location 

MobUe, Ala. 
Vali)araisQ, Fla. 
Panama City, Fla. 
Pensaeola, Fla. 
Panama City, Fla. 

Jacksonville, Fla. 
CecU Field, Fla. 
Miami. Fla. 
Key West, Fla. 
Cocoa Beach, FU. 
Orlando, Fla. 
Tampa, Fla* 
Homestead, Fla. 
Ozark, Ala. 

Valdosta, Ga. 
Albany, Ga. 
GlynoOi,Ga. 
Albany, Ga. 



Atlanta Army Depot, Post OfBce Box 644^ Forest 
Park, Ga., 80050, (Sells property located in 
Tennessee, Alabama, Georgia, and South Caro- 
lina.) 

Locatiiom. 

NashviBe^ Tenn. 
Annlsten, Ala. 
HimtsviUe, Ala. 
Montgomery, Ala. 
Columbus, Oa. 
Hinesville, Ga. 
Macon, Ga. 
Savannah, Ga, 
Warner Robloa, Ga. 
Forest Pari^ Qa. 
Marietta. Ga. 

Dobbins Air Force Base Marietta, Ga. 



Jf iiitorv 

Sewart Air Force Base 
Anniston Army Depot 
Bedstone Arsenal 
Maxwell Air Force Base 
Fort Benning 
Fort Stewart 

U.S. Naval Ordnanfie Plant 
Hunter Air Faroe Base 
Robins Air Force Baae 
Atlanta Army Depot 
VLB. Naval Air Stadton, 



FEDERAL HANDBOOK FOR SMALL BTJ8INES6 



69 



MfUtary Jn$iattatitm 
Fort Gordon 
Charleston Army Depot 
Naval Supply Center 
Charleston Air Force Base 
Marine Corps Reemit 

Depot 
Fort Jackson 
Myrtle Beach Air Force 

Base 
Shaw Air Force Base 



Location 
Augusta, Ga. 
Charleston, S.C. 
Charleston, S.C. 
Charleston, S.C. 
Parris Island, S.C. 

Columbia, S.C. 
Myrtle Beach, S.a 

Sumter, S.C. 



Defense Construction, Supply Center, Columbus, 
Ohio, 43215. (Sells property located in Michi- 
gan, Indiana, Ohio, and Kentucky.) 



MOitanf in9taUaUon 
Detroit Arsenal 
Detroit Procurement District 
Fort Wayne 
U.S. Naval Air Station 
Selfridge Air Force Base 
Wurtsmith Air Force Base 
Fort Benjamin Harrison 
Jefferson Proving Ground 
U.S. Naval Ammunition Depot 
U.S. Naval Avionics FaciUty 
Bunker HiU Air Force Base 
Cleveland Procurement District 
Defense Construction Supply 

Center 
Erie Army Depot 
Ninth Coast Guard District 
Lordstown Military Reservation 
Defense Electronics Supply 

Center 
Liockboume Air Force Base 
Wright-Patterson Air Force Base 
Cincinnati Procurement District 
Blue Grass Army Depot 
Fort CampbeU 
Fort Knox 

Lezingtcm Army Depot 
U.S. Naval Ordnance Plant 



Location 
Warren, Mich. 
Detroit, Mich. 
Detroit, Mich. 
Grosse He, Mich. 
Mount Clemens, Mich. 
Oscoda, Mich. 
Indianapolis, Ind. 
Madison, Ind. 
Crane, Ind. 
Indianapolis, Ind. 
Peru, Ind. 
Cleveland, Ohio 
Columbus, Ohio 

Port Clinton, Ohio 
Cleveland, Ohio 
Warren, Ohio 
Dayton, Ohio 

Columbus, Ohio 
Dayton, Ohio 
Cincinnati, Ohio 
Richmond, Ky. 
Ft Campbell, Ky. 
Fort Knox, Ky. 
Lexington, Ky. 
LouisviUe, Ky. 



Rock Island Arsenal, Rock Island, 111., 61202. 
(Sells property located in Michigan, Illinois, 
Wisconsin, and Minnesota.) 



MUitary inotattation 

K. I. Sawyer AFB 

Kincheloe AFB 

Bock Island Arsenal 

Savanna Ordnance Depot 

Fort Sheridan 

JoUet Arsenal 

U.S. Naval Supply Depot 

Ooast Guard Supply Depot 

U.S. Naval Ordnance Plant 

Chanute AFB 

Camp McCoy 

Milwaukee Coast Guard Base 

Truaz Field 

U.S. Naval Air Station Twin 

Cities 
rhiluth International Airport 



Location 
Gwinn, Mich. 
Kinross, Mich. 
Rock Island, 111. 
Savanna, 111. 
Fort Sheridan, IlL 
JoUet, IlL 
Great Lakes, IlL 
Great Lakes, IlL 
Forest Park, IlL 
Rantoul, 111. 
Sparta, Wis. 
Milwaukee, Wis. 
Madison, Wis. 
Atluueapolis, Minn* 

Duluth, Mimi. 



Defense Depot Memphis, Memphis, Tenn., 38115. 
(Sells property located in Tennessee, Missis- 
sippi, Louisiana, Arkansas, Missouri, and 
Illinois.) 



umtary InBiaUatUm 
GreenviUe AFB 
Keesler AFB 
U.S. Naval Ck)nstraction 

Battalion Center 
8th U.S. Coast Guard District 
Barksdale AFB 
England AFB 
U.S. Army Transp. 

Terminal Comnumd 
Fort Polk 
U.S. Naval Auxiliary Air 

Station 
Hq. Support Activity 

BlytheviUe AFB 
Little Rock AFB 
Fort Chaffee 
Pine Bluff Arsenal 
St. Louis Procurement 

Dist, U.S. Army 
2d U.S Coast Guard District 
USAF Aeronautical Chart 

and Information Center 
Fort Leonard Wood 
Scott AFB 
Granite City Army Depot 



Location 

GreenviUe, Miss. 
BUozi, Miss. 
Gulfport, Mis& 

New Orleans, La. 
Shreveport, La. 
Alexandria, La. 
New Orleans, La. 

LeesviUe, La. 
New Iberia, La. 

New Orleans, 
Algiers, La. 
BlytheviUe, Ark. 
Jacksonville, Ark. 
Ft. Smith, Ark. 
Arsenal, Ark. 
St. Louis, Mo. 

St. Louis, Mo. 
St. Louis, Mo. 

WaynesviUe, Mo. 
BeUevUle, IlL 
Granite City, IlL 



Post Office Box 6739, Oklahoma City, Okla., 73110. 
(Sells proper^ located in Missouri, Oklahoma, 
Kansas, and Nebraska.) 



Military Inttallation 
Lake City Army 

Ammunition Depot 
Richards-Gebaur AFB 
Whiteman AFB 
Tinker AFB 
Clinton-Sherman 
Altus AFB 
Fort SiU 
U.S. Navy Ammunition 

Depot 
Atchison Army Storage 

Facility 
Ft. Leavenworth 
Ft RUey 

U.S. Naval Air Station 
Forbes AFB 
McConnell AFB 
SchiUing AFB 
U.S. Naval Ammunition 

Depot 
Lincoln AFB 
OlTutt AFB 



Location 
Independence, Mo. 

Grandview, Mo. 
Knob Noster, Mo. 
Oklahoma City, Okla. 
Foss, Okla. 
Altus, Okla. 
Lawton, Okla. 
McAlester, Okla. 

Atchison, Kan. 

Leavenworth, Kan. 
Junction, Kan. 
Olathe, Kan. 
Topeka, Kan. 
Wichita, Kan. 
Salina, Kan. 
Hastings, Neb. 

Lincoln, Neb. 
Omaha, Neb. 



Fort Worth Army Depot, Post Office Box 6988, 
Fort Worth, Tex. 76116. (Sells property lo- 
cated in Texas.) 



Militarif Initallation 
I>efense Depot Memphis 
U.S. Naval Air Station 
Ck>lambus AFB 



Location 

Memphis, Tenn. 
Memphis, Tenn. 
Columbus, Miss. 



MilUary Installation 
Reese AFB 
Amarillo AFB 
Red River Army Depot 
Sheppard AFB 
Perrin AFB 
Kelly AFB 
Randolph AFB, 
Ft. Sam Houston 
Texas Group 

Atlantic Reserve Fleet 
U.S. Naval Air Station 
Ellington AFB 
Bergstrom AFB 
Laredo AFB 
Laughlin AFB 



Location 
Lubbock, Tex. 
Amarillo, Tex. 
Texarkana, Tex. 
Wichita Falls, Tex. 
Sherman, Tex. 
San Antonio, Tex. 
San Antonio, Tex. 
San Antonio, Tex. 
Orange, Tex. 

Ck)rpus Christi, Tex. 
Houston, Tex. 
Austin, Tex. 
Laredo, Tex. 
Del Rio, Tex. 



70 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



Locatia* 

Ft. Worth, Tex. 
Ft. Worth, Tex. 
KingBville, Tex. 

DallAS, Tex. 
Killeen, Tex. 
Mineral Wells, Tex. 
Abilene, Tex. 
San Angela, Tex. 
Waco, Tex. 
Big Spring, Tex. 



Military InttallmUo^ 
Ft. Worth Army Bepot 
Carswell AFB 
U.S. Naval Anxiliary Air 

Station 
U.S. NJaval Air Station 
Fort Hood 
Fort Wolteia 
DyeM AJPB 
Goodfellow AFB 
James Connally AFB 
Webb AFB 

Pueblo Army Depot, Building 126, Pueblo. Colo., 
81004. (Sells property located in Nortli Dakota, 
South Dakota, Wyoming, Nebraska, Colorado, 
and New Mexico.) 

Military inttaUaUon 
Grank Forks AFB 
Minot AFB 
Ellsworth AFB 
Black Hills Army Depot 
Francis E. Warren AFB 
Sioux Army Depot 
Fitzsimons Army Hospital 
Fort Carson 



Xowry AFB 
Pneblo Army Depot 
Rocky Mountain Arsenal 
Ft. Wingate Army Depot 
Gannon AFB 
Klrtland AFB 



Location 

Grand Forks, N.D. 
Minot, N.D. 
Rapid City, S.D. 
Igloo, S.D. 
Cheyenne, Wyo. 
Sidney, Neb. 
Denver, Colo. 
Colorado Springs, 

Colo. 
Denver, Colo. 
Pueblo, Colo. 
Denver, Colo. 
Gallup, N. Mex. 
Clovfs, N. Mex. 
Albuanerqne, N. Mex. 



Post Office Box 58, Defense Depot Ogden Station, 
Ogden, Utah, 84401. (Sells property located 
in Montana, Idaho, and Utah.) 



Military inatallatian 
Glasgow Air Force Base 
l^lalmstrom Air Force Base 
Mountain Home Air Force 

Ba.se 
HiU Air Force Base 
Tooele Army Depot 
Defense Depot Ogden 



Location 
Glasgow, Mont. 
Great Falls, Mont 
Mountain Home, 

Idaho 
Ogden, Utah 
Tooele, Utah 
Ogden, Utah 



Davis-Monthan Air Force Base, Tucson, Ariz., 
85708. (Sells property located in Arizona, New 
Mexico, and Texas.) 



Military intiallation 
Davis-Monthan Air Force 

Base 
Fort tluacfauca 
liUke Air Force Ba.se 
tJ.S. Naval Air Faciltty 
Navajo Army Depot 
Williams Air Force Base 
Holloman Air Force Base 
Walker Air Force Base 
Biggs Air Force Base 
Fort Bliss 



Location 
Tucson, Ariz. 

Sierra Vista, Ariz. 
Glendale, Ariz. 
Litcfafield Park, Ariz. 
Flagstaff, Ariz. 
Chandler, Ariz. 
Alamagordo, N. Mex. 
Roswell, N. Mex. 
El Paso, Tex. 
El Pnso, Tex. 



U.S. Naval Supply Center, 937 North Karbor 
Drivey San Diego, Calif., 92132. (Sells prop- 
erty located in California and Nerada.) 

Military inttatlation Location 

U.S. Naval Ordnance China Lake, Calif. 

Test Station 

U.S. Naval Supply Long Beach, Calif. 

U.S. Naval Air Station San Diego, CaUf. 

North Island 

U.S. Naval Air Station Point Mugn, Calif. 



Military Inatallmii&n 
U.S. Marine Corpa Air 

Station HJk Toro 
U.S. Naval Construction 

Battalion Center 
U.S. Naval Air Station 
U.S. Naval Supply 
U.S. Naval Weapons Station 
Marine Corps Supi^ center 
Fort Irwin 
Fort MacArthur 
Camp Pendleton 
l^farine Corps Base 

Edwards Air Force Base 
George Air Force Base 
March Air Force Base 
Norton Air Force Base 

Vandenberg Air Force Base 
Nellis Af r Force Base 



Location 

Santa Ana, Calif. 

Port Hueneme, Calif. 

San Diego, Calif. 
San Diego, Calif. 
Seal Beaeh, CaUf. 
Barstow, Calif. 
Barstow, Calif. 
San Pedro, Calif. 
Oceanside, Calif. 
Twenty-Nine Palms, 

Calif. 
Edwards* Calif. 
Victorville, Calif. 
Riverside, Califl 
San Bernardino, 

Calif. 
Lompoc, Calif, 
lias Vegas, Nev. 



U.S. Naval Supply Center, Buildings 502, Oak- 
land, Calif., 94614. (Sells property located in 



California and Nevada.) 

Military instailaHon 
U.S. Naval Air StaUon 
U.S. Naval Weapons Station 
U.S. Naval Air SUtion 
U.S. Naval Supply Center 
^lare Island Naval Shipyard 
San Francisco Naval Shipyard 
Beale Air Force Base 
Castle Air Force Base 
Hamilton Air Force Base 
Travis Air Force Base 
McClellan Air Force Base 
Fort Ord 

Sacramento Army Depot 
Sharpe Army Depot 
Sierra Army Depot 
U.S. Naval Ammunition Depot 
Stead Air Force Base 

Post Office Box 4050, Seattle, Wash., 98119. (Sells 
property located in Washington and Oregon.) 

Location 

S|)okane, Wash. 
Keyport, Wash. 
Moses Lake, Wash. 
Tacoma, Wash. 



Location 
Alameda, Calif. 
Concord, Ctilif. 
Moffett Field, CaUf. 
Oakland, Calif. 
VaUejo, Calif. 
San Francisco, Calif. 
Marysvllle, Qilif. 
Merced, Calif. 
Ignacio, Calif. 
Fairfield, CaHf. 
Sacramento, Calif. 
Monterey, Calif. 
Sacramento. Calif. 
Lathrop, Calif. 
Herlong, Calif. 
Hawthorne, Nev. 
Reno, Nev. 



Military installation 

Fairchild Air Force Base 

U.S. Naval Torpedo Station 

Larson Air Force Base 

McChord Air Force Base 

Fort Lewis 

13tb Coast Gaard Dist. 

Paine Field 

Puget Sound Naval Shipyard 

U.S. Naval Snpply Depot 

U.S. Naval Air Station, Whidbey 

Island 
Portland International Airport 
Umatilla Army Depot 



Tacoma, Wash. 
Seattle, Wash. 
Everett, Wash. 
Bremerton, Wash. 
Seattle, Wash. 
Oak Harbor, Wash. 

Portland, Ore. 
Hermiston, Ore. 



MAUING ADDRESSES OF SELLING ACTIVITIES 

LOCATED OUTSIDE OF CONTINENTAL UNITED 

STATES 

Alaska: 

Redistribution and Marketing Activity 
Elmendorf Air Force Base 
Anchorage, Alaska 
Commanding Officer 
U.S. Naval Station 
Navy Na 127 
c/o Postmaster 
SeatUe, Wash., 08790 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



71 



Azores: 

Redlstrlbation and Markefciug Actirity 
iM^ Field, Teseeira, Aaoies 

CanaSa: 

CTrown Ascieto Disposal Corporation (CADC) 
219 Argyle Avcmie 
Ottawa 2, Ontario, Canada 

Commanding Officer 

U.S. Naval Station 

Navy No. 103. Fleet Post Office 

New York, N. Y^ 09597 

Carihtean Area: 

Redistribution and Marketing Activity 
Klndley Air Force Base 

St. George, Bermuda 

Commanding Officer 

U.S. Naval Station 

Navy No. 138. Fleet Post Office 

New York, N.Y., 09587 

Property Disposal Office 
Antilles Command, USARSO 
Fort Buchanan, P.R. 

RedistribuUon and Marketing AcUvity 
Barney Air Force Base 
Aguadilla, Puerto Rico 

Commanding Officer 

U.S. Naval Station 

Navy No. 116 Fleet Post Office 

New York, N.Y., 09692 

Armed Forces Disposal Center 
Fort Amador, Canal Zone 

Commanding Officer 

U.a. Naval Station 

Navy No. 188. Fleet Post Office 

New York, N.Y., 09585 

Commanding Officer 
U.S. Naval Supply Depot 
Navy No. 115, Fleet Post Office 
New York, N.Y., 09593 

Crete: 

Redlstrlbation and Marlweting Activity 
Iraklion Air Station, Iraklion, Crete 

Bngland: 

USAFE/UK Redistribution & Marketing Center 
RAF Station, Molesworth, England 

Europe and Middle East: 

U.S. Army Property Disposal Detachment, Frankfurt * 
52 Elbestrasse, Frankf urtAf «in, Germany 
<or APO 757, New York, N.Y.) 

France: 

USAFE/Franee Redistribution & Marketing Center 
Toul-Rosieres AB, France 

Ocrniany: 

USAFE/Germany Redistribution & Marketing Center 
Mainz-Kastel, Germany 

OreenUmd: 

Rosral Greenland Trade Department (RGTD) 
Standgade, Copenhagen, Denmark 

Grccee: 

USAF 720G Support Group 
Redistribution and Marketing Activity 
Athenai Airport, Athens, Greece 



1 This activity maintains a central bidders Iftst for the desig- 
nated geographical area. 

54-543 •—66 6 



Ouam, Mariana Islands: 
Commanding Officer 
U.S. Naval Supply Depot 
Navy No. 926, Fleet Post Office 
San Francisco, Calif., 96635 

Haicaii: 

Commanding Officer 
U.S. Naval Supply Center 
Navy No. 128^ Fleet Post Office 
San Francisco, Calif., 96614 

Iceland: 

Air Forces Iceland 
Keflavik Airport, Iceland 

Italy: 

Redistribution & Marketing Center 
Aviano AB, Aviano, Italy 
Redistribution and Marketing Activity 
Brindisi AS, Brindisi, Italy 

Commanding Officer 
U.S. Naval Support Activity 
Navy No. 510, Fleet Post Office 
New York, N.Y., 09578 

Japan : 

Director of Property Dispo.sal 

U.S. Armsy Depot, Japan 

Post Office Box a 

Kamimizo Post Office 

Sagamihara-shi 

Kanagawa-ken, Japan 

(or APO 343, San Francisco, Calif.) 

Commandini; Officer 
U.S. Naval Supply Depot 
Navy No. 3923, Fleet Post Office 
San Francisco, Calif., 96647 

Korea: 

U.S. Army Property Disposal Agency, Korea 

Seoul, Korea 

APO 301, San Francisco, Calif. 

Libya: 

Redistribution & Marketing 
Wheelus AB, Tripoli. Libya 

Morocco: 

Commanding Officer 
U.S. Naval Air Facility 
Navy No. 214, Fleet Post Office 
New York, N.Y., 00583 

OTcinaica: 

Property Disposal Branch 
U.S. Army Supply Services Command 
Ft. Buckner, Ryukyu Islands 
APO 48, San Francisco, Calif. 

Pakistan: 

Redistribution and Marketing Activity 
Peshawar Air Station, Pakistan 

Philippine Islands: 

Commanding Officer 
U.S. Naval Supply Depot 
Navy No. 9002, Fleet Post Office 
San Frandsco, Calif ^ 966^ 

Commanding Officer 

U.S. Naval Station 

Navy No. 961, Fleet Post Office 

San Francisco, Calif ., 96639 

JBpam: 

Redistribution and Marketing Activity 
Torrejon Air Base 
Torrejon De Ardox, Spain 



72 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Spain — Continued 

Redistribution and Marketing Activity 
Moron Air Base, Moron, Spain 

Commanding Officer 

U.S. Naval SUtlon 

Navy No. 537, Fleet Post Office 

New York, N.Y., 09576 

Redistribution and Marketing Activity 
Zaragoza Air Base, Zaragoza, Spain 

Taiwan (Formosa): 

Redistribution and Marketing Activity 
Taiwan Air Station, Taiwan 

Turkey: 

Redistribution and Marketing Activity 
Headquarters TUSLOG 
Ankara, Turkey 

Viet Nam: 

Property Disposal Office 
Logistics Director 
Army Section, HQ,MAAG 
(APO 143, San Francisco, Calif.) 

SURPLUS PROPERTY BIDDERS LIST 

The Department of Defense has a single contact 
point for any person interested in purchasing sur- 
plus property from military installations within 
the continental United States. This contact point, 
called the Defense Surplus Bidders Control Office, 
maintains a single "bidders list" for all military 
departments. The Department of Defense sur- 
plus property bidders list is arranged to sliow each 
person's Duymg interests, both geographically and 
with respect to classes of surplus property. 

To have your name included in the list, send the 
Department of Defense Surplus Property Bid- 
ders Application (Parts I and II) at the back of 
this pamphlet to the Defense Surplus Bidders 
Control Office, The Federal Center, Battle Creek, 
Mich., 49016. 

To complete Part I of the Department of De- 
fense Surplus Property Bidders Application you 
should: 

1. Fill in the blanks provided for your name, 
address, city, state and ZIP CODE. The ZIP 
CODE for your delivery area may be obtained 
by asking your Letter Carrier or local Post Of- 
fice. 

2. Answer the five inquiries by placing a check 
mark in the proper blocks. 

To complete Part II of the Department of De- 
fense Surplus Property Bidders' Application you 
should : 

1. Refer to the "Classes of Surplus Personal 
Property Sold By The Department of Defense" 
described on pages 73 through 80 and select the 
numbers assigned to the classes of surplus prop- 
erty you are interested in purchasing. For your 
convenience an index to the classes of surplus per- 
sonal property sold will be found on page 73. 

2. Then, on Part II of the application, write 
in the numbers of the classes of surplus property 
(use numbers shown on pages 73 through 80) in 



which you are interested in purchasing and the 
geographical areas (use code numbers shown on 
page 80^ in which you wish to inspect and bid 
on surplus property. If you desire to purchase 
any items in Classes 1905 A through 1990 (Ships, 
Small Craft, Pontoons and Floating Docks), 
please note that there are four geographical 
areas provided^ namely. East of the IGssissippi 
River (includmg Gulf Ports), West of the 
Mississippi Kiver, Overseas Only and Worldwide. 
Note: Since costs of transportation and inspec- 
tion are borne by the purchaser, care should be 
taken to restrict the geographical area(s) accord- 
inrfy. 

Kemove the completed Department of Defense 
Surplus Property Bidders Applicaticai, Parts I 
and il, and mail to : 

Defense Surplus Bidders Control Office 
The Federal Center 
Battle Creek, Mich. 49016 

Whenever the property in which you have ex- 
pressed an interest is placed on sale in the geo- 
graphical areas you designated, you will be sent 
an invitation for bid. Invitations for bid provide 
detailed information regarding the terms and con- 
ditions of sale, location of the property, its de- 
scription, condition, quantity, dates it may be in- 
spected, time and date of bid opening, payment 
and removal of property, and other details. 

A list of successful bidders which shows the 
prices that were acceptable to the Grovemment on 
the various items awarded is prepared after each 
sale and is sent to each bidder who submitted a bid 
in response to the Invitation for Bid. The list is 
prepared by and is available at the Defense Sur- 
plus Sales Office which conducted the sale. 

In the interest of economy the Defense Surplus 
Bidders Control Office continually reviews the rec- 
ord of sales participation of bidders listed on the 
Department of Defense Surplus Property Bidders 
List for the purpose of removing the names of 
those individuals and firms who have not demon- 
strated an interest in the property offered for sale 
in catalogs distributed to them. Distribution of 
sales catalogs represent a significant cost to the 
Government and must be controlled in this man- 
ner. 

In addition to invitations for bid which are 
mailed to potential buyers appearing on the bid- 
ders list, notices of sale are posted in public 
buildings and the mediums of radio, television, 
trade organizations, newspapers, and periodicals 
are used to advertise sales. 

For information and inclusion on the bidders 
list for property located in Alaska, Hawaii, and 
other areas outside the continental XJnited States, 
contact the appropriate sales office listed on 
pages 70-72. 



JfXDESAJU HANDBOOK FOR SMALli BUSINESS 



73 



CLASSES OF SURPLUS PERSONAL PROPERTY 
SOLD BY THE DEPARTMENT OF DEFENSE 



Indax 



SCftArANDWASTI.. 
USABLB ITfMl- 



AgriouHural Machinery and Equipment 

Agricultural Supplies . 

Aircraft; and Airframe Structural Components 

Aircraft Components and Accessories 

Aircraft Launching, Landing, and Ground Hikndling 

Bquipment 

Alarm and Signal Systems 

Ammunition and Explosives 

Bearings 

Books, Maps, and Other PublieatiQn& 

Brushes, Paints, Sealexs, and AfiUbesdves 

Chemicals and Chemical Frodueta 

Cleaning Equipment and Supplies 

Clothing and Individual Equipment - 

Communication Equipment 

Construction, Mining, Excavating, and Highway 

Maintenance Equipment 

Construction and Building Materials 

Containers, Packaging, and Packing Supplies 

Electric Wire, and Power and Distribution Equip- 
ment 

Electrical and Electronic Equipment Components _ 

Engines, Turbines, and Componnnts 

Engine Accessories 

Fire Control Eouipment 

Fire Fighting, Rescue, and Safety Equipment 

Food PrraaratioB and Serving Equiprnfiot 

Fue]fl» LubricaiKte, Oils, and Waxes 

Furnace, Steam PlaiKl, and Drying Equipment 

Furniture 

Guided Missile Equipment 

Hand Tools 

Hardware and Abrasives 

HooaehoM and Commfiroial Furniahings and Appli- 



Instruments and Laborat<iry Equipment 

Lighting Fixtures and Lamps 

Live Animals 

Lumber, Millwork, Plywood, and Veneer 

Maintenance and Kepair Shop Equipment 

Materials Handling Equipm^i 

Measuring Tools 

Mechanical Power Transmission Ecuiipment 

Medical, Dental, and Veterinary Equipment and 

Supplies 

Metal Bars, Sheets, and Shapes 

Metfldworkiag ^lac^unery 

MisceUancous 

Motor Vehicles^ Tmilera^ and Cycles 

Musical Instruments, Phonographs^ and Home- 
Type Radios _ 

Nonmetallic Crude Materials 

Nonmetallic Fabricated Materials 

Office Machines and Data Processing Equipment.. 

Ofl&ce Supplies and Devioea 

Ores, Minerals, and Their Primary Products 

Photojomhic EquifKnent 

Pipe» Tuhm& Hose, and Fitth^ 

Plumbing, Heating, and Sanitatioii Equipment 

PBeciooB Metals (aUtypc^ (Footnote S) 

Prefabricated Structures and ScaffoMing 

Pumps «nd Compresacoa 

Railway Equipment «^ .« 

Recreational and Athletic Equipment 

Refrigeration and Air Conditioning Equipment 

Rope, Cable, Chain, and Fittings 

Service and Trade EqiiipniieBt . 

Ships, Small Craft, Pontoons, and Floating Decks.. 

Ship and Marine Equipncni - 

Space Vehicle Equipment . 



73 
73 

76 

80 
74 

74 

74 
78 
74 
75 
79 
79 
79 
79 
79 
77 

76 
77 
79 

78 
77 
75 
75 
73 
76 
79 
80 
76 
79 
74 
77 
77 

79 
78 
78 
80 
77 
77 
76 
77 
76 

78 
80 
75 
80 
74 

79 
80 
80 
79 
79 
80 
78 
77 
76 
80 
77 
76 
74 
79 
76 
76 
26 
74 
74 
74 



Pace 

Special Industry Machinery 76 

lextiles, Leather, and Furs 79 

Tbes and Tubes 75 

Tractors 75 

Training Aids and Devices 79 

Valves 77 

Vehicular Equipment Components 76 

Water Purification and Sewage Treatment Equip- 
ment 77 

Weapons 73 

Woodworking Machinery and Equipment 75 

SCRAP AND WASTE 

Class No, 

8305A Textiles including Synthetic Fabric (e.g., canvas, 
parachutes, etc.). 

&450A Paper (e.g., newsprint, manila eards, ete.) . 

9460B Riu^er (e.g., thres and tubes aU types etc.). 

9450C Miseellaneous (e.g., leather, plastie, fiberglass 
etc.). 

9450D Exposed Fihn and Spent Hypo Sohition. 

9450E Waste Oil, Jet Fuels, Paints, Chemicals, Waxes 
and Lubricants. 

9450F Food Waste (e.g., garbage, grease, fat, bones, 
contaminated foocto, ete.). 

9670A Ferrous Metals, Light and Heavy (e.g., cans for 
detinning purposes, cast iron, wrought iron 
and steel, black and galvanized, alloy-free 
turnings, alloy-free production scrap, stripped 
and unstripped engme blocks, stea shelving, 
production cutting?, shapes and forms and an 
industrial shapes and forms). Excludes mag- 
netic and nonmagnetic stainless steels. 

?)670B High Temperature Alloys (e.g^, nickel-copper, 
nickel-silicon, niekel-ehromium, nickel-clu'om- 
ium-iron, nickel-chromium-cobalt, nickel-molyb- 
denum). Includes magnetic and nonmagnetic 
stainless steels. 

9680A Nonferrous Metals: Aluminum, Magnesium, 
Lead, 24ino, Copper, Brass, etc. Includes 
various types of military aircraft sold for 
recovery of basio metal content, parts and 
componento (e,g., B-26, B-26, F-80, F-86, 
F-89, F-lOO, etc.). 

USABU ITEMS 

Waapom 

1005 Guns (small arms) (e.g., hand operated bolt 
action rifles, 22, 30 caliber, sporting and riot 
type shot guns and component parts and 
accessories; bayonets, bayonet-knives, etc.). 

Rm CmIi ot EqiiipMMt 

1210 > Fire Control Direetoia. 

1220 ' Fire Control Computing Sights and Devices. 

1230 1 Fire Cknitrol Systems^ Complete. 

1240' Optical Sighting and Ranging Equipment (e.g., 
range and height finders, telescopic sights, 
optical instruments integrated with nre control 
eqmpment). 

1250 1 Fire Control Stabilising Mechanisms. 

1260 1 Fire Control Designating and Indicating Equip- 
ment. 

1265 Fire Control Transmitting and Receiving Equip- 
ment» exeepi Airborne. 

1270 ^ Aircraft Gunnery Fire Control Components. 

1280 1 Aircraft Bombing Fire Contcol Components. 

1285 1 Fire Control Radar Equipment, except Airborne. 

1287 ^ Fire (]k>ntrol Sooaa Equipment. 

1290 ^ Miscellaneous Fire Control Equipment. 



XDiIttari8B<L 
lssiM<i. 



In tills iKQpKty 
Bpedflc Infonnatioa n 



, ,_^ ai» cequtaed to be dft- 

«m l»«lvaB la thfr tDVitatton for bid wlwn 



74 



FEDERAL HANDBOOK FOR 8MALL BUSINESS 



Ammunifion and ExploiivM 

Class No, 

1306 Ammunition (oommeroial types in servioeable 
condition readily available on the oommeroial 
market) (e.g., hardware or sporting goods 
stores, etc.). 

1375 ' Explosives (e.g., blasting and demolition mate- 
rials, smokeless powder, etc.). 

Guided Miftil* Equipment 

1450 1 Guided Missile Handling and Servicing Equip- 
ment (e.g., specially designed trucks and 
trailers, slings, hoists, jacks, etc.). 

Aircraft; and Airframe Stroctural Components 

The Defense Surplus Sales OflSce, Tucson, Ariz., con- 
ducts sales of all Army, Navy, Air Force, Marine Corps, 
Defense Supply Agencv and U.S. Coast Guard aircraft 
on a national basis. The only types of aircraft that are 
authorized for sale are commercial type, cargo, and pas- 
senger carrying in each of the following property categories 
numbers 1510A, 1510B, 1510C, and 1520. Military type 
aircraft must be demilitarized and sold for recovery of 
basic metal content, parts and components (see property 
category number 9680 A). 

1510A Single Engine Aircraft. 
1510B Twin Engine Aircraft. 
1610C Multi-Enmne Aircraft. 
.1520 Aircraft, Rotary Wing (e.g., helicopters). 
1560A Airframe Structural Components, etc., peculiar 

to Single Engine Aircraft. 
1560B Airframe Structural Components, etc., peculiar 

to Multi-Engine Aircraft. 
1560C Airframe Structural Components, etc., peculiar 

to Helicopters. 

Aircraft Components and AccoMoriet 

1610 Aircraft Propellers and Component Parts. 

1620 Aircraft Landing Gear Components. 

1630 Aircraft Wheel and Brake Systems. 

1640 Aircraft Auxiliary Fuel Tanks. 

1650 Aircraft Hydraulic, Vacuum, and De-icing 
System Components. 

1660 Aircraft Air Conditioning, Heating, and Pressur- 
izing Equipment. 

1670 ' Parachutes and Aerial Pick Up, Delivery, and 
Cargo Tie Down Equipment. 

1680 Miscellaneous Aircraft Accessories and Compo- 
nents. 

Aircraft Launching, Landing, ond Ground Hondllng Equipment 

1710 Aircraft Arresting, Barrier, and Barricade Equip- 
ment (e.g., shipboard and land based types). 

1720 1 Aircraft Launching Equipment (e.g., catapults, 
etc.). 

1730 Aircraft Ground Servicing Equipment (e.g., ener- 
gizers, engine ireheaters, mooring assemblies, 
beaching equipment, passenger loading ramps, 
maintenance platforms, slings, hoists, airfield 
specialized lift trucks and trailers, etc.). 

1740 Airfield Specialized Trucks and Trailers. 

Space Vehicle Equipment 

1850 » Space Vehicle Handling and Servicing Equip- 
ment (e.g., specially designed trucks and trau- 
ers, slings, hoists, jacks, etc.). 



Ships, Smoll Craft, Pontoons, and Floating Docks 

The Defense Surplus Sales Office. Brooklyn, N.Y., con- 
ducts the sale of naval vessels stricken from the Naval 
Vessel Register on a worldwide basis and all barges, 
regardless of size, and power-driven or self-propeUed 
vessels exceeding 40 feet in length within the continental 
United States. Other vessels are sold by the Sales Office 
presently serving the military installations having custody 
of such vessels. 

Class No. 

1905 A Aircraft Carriers (for scrapping only). 

Battleships, Cruisers, Destroyers (for scrapping 

only). 
Landing Ships (e.g., LST, LSM, LSMR, LSSL, 

etc.). 
Minehunters, Minesweepers, Minelayers. 
Submarines (for scrapping only). 
Transport Vessels, Passenger and Troop. 
Cargo and Tanker Vessels. 
Fishing Vessels. 
Ferry. 

Harbor Utility Craft. 
Repair Ships. 

Tugs (e.g., TTB, YTL, ATA, etc.). 
Fuel Barge, Gasoline Barge, Water Barge. 
Lighters (open and covered). 
Barges and Lighters, Special Purpose (e.g., 

derrick, piledriver, torjpedo testing barges, 

barge-mounted cranes, etc.). 
P.T. Boats. 

Patrol Craft (e.g., PC, PCS, SC, YP, PCE, etc.). 
Seaplane Tenders. 
Small Craft under 40 feet in length powered and 

non-powered (e.g., lifeboats, rowboats, whale- 
boats, motor launches, etc.). 
Pontoons and Floating Docks (e.g., pontoon 

ramps, etc.). 
Floating Dry Docks. 
Dredges. 
Miscellaneous (all other vessels and service craft 

not included in property category numbers 

1905 A through 1955). 



1905B 

1905C 

1950D 

1906E 

1910 

1915 

1920 

1925A 

1925B 

1925C 

1925D 

1930A 

1930B 

1935 



1940A 
1940B 
1940C 
1940D 



1945 

1950 
1955 
1990 



> OerUin items in this property category Dumber are required to be de- 
militarised. Specific inlormatian will be glyen in tlie invitation fbr bid 
wben isBoed. 

I The purchaser must oertiiy on certain items in this property category that 
he Isa user of, or manufacturer, or processor of, or dealer in tlie materials and 
Is capable of eamplying with all applicable Federal, State, and local laws. 
Bpedflc InformaUon will be given in the Invitation for bid wben issued. 



Ship and MarliM EqvlpmMit 

2010 Ship and Boat Propulsion Components (excludes 

engines and turbines). 
2020 Rigging and Rigging Gear. 
2030 Deck Machinery. 
2040 Marine Hardware and Hull Items (e.g., anchors, 

hatches, rudders, oars, etc.). 
2050 BuojTS. 
2060 Commercial Fishing Equipment (excludes fishing 

vessels). 
2090 Miscellaneous Ship and Marine Equipment 

(e.g., sails, marine furniture, ladders, etc.). 

Rollwoy Equipment 

2210 Locomotives. 

2220 Rail Cars (e.g., trailed cars, self-propelled 

cars, etc.). 
2230 Right-Of-Way Construction and Maintenance 

Equipment, Railroad (e.g., locomotive cranes, 

snowplows, tamping machines, etc.). 
2240 Locomotive and Rail Car Accessories and 

Components. 
2250 Track Materials. Railroad (e.g., rails,, frogs, 

fish plates, etc.). 

Motor V*hklM, Traitors, ond Cydos 

2310A Passenger Motor Vehicles (e.g., sedans, station 

wagons, etc.). 
231 OB Ambulances and Heanee. 
2310C Buses. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



75 



Class yo. 

2320A Trucks and Truck Tractors (e.g., panel, delivery, 
and pickup trucks, etc.). 

2320B Amphibain Vehicles. 

2320C Jeeps. 

2330 Trailers (e.g., semitrailers, house trailers, semi- 
trailer doUies, etc.). 

2340 Motorcycles, Motor Scooters and Bicycles. 

2350^ Tanks and Self-Propelled Weapons. 



2410 
2420 
2430 



No. 



Engin* Acc«ssori«s 



2510 



2520 



2530 



2540 



2590 



2610 
2620 
2630 

2640 



2805 
2810A 

2810B 



2815 
2820 
2825 
2830 

2835 



2840* 



2845^ 
2895 



Tractors, FuD Track, Low Speed (e.g., caterpillar 
and crawler, etc.). 

Tractors, Whelled (e.g., agricultural and in- 
dustrial wheeled tractors, etc.). 

Tractors, Track Laying, High Speed. 

V«hiculor EqulpnMnl Compon«nH 

Vehicular Cab, Body, and Frame Structural 
Components (e.g., automobile, trucks and 
trailer bodies, frames, etc.). 

Vehicular Power Transmission Components (e.g., 
transmissions, clutches, drive snafts, differ- 
entials, power takeoffs, hydraulic motors, 
universal joints, etc.). 

Vehicular Brake, Steering, Axle, Wheel, and 
Track Components (e.g., wheel and brake 
assemblies, track assemblies steering assem- 
blies, etc.). 

Vehicular Furniture and Accessories (e.g., heaters, 
defrosters, winterization kits, seat assemblies, 
mirrors, curtains, etc.). 

Miscellaneous Vehicular Components (e.g., a- 
frames, bulldozer blades, crane booms, etc.). 

Tins ond Tub«t 

Tires and Tubes, Pneumatic, except Aircraft. 

Tires and Tubes, Pneumatic, Aircraft. 

Tires, Solid and Cushion (includes rubber track 
laying treads). 

Tire Rebuilding and Tire and Tube Repair Ma- 
terials (excludes vulcanizing machinery and 
equipment). 

Engines, Turbines and Components 

Gasoline Reciprocating Engines, except Aircraft; 
and components. 

Gasoline Reciprocating Engines (Single and In- 
Line Engines), Aircraft; and Components (e.g., 
R-1340, Allison, Lycoming, Drone engines, 
etc.). 

Gasoline Reciprocating Engines (Multi-Engines), 
Aircraft; and Components (e.g., R-2800, 
R-3350). 

Diesel Engines and Components. 

Steam Engines, Reciprocating and Components, 

Steam Turbines and Components. 

Water Turbines and Water Wheels; and Com- 
ponents. 

Gas Turbines and Jet Engines, except Aircraft: 
and Components (e.g., air-borne auxiliary and 
ground gas turbine power units for aircraft 
engine starting, etc.). 

Gas Turbine and Jet Engines, Aircraft and Com- 
ponents (e.g., turbo-prop and turbo-jet engines, 
etc.). 

Rocket Engines and Components. 

Miscellaneous Engines and Components (e.g., 
wind and compressed air engines) . 



> Certain Items In this property category number are required to be de- 
mlUtarised. Spedflc information win be given In the hiyitation for bid 
wben issued. 



Class 

2910 Engine Fuel System Components, Nonaircraft 
(e.g., fuel tanks, lines, filters and pumps, 
carburetors, etc.). 

2915 Engine Fuel System Components, Aircraft (e.g., 
fuel pumps, filters, controls, valves, etc.; ex- 
cludes aircraft fuel tanks). 

2920 Engine Electrical System Components, Nonair- 
craft (e.g., generators, spark plugs, coils, dis- 
tributors, voltage regulators, ignition harness, 
starters, magnetos). 

2925 Engine Electrical System Components, Aircraft. 

2930 Engine Cooling System Components, Nonair- 
craft. 

2935 Engine Cooling System Components, Aircraft. 

2940 Engine Air and Oil Filters, Strainers, and Clean- 
ers, Nonaircraft. 

2945 Engine Air and Oil Filters, Strainers, and Clean- 
ers, Aircraft. 

2950 Turlx>superchargers. 

2990 Miscellaneous Engine Accessories, Nonaircraft 
(excludes electrical starters). 

2995 Miscellaneous Engine Accessories, Aircraft. 

Mechanical Power Transmission Equipment 

3010 Torque Converters and Speed Changers. 

3020 Gears, Pulleys, Sprockets, and Transmission 

chain. 
3030 Belting, Drive Belts, Fan Belts, and Accessories. 
3040 Miscellaneous Power Transmission Equipment. 

Bearings 

3110 Bearings, Antifriction, Unmounted. 
3120 Bearings, Plain, Unmounted. 
3130 Bearings, Mounted. 

Woodworking Machinery and Equipment 

3210 Sawmill and Planing Mill Machinery. 

3220 Woodworking Machines (excludes hand held 
power driven tools). 

3230 Tools and Attachments for Woodworking Ma- 
chinery. 

Metalworking Machinery 

3411 Boring Machines. 

3412 Broaching Machines. 

3413 Drilling Machines. 

3414 Gear (Jutting and Finishing Machines. 

3415 Grinding Machines. 

3416 Lathes (excludes speed lathes). 

3417 Milling Machines. 

3418 Planers. 

3419 Miscellaneous Machine Tools (e.g., shapers, 

speed lathes, etc.). 

3422 Rolling Mills and Drawing Machines. 

3424 Metal Heat Treating Equipment. 

3426 Metal Finishing Equipment. 

3428 Foundry Equipment and Supplies (excludes cru- 
cible furnaces, cupola furnaces and foundry 
hand tools) . 

3431 Electric Arc Welding Equipment (excludes weld- 

ing supplies and associated equipment). 

3432 Electric Resistance Welding Equipment. 

3433 Gas Welding, Heat Cutting and Metalufing 

Eauipment. 
3436 Welding Positioners and Manipulators. 

3438 Miscellaneous Welding Equipment. 

3439 Miscellaneous Welding, Soldering, and Brazing 

Supplies and Accessories. 

3441 Bending and Forming Machines. 

3442 Hydraulic and Pneumatic Presses, Power Driven. 

3443 Mechanical Presses, Power Driven (includes 

forging presses). 



76 



FEDERAL HANDBOOK FOR SMALL BT7SINES8 



Ho, 



Class 

3444 Manual Presses. 

3445 Punching and Shearing Machines. 

3446 Forging Machinery and Hammers (excludes 

forging presses). 

3447 Wire and Metal Ribbon Forming Machines. 

3448 Riveting Machines (excludes power driven hand 

riveting machines). 

3449 Miscellaneous Secondary Metal Forming and 

Cutting Machines. 

3450 Machine Tools, Portable. 

3455 Cutting Tools For Machine Tools (excludes 

flame cutting tools). 

3456 Cutting and Forming Tools For Secondary 

Mctalworking Machinery. 
3460 Machine Tool Accessories. 
3465 Production Jigs, Fixtures, and Templates. 
3470 Machine Shop Sets, Kits, and Outfits. 

Service and Trade Equipment 

3510 Laundry and Dry Cleaning Equipment. 

3520 Shoe Repairing Equipment. 

3530 Industrial Sewing Mlachines and Mobile Textile 

Repair Shops (excludes shoe sewing machines). 
3540 Wrapping and Packaging Machinery. 
3550 Vending and Coin Operated Machines. 
3590 Miscellaneous Service and Trade Equipment 

(includes barber chairs, kits, hair clippers and 

shears, etc.). 

Speclol Industry Mocliinery 

3605 Food Products Machinery and Equipment (ex- 
cludes kitchen and galley equipment). 

3610 Printing, Duplicating, and Bookbinding Equip- 
ment. 

3615 Pulp and Paper Industries Machinery. 

3620 Rubber Working Machinery. 

3625 Textile Industries Machinery. 

3630 Clay and Concrete Products Industries Ma- 
chinery. 

3635 Glass Industries Machinery. 

3640 Tobacco Manufacturing Machinery. 

3645 Leather Tanning and Leather Working Industries 
Machinery. 

3650 Chemical and Pharmaceutical Products Manu- 
facturing Machinery. 

3655 Gas Generating Equipment (excludes meteoro- 
logical equipment). 

3695 Miscellaneous Special Industry Machinery (in- 
cludes specialized logging equipment, petroleum 
refinery machinery, shoemaking machinery, 
optical goods manufacturing machinery, etc.). 

Agricultural Mochinery ond Equipment 

3710 Soil Preparation Equipment (includes planting 
equipment and cultivating equipment). 

3720 Harvesting Equipment. 

3730 Dairy, Poultry, and Livestock Equipment. 

3740 Pest, Disease, and Frost Control Equipment. 

3750 Gardening Implements and Tools. 

3760 Animal Drawn Vehicles and Farm Trailers. 

3770 Saddlery. Harness, Whips, and Related Animal 
Furnishings. 

Conttfuctien, Mining, Excovoting, ond Higliway Molntenanc* 
Equipment 

3805 Earth Moving and Excavating Equipment. 

3810 Cranes and Crane-Shovels (excludes barge- 
mounted cranes). 

3815 Crane and Crane-Shovel Attachments. 

3820 Mining, Rock Drilling, Earth Boring, and 
Related Equipment. 

3825 Road Clearing and Cleaning Equipment. 



Class No. 

3830 Truck and Tractor Attachments (includes equip- 
ment for mounting on trucks and tractors, 
such as bulldozers, augers, blades, snowj^owa, 
sweepers, etc.). 

3835 Petroleum Production and Distribution Equip- 
ment (includes wellheads, pumping equipment 
and gas distribution equipment). 

3895 Miscellaneous Construction Equipment (e.g', 
asphalt heaters and kettles, concrete mixers, 
pile drivers, cable laying, lashing, spinning, and 
reeling equipment, etc.). 

Moteriols Hondling Equipment 

3910 Conveyors. 

3920 Material Handling Equipment, Non-sclf-Propelled 

(includes dolly trucks, pushcarts, handcarts, 

wheelbarrows, hand trucks, and material 

handling trailers). 
3930 Warehouse Trucks and Tractors, Self-Propelled 

(includes fork lift trucks, straddle trucks, cab, 

body, and frame structural components and 

springs, etc.). 
3940 Blocks, Tackle, Rigging, and Slings. 
3950 Winches, Hoists, (Jranes, and Derricks. 
3960 Elevators and Escalators. 
3990 Miscellaneous Materials Handling Equipment 

(includes skids and pallets). 

Rope, Cable, Choln, ond Fittings 

4010 Chain and Wire Rope. 

4020 Fiber Rope, Cordage, and Twin. 

4030 Fittings lor Rope, Cable, and Chain. 

Refrigeration ond Air Condltlenlng Equipment 

4110 Self-Con tained Refrigeration Units and Acces- 
sories. 

4120 Self-Containcd Air Conditioning Units and Acces- 
sories. 

4130 Refrigeration and Air Conditioning Plants and 
Components. 

4140 Fans and Air Circulators, Nonindus trial. 

Rre Rgliting, Rescue, ond Scrfety Equipment 

4210 Fire Fighting Equipment. 

4220 Marineliife saving and Diving Equipment(exclude6 

lifesaving boats). 
4230 Decontaminating and Impregnating Equipment. 
4240 Safety and Rescue Equipment. 

Pumps ond Compressor* 

4310 Compressors and Vacuum Pumps. 
4320 Power and Hand Pumps. 

4330 Centrifugals, Separators, and Pressure and 
Vacuum Filters. 

Fumoce, Steom Plont, ond Drying Equipment 

4410 Industrial Boilers. 

4420 Heat Exchangers and Steam Condensers. 

4430 Industrial Furnaces, Kilns, Lehrs, and Ovens 
(excludes food industry ovens, metal heat treat- 
ing and laboratory type furm^^ces). 

4440 Driers, Dehydrators, and Anhydrators. 

4460 Industrial Fan and Blower Equipment. 

4460 Air Purification Equipment (includes electronic 
precipitators and dust collectors). 

Plumbing, Heotlng, ond Scmltotlen Equipment 

4510 Plumbing Fixtures and Accessories. 

4520 Space Heating Equipment and Domestic Watez 
Heaters. 

4530 Fuel Burning Equipment Units. 

4540 Miscellaneous Plumbing, Heating, and Samtation 
Equipment (includes incineratara» destruolorBy 
septic tanks and garbage disposal unitB>. 



FEDERAL HANDBOOK FOR SMALI< BUSINESS 



77 



Wat«r Puriflcotion ond S«wage Treatment Equipment 

Class No. 

4610 • Water Purification Equipment (includes filtration 

equipment and iifesaving water stills). 
4620' Water Distillation Equipment, Marine and 

Industrial. 
4630 Sewage Treatment Equipment. 

Pipe, Tubing, Hose, and Rttingt 

4710 Pipe and Tube (includes metal pipe and tube, 
rigid pipe and tube of plastic, synthetic rubber, 
or other nonmetallic material for other than 
underground, electrical, or laboratory use). 

4720 Hose and Tubing, Flexible (includes metallic and 
nonmetallic flexible hose and tubing, hydraulic, 
air, chemical, fuel and oil hose assemblies). 

4730 Fittings and Specialties: Hose, Pipe, and Tube 
(includes plumbing fittings and specialties, 
lubrication fittings, pipe joints, including 
expansion joints, etc.). 

Volvet 

4810 Valves, Powered. 
4820 Valves, Nonpowered. 

Maintenance ond Repair Shop Equipment 

4910 Motor Vehicle Maintenance and Repair Shop 
Specialijsed Equipment (excludes hand tools). 

4920 Aircraft Maintenance and Repair Shop Special- 
ized Equipment. 

4925 Ammunition Maintenance and Repair Shop 
Specialized Equipment. 

4930 Lubrication and Fuel Dispensing Equipment. 

4931 Fire Control Maintenance and Repair Shop 

Specialized Equipment. 

4933 Weapons Maintenance and Repair Shop Special- 
ized Equipment. 

4935 * Guided Missile Maintenance, Repair, and Check- 
out Specialized Equipment (includes checkout 
equipment and test equipment specially de- 
signed for use with guided missiles and guided 
remote control systems). 

4940 Miscellaneous Maintenance and Repair Shop 
Specialized Equipment (includes paint spray- 
ing equipment) . 

4960^ Space Vehicle Maintenance, Repair, and Check- 
out Specialized Equipment (includes checkout 
and test equipment specially designed for use 
with space vehicles, including remote control 
systems) . 

Hand Tools 

5110 Hand Tools, Edged, Nonpowered. 

5120 Hand Tools, Nonedgcd, Nonpowered. 

5130 Hand Tools, Power Driven. 

5133 Drill Bits, Counterbores, and Countersinks: Hand 
and Machine. 

5136 Taps, Dies and Collets: Hand and Machine (ex- 
cludes punching, stamping, and marking dies). 

5140 Tool and Hardware Boxes. 

5180 Sets, Kits, and Outfits of Hand Tools. 

Measuring Tools 

5210 Measuring Tools, Craftsmen's. 

5220 Inspection Gages and Precision Layout Tools. 

5280 Sets, Kits, and Outfits and Measuring Tools. 



Hard¥rare and Abrasives 



t Certain Items In this property category number are reqalred to be de- 
militarised. Specific information will be given in the invitation for bid wben 
Issued. 

* Tbe purchaser must certify on certain stills and distilling apparatus In 
this property category that he will comply with the provisions of the Internal 
Revenue Code and with regulations issued thereunder. Specific information 
will be given in the invitation for bid when Issued. 



Class No, 

5305 Screws. 

5306 Bolts. 

5307 Studs. 

5310 Nuts and Washers. 

5315 NaUs, Keys, and Pins. 

5320 Rivets. 

5325 Fastening Devices. 

5330 Packing and Gasket Materials. 

5335 Metal Screening. 

5340 Miscellaneous Hardware. 

5345 Disks and Stones, Abrasive. 

5350 Abrasive Materials. 

5355 Knobs and Pointers. 

Prefabricated Structures and Scaffolding 

5410 Prefabricated and Portable Buildings. 

5420 Bridges, Fixed and Floating (excludes pontoons 

and floating docks). 
5430 Storage Tanks. 

5440 Scaffolding Equipment and Concrete Forms. 
5445 Prefabricated Tower Structures. 
5450 Miscellaneous Prefabricated Structures (includes 

bleachers, grandstands, etc.). 

Lumber, Millwerk, Plywood, and Veneer 

5510 Lumber and Related Basic Wood Materials. 
5520 Millwork (e.g., door frames, doors, window 

frames, and window sashes). 
5530 Plywood and Veneer. 

Construction ond Building Materials 

5610 Mineral Construction Materials, Bulk. 

5620 Building Glass, Tile, Brick, and Block. 

5630 Pipe and Conduit, Nonmetallic. 

5640 Wallboard, Building Paper, and Thermal Insu- 
lation Materials. 

5650 Roofing and Siding Materials. 

5660 Fencing, Fences, and Gates. 

5670 Architectural and Related Metal Products 
(includes door frames, fixed fire escapes, 
gratings, staircases, window sash, etc.). 

5680 Miscellaneous Construction Materials (includes 
metal lath, airplane landing mats, traction 
mats, etc.). 

Communkotion Equipment 

5805 Telephone and Telegraph Equipment. 
5815 Teletype and Facsimile Equipment. 

5820 Radio and Television Communication Equip- 

ment, except Airborne (excludes home type 
radio and television equipment). 

5821 Radio and Television Communication Equip- 

ment, Airborne. 

5825 Radio Navigation Equipment, except Airborne. 

5826 Radio Navigation Equipment, Airborne. 

5830 Intercommunication and Public Address Sys- 

tems, except Airborne. 

5831 Intercommunication and Public Address Sys- 

tems, Airborne. 

5835 Sound Recording and Reproducing Equipment 
(excludes phonographs, home type, and dic- 
tating machines). 

5840 1 Radar Equipment, except Airborne. 

5841 ^ Radar Equipment, Airborne. 

5845 ^ Underwater Sound Equipment (includes only 
communication types of infrared equipment). 

5895 Miscellaneous Communication Equipment. 

Electrical and Electronic Equipment Components 

5905 Resistors. 

5910 Capacitors. 

5915 Filters and Networks. 



^ i 



78 



ITEDERicL HANDBOOK FOR BMALL BUSINESS 



€lass No, 

5920 Fuses and Lightning Arresters. 

5925 Circuit Breakers. 

5930 Switches. 

5935 Connectors, Electrical. 

5940 Lugs, Terminals, and Terminal Strips. 

5945 Relays, Contactors, and Solenoids. 

5950 Coils and Transformers. 

5955 1 Piezoelectric Crystals (includes processed un- 
mounted crystals, etc.). 

5960 Electron Tubes, Transistors, and Rectifying 
Crystals. 

5965 Headsets, Handsets, Microphones and Speakers. 

5970 Electrical Insulators and Insulating Materials. 

5975 Electrical Hardware and Supplies. 

5977 Electrical Contact Brushes and Electrodes. 

5985 Antennas, Waveguides, and Related Equipment. 

5990 Synchros and Resolvers (includes autosyn motors, 
selsyn generators, synchro receivers, tprque 
amplifiers, etc.). 

5995 Cable Cord, and Wire Assemblies: Communica- 
tion Equipment. 

5999 Miscellaneous Electrical and Electronic Com- 
ponents (includes light switches, microwave 
chokes, permanent magnets, etc.). 

Electric Wire, and Power and Distribution Equipment 

6105 Motors, Electrical. 

6110 Electrical Control Equipment. 

6115 Generators and Generator Sets, Electrical. 

61 20 Transformers : Distribution and Power Station. 

6125 Converters, Electrical. 

6130 Rectifying Equipment, Electrical. 

6135 Batteries, Primary. 

6140 Batteries, Secondary. 

6145 Wire and Cable, Electrical. 

6150 Miscellaneous Electric Power and Distribution 
Equipment. 



Lighting Fixtures and Lomps 

Indoor and Outdoor Electric Lighting Fixtures. 

Electric Vehicular Lights and Fixtures. 

Electric Portable and Hand Lighting Equipment. 

Electric Lamps. 

Ballasts, Lampholders, and Starters. 

Nonelectric Lighting Fixtures. 

Alorni ond Signoi Systems 

Traffic and Transit Signal Systems. 

Shipboard Alarm and Signal Systems (e.g., motor 
order indicators, ship's draft indicators, ship's 
speed indicators, total revolution indicators, 
etc.). 

Railroad Signal and Warning Devices. 

Aircraft Alarm and Signal Systems (e.g., aircraft 
crew warning signals, audible landing gear 
alarms, oil pressure warning signals, etc.). 

Miscellaneous Alarm and Signal Systems (e.g., 
alarm bells, buzzers, fire alarm switchboards, 
foghorns, siren alarms, under voltage alarms, 
etc.). 

Medical, Dental, ond Veterinary Equipment ond Supplies 

6505 * Drugs, Biologicals, and Official Reagents. 

6510 Surgical Dressing Materials. 

6515 Medical and Surgical Instruments, Equipment, 

and Supplies. 
6520 Dental Instruments, Equipment, and Supplies. 



6210 
6220 
6230 
6240 
6250 
6200 



6310 
6320 



6330 
6340 



6350 



> Certain Itoms In this property category number are required to be de- 
militarized. Speciflc information will be given in the invitation for bid when 
issued. 

* Certain items in this property category number are sold only to registered 
manufacturers of narcotic drugs. 



Class No. 

6525 X-Ray Equipment and Supplies: Medical, Den- 
tal, Veterinary. 

6^0 Hospital Furniture, Equipment, Utensils, and 
Supplies. 

6532 Hospital and Surgical Clothing and Textile 
Special Purpose Items (e.g., clinic coats, 
surgical operating coats and trousers, etc.). 

6540 Opticians' Instruments, Equipment, and Sup- 
plies. 

6545 Medical Sets, Kits, and Outfits. 

Instruments and Laboratory Equipnient 

6605 Navigational Instruments (e.g., azimuths, gyro 
compasses, drift meters, navigational com- 
puters, aircraft octants, plotting boards, 
aircraft sextants, marine sextants, etc.). 

6610 Flight Instruments (e.g., airspeed indicators, 
bank and turn indicators, venturi tubes, etc."). 

6615 Automatic Pilot Mechanisms and Airborne Gyro 
Components. 

6620 Engine Instruments (includes all engine instru- 
ments, including aircraft, marine, and vehicu- 
lar; fuel pressure gages, manifold pressure 
gages, oil pressure gages, fuel mixture indica- 
tors, engine oil and fuel warning devices). 

6625 Electrical and Electronic Properties Measuring 
and Testing Instruments (includes all basic 
types of test instruments designed for com- 
munication and electronic equipment, such as 
ammeters, voltmeters, ohmmeters, multime- 
ters, and similar instruments, etc.). 

6630 Chemical Analysis Instruments (e.g., gas anar 
lyzers, hydrometers, etc.). 

6635 Physical Properties Testing Equipment (e.g., 
balancing machines, hardness testers, industrial 
X-Ray machines, magnaflux testing equip- 
ment, torque bearing testers, etc.). 

6640 Laboratory Equipment and Supplies. 

6645 Time Measuring Instruments. 

6650 Optical Instruments (e.g., binoculars, micro- 
scopes, telescopes, etc.). 

6655 Geophysical and Astronomical Instruments (e.g., 
geodetic, occanographic, and seismographic 
instruments, etc.). 

6660 Meteorological Instruments and Apparatus (e.g., 
wind direction and speed detectors, radiosonde 
sets, meteorological balloons, etc.). 

6665 Hazard-Detecting Instruments and Apparatus 
(e.g., mine detectors, gas detecting equipment, 
radiac equipment, water testing sets, etc.). 

6670 Scales and Balances (e.g., household, industrial, 
postal and laboratory scales and balances, etc.) . 

6675 Drafting, Surveying, and Mapping Instruments. 

6680 Liquid and Gas Flow, Liquid Level, and Mechani- 
cal Motion Measuring Instruments (e.g., elec- 
trical counters, engine tachometers, gas and 
liquid flowmeters, speedometers, etc.). 

6685 Pressure, Temperature, and Humidity Measuring 
and Controlling Instruments (e.g., altimeters, 
barometers, gages, etc.). 

6695 Combination and Miscellaneous Instruments 
(e.g., recording lie detectors, light-time re- 
corders, meter registers, etc.). 

Photogrophtc Equipment 

6710 Cameras, Motion Picture. 

6720 Cameras, Still Picture. 

6730 Photographic Projection Equipment. 

6740 Photographic Developing and Finishing Equip- 
ment. 

6750 Photographic Supplies. 

6760 Photographic Equipment and Accessories. 

6770 Fihn, Processed. 

6780 Photographic Sets, Kits, and Outfits. 



FEDERAL HANDBOOK FOR SMASjL BtTBINKSS 



79 



6830 
6830 

6840 



6850 



ChemicoU and Ch«micol Products 
Class No. 

6810 Chemicals (Includes nonmedicinal chemical ele- 
ments and compounds, such as naphtha 
solvents, acetone, etc.). 

Dyes. 

Gases: Compressed and Liquefied (c.g.| technical 
nitrogen, oxygen, ete.)> 

Pest Control Agents and Disinfectants (includes 
insect repelle&is^ fungicideSi insecticides, roden- 
ticides, week killers, etc.). 

MfsceUaneous Chemical Specialties (e.g., anti- 
fogging compound, antifreeze, deicing fluid, 
etc.). 

Training Aids ond DevicM 

6910 Training Aids (e.g,, cutaway models, map reading 

instruction kits, scale models, vehicle training 

aids, etc.)' 
6920 1 Armament Training Devices (e.g., target panels, 

rifle targets, silhouette targets, etc.). 
6930 ^ Operational Training Devices (e.g., link trainers, 

flight simulators, etc.). 
6940 1 Communication Training Devices (e.g., telephone 

training aids, electronic circuit trainers, etc.). 

Fumihir* 

7105 Household Furniture. 

71 10 Office Furniture. 

7125 Cabinets, Loekers, Bins, and Shelving. 

7195 MlseeUaneous Furniture and Fixtures (e.g., 

library furniture, cashiers' stands, theater 

furniture, etc.). 

Hous«liold and Commefclal Fumisliings and Appliances 

7210 Household Furnishings (e.g., bed blankets, 
mattresses, and pillows, etc.). 

7220 Floor Coveringa. 

"7230 Draperies, Awnings, and Shades. 

7240 Household and Commercial UtiHty Containers. 

7290 Miscellaneous Household and Commercial Fur- 
nishings and Appliances. 

Food Proparation and Serving Equipment 

7310 Food Cooking, Baking, and Warming Equip- 
ment. 

7320 Kitchen Equipment and Appliances. 

7330 Kitchen Hand Tools and Utensils. 

7340 Cutlery and Flatware. 

7350 Tableware. 

7360 Sets, Kits» and Outfits: Food Preparation and 
Serving, 

Office lAachines ond Data Processing EquipmenI 

7410 Punched Card System Machines (e.g., key punch 
sorting and tabulating machines, etc.). 

7420 Accounting and Calculating Machines. 

7430 Typewriters and Office Type Composing Ma- 
cnines. 

7440 Automatic Data Processing Bystems: Industrial, 
Bcientifie, and Office Types (e^., eleotronic 
data eountera, digital oomputeis, magnetic 
tape^e.). 

7450 Office Type Sound Recording and Reproducing 
Machines (e.g„ dictating machines, sound re- 
corders, sound recording tap^ transcribing 
machines, etc.). 

7460 Visible Record Equipment (e.g., visible index 
cabinet files and rotary files, etc.). 

7490 Miscettaneous Office Machines (e.g., cash regis- 
ters, check signing and wnting machines, label 
printing maohinea, oto.). 



1 OertaJn Items in this property category number are required to be demill- 
taricad. Specific lafocmation will be given In the invitation for bid when 
issued. 



OIlic* Supplies and Devices 
Class No. 

7510 Office Supplies. 
7530 Offiee Devices and Aoeessories. 
7530 Stationery and Record Forms (excludes standard 
forms approved for Government wide use). 

.Boohs, MofWr ond Othor PublkaHont 

7610 Books and Pamphlets. 

7640 Maps, Atlases, Charts, and Globes. 

Muilcol instruments, Phonographs, and Home-Typo Radios 

7710 Musical Instruments. 

7720 Musical Instrument Ports and Accessories. 

7730 Phonographs, Radios, and Television Sets: Home 

Type. 
7740 Phonograph Records. 

Recreational and Athletic Equipment 

7810 Athletic and Sporting Equipment (e.g., basket- 

balls, footballs, boxing gloves, etc.). 
7830 Recreational and Gymnastic Equipment. 

Cleaning Equipment and Supplies 

7910 Floor Polishers and Vacuimi Cleaners. 
7920 Brooms, Brushes, Mops, and Sponges. 
7930 Cleaning and Polishing Compounds and Prepa- 
rations. 

Brushes, Paints, Sealets, ond Adhosives 

8010 Paints, Dopes, Varnishes, and Related Products. 

8020 Paint and Artiste' Brushes. 

8030 Preservative and Scaling Compounds. 

8040 Adhesives. 

Containers, Pachaging, and Packing SuppHos 

8105 Bags and Sacks. 

8110 Drums and Cans. 

8115 Boxes. Cartons, and Crates. 

8120 Gas Cylinders (e.g., compressed gas and acetylene 
cylinders, liquid gas tanks, etc.). 

8125 Bottles and Jars. 

8130 Reels and Spoote. 

8135 Packaging and Packing Bulk Material (e.g., 
baling wire, waterproof barriers, corrugated 
and wrapping paper, etc.). 

8140 Ammunition Boxes, Packages, and Special Con- 
tainers (e.g., steel ammunition boxes, etc.). 

Textiles, Leather, and Furs 

8305B Textile Fabrics (e.g., airplane cloth, burlap, 

canvas, cotton cloth, elastic webbing, etc.). 

8310 Yam and Thread. 

8315 Notions and Apparel Findings. 

8320 Padding and Stuffing Material. 

8325 Fur Materials. 

8330 Leather. 

8335 Shoe Findinss and Soling Materials. 

>8340 Tents and Tarpaulins. 

8345 Flags and Pennants. 

Clothing and Individual Equipment 

8405 Outerwear, Men's (e.g., breeches, rain coats, field 
jackets, knit caps, overalls, parkas, ponchos, 
etc.). 

8410 Outerwear, Women's (e.g., blouaoa, rain coats, 
ch-osses, etc.). 

8415 Clothing, Special Purpose (includes safety, pro- 
tective, and athletic clothing, etc.). 

8420 Underwear and Nightwear, Men's. 

8426 Underwear and Nightwear, Women's. 

8430 Footwear, Men's. 

8435 Voolwear, Women's. 

8440 Hosiery, Handwear, and Clothing Accessories: 
Men's. 



80 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Class No, 

8446 Hosiery, Handwear, and Clothing AooeesorieB: 

Women's. 
8450 Children's and Infants' Apparel and Accessories. 
8460 Luffgaffe. 
8465 Individual Equipment (e.g., ammunition belts, 

intrenching tool carriers, sleeping and duffel 

8476^ 



Class No. 



8710 
8720 
8730 



8820 



0110 
9120 
9130 
9135 

9140 
9150 

9160 



9310 
9320 
9330 
9340 
9350 
9390 



9420 
9430 
9440 



9505 
9510 
9515 
9520 
9525 
9530 
9535 

9540 
9545* 



9610 
9620 
9630 



bags, flying goggles, sun glasses, etc.). 
Specialized Flight Clothing and Accessories. 

Agricvlhiral SuppliM 

Forage and Feed. 

Fertilizers. 

Seeds and Nursery Stock. 

Liv* Animals 

Live Animals (e.g., horses, mules, and working 
dogs). 

FimIs, Lubriconts, Oils, CNid Woxm 

Fuels, Solid. 

Fuel Gases. 

Liquid PropcUants and Fuels, Petroleum Base. 

Liquid Propellant Fuels and Oxidizers, Chemical 

Base. 
Fuel Oils. 
Oils and Greases: Cutting, Lubricating, and 

Hydraulic. 
Miscellaneous Waxes, Oils, and Fate. 

Noimi«talllc Fobricotvd Motoriols 

Paper and Paperboard. 

Ruober Fabricated Materials. 

Plastics Fabricated Materials. 

Glass Fabricated Materials. 

Refractories and Fire Surfacing Materials. 

Miscellaneous Fabricated NonmetaUic Materials 

(e.g., asbestos fabricated materials, cork and 

fibre sheets, etc.). 

NoraiMtalllc Cructo Moteriols 

Fibers: Vegetable, Animal, and Synthetic (e.g., 
nylon and rayon fibers, silk, wool, etc.). 

Miscellaneous Crude Animal Products, Inedible 
(e.g., unprocessed feathers and downs, etc.). 

Miscellaneous Crude Agricultural and Forestry 
Products. 

M«lal Bon, ShMtt, ond ShopM 

Wire, Nonelectrical, Iron and Steel. 

Bars and Rods, Iron and Steel. 

Plate, Sheet, and Strip: Iron and Steel. 

Structural Shapes, Iron and Steel. 

Wire, Nonelectrical, Nonferrous Base Metal. 

Bars and Rods, Nonferrous Base Metal. 

Plate, Sheet, Strip, and Foil: Nonferrous Base 

Metal. 
Structural Shapes, Nonferrous Base Metal. 
Plate, Sheet, Strip, Foil, and Wire: Precious 

Metal. 

Orat, MIiMrals, ond Th«ir Primary Producflt 

Ores (including basic radioactive materials). 

Minerals, Natural and Synthetic. 

Additive Metal Materials and Master Alloys. 



> Certain Items In this property category number are required to be de- 
milltariied. Spedflc Information will be given In tbe Invitation for bid 
when Issued. 

• The Defense Surplus Sales Office, Pbiladelpbia, Pa., and the Defense 
Surplus Sales Office, Pueblo Army Depot, Pueblo, Colo., conduct sales of 
precious metals such as silyer, amalgam, platinum, palladium, and rhodium, 
including platinum-tipped sparkplugs. 



9640 
9650 
9660 « 



Iron and Steel Primary and Semifinished 
Products. 

Nonferrous Base Metal Refinery and Inter- 
mediate Forms. 

Precious Metals, all types (e.g., silver, amalgam 
platiniun, paUadium, and rhodium, etc., in- 
cluding platinum tipped spark plugs). 



Mlsc«llafi«out 



9905 
9925 
9930 
9999 



Si 



Advertising Displays, and Identification 
lates. 
Ecclesiastical Equipment, Furnishings, and Sup- 



Memorials: Cemeterial and Mortuary Equip- 
ment and Supplies. 

Miscellaneous Items (includes only those items 
which cannot conceivably be classified in any 
existing property category). 

OEOORAPHICAL AREAS AND ASSIGNED CODES 



Alabama 01 

Arizona 08 

Arkansas 04 

California (N)* 05 

California (S)* 62 

Colorado 06 

Connecticut 07 

Delaware 08 

District of Columbia.. 09 

Florida 10 

Georgia 11 

Idaho 13 

Illinois 14 

Indiana 15 

Iowa 16 

Kansas 17 

Kentucky 18 

Louisiana 19 

Maine 20 

Maryland 21 

Massachusetts 22 

Michigan 23 

Minnesota 24 

Mississippi 25 

Missouri 26 

Montana 27 



Nebraska 28 

Nevada 29 

New Hampshire 30 

New Jersey 31 

New Mexico 32 

New York 33 

North Carolina 34 

North Dakota 35 

Ohio 36 

Oklahoma 37 

Oregon 38 

Pennsylvania 39 

Rhode Island 40 

South Carolina 41 

South Dakota 42 

Tennessee 43 

Texas (N)* 44 

Texas (S)* 63 

Utah 45 

Vermont 46 

Virginia 47 

Washington 48 

West Virginia 49 

Wisconsin 50 

Wyoming 51 

(81-84) •♦ 



^Provision has been made for those bidders desiring to 
buy surplus property specifically in northern or southern 
California or northern or southern Texas. California (N) 
represents that portion of the State above the 36** parallel 
and California (S) represents that portion below the 36* 
parallel; Texas (N) represents that portion of the State 
above the 31" parallel and Texas (S) represents that por- 
tion below the 31"* parallel. For the purpose of this in- 
struction, an east-west line from the towns of Shoshone to 
Lucia, Calif., serves as the 86"* parallel. An east-west line 
from the towns of Wlergate to Van Horn, Tex., serves as 
the 31" parallel. However, bidders who desire to purchase 
surplus property in the entire States of California or 
Texas should so indicate by using both code numbers for 
the northern and southern areas provided for each of these 
States. 

**If you desire to bid on any items in Classes 1905A 
through 1990 (Ships, Small Craft, Pontoons and FloatiDg 
Docks), there are four geographical areas proyide<!, 
namely : 

East of the Mississippi River (including Golf 
Ports) 81 

West of the Mississippi River 82 

Overseas Only 83 

Worldwide 84 

See instructions for using code numbers on page 72. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



81 



DEFENSE LOGISTICS SERVICES CENTER 

DEPARTMENT OF DEFENSE 

SURPLUS PROPERTY BIDDERS APPLICATION 

PART I 
NAME (Firm or Individual) 



(Last) 
ADDRESS 



(First) 



(Middle) 



CITY STATE- 

DLSC CONTBOL NO 



ZIPOODIL 



lL««v« Blank) 



ADPS CODE(S) — 

Please answer the inquiries below by placing a clieck 
mark in the proper blocks : 

1. I am interested in bidding on the following types 
of sales : 

D Sealed Bid D Auction 

D Spot md D All Sales 

2. I intend to submit bids in surplus sales on the fol- 
lewing basis : 

O lUi^arly D OccaaioBally Q One Time 

3. I intend to purchase surplus profperty: 

D For Use Q For Direct Resale 

Q Far Indirect Besale (for material content or 
parts to fabricate an item, etc.) 

4. Surplus property purchai^ed will be for : 



□ Domestic Use 

Type of Buyer : 

□ Commercial 

□ Institutional 
n Industrial 

n Governmental 



n Foreign Use 

□ Unit (or Ultimate Con- 
sumer) 
n Professional 



Failure to furnish complete Information could delay or 
preclude placement c^ your name on ^e Department of 
nef ense fihixplus Proper^ Bidden list 

• • # ^ ♦ 

Note : See instructionB for completion on page 72. 

Explcmcrtory Noftt tct Bcnft of Biawii9 

Regularly— To fall within this classification a bidder bids 

regularly and would normally bid in nai leM than 20 

Mttgp t UB sflQes witlifai a yeoe. 
Oocasianally — To fall witinin tfaia daasiflcation a bidder 

bids infrequently and would narmally bid in no f more 

than 19 gnrpluB sales within a year. 
One Tlme-4ro fall wittiln tliiB etauniflcatioB a bidAer Uds 

only to the extent Deoessaiy in sui^plos sales to purcluMe 

a specific item(s) and would normally not anticipate a 

continuing bidding interest thereafter. 

D«fllnitiont of Types of Buyors 

Conmiercial BuyeF-48 one who hujFs in connection with 
operations in the field of trade and commerce. Exam- 
ples—retailers, wholemdere, AgeatSp deaien, brokers, 
etc. 



Industrial Buyer — is one who buys in connection with the 
production or fabrication of goods or services. Exam- 
ples — ^mines, farms, fisheries, factories, laundries, hotels, 
restaurants, banks, etc. 

Unit Buyer (or Ultimate Consumer) — is one who buys 
for family or individual use. 

Professional Buyer — is one who buys in connection with 
the maintenance of a professional service. Examples — 
doctors, lawyers, accountants, engineers, consultants, 
etc. 

Institutional Buyer — is one who buys in connection with 
the administration of an institution. Examples — hos- 
pitals, schools, etc. 

Governmental Buyer — is one who buys in connection with 
the administration of a government. Examples — towns 
and cities, counties, states, nation.*!, etc. 

DEFENSE LOGISTICS SERVICES CENTER 

DEPARTMENT OF DEFENSE 

SURPLUS PROPERTY BIDDERS APPLICATION 

PART II 

I am interested in bidding on the following classes of 
surplus in the geographical areas indicated. 



CLASSES OF 

SURPLUS 

(Use Class Numbers 

Shown) 


GEOGRAPHICAL 

AREAS 
(Use Code Numbers 

Shown) 







































































National Aeronautics and Space 
Administration 



INTRODUaiON 

The National Aeronautics and Space Adminis- 
tration was established by Act of Congress in 
1968 for the following purposes : 

1. To conduct research for the solution of prob- 
lems of flight within and outside the earth's atmos- 
phere, and develop, construct, test, and operate 
aeronautical and space vehicles. 

2. To conduct activities required for the explo- 
ration of space with manned and unmanned 
vehicles. 

3. To arrange for the most effective utilization 
of the scientific and engineering resources of the 
United States and for the cooperation by the 
United States with otlier nations engaged in 
aeronautical and space activities for peaceful 
purposes. 

4. To provide for the widest practicable and 
appropriate dissemination of information concern- 
ing NASA's activities and their results. 

ORGANIZATION 

NASA has 10 i-esearch centers and 4 additional 
field offices, and its Headquarters is in Washing- 
ton, D.C. Among those centers is the Jet Pro- 
pulsion Laboraton^ at Pasadena, Calif., which is 
operated by the (Jalifomia Institute of Technol- 
ogy under a contract with NASA. 

A brochure, "Selling to NASA^" can be secured 
from the Small Business Specialist at any one of 
the procurement offices listed. The brochure brief- 
ly describes the various activities of NASA, its 
procurement organization, the various Field Cen- 
ters and installations, and some of the programs 
and projects assigned to the Field Centers. It also 
contains a brief description of some of the other 
activities and programs at Headquarters which 
would be of interest to business concerns such as 
the availability of scientific and technical publi- 
cations through the Office of Technical Services 
and the program to support research originating 
through imsolicited proposals. 

NASA PROCUREMENT REGULATION 

NASA's procurement policies and procedures 
are issued by the Office of Procurement at Head- 
quarters. The NASA Procurement Regulation 
82 



(NPC-400) contains the procedures for NASA 
contracting officers and contractors. A copy may 
be purchased from : The Superintendent of Docu- 
ments, Government Printing Office, Washington, 
D.C, 20402. 

WHAT NASA BUYS 

Each of the research centers purchases labora- 
tory equipment, tools, supplies, and services for 
use at that center. Also, some contracts are made 
for construction and maintenance of facilities. 
However, much of the major construction is con- 
tracted by the Corps of Engineers or the Bureau 
of Yards and Docks. 

The largest dollar portion of NASA's contract- 
ing is for research and the development of new 
items such as space vehicles, satellites, electronic 
components, and tracking equipment. There are 
very few contracts placed for items in production 
quantities. 

WHERE NASA BUYS 

A limited amount of contracting is done at 
NASA Headquarters. The Headquarters Con- 
tracting Division contracts for certain require- 
ments initiated by Headquarters offices and the 
Supply Branch, Administration Services Division, 
Office of Administration purchases office supplies 
and services, furniture and equipment, printing, 
reproduction, graphic arts services, and Headquar- 
ters support items in limited quantities. The 
main research and development contracts are made 
at the research centers and field installations. 
Each center makes the contracts in support of the 
projects that are assigned to it 

The centers and field offices are as follows : 

Ames Research CJenter 

Moffet Field, Calif. Tel : 961-1111 

Electronics Research Center 

575 Technology Square 

Cambridge, Mass. 02139. Tel : 491-1500 



Flight Research Center 

Box 273 

Edwards, Calif. 93523. 



Tel: CLifford S-2111 



Ooddard Space Flight Center 
Greenbelt, Md. 20771. 0^1: 



474-9000 



FEDEBAL HANDBOOK FOB SMALL BUSINESS 



83 



John F. Kennedy Space Center 

Cocoa Beach, FUi. 82931. Tel: 788-8003 

Jet Propulsion Laboratory 
California Institute of Technology 
4800 Oak Grove Drive 
Pasadena, CaUf. 91103. Tel: 354-4321 

Langley Research Center 
Hampton, Ya. 23365. Tel: 722-7961 

Lewis Research Center 

Cleveland, Ohio. 44135. Tel: 433-4000 

Manned Spacecraft Center 

Houston, Tex. 77001. Tel : WAlnut 8-2811 

Marshall Space Flight Center 
HuntsviUe, Ala. 35812. Tel: 877-1000 

Space Nuclear Propulsion Offices : 
21000 Brookpark Road 
Cleveland. Ohio 44135. Tel: 438-4000 

Nuclear Rocket Development Station 

Post Office Box 1 

Las Vegas, Nev. 89023. Tel: 734-^11 

Wallops Station 

Wallops Island, Va. 23337. Tel : VA 4-3411 

Western Operations Office 

130 Pico Boulevard 

Santa Monica, Calif. 90406. Tel : 451-7411 

Each procurement office maintains its own source 
list and solicitation of bids or proposals for its 
procurement requirements are made from the list. 
In addition, the requirements which are estimated 
to cost $10,000 or more are published in the De- 
partment of Commerce Business Daily. 

Those business firms interested in competing 
for NASA procurement awards should register 
with each field center or installation by complet- 
ing the Standard Form 129 and such special com- 
modity or field of interest list which the specific 
center may issue to cover its own particular needs. 

Many of the major programs at NASA are of 
a nature which require a contractor to have sub- 
stantial technical and physical resources. This 
does not, however, preclude smaller companies 
from participating in the program. In addition 
to prime contracting, there is a substantial amount 
of subcontracting opportunities. Subcontractor 
are selected by the prime contractors and deal di- 
rectly with them rather than with NASA. 

NASA publishes, in the Commerce Business 
Daily, those large requirements which offer sub- 
contracting opportunities. The notice published at 
the time of the initial solicitation contains a de- 
scription of the requirement, the names and ad- 
dresses of those concerns being hivited to compete 
and instructions that those interested in subcon- 
tract work in the program contact the invitees di- 
rectly. This enables the potential subcontractor 
to contact the prime contract competitors in the 
early stages of the procurement process. Notices 
of awards are also published in the Commerce 
Business Daily to assist those firms interested in 
subcontract work. 



SUBJEaS OF SPECIAL INTEREST 

UNSOLICITED RESEARCH PROPOSALS 

Any company which has a research idea original 
in nature and concept, having application to aero- 
space technology, may submit it to NASA as an 
unsolicited proposal. This will be evaluated and, 
if accepted, negotiations will be conducted for a 
contract. Such proposals should be sent to the 
Office of Grants and Kesearch Contracts^ational 
Aeronautics and Space Administration, Washing- 
ton, D.C., 20546. 

PATENTS 

The National Aeronautics and Space Act of 1958 
includes provisions for the disclosure of inven- 
tions and the handling of patent applications 
which differ in some details from the procedure 
used by other Government departments and agen- 
cies. NASA has issued regulations implementing 
the statutory provisions. To obtain full details of 
current policies, a request may be made to the 
Office of the General Counsel, National Aeronau- 
tics and Space Administration, Washington, D.C., 
20546. 

QUALITY CONTROL 

NASA requires every practical means of assur- 
ing the quality of the items, including subcontract 
items, purchased for its space program. Copies 
of the specifications issued for this purpose may be 
obtained from NASA installations inviting pro- 
posals, or from NASA Headquarters, Code KR, 
Washington, D.C., 20546. 

SMALL BUSINESS PROGRAM 

NASA has an active small business program. 
Many procurements are set aside for the sole par- 
ticipation of small business concerns. Each 
NASA installation, as well as Headquarters, has 
a small business specialist available to counsel and 
assist small business companies. 

TECHNOLOGY UTILIZATION 

Also of interest to small business are the activi- 
ties of the NASA Office of Technology Utilization. 

This office publishes information on innovations 
and other new teclmology resulting from NASA's 
activities in industrially-oriented £)rmats. These 
consist of a range of documents from one page in- 
novation reports to book length surveys of areas of 
technology such as Valve Technology, Inorganic 
Coatings and Micro-electronics, 

Information on these publications is sent to ad- 
dressees on the mailing list of the NASA Tech- 
nology Utilization Division, Washington, D.C., 
20646. ThOT are also for sale by the Government 
Printing Omce and the Department of Commerce 
Clearinghouse for Scientific and Technical In- 
formation. 

In early 1962 NASA initiated an experimental 
regional dissemination center program in order to 
assist and encourage the widest possible dissemi- 



84 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



nation and utilization of the publications of the 
Technology Utilization Division and all other 
NASA generated research results. At that time 
a pilot program was begun with Midwest Research 
Ii^itute in Kansas City, Ma Since that time and 
based on this early experience NASA has initiated 
seven other experimental programs at : 

starting date 

Indiana Uniyersity (Bloomington) January 1962. 

Wayne State University (Detroit) January 1964. 

University of Maryland April 1964. 

University of Pittsburgh May 1964, 

North Carolina Science & Technolog- 
ical Research Center June 1964. 

Southeastern State College, Durant, 
Okla February 1964. 

Uniyersity of New Mexico (Albu- 
querque) May 1965. 



Using all the information gathering and proc- 
essing tools available within NASA, the centers are 
able to provide current awaieness service, retro- 
spective searching of all material, supplementary 
information services, and provide the documents 
or microfilm with the speea and relevance that can 
best be achieved on a local basis. 

While the program is still young, the four 
computer-equipped centers (LadiiuQa, Wayne 
State, Pittsburgh, and North Carolina) are en- 
rolling member companies so as to provide in- 
dustrial financial support for the centers. To date 
they have enrolled approximately 90 companies 
which pay from $1,500 to $6,000 annually depend- 
ing on the size of the company and the extent to 
which they intend to use the center. 



Department of Commerce 




GENERAL 

Tlie Department of Commerce, under its statu- 
tory manaate, is directed *to foster, promote, and 
develop the foreign and domestic commerce of the 
United States." Its business activities are planned 
and directed to the interests of all business — small, 
medium, and large. The services and functions of 
the Department are of concern to small businesses, 
and are planned and executed with their interests 
in mind. 

This Department's procurement procedures are 
conducted pursuant to the Federal Procurement 
Eegulations as issued by the General Services 
Administration. The Department has designated 
an official who serves as liaison officer with the 
Small Business Administration in implementing 
procurement policies with reference to small busi- 
ness concerns. 

OFFICE OF FIELD SERVICES 

An essential part of trade development and serv- 
ice to small business is rendered on a local basis by 
the Office of Field Services. Operating through 
42 field offices located in commercial and industrial 
centers in the United States, this organization 



provides readjr access to the reports and publica- 
tions of the Department and direct assistance to 
business on its domestic and foreign business 
programs. 

£o[iong services available at a Field Office are : 
Assistance on everjr phase of entering or expand- 
ing an export business; counseling on domestic 
marketing potentials and current business trends ; 
leads on specific opportunities for selling goods 
and services both domestic and overseas; guidance 
in keeping up with new technology; saJe of all 
U.S. Government publications useruJ to business; 
and help in obtaining information on Government 
policies and regulations affecting domestic or in- 
ternational business. 

LIST OF FIELD OFFICES 



Albuquerque, N. Mex. 87101 
U.S. Courthouse 
William E. Dwyer 
Director 

Area Code: 505 247-0311 
Anchorage, Alaska 99501 
306 Loussac-Sogn Build- 
ing 
Clyde S. Courtnage, Di- 
rector 
Area Code : 907 272-6331 
Atlanto, Ga. 30303 

4th Floor, Home Savings 

Building 
75 Forsyth Street NW. 
Daniel M. Paul, Director 
Area Code: 404 526-6000 
Baltimore, Md. 21202 
305 U.S. Customhouse 
Gay and Lombard Streets 
CarroU F. Hopkins, Di- 
rector 
Area Code: 301 Plaza 
2-8460 
Birmingham, Ala. 35205 
Suite 200-201 
908 South 20th Street 
Gayle C. Shelton, Jr., Di- 

rectoF 
Area Code : 205 325-3327 
Boston, Mass. 02110 

Room 230, 80 Federal 

Street 
Paul G. Camey, Director 
Area Code: 617 CA 3- 
2312 
Buffalo, N.Y. 14203 
504 Federal Building 
117 EUicott Street 
Robert F. Magee, Direc- 
tor 
Area Code: 716 842-^208 



Charleston, S. C. 29403 

Federal Building, Suite 
631 

334 Meeting Street 

Paul Quattlebaum, Jr., 
Director 

Area Code: 803 747-4171 
Charleston, W. Va. 25301 

3002 New Federal Office 
Building 

500 Quarrier Street 

J. Raymond DePaulo, Di- 
rector 

Area Code: 304 343-6196 
Cheyenne, Wyo. 82001 

6022 Federal Building 

2120 Capitol Avenue 

Joseph D. Davis, Director 

Area Code: 307 634-5920 
Chicago, 111. 60604 

1486 New Federal Build- 
ing 

219 South Dearborn 
Street 

Anthony J. Buchar, Di- 
rector 

Area Code: 312 828-4400 
Cincinnati, Ohio 45202 

8028 Federal Office Build- 
ing 

550 Main Street 

Robert M. Luckey, Direc- 
tor 

Area Code : 513 
684-2944 
Cleveland, Ohio 44101 

4th Floor, Federal Re- 
serve Bank Building 

East 6th Street and Su- 
perior Avenue 

Charles B. Stebbins, Di- 
rector 

Area Code: 216 
241-7900 

85 



86 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Dallas, Tex. 762Q2 
Boom 1200, U14 €k>m- 

merce Street 
Harry O. Meyers, Direc- 
tor 
Area Code: 214 
Riverside 9-S287 
Denver, Ck>lo. 80202 
16407 Federal Building 
20th and Stout Streets 
Charles E. Brokaw, Di- 
rector 
Area Code: 303 
297-^246 
Des Moines, Iowa 50309 
1216 Paramount Building 
609 Qrand Avenue 
Raymond E. Eveland, Di- 
rector 
Area Code: 515 
284-4222 
Detroit, Mich. 48226 
445 Federal Building 
Frank A. Alter, Director 
Area Code: 313 
226^6068 

Greensboro, N.C. 27402 
412 U.S. Post Office 

Building 
Joel B. New, Director 
Area Code: 919 
275-9111 

Hartford, Conn. 06103 
18 Asylum Street 
James E. Kelley, Direc- 
tor 
Area Code: 208 
244^-3530 

Honolulu, Hawaii 96813 

202 International Sav- 
ings Building 

1022 Bethel Street 

H. Tucker Gratz, Direc- 
tor 

Tel: 588977 
Houston, Tex. 77002 

5102 Federal Building 

515 Rusk Avenue 

Edward Fecteau, Direc- 
tor 

Area Code : 713 
228-0611 

Jacksonville, Fla. 32202 
512 Greenleaf Building 
208 Laura Street 
William Bruce Curry, 

Director 
Area Code: 904 354-7111 
Kansas City, Mo. 64106 
Room 2011, 911 Walnut 

Street 
Nathan L. Stein, Director 
Area Code : 816 

FR 4-3141 

Los Angeles, Calif . 90015 
Room 450, Western 

Pacific Building 
1031 South Broadway 
SUnley K. Crook, 

Director 
Area Code : 213 

688-2833 



Memphis, Tenn. 88103 
345 Federal Office Build- 
ing 
167 North Main Street 
John M. Fowler, Director 
Area Code : 901 

534-3214 
Miami, Fla. 33130 
928 Federal Office 

Building 
51 Southwest First 

Avenue 
Marlon A. Leonard, 

Director 
Area Code : 305 

350-5267 
Milwaukee, Wis. 53203 
Straus Building 
238 West Wisconsin 

Avenue 
David F. Howe, Director 
Area Code : 414 

BR 2-8600 
Minneapolis, Minn. 55401 
306 Federal Building 
110 South Fourth Street 
Ernest G. Booth, Director 
Area Code : 612 

334-2133 
New Orleans, La. 70130 
909 Federal Office 

Building, South 
610 South Street 
Edwin A. Leland, Jr., 

Director 
Area Code : 504 

527-6546 
New York, N.Y. 10001 
6lBt Floor, Empire State 

Building 
350 Fifth Avenue 
Arthur C. Rutsen, 

Director 
Area Code : 212 

LOngacre 3-3377 
Philadelphia, Pa. 19107 
Jefferson Building 
1015 Chestnut Street 
David Jamleson, Director 
Area Code : 215 

697-2850 
Phoenix. Ariz. 85025 
New Federal Building 
230 North First Avenue 
Donald W. Fry, Director 
Area Code : 602 

261-3285 
Pittsburgh, Pa. 15222 
2201 Federal Building 
1000 Liberty Avenue 
John Donley, 
Director . 
Area Code: 412 644- 

2850 
Portland. Oreg. 97204 
217 Old U.S. Courthouse 
520 Southwest Morrison 

Street 
James W. Goodsell 
Director 
Area Code : 503 

22IV-3361 



Reno, Nev. 89502 
2028 Federal Building 
300 Booth Street 
Jack M. HoweU, 
Director 
Area Code : 702 
784^203 

Richmond* Va. 23240 
2105 Federal Building 
400 North 8th Street 
WUliam S. Parker, 
Director 
Area Code: 703 
649-3611 

St. Louis, Mo. 63103 
2511 Federal BuUding 
1520 Market Street 
Alfred L. Rascher, Jr., 
Director 
Area Code : 314 
MA 2-4243 

Salt Lake City, Utah 
84111 
3235 Federal Building 
125 South State Street 
Stephen P. Smoot, 
Director 
Area Code : 801 
524-5116 



San Francisco, Calif. 

94102 
Federal Building, Box 

36013 
450 Golden Gate Avenue 
PhiUp M. Creighton, 
Director 
Area Code : 415 

556-^^864 
Santurce, P.R. 00907 
Room 628, 605 Condado 

Avenue 
James W. Shoaf, 
Director 
Tel: 723-4640 
Savannah, Ga. 31402 
235 U.S. Courthouse and 

Post Office BuUding 
125-29 Bull Street 
James W. Mclntyre, 
Director 
Area Code : 912 

232-4321 
Seattle, Wash. 98104 
809 Federal Office Build- 
ing 
909 First Avenue 
WlUiam H. Flood, 
Director 
Area Code: 206 

583-5615 



BUSINESS AND DEFENSE SERVICES 
ADMINISTRATION 

BDSA is concerned with the advancement of 
business and with improvement in profits, pro- 
ductivity and emplovment Its services are avail- 
able to business of all sizes, and many of them are 
especially helpful to small business. The Small 
Business Administration calls on BDSA to aid in 
counseling small business firms. 

BDSA mdustry and commodity specialists deal 
with more than 424 industries, concentrating on 
such areas as production, marketing, technological 
changes and the outlook for each in the United 
States and abroad. They provide business and 
industry with analyses and data which few busi- 
nessmen could effectively gather for themselves 
and which are essential to sound business planning 
and growth. 

The 26 industry divisions of BDSA are equipped 
to assist the businessman, large or smallj witn prob- 
lems of foreign or domestic trade. Assistance may 
be obtained by mail or by a personal visit to the 
Department or any of the 42 Commerce Depart- 
ment regional field offices. 

The BDSA industry divisions are grouped in 
the following offices : 

Office of Chemicals and Consumer Products 

Office of Construction and Materials Industries 

Office of Industrial Equipment 

Office of Marketing and services 

Offices of Metals and Minerals 

Office of Scientific and Technical Equipment 

Office of Textiles 



FEDERAL HANDBOOK FOR SUALL BUSINESS 



87 



BDSA major publications include the annual 
U.S. Industrial Outlook, which analyzes past 
trends in industry, reviews major problems and 
projects levels of output, and eight industry 
periodicals. 

GOVERNMENT-BUSINESS RELATIONS 

BDSA represents the Secretary of Commerce in 
a continuous interchange of ideas between business 
and Government so that each is fully informed of 
the policies, views, objectives, programs and prob- 
lems of the other as they affect national economic 
growth. 

The agency analyzes and assesses the impact of 
imports on U.S. industry in the development of 
U.S. commercial policy, and provides advice on 
international business opportunities, tariff ques- 
tions, commodity problems, and market prospects 
abroad. 

BDSA also administers the Defense Materials 
System of priorities to expedite military, atomic, 
and space programs. It reviews stockpile require- 
ments and studies the effects of stockpile aquisi- 
tions and disposal on industiy. 

TRADE ASSOCIATIONS LIAISON 

The Department has encouraged the growth of 
trade associations, professional societies and cham- 
bers of commerce for the past 52 years. The 
BDSA Trade Associations Liaison Staff is the 
Department center for information on trade asso- 
ciations and other nonprofit groups. It also can 
direct a member of any of these organizations to 
the industry division sx>ecializing in his business. 

CLEARINGHOUSE FOR TECHNICAL SERVICES 

The Clearinghouse for Federal Scientific and 
Technical Information (formerly the Office of 
Technical Services) supplies the industrial and 
technical communities with unclassified informa- 
tion about Government-generated science and 
technolog^y in defense, space, atomic energy, and 
other national programs. It makes readily avail- 
able at low cost, research reports which may aid 
in the development of a new product, solve a proc- 
essing problem, or increase productivity through 
technical improvement. It also furnishes informa- 
tion on research in progress and provides referral 
to specialized technical information centers for 
data on specific engineering problems. 

In February 1964, the White House announced 
that the Federal Council for Science and Tech- 
nology had recommended that the U.S. Depart- 
ment of Commerce expand its ^'Clearinghouse" 
function, building upon the existing information 
services of the Office of Technical Services* Sub- 
sequently, the Clearinghouse for Federal Scien- 
tific and Technical Information was established. 
It is located in Springfield, Va. 

The fiscal year 1966 program for the Clearing- 
house anticipates the availabili^ and dissemina- 
tion <rf 64,000 documents covering new scientific 
and industrial research developments. Some 

54-543'— 66 7 



39,000 of these reports are from U.S. sources and 
25,000 from foreign sources. 

BUREAU OF INTERNATIONAL COMMERCE 

The Bureau of International Commerce (BIC) 
of the U.S. Department of Commerce is concemea 
with export promotion and with assisting U.S. 
business in all its operations toward that objective. 
In providing this help, BIC makes no distmction 
between small and big business but, in practice, 
all BIC services to promote sales of American 
products abroad ai'e especially useful to smaller 
U.S. firms. 

Witli its many publications — starting with the 
weekly magazine. International Commerce — ^to 
provide detailed information on specific markets 
abroad and how to sell to them, and with its vari- 
ety of low-cost marketing aids, BIC offers a com- 
plete "how to do it" pacKage of particular use to 
smaller companies which cannot afford complete 
export promotion departments of their own. 

BIC's overseas promotion programs, including 
trade centers, trade missions^ and trade fairs, give 
all American firms opportunities to introduce their 
products abroad at a small cost. Consequently, 
these programs are especially popular with smaller 
companies. 

BIC's commercial intelli^nce program is a 
marketing information service providing reports 
on overseas trade outlets — agents, distributors, 
licensees, buyers, and suppliers. They include: 

Trade lists-;-names and addresses of selected 
groups of foreign firms, grouped by commodity, 
mdustry, or type of product. U.S. companies can 
locate agents by corresponding with firms on these 
lists. 

World Trade Directory reports — comprehensive 
digests describing the operation of mdividual 
firms including experience, sales competence, fi- 
nancial resources, and names of their trade con- 
nections. 

Agency Index Service — a register of foreign 
agents of U.S. firms to be found in each Foreign 
Service post of the United States including names 
of local firms in each area which handle U.S. 
products. 

Other commercial intelligence services include 
market report circulation, assistance in adjusting 
trade complaints, and identifying and assisting 
U.S. businessmen who travel abroad. 

BIC publications provide timely coverage of 
foreign market developments and techniques of 
overseas selling. Publications include "Overseas 
Business Eeports," comprehensive studies of spe- 
cific country markets, and how-to-get-started 
handbooks such as "What You Should Know 
About Exporting." In addition the Small Busi- 
ness Administration, which cooperates with BIC 
especially in assisting smaller firms to plan and 
carry out export expansion activities, provides a 



88 



:federal handbook for small business 



useful handbook, "Export Marketing for Smaller 
Finns." 

NATIONAL EXPORT EXPANSION COUNCIL 

The National Export Expansion Council 
(NEEC) and the 42 Regional Export Expansion 
Councils (REEC) encourage and assist small busi- 
ness in the export field. This is done by means of 
conferences, workshops, and individual counseling 
to seminars, give instruction in export operations. 
In cooperation with the Commerce Department 
Field Offices, these educational activities are oft^en 
cosponsored by universities and business organi- 
zations. 

The Commerce Department and the Small Busi- 
ness Administration are engaged in a joint pro- 
gram to encourage small business participation in 
export trade. In support of the program, SBA 
will expand its series of cosponsored business op- 
portunity conferences to cover exporting subjects, 
and will include these same subje<;ts in its manage- 
ment courses. 

TRADE CENTERS 

U.S. Trade Centers — permanent ovei'seas mer- 
chandise marts for American products — are in 
Frankfurt, London, Bangkok, Milan, Tokyo, and 
Stockholm. Through Bureau of International 
Commerce sponsored shows, a U.S. firm can test a 
selected market where the demand for U.S. goods 
is combined with dollar resources. The first Cen- 
ter opened in London on June 26, 1961. 

A Trade Center show is undertaken only after 
market research indicates profitable sales in the 
area for a specific product line. Each show is 
preceded by a promotional campaign to attract the 
largest possible number of buyei's, agents, and 
distributors. 

These displays are designed to assist small firms 
in entering new markets overseas. Of 3,532 ex- 
hibitors in Trade Center shows from June 1961 
through June 1965, 1,907 were small firms. Man- 
ufacturers interested in more details may contact 
the Bureau of International Commerce, U.S. De- 
partment of Commerce, Washington, D.C. 

TRADE MISSIONS 

Trade Missions are sent to promising markets 
overseas. Ejich Mission consists of five or six 
volunteer businessmen accompanied by two De- 
partment of Commerce trade specialists. These 
missions carry specific trade and investment 
proposals to international markets. The Trade 
Mission program was established in November, 
1954. Through November 1965, 165 trade mis- 
sions, including 29 industry-organized, Govern- 
ment-approved missions were sent abroad. They 
carried 18,000 business proposals from U.S. indus- 



try to oversea businessmen and returned with 
26,000 new trade and investment opportunities. 

Any U.S. firm may submit Busmess Proposals 
for any or all U.S. Trade Missions. 

TRADE FAIRS 

U.S. commercial exhibitions are staged overseas 
at major international trade fairs to sell American 
goods in the world's leading markets. This 
commercial program was inaugurated by the Bu- 
reau of International Commerce in 1963. 

The cost of participating in U.S. Commercial 
Exhibitions is nominal and includes exhibit space 
and a share of the cx)st of the market surveys and 
tlie advertising campaign which precedes tlie 
exhibition. 

Many companies that have participated in the 
BIC trade lairs program never before had ex- 
ported their products. Tliese companies made 
their first oversea sales at U.S. Exhibitions. 

The Commerce Department also conducts ex- 
hibitions behind the Iron Curtain and in the de- 
veloping nations on behalf of the U.S. Information 
Agency to tell the story of American free enter- 
prise and to introduce U.S. products into areas 
that can be expected to become markets in the 
futui^e. 

OFFICE OF BUSINESS ECONOMICS 

This OflSce creates measures of the functioning 
of the economy, such as gross national product 
(GNP) and the balance of international payments, 
and engages in economic research and analysis. 
Using its material on the amount of personal in- 
come received in each State, OBE produces re- 
gional studies down to the county level. Its 
monthly publication Survey of Current Business 
makes available a broad range of economic intelli- 
gence, including the latest data on production, 
prices, and shipments in a variety of industries. 
A biennial Busmess Statistics volume supplements 
the magazine, furnishing historical and explana- 
tory material. OBE publications are made avail- 
able to small business tJiroughout the Department's 
field offices. 

ECONOMIC DEVELOPMENT 
ADMINISTRATION 

Through EDA, the Federal Government, in co- 
operation with the States and local communiti^, 
helps J)usiness enterprises get started and existing 
firms expand in areas of high unemployment or 
low family income. 

I»ans are made for the purchase of land, build- 
ings, machinery, and equipment. The amount of 
the loan is limited to 65 percent of the total cost. 
There are no top or bottom limits to the size of an 
EDA industrial or commercial loan. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



89 



EDA also can guarantee up to 90 percent of re- 
lated working capital loans made by private lend- 
ing^institutions. 

f^DA also makes loans and grants to depressed 
communities for public works which will promote 
industrial development, and can provide teclmical 
assistance to help solve economic problems. 

Goal of the EDA program is to enable de- 
pressed communities to stabilize and diversify 
their economies and create new job opportunities. 

This is done by promoting successful and sus- 
tained industrial and commercial growth. The 
resulting projects lielp make a community capable 
of supporting additional people and thus able to 
make the most of its natural and human resources. 

Financial assistance under the EDA program is 
available to high unemployment urban area«, rural 
areas with low family income, certain Indian res- 
ervations and Indian-owned land areas, and those 
areas which have lost, or are about to lose, their 
major source of employment. 

Economic development districts, containing two 
or more redevelopment areas, also are authorized 
so that projects of broader geographical signifi- 
cance may be planned and carried out. 

The Secretary also can approve multi-State eco- 
nomic development regions, and encourages the 
States involvcKi to form regional planning commis- 
sions to promote economic development. 

UNITED STATES TRAVEL SERVICE 

Established in June 1961, the U STS serves the 
travel industry by encouraging tourism to the 
XJ.S.A. Operating through 11 oversea posts lo- 
cated in stratefjic areas, USTS disseminates, 
through advertismg media and personal contact, 

Sromotional materials for the stimulation of ad-, 
itional tourism to the U.SA. It directly serves 
the travel industi-y by working with other Federal 
agencies for the reduction of unnecessarv barriers 
to travel and by working with State and local com- 
munity groups in the development of "host fa- 
cilities." USTS program calls for the develop- 
ment of a travel statistics program for general use 
throughout the industry. 

ENVIRONMENTAL SQENCE SERVICES 
ADMINISTRATION— WEATHER BUREAU 

WEATHER WISE IN BUSINESS 

In recent years businessmen have been discover- 
ing new ways to use weather information to their 
advantage: To improve efficiency, to increase 
profits, and to reduce losses imposed by weather 
changes or hazards. 

Many of man's economic endeavors are exposed 
directly to the weather and its changes. Apicul- 
ture, outdoor construction, river dependent mdus- 
trieaand transportation are major examples, while 
innumerable small businessmen operate under con- 



ditions where goods or services are affected di- 
rectly by climate and weather. 

Considerable money and ingenuity is devoted to 
the problems of "Engineering around the 
Weather." We have houses, automobiles, offices, 
and even baseball fields which protect us from 
rain, snow, and wind and which are heated or 
cooled for our peak comfort and efficiency. Re- 
frigeration, air conditioning, insulating, and wa- 
terproofing are all examples of thriving new 
industries which have emerged as a result of man's 
attempts to control his weather. 

Weather determines the clotlies we wear, the 
kinds of houses we build, the food we eat, the kinds 
of recreation we enjoy. It also affects business in- 
directly in sucli factors as labor, sources of supply, 
and consiuner attitudes. 

With these economic considerations in mind the 
alert businessman is going to keep liis weather eye 
peeled to seek the best information he can get from 
the professional sources available to him. Most of 
the public weather sendees of the U.S. Weather 
Bureau can be applied to the needs of business, but 
some industries are finding it profitable to seek spe- 
cialized operational guidance from qualified pri- 
vate meteorologists. These private weathermen 
serve in either a staff or consulting capacity to cor- 
relate weatlier conditions to a single industry's 
planning or operational procedures. 

No attempt will be made here to provide fixed 
iniles or policies which will fit any situation. Spe- 
cific answers can come only from analysis of par- 
ticular problems in individual businesses. This 
article is intended only to furnish sidelines on 
the types and the uses of meteorological informa- 
tion available. 

The weatherman today is in a better position 
than ever before to help the businessman take ad- 
vantage of the weatlier — to use it as a valuable ally 
and lessen its threat as an enemy. Many of the 
tremendous scientific and technological develop- 
ments of recent years have been adapted to meteor- 
ological uses and have helped advance the accur- 
acy of weather forecasting. 

Observotions ond Doily Forecosts. Today the 
Weather Bureau receives reports from a network 
of over 700 hourly reporting stations forming a 
gidd network across the nation. In addition, 
thousands of daily observations of temperature 
and precipitation are made by contract observers 
and cooperative observers. 

These accurate, on-the-spot observations ai-e in- 
corporated with a vast input of other meteorologi- 
cal data, including upper air sounding, to derive 
the 24- to 48-hour forecast which is issued every 
day, usually every 6 hours. These daily short- 
range predictions are broadcast over radio and 
TV and used by the local newspaper and on the 
telephone weather dialing system. 

Keeping abreast of the daily forecasts is most 
imi)ortant. Conditions can change abruptly, and 



90 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



the weatherman includes these changes in the 
earliest possible report. For greatest validity the 
weather-conscious Dusinessman should check the 
updated sources of radio or telephone reports for 
new information. In many cities a teletypewriter 
machine connected to the Public Service Weather 
circuit can be installed for a nominal fee in your 
office for immediate reference. In this case you 
must lease a teletypewriter machine from the local 
telephone company and furnish the necessary 
2)aper. 

The Federal Aidation Agency also broadcasts 
twice-hourly weather reports in cooperation with 
the Weather Bureau over a special radio frequency 
at local airport stations. These reports cannot be 
i-eceived on regular AM-FM receivers, but special 
equipment can be purchased to monitor them on 
the 200 to 415 kilocycle band, or between 108 and 
118 megacycle short wave band. Information on 
the proper frequency for a particular locality can 
be obtained from the FAA who operate the equip- 
ment. 

Five-Day Extended Forecasts. The second type 
of general forecast is the 5-day extended forecast 
issued by the Weather Bureau every Monday, 
Wednesday, and Fridav morning. These are less 
specific and detailed than the 24-hour forecasts. 
Predictions are made in terms of variations above 
and below normal conditions, primarily for tem- 
peratui'es and precipitation. 

They offer an extended look at the w^eather to 
permit long-range planning and to allow provi- 
sions for unexpected fluctuations in production, 
sales and service demands. It must be i-ecognized 
that they have lower validity than the short-range 
forecast and provide an entirely different range 
of usefulness. The 5-day extended forecasts are 
also disseminated by all media including the Pub- 
lic Sendee Weather teletypewriter circuit. 

Thirty-Day Outlook. The third general type of 
forecast is the long-range 30-day outlook. This 
overview of the weather is published on or about 
the 15th and 30th of the month by the Weather 
Bureau's Extended Forecast Division in Washing- 
ton, D.C. They offer supplementary resumes 
of the previous 30-day period, climatological 
charts, and maps. 

The 30-day outlook is not a specific forecast, 
but an outlooK of expected trends over a prolonged 
period for the larger geographical segments of the 
country. I^ike the 5-day forecast it indicates ex- 
pected fluctuations above or below normal for the 
time of the year and the section of the country 
and does not deal with conditions that might exist 
in a given spot at a given time. Many newspapers 
and magazines tJiroughout the country publish 
both the maps and text of the 30-day outlook, or 
"Average Monthly Weather Outlook," as it is of- 
ficially titled. Copies may be purchased on a sub- 
scription basis from the Superintendent of Docu- 
ments, Government Printing Office, Washington, 
D.O. 



Special Forecasts. In addition to the general 
forecasts issued by the Weather Bureau, special 
forecasts are issued as needed, such as severe 
weather forecasts, hurricane and tornado adviso- 
ries and warnings, flood forecasts, and extreme low 
or freezing temperature forecasts. 

Storm warnings and severe weather advisories 
can yield untold savings if properly heeded. If 
you are in a coastal area which coula be swept by 
a hurricane, in a low-lying area that could be sub- 
ject to flooding, or in a zone of high tornado fre- 
quency, you should be constantly alert to the po- 
tential dangers. Be in a position to get all the 
up-to-the-minute storm warnings and advisories. 
For any one location their occurrence can be con- 
sidered rare, but a history of past hurricane and 
flood damage is available to point out locations 
which are particularly susceptible. 

Climatological Records. Weather data in the 
categories of both day-to-day conditions and cu- 
mulative conditions over long periods of time are 
called climatology and are iniportant aids for the 
weatherwise businessman. The Environmental 
Data Service — a major component of the Environ- 
mental Science ^rvices Administration— has 
the responsibility for operating the National 
Weather Records Center, the world's largest cen- 
tralized climatoloja^ical archive, located at Ashe- 
ville, N.C. This is the central repository for all 
weather data obtained by Government agencies, 
and every effort has been made to insure that some 
copy of every meteorological record collected in the 
United States and its possessions is stored there. 

The National Weather Records Center checks 
and prepares observations for publications and 
provides, at cost, copies of original records, hand 
and machine tabulations, chart and map analyses, 
relationship studies, etc.,^ to the general public, 
industry, agriculture, and to other Government 
agencies. These records form the basis for re- 
search into seasonal, annual, and perennial weath- 
er cycles and changes, and the statistical analyses 
of them has formed the basis for many of today's 
forecasting techniques. 

Using Weather Information. The use of weather 
information by industry and business must be 
fitted to both the needs of the businessman and 
the realistic capabilities of the weatherman. Fig- 
ure 1 is presented to show the general relationship 
between time scales, meteorological tools, and the 
typical related problems. 

For the best use of weather information to ob- 
tain greater profits or greater savings a systematic 
approach is advisable. The following steps will 
be useful in establishing a procedure: 
Define the problem. 

Delineate types of action which can be taken 
for economic gain. 



^ For more extensive Ustlnir see Key to Meteorological Records, 
Documentation No. 4.11. Selective Guide to Published Climatic 
Data Sources PreiMired by U.S. Weather Bureau, 1963. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



91 



Select the type of Information needed. 
Establish a routine procedure for getting the 

information. 
Use the information in a systematic way. 

TIME SCALES & TOOLS FOR WEATHEt-RELATED DECISIONS 



TWICAl niMf or CONCIIN 



OeSUVATKM 


TOMrS 
FOMCMT 












TOMY 
MO 

TOMQMN 


Town 

FO«C«T 




TOMDMOrS 
FORECMT 



ci»RnTD«rt 

OPtlUTIONM. UATMCR, 
IWIMOIMC MO FLOOD 



five DAY FOMCMT 



(DAYPEIBOFOt 
KATHEIKLATCO 

Kjrmia 



MM.YTICJL trUOY 



FROIIW 
MlTVPaOF 



If the operational decision is a renewable one 
needing attention at the same time each morning, 
and affecting only that one day's operation, use 
current observations plus the early morning fore- 
cast of that day's expected weather. 

If an activity requires less than one full dav of 
outdoor exposure and can be postponed, use both 
today's ana tomorrow's forecast to make the best 
choice. 

If the timing of a 2-day workload such as hay 
harvesting is tne problem, use a forecast which 
gives general lon^ range anomalies. Do not ex- 
pect the same precision in timing that characterizes 
today's forecast. 

Climatological records of past weather furnish 
a gold mine of information applicable to many 
types of long range planning problems. Even 
procedures designed to give guidance in short 
ran^ decisions can be tested on historical records. 
'Kie relationship between weather and the mar- 
keting of either goods or services may not always 
be clear cut, but a review of past business records 
may provide a clue to its importance. The follow- 
ing hypothetical questions offer some idea of the 
broad range of this relationship : 

How much does your own and/or your cus- 
tomers fuel consumption increase as the 
temperatures go down? 
What percentage of the car parking spaces 
were filled in the shopping center parking 
lot on 10 snowy days as compared with 10 
clear, dry days? 
What weather conditions do we need to divert 
sales clerk personnel to in-store rearrange- 
ment of displays ? 
Was the 100 percent sales increase of a par- 
ticular insecticide in a 10 day period tied to 
a particular weather sequencer 
Approximately how many extra thousand 
room air-conditioners were sold last month 



in city X due to the extra heat cm 6 very hot 
days? 
Are the dollars spent on snow removal more 
closely related to the hours of snow-fall 
duration or snow-fall amounts? 

If the need is for a specific past record which 
is already published the local library may already 
have such information or a copy can be obtained 
by purchase from the National Weather Records 
Center, Asheville, N.C. 

If the need is for a duplicate copy of data which 
are in the archives but not already published they 
are available from the National Weather Recorcfe 
Center for the cost of duplication. 

If the need is for past information at specific 
locations other than the points where observations 
were actually made, consideration should be given 
to using the services of a professional meteorologi- 
cal consultant who is capable of estimating tiie 
most probable data for that specific location. 

Analytical studies involving large numbers of 
man-hours or machine time in their execution each 
present their own peculiar set of circumstances. 
In some instances mdustrial firms may use the 
talents of their nonmeteorological personnel to 
deal with weather related problems. In most 
cases it is advisable to seek professional assistance 
either on a staff or consulting basis. The profes- 
sional would be expected to mow what meteoro- 
logical data are needed and where and how it can 
most economically be processed. 

Figure 2 illustrates the concept of economic use 
of professional assistance whenever weather- 
related problems reach high dollar concern. 

RECOMMENDED ACTION 




QUANTin mu CtMPLEXITY OF 
VEATHER MFOniATION REQUIRED 



Indusfriol Meteorological Services. Non-Gov- 
ernment meteorologists fit into one of two cate- 
gories : (a) Private consultants * — either individu- 
als or groups of meteorologists who work on a con- 
sulting basis for one or more clients, (b) industrial 
meteorologists — individuals working as regular 
employees for business and industrial firms, insur- 
ance firms, utilities, etc. Individuals in both of 

s"What Is a ConRultlng Meteorologist?** American Meteorolo- 
gist Society. 



92 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



these groups are considered here to be in the field 
of industnal meteorology.* 

Industrial meteorology is the application of 
meteorolo^cal knowledge to specific industrial 
problems m order to yield a direct economic ad- 
vantage. Private weather services seldom claim 
their forecasts are more accurate than those of the 
U.S. Weather Bureau. Their staffs are small, and 
they can't duplicate the Grovernment's extensive 
network of report ing stations. In fact, most of the 
firms base their forecasts largely on information 
on temperature, winds, rainfall, and barometric 

f)ressure received over the Weather Bureau's 
eased wire system. The Weather Bureau fur- 
nishes its data free, though the firms must pay 
for the private wire link to the Bureau. 

The private services, many of which concentrate 
on servmg customers in a limited area, can watch 
for weather conditions of particular importance 
to a client. Besides sending out periodic forecasts, 
they tailor their information to the needs of the 
individual client. The fees paid for this service 
are directly comparable to those in other consult- 
ing professions. 

The old saw, "It's an iU wind that blows no 
good" has a unique relevancy to the case of the 
modem businessman. More and more they are 
realizing the value of planning and operating in 
partnership with the weather. Some will choose 
to pay private meteoroloj^ists to help chart their 
course, others will determine their own procedures. 
But by an intelligent use of today's weather tech- 
niques they all stand to gjain from the modern 
business- weather relationship. 

OFFICE OF STATE TECHNICAL SERVICES 

Small business benefits in many ways from the 
State Technical Services program — through tech- 
nical information services, technical referral serv- 
ices, and extensive workshops and seminars in 
advanced technology suitable for local industry. 
Each State has been requested to designate an 
agency or institution to develop a 5-year plan for 
the economic and industrial growth of the State. 
The designated agency also develops, coordinates, 
and admmisters the annual teclmical services pro- 
gram. The services available are provided through 
qualified institutions such as colleges or universi- 
ties. For the names of the designated agencies, 
write to the Office of State Technical Services, De- 
partment of Commerce, Washington, D.C., 20230. 

PATENT OFFICE 

The Patent Office examines patent and trade- 
maric applications to determine the patentability 
of an invention or the registrability of a trade- 



• "Government Weather Programs, Military and Civilian Oper- 
attona and IletM>arch." bj Committee on Government Operattons, 
Hourfe Report No. 177, Mar. 17, 1906. 



mark. Successful applicants receive benefits un- 
der the patent and trademark statutes. The rights 
to a patent or trademark may be purcha^d from 
the patentee or registrant by any person or firm. 

A patent may be granted to any person who in- 
vents or discovers any new or useful process, ma- 
chine, manufacture, or composition of matter, or 
any new and useful improvement thereof. A 
patent gives the inventor the right to exclude 
others from making, using, or selling his invention 
throughout the United States for a period of 17 
years. 

At the end of the 17-year period the patent be- 
comes a part of the public domain at which time 
any one may manufacture, produce and sell the 
patented invention. 

Of particular interest to businessmen is the Offi- 
cial Gazette, a weekly publication of the Patent 
Office, containing the more than 1,200 patented 
disclosures in all fields of scientific endeavor. Tlie 
Gazette provides a means of commimication be- 
tween inventors and manufacturers who are inter- 
ested in their products. 

On file in tlie public search room at the Patent 
Office are the more than 3,200,000 U.S. patents 
and 7 million foreign patents which can aid busi- 
neasmen in their search for new products and solu- 
tions to problems in the descriptions of patented 
inventions that are in force and expired ones. 

A trademark includes an}'' word, name, symbol 
or device, or any combination thereof, adopted and 
used by a manufacturer or merchant to identify 
his goods and distinguish them from those manu- 
factured or sold by others. In order to be eligible 
for registration, a mark must be in use in com- 
merce which may lawfully be regulated by Con- 
gress. A trademark registration remains in force 
for 20 years, and may be renewed. 

Information about patents and trademarks can 
be obtained from any neld office of the Department 
of Commerce or by writing to the Commissioner 
of Patents, Washington, D.C., 20231. 

BUREAU OF THE CENSUS 

The Bureau of the Census gathers and publishes 
statistics of many kinds that may be useiul to the 
businessman: Statistics about numbers of people, 
by age, race, sox, occupation, income, and otiier 
characteristics ; about consumer buying intentions ; 
about homes and new house^s ; alx)ut business and 
industry, imports and exports; statistics for areas 
ranging from city blocks, and census tracts (small 
areas roughly equivalent to neighborhoods), up to 
cities, metropolitan areas, counties, States, and the 
Nat ion. 

^Mien the businessman wants facts about his 
area that have a bearing on his market and liis 
prospects, he can get answers from Census Bureau 
data as to how many customers, how many em- 
ployed, how many in each income group, how 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



93 



many own homes and how many rent, how many 
have moved into or out of the areas recently, and 
how many competitors in his own line of business 
there are m his area. 

Many businessmen depend on business publica- 
tions, trade associations, or chambers of commerce 
to select and interpret Census Bureau statistics. 
The businessman wno wants to study the facts for 
himself may obtain copies of reports at nominal 
cost. (See list of selected Bureau of the Census 
publications.) 

NATIONAL BUREAU OF STANDARDS 

The national measurement system maintained 
and developed by NBS is of major importance to 
the small businessman. By using NBS calibration 
services and standard materials, he can insure his 
abilitv to meet high accuracy requirements 
specified in defense and space contracts, and thus 
ootain his share of subcontracts. The same 
measurement ability enables him to make products 
or replacement parts compatible with the products 
of other manufacturers. 

Where the small businessman deals in ^oods and 
services which are dispensed by weight and 
measure^ his State Weights and Measures Depart- 
ment, with the technical support of the NBS Office 
of Weights and Measures, is his safeguard against 
inaccuracy. The small businessman whose spe- 
cialty is invention receives important support from 
the NBS Office of Invention and Innovation. 
Engineering standards, standards of practice, com- 
mercial standards, international standards, for 
which NBS provides a technical basis, all promote 
a more uniform national and international market- 
place, and thus expand the small businessman's 
sales opportunities. 

One of the Bureau's most valuable aids to the 
small businessman is its dissemination of technical 
information. NBS develops information in 
specific fields — ^metallurgy, polymers, building 
materials and techniques, data processing, etc.; 
NBS collects and distributes reports on all un- 
classified Government research through its Clear- 
inghouse for Federal Scientific and Technical In- 
formation; and the NBS Office of Technical Ee- 
sources packages this information by subject and 
makes it available to the small businessman 
through State Economic Development Agencies. 

SELECTED PUBLICATIONS 

(Available from U.S. Department of Commerce 
Field Offices) 

OFFICE OF FIELD SERVICES 

Commerce Buisiness Daily. A daily list of U.S. 
Crovemment procurement invitations, subcon- 
tracting leads, contract awards, sales of surplus 
property, and foreign business opportunities. 



BUREAU OF INTERNATIONAL COMMERCE 

BIC CheckUat^ published semiannually, lists all 
publications of the Bureau of International Com- 
merce. Free. 

Publications noted in the checklist are available 
from the Commerce Department's Publication 
Sales and Distribution Branch of the Office of Ad- 
ministrative Services, Washington, D.C., 20230^ or 
from any of the Department of Commerce Field 
Offices. 

International Commerce is the princii)al periodi- 
cal published in the international affairs area of 
the U.S. Department of Commerce. A weekly 
news magazine, it offers authoritative and concise 
international marketing information and reports 
demonstrating and explaining potential advan- 
tages to American businessmen in profitable inter- 
national sales of U.S. products. 

Commerce Business Daily offers a daily synopsis 
of U.S. Government proposed procurement, sub- 
contracting leads, contract awards, sales of surplus 
property, and foreign business opportunities. 

Overseas Busings Reports replaced the 3-part 
World Trade Information Service in repoiting 
basic and authoritative information needed by ex- 
porters, importers, investors, manufacturers, re- 
searchers and all who are concerned with inter- 
national trade and economic conditions throughout 
the world. 

Export Expansion Council News. Once per 
month this newsletter reports activities of Export 
Expansion Councils in 42 cities throughout the 
U.§.A. 

Thf Market Series handbooks are designed to 
provide a current evaluation of the nature and 
scope of a coimtry's market, describing the present 
import pattern, distribution facilities, and trade 
practices, as well as an analysis of the market for 
selected commodities. 

Trade Mission Reports. Opportunities for 
U.S. trade with countries that are visited by U.S. 
trade missions. 

Trade Lists. These are available to help U.S. 
firms find customers, agents, distributors, licensees, 
and sources of supply abroad. Each list gives 
names and addresses of firms handling a specific 
commodity in one foreign country. Each list also 
contains a summary of basic trade and industry 
data, including a brief analysis of foreign trade in 
the commodity covered, government reflations 
affecting trade, and other useful information. 

What You Should Know About Exporting. A 
how-to-get-stai*ted handbook designed as a basic 
reference for the American businessman interested 
in opening profitable new overseas markets for his 
products. 1966. 38 pp. 

World Trade Directory Reports. Carry basic 
commercial and financial information on specific 
foreign firms and individuals. Data furnished on 
a given firm usually cover the type of organiza- 
tion, method of oi^eration, lines handled, size of 



94 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



finn, sales territory, names of owners and officers, 
capital, sales volume, general reputation in trade 
and financial circles, and names of any U.S. firms 
represented by the foreign firm and serving as its 
supplier. They are prepared by the U.S. Foreign 
Service, and represent a consensus of reliable 
sources of information. $1 per report. If infor- 
mation on a particular firm is not on file in Wash- 
ington, it will be requested from the Foreign Serv- 
ice. To minimize delay, businessmen may autlior- 
ize telegraphic request and reply, for which the 
Department of State will bill them direct. Avail- 
able from the Bureau of International C(Mnmerce, 
Commercial Intelligence Division, U.S. Depart- 
ment of Commerce, Washington, D.C.^ 20230, or 
from any of the Department's field crffices. 

OFFICE OF BUSINESS ECONOMICS 

Survey of Current Business. A monthly publi- 
cation. Provides analytical and explanatory 
material regarding the Nation's economic activity. 

BUSINESS AND DEFENSE SERVICES ADMINISTRA- 
TION 

Nonperiodical Publications 

BDSA Publications, A checklist of publica- 
tions that includes data on monthly and quarterly 
industry reports as well as all other BDSA pub- 
cations. July 1965. Free. 

2'he U.S, Industrial Outlook. (Annual study 
of trends and prospects for selected major indus- 
tries.) 

Aids to Modetmization: A Bibliography (1961). 
9 pp. 

Aids to Modernization: How To Succeed by 
Really Trying (1964). 38 pp. 

Almninum Fact Book (1963) . 90 pp. 

Chemical Statistical Directory N^o. 3 (1964). 
195 pp. 

Confectionery Sales and Distribution.^ 196 J^, 
(1965). 20 pp. 

Construction Machinery and Equipment^ 1062 
(1964). 16 pp. 

Current Status and Commercial Prospects for 
Radiation Preservation of Food (1965). 174 pp. 

Foreign Market Surveys — Selected Foreign 
Countries (1965). 

Gas Characteristic's a7id Factors of Gas Distri- 
bution in Western Europe (1965). 10 pp. 

Market Infartnation on Electronic Products — 
Selected Foreign Countries (1964). 

Market Information cm Business Machines in 
Argentina (1965). 5 pp. 

Market Information on Material Handling 
Eguipm-ent and Automated Warehousing Systems 
in Sweden (1965). 5 pp. 

Market Information on Motion Pictures in 
Greece (1964). 3 pp. 

Market Information on Photographic Products 
in Japan ( 1965) . 3 pp. 



Market for U.S. Scientific] Industrial and Tech- 
nical Instruments and Egtcipment in France 
(1965). 

Market for CS.-type Residential Heating 
Equipment in France (1964). 4 pp. 

Markets for Men's and Boys'* Clothing in West- 
eim Europe (1964). 63 pp. 

Measuring Metropolitan Markets: A Guid^ to 
the Use of U.S. Government Data (1963). 48 pp. 

Outlook for American Gas Appliances and 
Eguij)7nent in the Netherlands (1964). llpp. 

Outlook for CS.'Type Residential Ileating 
Equipment in Italy (1964). 4 pp. 

Princijyal Sources of Statistical Data on Tex- 
tiles and Apparel (1964). 19 pp. 

Salad Dressing, Mayonnmse <& Related Products 
{industry survey) 1964^ (1965) . 14 pp. 

Selling in Italy (1965). 12 pp. 

The Cotton Textile Cycle : Its Isature and Trend 
(1963). 42 pp. 

The Japanese Electronic Industries (1964). 
8 pp. 

Th£^ Japanese Motion Picture Industry (1965). 
3 pp. 

The Japanese Watch and Clock Industry 
(1965). 8 pp. 

The Market for Automatic Vending Machines 
in Austria (1963). 40 pp. 

The Market for Automutlc Vending Machines 
in the United Kingdom (1963) . 36 pp. 

The Market for Books in India (1964) . 6 pp. 

The Market for Costume Jewelry in West Grer- 
many (1963). 28 pp. 

The Market for Selected Photographic Products 
in the United Kingdom and France (1964). 27pp. 

The Market for Semiconductor Devices in West 
Germany and Italy ( 1964) . 24 pp. 

The Market for UjS. Electrical Components in 
Western Germany and Berlin (1964). 45 pp. 

The Market for UjS. Scientific^ Industrial and 
Technical Instruments and Equipment in France 
(1965). 

The Motion Picture hvdustii^ of the Federal 
Re}niblic of Germany (1965). 4 pp. 

The Turkish Motion Picture Industry (1965). 
3 pp. 

7^he United States Foreign Trade in Photo- 
graphic Goods, 196S (1964) . 33 pp. 

United States Lumber Imports, 1964 (1965). 
6 pp. 

United States Lumher Exports, 1964 (1965). 

Water Service Pipe Requirements hy Water 
Utilities, 1950-^0 (1964). 4 pp. 

Water aivd' Sewerage Works Pressure Pipe Re- 
quirements, 1940-64—1975 (1964). 8 pp. 

World Motor Vehicle Productim\, and Registra- 
tion, 196S-6ji (1dm) . 6 pp. 

World Survey of Abrasive Prodxwts, 1967-02 
(1963). 30 pp.' 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



95 



World Survey of Civil Aviation — Continental 
Europeand Ireland (19^6). 67 pp. 

World Swrvey of Civil Aviation — United King- 
dom (1965). 16 pp. 

World Trade in Machine Tools, 1959-60 (1963) . 
16 pp. 

Periodical Publications 

Chemicals Industry Report. Quarterly. $1 yr. 
($1.26 foreign). C41.36. 

Containers and Packaging Industry Report. 
Quarterly. 75^ yr. ($1 foreign). C41.33. 

Construction Review. Monthly. $3 yr. ($4 
foreign). C41.30/3. 

Copper Industry Report. Quarterly. 75^ yr. 
($1 foreign). C41.33. 

Marketing Information Guide. MontUy. $2 
yr. ($2.75 foreign). (Includes annual cumulative 
index.) Annotations of selected current market- 
ing materials. C41.ll. 

Printing and Publishing Industry Report. 
Monthly. $1 yr. ($1.25 foreign). C41.18. 

Pulp^ Paper, and Board industry Report. 
Quarterly. 75^ yr. ($1 foreign). Smgle copy 
20^. C41.32. 

CLEARINGHOUSE FOR FEDERAL SCIENTIFIC AND 
TECHNICAL INFORMATION (FORMERLY OF- 
FICE OF TECHNICAL SERVICES) 

VJS. Government Research and Development 
Reports. 

Selective B ihliographies. 

Technical Translations. 

Govemmcnt'ioide Index to Federal Research 
and Development. 

^*' Packaged*'* Government Research and Develop- 
ment Information for Industry. 

BUREAU OF THE CENSUS 

Population Census^ 1960. Figures on the growth 
and movement of the population and its social and 
economic characteristics. 

Housing Census^ 1960. Data on the supply and 
condition of housing and its facilities and equip- 
ment. 

Agriculture Census, 1964. Figures on value of 
farm land and buildings ; value of farm products 
sold, by source; characteristics of farm operators; 
crops; and livestock and poultry and their prod- 
ucts. 

Business Census, 1963. Statistics on establish- 
ments, sales, payroll, and personnel, by kind of 
business, for retail trade, wholesale trade, and se- 
lected services. 

Manufa/itures Census, 1963. Data on establish- 
ments, employment, payroll, value added by man- 
ufacture, and value of shipments. 

Mineral Industries Census, 1963. Figures on 
establishments, employment, payroll, value added 
in mining, and value of shipments. 



Transportation Census, 1963. Figures on pas- 
senger transportation, including nome-to-work 
travel and travel patterns for a panel of house- 
holds ; on the characteristics and use of private and 
commercial trucks, by State and geographic divi- 
sion; on commodity transportation by shipper 
groups, production areas, and commodity grouiw; 
and on lor-hire buses and trucks. 

Commercial Fisheries Census, 1963. Data that 
will show number of fisheries, employment, pay- 
roll, and receipts from fishing activities, by major 
type of catch, for States and regions. 

Governments Census, 1962. Figures that meas- 
ure costs of local governmental services and 
sources of revenue. 

Current series of reports of the Bureau of the 
Census also provide statistics to assist small busi- 
ness in studying economic and social trends and in 
developing its growth potential : 

Current Population Reports (monthly, an- 
nual, or biennial) . 

Current Housing Reports (quai-terly and an- 
nual). 

UjS. Foreign Trade Reports (monthly and 
annual). 

County Business Patterns (latest, 1964; annual 
effective with that issue). 

Current Industrial Reports (monthly, quar- 
terly, semiannual, or annual) . 

Current Reports on State and Local Govern- 
msnts (annual). 

Current Construction Reports (monthly and 
annual). 

Current Reports on Business (weekly, monthly, 
and annual) . 

Business Cycle Developments (monthly). 

NATIONAL BUREAU OF STANDARDS « 

Technical News Bulletin. Research reported 
in digest form. Monthly, $1.50 yr. 

Journal of Research. Full research papers. 
Published in four sections : A. Physics and Chem- 
istry, issued six times per year, $4.00 yr. ; B. Math- 
ematics and Mathematical Physics, quarterly, 
$2.25 yr.; C. Engineering and instrumentation, 
quarterly, $2.25 yr.; D. Radio Science, monthly, 
$9.00 yr. 

Publications of the NBS Clearinghouse for Fed- 
eral Scientific and Technical Information : 

V.S. Government Research Reports. Depart- 
ment of Defense and other agencies except AEC 
and NASA, semimonthly, $15.00 yr. 

Nuclear Science Abstracts. Atomic Energy 
Commission reports and nuclear science literature 
worldwide, semimonthly, $30.00 yr. 

Scientific and Technical Aerospace Reports. 
National Aeronautics and Space Administration 
ajid other agency research reports in aerospace 
fields, semimonthly, $25.00 yr. 

* AIL pnbllcatlonB available from Superintendent of Documents, 
U.S. Government Printing Office, Washington, D.C., 20402. 



96 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Technical Translations. Translations of sig- 
nificant Slavic and Oriental research available 
from the Clearinghouse and other sources, semi- 
monthly, $12.00 yr. 

U.S. TRAVEL SERVICE 

Semi'Annual Report of the Secretat^ of Com- 
merce on the United States TraA)el Sei^ice. Re- 
ports numbered first through eighth. 

U.S. Entry and Exit Requirements for Foi^eign 
Visitors, 

Activities of the United States Travel Service, 

Marketing the United States as a To^irist Des- 
tination. 

Suggestions for Persons Desiring to Enter tJte 
Travel Agency BiLsiness. 

Pleasure and Business Visitors to the U.S. by 
Port of Entry and Mode of Travel, Tables cover 
the last 6 months of 1963, the first 6 months of 1964, 
calendar year 1964, and the first 6 months of 1965. 

Overseas Visitor Survey^ Honolulu Inteima- 
tionai Airport, Nove^nher 1962, 

Overseas Visitor Survey^ Miami Internatlo'nal 
Airport, July 1963, 



IdlewiJd International Airport Survey of Visi- 
tors to the United States, June 13-19, 1962, 

Sti/tmnary of Attitude Research of Potential 
Travelers to the USA from Selected Countries, 
October 4, 1963, 

Market Research on Attitudes on Potential 
Travellers to the U,S.A,, June 1962. 

The Future of Tourism in the Pacific and Far 
East, June 1961, 

The Market in Great Britain for Travel to ths 
United States, October 1966, 

Temporary Visitors to the United States by 
Country oi* Region of Last Per^nansnt Residence, 
Reports issued monthly and annually. 

PATENT OFFICE 

Patents and Inventions, an information aid for 
inventors. 

General Information Concerning Parents. 

Ansicers to Questions Frequently Asked About 
Patents, 

Questions and Answers About Tradem^arks. 

General Information Concerning Trademarks, 

Patents : Spur to American Progress, 

Roster of Attorneys and Agents Registered to 
Practice Before the UjS. Patent Office, 



Department of Labor 



GENERAL 

Some of the services of the Department of Labor 
of particular interest to small business are dis- 
cussed below. Further information is obtainable 
by mail or by visit or telephone to Labor Depart- 
ment offices. A list of all regional offices is fur- 
nished at the end of the narrative section. 

BUREAU OF APPRENTICESHIP AND 
TRAINING 

Small businesses comprise the great bulk of in- 
dustrial enterprises which use the services of the 
Bureau, which is in the Labor Department's Man- 
power Administration, in developing and improv- 
mg their apprenticeship and trainmg activities. 
For example, programs in the construction, tool 
and die, and printing and publishing industries 
account for a very large proportion of all firms 
served by the Bureau. 

These are programs predwninantly involving 
small concerns which employ from one to five ap- 

Erentices or trainees. Such businesses are not 
irge enough to employ full-time services of a per- 
sonnel and training staff. While the Bureau serv- 
ices many large industrial programs in a number 
of different ways, it is the small to medium-sized, 
owner-directed business which forms the core oi 
the Bureau's appi-enticesliip and training activity. 




To achieve widest results, the Bureau works 
with the trade assodaticQis in these indiistries and, 
where appropriate, with tik^ unions active in sudi 



industries to bring about commxmitywide and na- 
tionwide agreements on recommended training 
standards. 

SERVICES 

Specifically, some of the services available to 
small businesses through the Bureau of Appren- 
ticeship and Training are the following : 

1. Advising and aiding in the establishment of 
an apprenticeship and traming program to fit local 
needs. 

2. Assisting in devising ways to improve pres- 
ent training practices andto solve personnel prob- 
lems arising from lack of training plans. 

3. Developing and servicing on-the- job-training 
programs, with provisions for reimbursement of 
employer training costs imder the Manpower De- 
velopment and Training Act. 

4. Aiding local industry in getting together as 
a group to set up proj^ams and solve common 
apprenticeship and training problems. 

5. Advising on assistance available through 
local vocational schools, or otherwise, in providing 
needed instructicm in subjects related to a particu- 
lar trade or industry ; similarly advising with re- 
spect to aptitude and interest testing facilities of 
the public emplo;7ment service available to aid in 
improving the trainee selection. 

6. Obtaining tlie aid of the local vocational 
school in providing special courses for presently 
employed workers, other than apprentices or new 
tramees, to improve their competence and extend 
their employment opportimities. 

7. Helping analyze training needs likely to arise 
from the makeup of the industry's present work 
force with respect to age. retirement prospects, ex- 
pansion possibilities, ana other factors. 

8. Making available to these small business en- 
terprises the results of statistical and technical 
studies of trends in the employment and training 
of apprentices, and the methods used by success- 
ful program operators to achieve satisfactory 
results. 

PUBLKATIONS 

Listed below are some of the publications issued 
by the Bureau : 

1. National Apprenticeship Program. 

2. Trade and Industry Nos. 1 through 7, cover- 
ing sample apprenticeslnp schedules in electronics 
and electrical industry, personal service occupa- 
tions, metal working trades, automotive work, 
and the construction industry. 

97 



98 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



3. National Apprenticeship Standards^ such as : 
Painting and decorating, carpentry, photoengrav- 
ers, and truck mechanics. 

4. Employer's Guide to On-the-Joh Training^ 
covering the aid provisions of the Manpower De- 
velopment and Training Act. 

5. Apprenticeship and Economic Clmnge^ a 
study of apprenticeship in the U.S. and how eco- 
nomic factors affect this training. 

BUREAU OF EMPLOYMENT SECURITY 

The State Employment Services are affiliated 
with the U.S. Employment Service, a part of the 
Bureau of Employment Security of the Manpower 
Administration in the Department of Labor. 
They provide businessmen with many services 
which are helpful in meeting pereonnel needs and 
in solving manpower problems. 

The Employment Service is of particular help 
to small and medium-sized businesses wliich do not 
maintain complete personnel departments and 
which therefore may not be equipped internally 
to resolve all employment management problems 
as they arise. 

SERVICES 

With experience based on years of cooperative 
research with industry on personnel matters, the 
Employment Service helps small business to: 

1. Determine the basic requirements of particu- 
lar iobs and locate workers who have the necessary 
qualifications. 

State Employment Services recruit workers in 
all occupations — professional, clerical, service, 
skilled, semiskilled, and unskilled categories. 
They are organized to meet the small business- 
man's particular specifications for current and fu- 
ture manpower requirements, 

2. Select workers best qualified to meet job re- 
quirements through improved interviewing and 
testing techniques. 

Working with several of the larger universities 
and nationally recognized industrial psychologists, 
the Employment Service has developed a compre- 
hensive testing program. These tests cover trade 
tests to measure occupational skills already ac- 
quired, and aptitude tests to measure potentiality 
for learning new ones. 

3. Analyze the cause, and assist in the reduction 
of excessive personnel turnover. 

Underutilization of skills, lack of opportunity 
for promotion, working conditions, wages, and 
supervision are among the factors which contrib- 
ute to absenteeism and high turnover. The Em- 
ployment Service, through its tools and techniques, 
can make suggestions that will assist the small 
business in analyzing the causes of high turnover 
and absenteeism. Such analysis helps the small 
business to determine what can be done to main- 
tain a vigorous, stable work force. 



4. Plan personnel expansions and obtain needed 
workers. The Employment Service is also equip- 
ped to give the small business practical help m 
manpower planning through job analysis and oc- 
cupational classification. Ix)cal Employment 
Service offices can be of assistance regarding the 
application of these tools and methods in the solu- 
tion of small business manpower problems. 

5. Locate applicants with required skills in other 
communities if they are not available locally. 

If workere with the I'equired skills are not avail- 
able locally, they can be recruited through a na- 
tionwide clearance placement system. Through 
the process of clearance, a small business employer 
with an opening for a certain type of worker, and 
an applicant who is qualified for that job— -each 
in a different city — ^are often brought together. 

6. Have as a worker resource persons who have 
received occupational training which was estab- 
lished under Federal legislation, such as the Man- 
power Development and Training Act, because 
qualified workers were not available. 

The Employment Service identifies occupational 
training courses in pro^pess so that employers may 
make job offers to trainees* or initiates occupa- 
tional training or refers applicants for training on 
an individual basis to other training courses, if it 
is not feasible to establish a separate course; or ar- 
ranges with the Bureau of Apprenticeship and 
Training for development of on-the-job training 
programs for interested employers. 

7. Use Employment Service area labor infor- 
mation to plan for plant expansion, new plant 
locations, training programs, and market analysis 
for sales departments. 

Data on employment and unemployment trends, 
demand for and availability of workers by occupa- 
tions, area labor outlook, wages, labor turnover, 
and related factors are available at the Employ- 
ment Service. Such information, compiled on an 
area, industry, or occupational basis may be of help 
to the small business in planning recruiting activi- 
ties, training programs, and expansion or location 
of new plants or establishments. 

Companies in areas classified by the Bureau of 
Employment Security as having above average 
unemployment are given preferential considera- 
tion in the award of such contracts and in areas 
with persistently high unemployment they may 
be eligible for 4 percent loans. If small business 
firms are interested in bidding on Federal procure- 
ment contracts or in obtaining low cost Small 
Business Administration loans. Employment Serv- 
ice local offices, on rec^uest, will provide informa- 
tion on area classification. 

In addition to these varied types of assistance, 
the Employment Service offices can assist the 
small business in determining appropriate person- 
nel records and in relating veterans' service train- 
ing to civilian occupations. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



99 



OFFICE OF LABOR-MANAGEMENT AND 
WELFARE-PENSION REPORTS 

This Office administers all Department of Labor 
functions under the Labor-Management Report- 
ing and Disclosure Act and the Welfare and Pen- 
sion Plans Disclosure Act. Both laws, which 
provide for public disclosui'e, have reporting re- 
quirements applying to employers. 

Disclosure files for reports filed under the 
Labor-Management Reporting and Disclosure Act 
are located in LMTWP's 24 area offices. Disclosure 
files for reports submitted under the Welfare and 
Pension Plans Disclosure Act are in Washington, 
D.C. 

All area offices and 12 resident offices provide 
technical assistance and compliance services and 
have available reporting forms which are required 
under the Act. 

LABOR-MANAGEMENT REPORTING AND DIS- 
CLOSURE ACT 

This statute requires reports from labor orga- 
nizations as well as labor organization officers and 
employees, and from employers and labor rela- 
tions consultants to help insure ethical financial 
practices in labor-management relations- 
Form LlI-10 must be filed by those employers 
who have been involved in certain financial trans- 
actions with labor organizations, union officers or 
employees, and labor relations consultants or who 
have made expenditures where the object relates 
to employee's or union's activities. (See Section 
203 of the Act.) Not all employees are required to 
report, but those who made reportable payments in 
the enumerated activities should submit reports 
within 90 days after the close of the employers 
fiscal year. In addition to Form LM-10, Tech- 
nical Assistance Aid No. 4 explains in detail the 
reporting requirements. 

LABOR RELATIONS CONSULTANTS 

Labor relations consultants must report any 
agreement or arrangement thev may have with em- 
pToves to persuade employees now to exercise their 
rights to oar^n or to obtain information about 
employees' union activities. Form LM-20 must be 
filed by the consultant within 30 days after enter- 
ing into the reportable agreement or arrangement. 
Form LM-21 is to be filed within 90 days after the 
end of the consultant's fiscal year and report the 
amount of money received and disbursed during 
the year in connection with labor relations advice 
and services. 

WELFARE AND PENSION PLANS DISCLOSURE ACT 

Beporting requirements of this Act apply to 
employers and employer associations, among 
others, which administer private welfare and pri- 
vate pension plans. These plans, financed through 



the purchase of insurance or otherwise, may cover 
medical, surgical or hospital care or benefits, or 
benefits in the event of sickness, accident, dis- 
ability, death, or unemployment. 

Administi'ators of employee benefit plans subject 
to the Act must disclose plan provisions and finan- 
cial opei-ations by means of a description of the 
plan and annual reports, as well as secure fidelity 
bonding of pereons who handle funds or other 
property. 

Form D-1 covering plan descidptions, to be filed 
within 90 days after the plan is establi^ed^ must 
be completed by administrators of plans with 26 
or more participants. 

Form D-2 covering annual financial reports, to 
be filed within 150 days after the end of the plan 
year, must be completed bj administrators of plans 
with 100 or more participants. The abbreviated 
Form D-3 covering annual reports, also filed 150 
days after the end of the plan year, is for plans 
with fewer than 100 participants. (The plan 
administrator files D-2 or D-3, not both.) 

Li addition to the reporting forms, the follow- 
ing pamphlets are available dealing with general 
questions concerning employee benefit plans: 
"Questions and Answers on the Welfare & Pension 
Plans Disclosure Act," "Fidelity Bonding Under 
the Welfare and Pension Plans Disclosure Act," 
and "Rights of Pension Plan Participants." 

BUREAU OF LABOR STANDARDS 

In carrying out its basic function of promoting 
sound labor standards for advancing the well- 
bein^ of workers and for increasing efficiency in 
production, the Bureau of Labor Standards' serv- 
ices in the neld of occupational safety are available 
to State Labor Departments, managranent. labor, 
civic organizations, and others and througn them 
to small business. 

SERVICES 

Major phases of the Bureau's work in promoting 
occupational safety include: 

1. Conducting safety training for State safety 
personnel, unions, longshore and harbor workers, 
and Federal employees. 

2. Assisting State Labor Departments to con- 
duct special safety programs in high accident rate 
industries. 

3. Assisting States, unions, and other interested 
groups in the technical aspects of developing safe- 
ty codes. 

4. Developing and publishing teclinical infor- 
mation relating to accident prevention. 

5. Providing technical consultation to States, 
employers, unions, and the general public on var- 
ious aspects of safety. 

6. Establishing and enforcing safety and health 
standards in the longshoring and ship repairing 
industries imder Public Law 85-742. 



100 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



7. Servicing the President's Conference on Oc- 
cupational Safety. 

8. Developing standards for safe employment of 
youth, including farm-employed minors. 

PUBLICATIONS 

Some recent safety publications of the Bureau 
of Labor Standards are : 
Occupational Safety Aides : 

Conducting a Job Hazard Analysis — ^LS 163. 

Elements of a Safety Program — LS 164. 

Good Housekeeping — LS 166. 

Inspecting for Safety — LS 170. 

Office Safety— LS 171. 

Safe Lifting— LS 175. 

Safeguarding Machinery — LS 176. 

Safety Committee Activities — LS 177. 

Safety Training Teclmiques— LS 180. 

Supervisory Eesponsibility for Safety — LS 
181. 

Trips, Slips and Falls— LS 183. 

MecTumwai and Physical Hazards Series 

Bulletins : 
216 — Control of Electrical Shock Hazards. 

(Rev. 1962.) 15 pp. 
219 — Mechanical Handling of Materials. 

1960. 29 pp. 

231 — ^Personal Protective Equipment. 1961. 

26 pp. 
232— Fire Protection for the Safety Man. 

1961. 25 pp. 

239— Mechanics for the Safety Man. 1962. 

21pp. 
240— Rl^gmg Cargo Gear. 1962. 23 pp. 
246 — ^Maintenance and Safety. 1962. 15 pp. 
256— Static Electricity. 1963. 20 pp. 

En vironmental and Chemical Hazards Series 

Bulletins : 
207— Controlling Noise Hazards. 1959. 8 

pp. 
222 — Chemistry for the Safety Man. (Rev. 

1965.) 26 pp. 
226 — Respiratory Protective Equipment. 

1961. 34 pp, 

241 — Chlorine Handling in Stevedoring Op- 
erations. 1962. 9 pp. 

259 — The Use and Handling of Compressed 
Gases. 1963. 30 pp. 

265— The Inorganic Acids. 1964. 27 pp. 

Organization and Administration Se7*ies 

Bulletins : 
211 — Control of the Physical Environment. 

1960. 13 pp. 
223 — The Consultative Approach to Safety. 

1960. 9 pp. 
247 — Fundamentals of Accident Prevention. 

1962. 14 pp. 

255 — ^ITsing Injury Statistics. 1963. 18 pp. 
67— Safety Subjects. 



197 — Principles and Techniques of Mechani- 
cal Guarding. 
198 — Occupational Health Hazards. 
263 — Proceedings, President's Conference on 
Occupational Safety (1956, 1958, 
1960, 1962 and 1964). 
Regulations under Public Law 85-742: 

Safety and Health Regulations for Long- 
shoring. 
Safety and Health Regulations for Ship 

Repairing. 
Safety and Health Regulations for Shipbreak- 

ing. 
Safety and Health Regulations for Ship 

Building. 
Cargo Gear Certification; Regulations Grov- 
eniing Accreditation of Persons to Carry 
out and the Procedures to be followed in 
Cargo Gear Certification. 
Safety Code Comparison Charts : A comparison 
of State Safety Codes, in selected subjects, and 
those of nationally recognized standards setting 
organizations. 

1. Demolition (Building Construction) — 

June 1960. 

2. Ladders (Building Construction) — July 

1960. 

3. Sanitation— September 1960. 

4. Mechanical Power-Transmission Appara- 

tus— September 1960. 

5. Floor and Wall Openings — November 

1960. 

6. Scaffolds— October 1961. 

7. Welding and Cutting — January 1962. 

8. Use, Care and Protection of Abrasive 

Wlieels— January 1962. 

9. Rubber Mills and Calenders — January 

1962. 

10. Woodworkuig Machinery — February 

1962. 

11. Cranes, Derricks, and Hoists — June 1962. 

12. Textile Safety— August 1962. 

13. Power Presses— October 1962. 

14. Laundiy Machinery and Operations — 

February 1963. 

15. Powered Industrial Trucks — April 1963. 

16. Window Cleaning— July 1963. 

17. Excavation— November 1963. 

18. Fixed Ladders— December 1963. 

19. Metal Ladders— February 1964. 

20. Wood Ladders— August 1964. 

BUREAU OF LABOR STATISTICS 

The Bureau of Labor Statistics publishes a large 
amount of information which is used by small 
business. In addition, data are assembled in re- 
sponse to individual requests, often in connection 
with consultation in one of the Bureau's regional 
offices. 



FEDERAL HANDBOOK FOR 6MALL BUSINESS 



101 



Using some types of data, the businessman can 
compare the record of his own plant or store with 
that in his industry as a whole or in his locality. 
Other statistics are regularly used by companies 
planning a branch in another area. The long 
experience of BLS regional officers in applying 
available information to the problems presented 
has proved invaluable in both types of situation. 

PUBLICATIONS 

Published material may cover many individual 
cities or regions, or the States, or it may be avail- 
able only for the United States as a whole. Some 
series are available for individual manufacturing 
and mining industries (men's workshirts or hand 
tools, e.g.) ; others extend also to various types of 
retail establishments, construction activities, utili- 
ties, services, etc. Some statistics appear monthly, 
others at irregular intervals. In addition to Bu- 
reau of Labor Statistics publications, the regional 
offices have at hand much detailed information 
published by other agencies within the region, or 
in some cases unpublished, but available for use. 

Tjnaes of industry and area data published by 
the BLS and constantly used by businessmen 
include : 

Turnover rates: Lay-offs, quits, hires, per 
thousand employees. 

Average hours of production workers. 

Average earnings of production workers. 
, Trends of individual prices, wholesale and 
retail, over a period of years. 

Percent of income spent for different types of 
commodities and services by consumers of 
different ages, incomes, occupations, etc. 

The cost of a moderate-level budget for a 
family of four, or for an elderly couple, in 
various cities. 

Work injuries in specific industries. 

Work stoppages in each industry. 

Wage rates of individual occupations in var- 
ious areas; union scales in certain indus- 
tries. 

Supplementary benefits such as vacations, 
pensions, etc. in various industries and la- 
bor areas. 

Provisions of current labor-management con- 
tracts. 

Current wage developments. 

Ten-year projections of number in population 
and labor force. 

Employment trends by industry, by area, in 
past years. 

BLS regional directors often address groups of 
businessmen on subjects related to labor and^ eco- 
nomic developments in the region. Addresses of 
the BLS and its regional offices, together with a 
selected list of BLS publications, follow : 

Monthly Lahor Review: monthly journal; 
articles and statistics. Annual subscrip- 
tion rate $7.50. Single issues 75 cents. 



Employment and Earnings: monthly. An- 
nual subscription rate $4.00. Single issues 
50 cents. 

Em,ployment and Earnings Statistics for the 
United States^ 1909-S4: $3.50 per copy. 

C undent Wage Developments: monthly; data 
on specific wage settlements. Free upon 
request. 

Directory of Natio^ial and International La- 
bor Unions in the United States^ 19G3: bi- 
ennial. Fifty cents per copy. 

Ayialysis of Work Stoppages^ 196i: amiual. 
Thirty-five cents per copy. 

WliolesaXe Prices and Price Indexes: month- 
ly. Free upon request. 

Consumer Price Index: monthly. Free upon 
request. 

Occupational Outlook Quarterly: February, 
Maj, September, December. Annual suo- 
scription rate $1.25. Single issues 35 cents. 

For additional items, and for prices, see Bureau 
of Labor Statistics Catalog of Publications, issued 
semiannually ; or consult the Bureau of Labor Sta- 
tistics, U.S. Department of Labor, at any of the 
following addresses : 

Washington, D.C., 20212; 18 Oliver Street, 
Boston, Mass., 02110; 341 Ninth Avenue, 
New York, N.Y., 10001; 1371 Peachtree 
Street NE., Atlanta, Ga., 30309; 219 South 
Dearborn Street, Chicago 111., 60604; 450 
Golden Gate Avenue, Box 36017, San Fran- 
cisco, Calif., 94102; 1365 Ontario Street, 
Cleveland, Ohio, 44114. 

SERVICES 

Following is an example of use of the type of 
information cited : A manufacturer requested data 
bearing on possible location of a small branch 
plant m a given region. The BLS regional office 
was able to obtain and supply information as to : 

Levels of earnings in tne area, wage rates by 
occupation, and current labor costs; cost of build- 
ing materials; the relative trend in recent years in 
local consumer prices, and the cost of supporting a 
family there; labor-management relations, history 
of work stoppages, habitual labor turnover rates 
in the industry m the State; employment trends 
in the industry in the State in recent years ; other 
area information requested, including local popu- 
lation and neighborhood factors that would affect 
the local demand for the product; some scattered 
information on the local availability of skilled and 
other workers, and of young persons having enough 
education to make training possible. 

OFFICE OF VETERANS' REEMPLOYMENT 
RIGHTS 

The Office provides direct assistance in comiec- 
tion with the reemployment rights of ex-service* 
men, reservists and members of the National 



102 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



Guard, and promotes employer compliance and un- 
derstanding with the reemployment requirements 
of tlie Universal Military Training and Service 
Act. 

The employer is obligated to reemploy the ex- 
serviceman in the position he would have had if he 
had remained on the job instead of entering mili- 
tary service. Seniority rights of the veteran are 
protected by certain automatic progression pro- 
visions where those rights would have been avail- 
able to him had he not gone into service. The em- 
ployer carries out his obligation by making avail- 
able to the ex-serviceman a working position which 
takes into account the time spent m the service. 

Representatives of the Office of Veterans Reem- 
ployment Rights are available in 19 major cities 
and are listed in telephone directories under the 
U.S. Labor Department heading. Employers in 
any area may secure information or assistance in 
interpreting the law by writing to the U.S. Labor 
Department, Washington, D.C., 20210. 

OFFICE OF MANPOWER, AUTOMATION, 
AND TRAINING 

The Office of Manpower, Automation and Train- 
ing (OMAT) of the Manpower Administration is 
responsible for planning, research, and evaluation 
of U.S. Department of Labor activities imder the 
comprehensive manpower program. This includes 
planning and evaluation of the Department's man- 
power training activities and planning, develop- 
ing, and conducting a comprehensive manpower re- 
search effort. 

The broad manpower program authorized un- 
der the Manpower Development and Training Act 
(MDTA) is designed to: (1) Meet critical needs 
of workers in sliortage occupations — including 
professional, scientific, and apprentic^able cate- 
gories; (2) Help the labor force adjust to tech- 
nological developments, foreign competition, re- 
location of industry, shifts in demands for workers, 
other changes in tne structure of the economy; 
(3) Improve job opportunities for unemployed 
workers. 

Employers benefit from training programs that 
give the work force skills in line with the rapidly 
changing labor requirements of American indus- 
try. In addition, individual employers and em- 
ployer groups may participate directly in approved 
MDTA on-the-job training programs under 
agreements with the Secretary oi Labor. 

Employers and industries in designated redevel- 
opment areas are helped to meet existing man- 
power needs through approved local worker train- 
ing programs. Previously authorized under the 
Area Redevelopment Act, training programs in 
redevelopment areas are now covered by the newly 
amended MDTA. 

Experimental and demonstration projects study 
the complex training problems of particularly dis- 



advantaged and "hard-core" unemployed and pro- 
vide occupational training and remedial services — 
including basic literacy and educational training 
where appropriate — specifically tailored to the 
needs of the trainees. 

Manpower and automation research conducted 
by or contracted by OIVIAT cover the causes, re- 
quirements, and impact of automation ; shortages 
in critical occupations and other factors which 
affect the manpower picture; and new techniques 
and factors affecting manpower training pro- 
grams. Results of such research studies are pub- 
lished by OMAT. 

Information on training activities and programs 
is available from the local office of the State Em- 
ployment Service or the U.S. Department of La- 
bor, Manpower Admmistration, Washington, D.C., 
20210. Publications on manpower topics and in- 
formation on the research program are available 
from the U.S. Department of LaJbor, Manpower 
Administration, Office of Manpower, Automation 
and Training, Washington, D.C., 20210. 

WAGE AND HOUR AND PUBLIC 
CONTRACTS DIVISIONS 

The Divisions administer the Fair Liabor Stand- 
ards Act, which establislies standards of minimum 
wage, overtime, egual pa^j^, and child labor for em- 
ployees engaged in certain kmds of interstate ac- 
tivity, and the Walsh-Healey Public Contracts 
Act, which provides minimum wage, overtime, 
child labor, and safety and health standards for 
employees engjaged in work on Government sup- 
ply contracts in excess of $10,000. 

The field staff of the Divisions is decentralized 
to more than 400 field offices and field stations in 
important commercial and industrial centers 
throughout the country and in 11 regional offices 
in Atlanta, Boston, New York, Birmingham, 
Cleveland, Chicago, Kansas City, Dallas, Nash- 
ville, San Francisco, and Chambersburg, Pa. This 
method of administration assists employers, espe- 
cially small businesses, because the services of the 
Divisions are brought close to the employer, elim- 
inating the need for long trips or expensive tele- 
phone calls in order to obtain information and 
guidance; and the Divisions' representatives are 
well informed on the industry characteristics and 
problems in the area and thus are able to discuss 
the requirements and application of the Acts in 
terms that are meaningful to local employei-s. 

PUBLICATIONS 

Copies of interpretative bulletins, regulations, 
orders, and rulings which constitute official state- 
ments are made available at no cost to employers. 
In addition, the Divisions have developed nontech- 
nical publications on virtually all of these matters 
which furnish simple explanations of the laws and 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



103 



the more widely applicable regulations and proce- 
dures in terms that are readily understood by the 
small businessman and the general public. Simple 
language pamphlets on how the Fair Labor Stand- 
ards Act and the Public Contracts Act apply to 
specific industries have also been developed tor use 
by employers. 

Among the publications available are : 

The Handy Reference Guide to the Fair Labor 
Standards Act, 

The Fair Labor Standards Act, as Amended. 

Interpretative Bullet In, Part 719 (The Fair 
Labor standards Act as Applied to Retailers of 
Goods and Services). 

Interpretative Bulletin, Part 780 (Exemptions 
Applicable to Agriculture, Processing of Agricul- 
tural Commodities, and related subjects) . 

A Quick Look at Hours Worked (pamphlet). 

Retail and Service Enterprises and Lstahlish- 
vients (pamphlet). 

Information on the Equ<il Pay Act of 1963 
(pamphlet). 

Hoio the Fair Labor Standards Act Operates in 
^^Our Toxoiy^'' (pamphlet). 

SERVICES 

The Divisions encourage employer gi*oups to re- 
quest participation by staff members at meetin^^ 
to discuss various aspects of the laws and the Divi- 
sions' activities. The Divisions' investigators not 
only check for compliance with the Acts but also 
discuss fully with employers every aspect of the 
laws' application to their business and inform em- 
ployers about the assistance that can be obtained 
from local offices concerning future problems or 
questions. 

Every effort is made to help employers achieve 
voluntary compliance, and avoid inadvertent 
violations which could, if left uncorrected, result 
in substantial back wage liabilities. 



Higher minimum wages resulting from the Fair 
Labor Standards Act provide employees at the 
lower end of the income scale with greater pur- 
chasing power. Increases in wages to tliis group 
of workers are immediately reflected in greater de- 
mands for consumer goods and services. The Fair 
Labor Standard Act also helps reduce unfair com- 
petition among employers wliich may stem from 
wages or hours. In the same manner the Walsh- 
Ilealey Public Contracts Act eliminates unfair 
competition in these areas among bidders for Gov- 
ernment work. These labor standards assure em- 
ployers who comply that they wiU not operate at 
a competitive disadvantage in comparison with 
other employei-s. 

REGIONAL OFFICES OF THE U.S. 
DEPARTMENT OF LABOR 



1371 Peachtree Street NE., 

Room 110 
Atlanta, Ga. 30300 

18 OUver Street 
Boston, Mass. 02110 

Wolf Avenue and Com- 
merce Street 
Chambersburg, Pa. 17201 

New Federal Office Build- 
ing 
219 South Dearborn Street 
Chicago, 111. C0604 

740 Engineers Building 
1365 Ontario Street 
Cleveland, Ohio 44114 

1114 Commerce Street, 

Room 207 
Dallas, Tex. 75202 

832 Equitable Building 
730— 17th Street 
Denver, Colo. 80202 



2212 Federal Office Build- 
ing 
911 Walnut Street 
Kansas City, Mo. 01106 

U.S. Courthouse Building, 

Room 726 
801 Broad Street 
Nashville, Tenn. 37203 

900 Parcel Post Building 
341 Ninth Avenue 
New York, N.Y. 10001 

10064 Federal Building 
450 Golden Gate Avenue 
Post Office Box 36017 
San Francisco, Calif. 
94102 

2008 Smith Tower Building 
506 Second Avenue 
SeatUe, Wash. 98104 

New York Department 

Store Building 

Street 
Fortaleza Comer Ban Jose 
Post Office Box 4631 
San Juan, P.R. 00908 



54_343«— 06- 



Department of the Interior 



GENERAL 

The Department of the Interior's primary re- 
sponsibility is in the conservation for wise use of 
major aspects of the Nation's basic resources^ con- 
cerning which it has been collecting and mter- 
preting facts for over a century. Its relationship 
to industry and business — small or large — is es- 
sentially one of making available this storehouse 
of information, and this the Department seeks 
to do with its many reports and publications, con- 
stantly updated to reflect the changing economic 
and social scene. 

The Department administers the use and dis- 
posal of public lands and a number of funds for 
loans and grants supporting private enterprise, 
exploration and research. It also offers assistance 
in the industrial and commercial development of 
Indian lands and the Territories. 

Under appropriate subheadings, these many 
pro-ams of assistance to small business — ^infor- 
mational, technical, and financial — are described 
below, and addresses are given for many of the 
Department's more than 2,000 field offices. 

Representing the entire Department in the field, 
and available for general iniormation and assist- 
ance, are the nine Regional Coordinators of the 
Ofiice of the Secretary, whose addresses are : 

Xortheast Region: 

Regional Coordinator 

U.S. Department of tlie Interior 

Blalce Building, 59 Temple Place 

Boston, Mass. 02111. Tel : 617 CA .3-2973 

Missouri Basin Region: 
Regional Coordinator 
U.S. Department of the Interior 
Federal Oflace Building, Room 5311 
316 North 26th Street 
Post Office Box 2530 
Billings, Mont. 59103. Tel : 406 245-6373 

Alaska Region: 

Regional Coordinator 

U.S. Department of the Interior 

Post Office Box 711 

Juneau, Alaska 99801. Tel: 907 JU 6-3870 

Sottth west Region : 

Regional Coordinator 

U.S. Department of the Interior 

Federal Building, Post Office Box 1467 

Muslcogee, Olila. 74402. Tel: 918 683-3429 

Pacific Southwest Region: 
Regional Coordinator 
U.S. Department of the Interior 
125 South State Street 

Salt Lake City, T^tah &4111. Tel : 801 524r-5625 or 
524-5626 

304 



Pacific Northwest Region: 
Regional Coordinator 
U.S. Department of the Interior 
Federal Building, Room 107 

1002 Northeast Holladay Street, Post Office Box 8621 
PorUand, Oreg. 97208. Tel: 608 284r^250 

Southeast Region: 

Acting Regional Coordinator 

U.S. Department of the Interior 

c/o Southeastern Power Administration 

Elberton, Ga. 30635. Tel : 404 283-3263 

North Central Region: 
Regional Coordinator 
Ohio River Appalachia Area 
Department of the Interior 
Federal Office Building, Room 7034 
550 Main Street 
Cincinnati, Ohio 45202. Tel: 513 381-2197 

Regional Coordinator 

Upper Mississippi Western Great Lakes Area 

Department of the Interior 

Lincoln Building, Room 113 

303 Price Place 

Madison, Wis. 53705. Tel: 608 238-5390 

PROCUREMENT ASSISTANCE TO SMALL 
BUSINESS 

Substantially, all procurement by the Depart- 
ment of the Interior is accomplishea through field 
installations located at or near the site of the work 
being performed. In conducting its purchase and 
contracting program, each transaction is reviewed 
to determine its susceptibility to the Small Busi- 
ness "set-aside" program, and, wherever possible, 
Invitations for Bids reserve portions of the trans- 
action for negotiation M'ith small business con- 
cerns. 

The following field offices of the Department 
of the Interior have been designated by tne Secre- 
tary as participants in the program, and maintain 
continuous liaison with the appropriate field of- 
fices of the Small Business Administration : 

Aberdeen, S. Dak. ; Bureau of Indian Affairs 
Albuquerque, N. Mex. ; Bureau of Indian Affairs 
Amarillo, Tex. ; Bureau of Mines 
Anchorage, Alaska ; Alaska Railroad 
Atlanta, Ga. ; Bureau of Sport Fisheries and Wildlife 
Billings, Mont ; Bureau of Indian Affairs 
Boise, Idaho ; Bureau of Reclamation 
Denver, Colo. ; Geological Survey 
Denver, Ck)lo. ; Bureau of Reclamation 
Denver, Colo. ; Bureau of Land Management 
Ephrata, Wash. ; Bureau of Reclamation 
Gallup, N. Mex. ; Bureau of Indian Affairs 
Menlo Park, Calif. ; Geological Survey 
MinneapoUs, Minn.; Bureau of Sport Fisheries and 
WUdlife 



FEDERAL HANDBOOK FOR SMALL BUSINIISS 



105 



Mnskofi^ee, Okla. ; Bureau of Indian Affairs 
Omaha, Nebr. ; National Park Service 
rtiiladelpliia. Pa. ; National Park Service 
Plioenix, Ariz. ; Bureau of Indian Affairs 
Pittsburgli, Pa. ; Bureau of Mines 
Portland, Oreg. ; Bureau of Land Management 
Portland, Oreg. ; Bonneville Power Administration 
Portland, Oreg. ; Bureau of Indian Affairs 
Portland, Oreg. ; Bureau of Sport Fisheries and Wild- 
life 
Richmond, Va. ; National Park Ser\ice 
Roanoke, Va. ; National Park Service 
Sacramento, Calif. ; Bureau of Reclamation 
Salt Lake City, Utah ; Bureau of Reclamation 
San Francisco, Calif. ; National Park Service 
Santa Fe, N. Mex. ; National Park Service 
Seattle, Wash.; Bureau of Commercial Fisheries 
Tulsa, Okla.; Southwestern Power Administration 
Washington, D.C. ; Bureau of Land Management 
Washington, D.C. ; Geological Survey 
Washington, D.C. ; Bureau of Indian Affairs 
Washington, D.C, National Park Service 

GEOLOGICAL SURVEY 

TOPOGRAPHIC MAPS AND INVESTIGATIONS 

Available to small business are the published 
results of geologic, mineral and water resources 
investigations and topographic maps of the Nation, 
its territories and possessions. 

RESEARCH ACTIVITIES 

The work of the Geological Survey includes 
fact-finding and research activities concerning the 
eurth and its resources. Of dii-ect application to 
certain problems of Small Business axe the i-esults 
of the Sur\'ey's investigations of geolc^, mineral 
and water resources and the preparation of topo- 
graphic maps. The results of the investigations 
are published in Sur\'ey bulletins, professional 
papers, water-supply papers, circulars, and topo- 
graphic and geologic maps and hydrologic atlases. 
The results of many investigations are published 
by cooperating Federal and State agencies and in 
technical and scientific journals. 

INFORMATION AND INQUIRIES 

As a service to Small Business and the general 
public, the Survey maintains information and in- 
quiries offices, and libraries as follows : 

Map information Office. A center for data on 
maps and mapping is maintained for the public 
in Koom 1028, General Services Administration 
Builduig, Washington, D.C. Hei-e, topographic 
maps are available for purchavse and questions are 
answered concerning sources and status of map- 
ping, geodetic control data and aerial photographs. 

Libraries. A i-eference library of approximately 
300,000 volumes on geology and related subjects 
is open to all interested persons in Room 1033, 
General Servdces Administration Building, Wash- 
ington, D.C. Somewhat smaller libraries are also 
maintained at Denver Federal C/cnter, Denver 2, 
Colo., and Pacific Coast Field Center, U.S. Geo- 
logical Survey, Menlo Park, Calif. 



Photographk Library. More than 100,000 Sur- 
vey photographs, indexed by geologic subject and 
geographical location, are available for purchase 
at cost from Geological Survey, Denver Federal 
Center, Denver 2, Colo. 

Public inquiries Offices. Public Inquiries Of- 
fices are located at 15426 Federal I^uilding, Denver, 
Colo.; 8102 Federal Building, 125 South Street, 
Salt Lake City, Utah; 108 Skylme Building, 
Anchorage, Alaska ; 602 Thomas Building, Dallas, 
Tex.; 7638 Federal Building, 300 Noith Los 
Angeles Street, Los Angeles,^ and 604 Custom 
House, San Francisco, Calif.; and South 157 
Howard Street, Spokane, Wash. Each has a 
library of Survey publications, sells Survey maps 
and books over the counter, and is a depository for 
selected open-file reports. 

Publications. "Publications of the Geological 
Survey, 1879-1961," includes a listing of books, 
maps and charts issued by the Survey and may 
be obtained free on application to the U.S. Geolog- 
ical Sur\'ey, Washington, D.C, 20242, and Denver 
Federal Center, Denver, Colo., 80225. Yearly sup- 

Jlements are issued to keep the material up to date, 
hey may also be obtauied from the Public In- 
quiries Offices of the Sun^ey. Details concerning 
postage, quantity discounts, ordering instructions 
and prices are contained in this publication. 

Published quadrangle maps are showTi on index 
circulars available for each State, Puerto Rico, 
and the Virgin Islands; these circular are sup- 
plied free on request. The base map in each cir- 
cular shows the outlines of all mappea quadrangles 
and gives their names, survey dates, and the pub- 
lishing agency (if not the Geological Survey). 
The circulars also contain lists of special maps 
and sheets with their prices, addresses of map ref- 
erence libraries, commercial map dealers, and Fed- 
eral map-distribution centers. Detailed directions 
for ordering maps are included. 

OFFICE OF MINERALS EXPLORATION, 
GEOLOGICAL SURVEY 

FINANCIAL ASSISTANCE TO EXPLORE FOR 
CERTAIN MINERALS 

The Office of Minerals Exploration, Geological 
Survey, offers financial assistance to firms and in- 
dividuals who desire to explore their properties or 
claims for certain mineral commodities. This 
help is offered to applicants who ordinarily would 
not undertake the exploration under present con- 
ditions or circumstances at their sole expense and 
who are unable to obtain funds from commercial 
sources on reasonable teims. 

The Government will contract with an eligible 
applicant to pay up to 75 percent of the cost of 



^Tbe Public Inquiries Office In Los An^reles, Calif., will move 
their offices about May 24, 1965. After the move their address 
will be: Room 7638, Federal Building. 300 North Los Angeles 
Street. Los Anpeles, Calif. 



106 



FEDERAL HANDBOOK FOR SMALL BUSINESS 





;' \; 



exploring for silver and 50 percent of the cost of 
exploring for the other eligible mineral commodi- 
ties. The Government's share may not exceed 
$250,000 per contract. The operator (applicant) 
does the work, pays the bills, and submits a month- 
ly report of the work done and costs incurred. 

All Office of Minerals Exploration field officer 
inspects and approves acceptable w^ork, after 
w Inch the Government reimbui'ses the operator for 
one-half of the acceptable costs. The operator's 
time spent on the work and charges for the use of 
equipment which he owns may m applied toward 
his sliare of the cost. 

Funds contributed by the Government are re- 
paid by a 5-percent royalty on production from the 
property. If nothing is produced, there is no obli- 
gation to repay. The royalty is paid on any pro- 
duction during the period the contract is in erfect ; 
and if the Government certifies that production 
may be possible from the property, the royalty 
obligation continues until the Government's con- 
tribution is repaid with interest, or for the 10-year 
period usually specified in the contract. The roy- 
alty payment applies to both principal and inter- 
est, but it never exceeds 5 percent. 

REGIONAL OFFICES 

Information and application forms may be ob- 
tained from the Office of Minerals Exploration, 
Geological Survey, Department of the Interior, 
Washington 25, D.C., or from the following 
Regional Offices: 

Office of Minerals Explora- 
tion, Geological Survey 
Region I 

South 157 Howard Street 
Siwkane, Wash. 09604 

Office of Minerals Explora- 
tion, Geological Survey 

Region II 

Room 9007 

450 Golden Gate Avenue 

San Francisco, Calif. 94102 

Office of Minerals Explora- 
tion, Geological Survey 

PUBLICATIONS 

"Minerals Exploration Program" free, available 
from any of the offices listed above. "Semiannual 
Report, Office of Minerals Exploration," Greo- 



Region III 
Building 20 
Federal Center 
Denver, Colo. 80225 

Office of Minerals Explora- 
tion, Geological Survey 

Region IV 

Room 11, Poet Office Build- 
ing 

Knoxville, Tenn. 37902 



logical Survey, fi^ee, available from Washington- 
office only. 

BUREAU OF MINES 

ADVICE AND GUIDANCE TO THE MINERAL INDUS- 
TRIES, INCLUDING FUELS 

Advice and guidance are given by the Bureau 
on technical problems pertment to health and 
safety in the mineral industry as well as suitable 
l)rocesses for production, extraction, and utiliza- 
tion of minerals, metals, and fuels. The Bureau 
provides information on the location and character 
of known mineral deposits, and furnishes statistics 
on production, consumption, mining methods, and 
health and safety with respect to minerals. Be- 
quests should be made to the Director. Bureau of 
Mines, Department of the Interior, Washington, 
D.C., 20240, or one of the following offices : 

Chief, Eastern Administrative Office 
Bureau of Mines 
Department of tlie Interior 
4800 Forbes Avenue 
Pittsburgh, Pa. 15213 

Chief, Western Administrative Office 
Bureau of Mines 
Department of the Interior 
Room 200, New Customhouse 
Denver, Colo. 80202 

General Manager, Helium Operations 
Bureau of Mines 
Department of the Interior 
Post Office Box 10085 
Amarillo, Tex. 70106 

PUBLICATIONS 

Bulletins. Report i^esults of important Bureau 
programs and investigations of scientific, histori- 
cal, or economic signincance. Sold by the Sup)er- 
intendent of Documents, Government Printing 
Office, Washington, D.C., 20402. 

Reports of Investigations and Information Cir- 
culars, The former series presents results of vari- 
ous phases of laboratory research. The latter con- 
sists of reports, reviews, and digests, whose pri- 
mary purpose is to facilitate exchan^ of informa- 
tion between Government and industry. Tliey 
include surveys of mineral resources ana bibliog- 
raphies. Most are obtainable from the Bureau of 
Mines, Publication Distribution Section. 4800 
Forbes Avenue, Pittsburgh, Pa., 15213. A lew are 
sold by the Superintendent of Documents, Gov- 
ernment Printing Office, Washington, D.C., 20402. 

Mineral Facts and Problems. Bulletin 630, 
1965 Edition. An encvclopedic summary of the 
various minerals, metals, and fuels, giving infor- 
mation on resources, technology, uses, researcli, 
and outlook. Cloth bound, $6.76. 

List of Publications. Published monthly, an- 
nually, and (juinquennially by the Bureau of 
Mines. Obtainable free upon request. List of 
Publications of the Bureau of Mines issued from 
July 1, 1910, to January 1, 1960, with subject and 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



107 



author index^ $4.25; List of Journal Articles by 
Bureau of Mines Authors published July 1, 1910, 
to January 1, 1960, with subject index, $1.75. 

Mineral Statistics. These are published weekly, 
monthly, and quarterly or on other periodic bases 
for nearly all mineral commodities and also on 
accidents and fatalities in mining and quarrying. 
Obtainable from Bureau of Mines. Requests 
should indicate commodities or subjects of particu- 
lar interest. 

Minerals Yearbooks. Issued annually in 4 vol- 
umes. Volume I. Metals and Minerals ^Except 
Fuels) ; Volume II, Fuels ; Volume III, Area Re- 
ports: Domestic; and Volmne IV, Area Reports: 
International. Available from Superintendent of 
Documents. Prices vary. 

OFFICE OF COAL RESEARCH 

DEVELOPMENT OF NEW AND EXPANDED COAL 
MARKETS 

The Office of Coal Research (OCR) conducts a 
contract research program directed toward creat- 
ing new and expanded markets for all types of 
coal. C<mtracts are awarded for work leadmg to- 
ward improved methods of mining, preparing, 
transporting, and utilizing coal, as well as for eco- 
nomic and marketing studies directed toward im- 
proved coal merchandising. The Office invites 
contract proposals from commercial organizations, 
educational institutions, trade associations, and 
agencies of States for consideration and evaluation. 

PUBLICATIONS 

A booklet, "Annual Report of the Office of Coal 
Research," describes work underway and com- 
pleted in each calendar year and discusses the re- 
sults obtained from the research undertaken. It is 
available without charge from OCR. In addition, 
a detailed report on work performed and results 
secured is made available at cost following the 
completion or termination of each contract. In- 
formation for ordering individual contract reports 
may be secured by writing OCR. The address is : 
Office of Coal Research, Department of the In- 
terior, Washington, D.C., 20240. 

OFFICE OF SALINE WATER 

LOW COST PROCESSES FOR SALT WATER CON- 
VERSION 

The Office of Saline Water is responsible for 
developing low-cost processes for the conversion 
of saline water to fresh. The research program 
is carried on by means of contracts or grants with 
universities, private research organizations and 
industrial firms. The Office of Salme Water 
stands ready to evaluate research proposals to de- 
termine their technical merit or economic poten- 
tial. Worthy proposals may be supported by a 
research and development contract. 



SMALL BUSINESS COMPETENCE 

Many small businesses may have competence in 
this area. The Office of Salme Water encourages 
their interest and participation in this program. 
Some businesses may face problems of water 
quantity or quality that may be solved by install- 
ing saline water conversion equipment. Informa- 
tion on the availability of such equipment can be 
obtained without charge from the Office of Saline 
Water. Technical information concerning the de- 
velopment status of saline water conversion 
processes is also available from the Office of Saline 
Water, Department of the Interior, Washington, 
D.C., 20240. 

PUBLICATIONS 

The Office of Saline Water publishes an annual 
report which gives a general description of re- 
search and development activities supported dur- 
ing the calendar year. This report is available to 
educational institutions, public libraries and 
agencies of National, State, and Municipal gov- 
ernments, without charge, from the Office of 
Saline Water. Others interested may obtain the 
report by sending $2.00 to the Supermtendent of 
Documents, U.S. Government Printing Office, 
Washington, D.C, 20402. 

Many technical reports covering research activ- 
ities sponsored by the Office of Saline Water have 
been published. Some are for sale by the Clear- 
ing House for Federal and Scientific Information, 
5285 Port Royal Road, Springfield. Va., 22151. 
Others are for sale by the Superintendent of Docu- 
ments, U.S. Government Printing Office, Wash- 
ington, D.C, 20402. 

OFFICE OF OIL AND GAS 

ADVICE AND ASSISTANCE ON OIL AND GAS 
MATTERS 

The Office of Oil and Gas is a staff agency that 
provides advice and assistance on oil and gas poli- 
cies, and on technical and economic aspects of the 
business. It serves as the principal channel of 
communication between the Federal Government 
and the Interstate Oil Compact Commission, State 
oil and gas regulatory bodies, and the petroleum 
and gas industries, and develops petroleum and 
gas mobilization and civil defense plans. 




108 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



The ad\'ice and consultative services of the Of- 
fice of Oil and Gas are available to both Federal 
and State agencies, the petroleum, gas, and allied 
industries, and the public on matters concerning 
worldwide petroleum and gas operations, inclucf 
ing the short-term and long-range peacetime and 
wartime outlook for petroleum, gas, and products. 
Information and advice are also furnished regard- 
ing emergency plans, survival, and the continuity 
of oil and gas industries' operations in case of at- 
tack on the Continental United States. 

REQUESTS FOR INFORMATION 

Requests for advice or assistance on oil or gas 
matters may be directed to the Director, Office of 
Oil and Gas, Department of the Interior, Wash- 
ington, D.C., 20240. 

BUREAU OF RECLAMATION 

ENGINEERING AND TECHNOLOGICAL DATA 

The Bureau of Reclamation has a staff of skilled 
and experienced engineers, scientists, and other 
professional employees who are engaged in plan- 
ning, designing, constructing and operating water 
resource development projects throughout the 
Western United States. In conducting this pro- 
gram, numerous engineering and other books and 
monographs are developed which would be useful 
to engineering, construction, architectural and 
otlver businesses engaged in water resource de- 
velopment and conservation activities. 

PUBLICATIONS 

A complete list of Reclamation publications 
available for free distribution and available for 
sale may be obtained by writing to the Bureau of 
Reclamation, Denver, Colo., 80225. A partial, 
representative, listing of Reclamation publications 
is shown below : 

lieclamation Era, A quarterly magazine pre- 
senting various phases of land reclamation, in- 
cluding irrigation, crops, pasturing, and land re- 
covery. Also lists major construction and 
materials for which future bids will be requested 
as well as recent major contract awards. Avail- 
able from Superintendent of Documents, Wash- 
ington, D.C., 20402. 50^ a year. 

Design of SmaXl Dams, Illustrated book, main- 
ly technical discussion of investigation, design, 
and construction of small dams. Available from 
Superintendent of Documents, Washington, D.C., 
20402. $6.50. 

Reclamation Project Data, Comprehensive, au- 
thoritative reference on Reclamation develop- 
ments and works as they stood on June 30, 1958. 
Available from Superintendent of Documents, 
Washington, D.C., 20402. $6.75. 

The Contribution of Irrigation and the Central 
VdlUy Project to the Economy of the Area and 



the Nation. Assesses the impact of irrigation and 
related developments on the local and national 
economy in a detailed study of the physical fea- 
tures of the projects in the Valley. Available 
free from Bui^eau of Reclamation, Denver, Colo., 
80225. 

Stress Analysis of Concrete Pipe. Engineering 
Monograplu Available from Bureau of Reclama- 
tion, Denver, Colo., 80225. 35^. 

A Rapid Method of Construction Control for 
Embankments of Cohesive SoU, Engineering 
Monograph. Available from Bureau of Keclama' 
tion, Denver, Colo., 80225. 60#. 

BUSINESS OPPORTUNITIES IN RECLAMATION CON- 
STRUCTION CAMPS AND TOWNS 

The development of water resource projects in 
certain isolated areas of the western United States 
at times requii*es that the Bureau of Reclamation 
establish community facilities to be utilized by 
both Bureau and contractor employees. The com- 
munities of Page, Arizona, and Dutch John, Utah, 
are examples of Reclamation towns that have been 
recently established. Wlicn such conditions exist 
there are opportunities for private enterpreneurs 
to establish small businesses. 

Requests for information concerning business 
opportunities in Reclamation constructi<m camps 
should be sent to the Bureau of Reclamation, 
Department of the Interior, Washington, D.C., 
20240. 

BONNEVILLE POWER ADMINISTRATION 

SET-ASIDES OF PROCUREMENT CONTRACTS FOR 
SUPPLIES AND MATERIALS 

In accordance with General Services Adminis- 
trati(m and Departmental regulations, Bonneville 
Power Administration in its procurwnent con- 
tracts for supplies and materials, and construc- 
tion, sets aside a portion of the requirements to be 
procured only from qualified small business firms. 
The Bonneville Power Administration Branch of 
Supply is located at 830 Northeast Holladay, 
Portland, Oreg., 97208. 

LOW POWER RATES FOR INDUSTRY 

Bonneville Power Administration s industrial 
rates — are the lowest in the Nation and have in- 
spired a considerable growth of power-using in- 
dustry, both large and small, within the Bonne- 
ville Power Administration area. The Adminis- 
tration's Branch of Power Marketing will gladly 
assist small industries wishing to locate near the 
Western market by putting Qiem in touch with 
community development agencies who can provide 
information on resources, labor force, tax struc- 
ture, and plant location. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



109 



NATIONAL PARK SERVICE 

OPPORTUNITIES IN NATIONAL PARK AREAS 

In carrying out the dual responsibility of pre- 
serving the areas of the National Park System for 
the enjoyment of this and future generations and 
at the same time making them available for public 
use^ it is the policy to authorize only those public 
facilities and services reasonably necessary for the 
full enjoyment of the area. Where adequate ac- 
commodations exist or can be provided by private 
enterprise outside such areas, they are not author- 
ized within them. In the older parks and monu- 
ments which have been established for some years, 
most necessary facilities and services are author- 
ized to be provided by concessioners who have been 
operating in them for some time. Therefore, the 
majority of business opportunities exist, or will 
develop in the more recently established parks and 
monuments, and in the recreational areas. The 
types of facilities authorized will vary from area 
to area, depending on location, size, and need. In 
general, however, business opportunities will be 
for accommodations such as motels, restaurants, 
service stations, shops and stores of various kinds, 
saddle horse service, and marinas. A circular, de- 
scribed below, contains information concerning the 
procedures to be followed in the granting of these 
concessions. 

PUBLICATIONS 

Circular, "General Information Concerning the 
Granting of Concessions in the Areas Admmis- 
tei-ed by the National Park Service." 

For the circular and an application form to be 
completed by those wishing to receive prospectuses 
inviting offers for the installation and/or opera- 
tion of concessions address: Director, National 
Park Service, Department of the Interior, Wash- 
ington, D.C., 20240. 

BUREAU OF LAND MANAGEMENT 
TIMBER SET-ASIDES AND LAND USE 

The Bureau of Land Management has a pro- 
gram of timber set-asides for small forest indus- 
tries and stands ready to discuss with small busi- 
ness its land and resource needs and to expedite as 
far as possible under the Public Land Laws the 
sale, lease or issuance of permit for use of public 
lands. Any valid proposal for utilization of the 
public domain and its ground or surface resources 
will be given considerate review in the light of 
national policy and public law. 

CONTACTS 

Small Business should discuss its needs with the 
appropriate State directors of the Bureau of Land 
Management : 



state Director 

Bureau of Land Manage- 
ment 

U.S. Department of the In- 
terior 

Federal BuUding and U.S. 
Court House, Room 4017 

650 Capitol Mall, Room 
40S2 

Sacramento, Calif. 05814 

atate Director 
Bureau of Land Manage- 
ment 
U.S. Department of the In- 
terior 
Post Office Box 11505 
8217 Federal Building 
Salt Lake City. Utah 
84111 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

U.S. Post Office and Court- 
house Building 

2120 Capitol Avenue 

Post Office Box 1828 

Cheyenne, Wyo. 82001 

state Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

U.S. Courthouse 

300 Booth Street 

Post Office Box 1551 

Reno, Nev. 89505 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

323 Federal Building 

Post Office Box 2237 

Boise, Idaho 83701 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 



Room 14023, Federal Build- 
ing 
1961 Stout Street 
Denver, Colo. 80202 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

Room 3022, Federal Build- 
ing 

Phoenix, Ariz. 85025 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

316 North 26th Street 

Billings, Mont. 59101 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

U.S. Post Office & Federal 
Building 

South Place 

l*ost Office Box 1449 

Santa Fe. N. Mex. 87501 

State Director 

Bureau of Land Manage- 
ment 

U.S. Department of the 
Interior 

710 Northeast Holladay 

Portland, Oreg. 97232 

State Director 

Bureau of Land Manage- 
ment 

I^S. Department of the 
Interior 

555 Cordova Street 

Anchorage, Alaska 90501 

State Director 
Eastern States Office 
Bureau of Land Manage- 
ment 
U.S. Department of the 

Interior 
1728 L Street NW. 
Washington, D.C. 20240 



PUBLIC LAND LAWS 

A comprehensive discussion of the Public Land 
Laws which might be of interest to Small Busi- 
ness is contained in Title 43 of the Code of Federal 
Kegulations. 

BUREAU OF INDIAN AFFAIRS 
INDIAN INDUSTRIAL DEVELOPMENT PROGRAM 

The Bureau of Indian Affairs is the agency of 
the Federal Government concerned with the wel- 
fare of American Indians. In cooperation with 
communities, States, and other Federal Agencies, 
the Bureau is actively encouraging Indian tribes 
to explore industrial development opportunities 
and is helping them establish contact with indus- 
trial firms interested in new or branch plant loca- 



110 



FEDERAL HANDBOOK rOR SMALL BUSINESS 




tions. The Bureau also provides financial assist- 
ance for on-the-job training programs. 

TECHNICAL ASSISTANCE 

Assistance is available to tribal and reservation 
communities in the organization of local industrial 
development foundations and corporations, com- 
mittees, and programs, and in the preparation of 
industrial fact sheets for determinmg which types 
of industries are most suited to the area. Field 
Industrial Development specialists located in met- 
ropolitan areas contact industrialists who are in- 
terested in plant expansion to acquaint them with 
the resources and opportunities available in reser- 
vation areas. 

The Branch of Industrial Development of the 
Bureau of Indian Affairs functions as a connect- 
ing link between tribal or local community groups 
in Indian labor areas and industrial management. 
In this capacity, the Branch is in a position to fur- 
nish management with general information on 
local labor supply, occupational skills and produc- 
tivity, resources and facilities available at the var- 
ious proposed plant sites, available financial assist- 
ance, tax structure, transportation, and many other 
related items. Detailed information on sj^ecific 
locations is assembled on request. 

Examples of industries located on Indian reser- 
vations mclude : Electronic components manufac- 
ture and assembly, plastic pipe, costume jewelry, 
precision gears, soft goods and quilts, women's ap- 
parel, tufted carpets, and fishing tackle assembly. 

FINANCIAL ASSISTANCE 

Financial assistance is available to employers 
for on-the-job training of Indian employees. Such 
help can m furnished by the Bureau of Indian 
Affairs under contracts with established corpora- 
tions and associations that have recognized train- 
ing programs in operation for their employees. 

Financial assistance is also available from the 
Bureau's Revolving Loan Fund to assist eligible 
Indian tribes or groups and individual Indians in 
the development of business enterprises in resen-a- 
tion areas. Funds from this source are also avail- 
able to eligible Indian tribes or groups to aid them 
in their efforts to attract industry to reservatioa 
areas. 



CONTACTS 

For further hiformation, contact Commissioner 
of Indian Affairs, Department of the Interior, 
Washington, D.C., 20242 and Area Directors, Bu- 
reau of Indian Affairs, at the following locations : 
Juneau, Alaska; Phoenix, Ariz.; Sacramento, 
Calif. ; Minneapolis, Minn. ; Billings, Mont. ; Gal- 
lup, N. Mex. ; Anadarko, Okla. ; Muskogee, Okla. ; 
Portland, Oi*eg.; and Aberdeen, S. Dak. 

PRINTED MATERIALS 

The Indian Industrial Development Pn^rana — 
A New Industrial Opportunity (brochure) ; State 
and U.S. maps showing reservation locations; in- 
dustrial fact sheets and brochures; and special re- 
poits on specific reservation areas. These are ob- 
tainable from the Bureau of Indian Affairs at no 
cost. 

BUREAU OF COMMERCIAL FISHERIES 
FISHERY LOANS 

I^ans are available to ownei-s of fishing vessels 
and fishing gear to finance and refinance the pur- 
chase, construction, operation, maintenance, and re- 
pair of fishing vessels and gear, and for research 
into the basic problems of fisheries when conducted 
as an integral pai-t of vessel or gear operation. 
The interest rate is 5 percent yearly and maturity 
of loans must not exceed 10 years. Security is re- 
quired. Request for information should be ad- 
dressed to the neai-est field office listed below. 

Bureau of Commercial 

Fisheries 
408 Atlantic Avenue 
Boston, Mass. 02210 

Bureau of Commercial 

Fisheries 
Post Office Box 6245 
St. Petersburg Beacii, Fla. 

33700 

Bureau of Commercial 

Fisheries 
101 Seaside Avenue 
Terminal Island, Calif. 

90731 

Fishery Leaflet 542 — Fisheries Loans for Ves- 
sels^ Gear J and Research describes the program. 

MORTGAGE INSURANCE 

This program provides for insurance of loans 
and mortgages to lending institutions providing 
funds for construction, reconstruction, or recondi- 
tioning of fishing vessels. The interest rate is 5 
percent except in cases where the Secretary finds 
that the money market requires a higher rate of 
not more than 6 percent. Bequests for informa- 
tion should be made to tlie nearest field oflBce listed 
above. 

Fishery Leaflet 4Q&^Federdl Fishing Vessel 
Mortgage amd Loan Inswrance describes this pro- 
gram. 



Bureau of Commercial 

Fisheries 
Post Office Box 2481 
Juneau, Alaska 99801 

Bureau of Commercial 

Fisheries 
2570 Dole Street 
Honolulu, Hawaii 96812 

Bureau of Commercial 

Fisheries 
6116 Arcade Building 
Seattle, Wash. 98101 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



111 



FISHING VESSEL CONSTRUCTION SUBSIDIES 

This program is to provide financial assistance 
to correct inequities between foreign and domestic 
costs of constructing fishing vessels. The Secre- 
tary of the Interior is authorized to pay up to 60 
percent of the cost of construction of a new fishing 
vessel provided the vessel, the owner of the vessel, 
and the fishery in which the vessel will operate 
meet certain requirements. The amount that can 
be paid is limited to the difference between the cost 
of construction in domestic and foreign sliipyards 
or 50 percent of the domestic cost, whichever is 
smaller. The determination of the foreign cost 
will be made by the Maritime Administrator. Re- 
quests for information should be made to the near- 
est field office listed above. 

Fishery Leaflet 574 — Fishing Vessel Consti^uc- 
tion Dijferential Subsidy describes this program. 

TECHNICAL RESEARCH 

A Branch of Technologjr is concerned with 
scientific studies designed to improve and develop 
methods of handling, processing, preserving, and 
distributing fish and shellfish. This Bran<m also 
develops information on sanitation measures and 
requirements for voluntary U.S. standards of 
grade and condition of fishery products. It also 
conducts USDI voluntary inspection and certifi- 
cation services for fishery products. 

Contacts. Services can be obtained by contact- 
ing: Chief, Branch of Technology, Bureau of 
Commercial Fisheries, Washington, D.C., 20240 
or Regional Offices as follows : 

Region Address 

1 Bureau of Commercial Fisheries, 6116 Arcade Build- 

ing, Seattle, Wash,, OSIOI. 

2 Bureau of Commercial Fisheries, Don Ce-Sar Fed- 

eral Center, Poet Office Box 6245, St. Petersburg 
Beach, Fla., 33706. 

3 Bureau of Commercial Fisheries, Posrt Office Build- 

ing, Gloucester, Mass., 01930. 

4 Bureau of Commercial Fisheries, 5 Research Drive, 

Aim Arbor, Mich., 48103. 

5 Bureau of Commercial Fisheries, Post Office Box 

2481, Juneau, Alaska, 99801. 

6 Bureau of Commercial Fisherlesi, 101 Seaside Ave- 

nue, Terminal Island, Calif., 90731. 

EXPLORATORY FISHING 

A Branch of Exploratory Fishing especially 
plans and conducts programs to locate and deter- 
mine the extent of new fishing grounds, and the 
size and character of the resource using specially 
equipped vessels. This Branch also designs, tests, 
and develops new types of fishing gear and equip- 
ment. Services can be obtained oy contacting: 
Chief, Branch of Exploratory Fishing, Bureau of 
Commercial Fisheries, Department of the Interior, 
Washington, D.C., 20240, or Regional Offices listed 
herein. 

ECONOMIC STUDIES 

A Division of Economics performs studies con- 
cerning the economic position of the fishing in- 
dustry in the national economy, and conducts 



basic and applied economic research studies on 
production efficiency, distribution problems, and 
consumption of fishery p^roducts. This Division 
furnishes consulting services on fishery economic 
problems including transportation problems and 
provides technical services for fishery cooperatives. 
Economic reports are prepared on foreign and 
domestic fishery situation, the production and flow 
of fishery products from foreign producers which 
might affect domestic fisheries, and competitive 
position of domestic and foreign produced fishery 
products. This Division also conducts studies and 

i)rovides services on foreign trade and tariff prob- 
ems. 

List of publications and reprints are available 
upon request. Services can be obtained by con- 
tacting : Assistant Director for Economics, Bureau 
of Commercial Fisheries, Department of the Inter- 
ior, Washington, D.C., 20240. 

FOREIGN FISHERIES 

The Branch of Foreign Fislieries collects, co- 
ordinates, analyzes, and evaluates basic informa- 
tion and prepares reports on the technological, 
biological, and other aspects of the fisheries of 
foreign countries, and the effect of foreign devel- 
opments on the U.S. fishery industry; conducts 
and coordinates Bureau participation in interna- 
tional organizations. The Branch also conducts 
studies and makes recommendations designed to 
aid the domestic industry bjr solving problems cre- 
ated by foreign fishery activities and developments 
and meet foreign competition. It also coordinates 
Bureau participation in the Public Law 480 re- 
search program, designed to develop fishery pro- 
grams m foreign countries of mutual benefit to the 
U.S. fishing industry, and collaborates with the 
Agency for International Development (AID) in 
providing teclmical assistance in fisheries for the 
developing countries. 

Services can be obta.ined by contacting: Chief, 
Branch of Foreign Fisheries, Bureau of Commer- 
cial Fisheries, Department of the Interior, Wash- 
ington, D.C., 20240. 

MARKETING 

A Branch of Marijeting develops markets for 
domestic fishery products. This is accomplished 
through (1) increasing the use of fishery products 
in school lunch and institutional menus, (2) special 
programs of market promotion, (3) forecasting 
future marketing conditions, (4) developing and 
expanding foreign markets, and (5) finding new 
uses for underutilized species. This Branch also 
conducts an educational service to promote fishery 
products by developing visual and oUier educa- 
tional materials including test kitchen activities, 
fish cookery demonstrations, recipe development, 
and distribution of fishery motion pictures in co- 
operation with industry. It also issues Test Kit- 
chen Series of fishery recipes. Motion pictures 



112 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



are distributed through: Bureau of Commercial 
Fisheries, University and Commercial Fihn Li- 
braries. 

Services can be obtained by contacting: Chief, 
Branch of Marketing, Bureau of Commercial 
Fisheries, Department of the Interior, Washing- 
ton, D.C., 20240, or Regional Offices listed above. 

STATISTICS 

The Bureau of Commercial Fisheries assembles, 
tabulates, analyzes, and publishes fisherv statistics 
on the volume and value of the catch by gear of 
capture and geoffraphical areas; monthly landings 
of fish and shellfish in individual States; emplov- 
ment of fisherman, fishing craft, and gear in the 
fisheries, the volume and value of manufactured 
fishery products; stocks of frozen products; for- 
eign trade in fishery commodities; and related in- 
formation; and conducts staff activities relating to 
statistical matters. It also exercises staff super- 
vision over Civil Defense activities of the Bui-eau 
and conducts a consulting service on fishery statis- 
tics. 

Principal Field Offices 

Gloucester, Mass., 01931, 14 Elm Street : Phone 283-3420. 
Salisbury, Md., 21801, Post Office Building: Phone 749- 

6109. 
Beaufort, N.O., U.S. Fisheries Laboratory, Post Office Box 

500: Phone 728-4968. 
Miami, Fla., 33149, 75 Virginia Beach Drive : Phone 350- 

5798. 
New Orleans, La., 70130, Room 609, Federal Building: 

Phone 527-6151. 
Galveston, Tex., 77550, 322 Custom House Building, 17th 

and Strand : Phone 762-7642. 
San Pedro. Calif., 90733, Room 205, Post Office Building : 

Phone 831-9271. 
Seattle, Wash., 98004, 706 Federal Office Building : Phone 

58a-5230. 
Juneau, Alaska, 99801, Post Office Box 2481: Phone 

586 33^11. 
Ann Arborl Mich., 48105, 1451 Green Road : Phone 663^ 

8453. 

Publications 

Fishery Statistics of the United States^ Annual, 
Statistical Digest Senes. Superintendent of Doc- 
uments, Government Printing Office, Washing- 
ton, D.C., 20401. $2.25 

Fisheries of the United States^ Current Fishery 
Statistics 3800, Annual. Office of Information, 
Publications Section, Fish and Wildlife Service, 
Department of the Interior, Washington, D.C., 
20240. Free. 

Fishery Statistical Publications of the Bureau 
of Commercial Fisheries^ Fishery Leaflet 432. 
Office of Information, Publications Section, Fish 
and Wildlife Service, Department of the Interior, 
Washington, D.C, 20240. Fi-ee. 

MARKET NEWS 

The Branch of Market News collects, compiles, 
and analyzes information daily on landings, re- 
ceipts, imports, rail and truck movements, cold- 
storage holdings, market conditions, and prices of 
fishery products and byproducts, and evaluates 



fisheries developments in the United States aad 
foreim countries. The Bureau also collects, fts- 
sembles, abstracts, tabulates, compiles, and pre- 
pai*es for release data giving the current status of 
the United States fisheries and distributes this in- 
formation by telephone, telegraph, teletype, radio 
and daily mimeographed reports, monthly and 
annual summaries, and periodic summaries. A 
consulting service for market news problems is 
also conducted. 

Pubffcof/ons 

Commercial Fisheries Review^ a monthly peri- 
odical containing current information on domes- 
tic and foreign fisheries, and related news is pub- 
lished by the Bureau and mav be purchased at OO^i 
per copy or $6.60 per year; $2 additional for for- 
eign mailing, from the Superintendent of Docu- 
ments, Government Printing Office, Washington, 
D.C, 20402. 

"Separates" — Reprints of articles with names 
of authors in the fore section of the periodical and 
articles of special interest appearing in the trends 
and developments and foreign sections of Conhmer- 
cicH Fisheries Review are published in the Sepa- 
rate series. 

"Market News Leaflets" — ^Extensive reports on 
trends and developments in foreign fisheries, trans- 
mitted by the Department of State from loreign 
reporting posts, are published in the Market News 
Leaflet series. 

Dailv "Fishery Products Eeports" issued from 
each of the field offices except Baltimore. 

Monthly and annual summaries issued from 
same offices as daily reports including Baltimore. 

Lists of Brokers and Importers issued for Bos- 
ton, Mass. ; New York City ; Chicago, 111. ; Seattle, 
Wash.; San Francisco, San Diego, and Los An- 
geles Area; New Orleans, La., Houston, Tex.; and 
Miami, Fla. 

Weekly Alaska Canned Salmon Pack Keports 
issued from Seattle. 

Monthly Northwest Region Cold Storage Re- 
port of freezings and holdings of fishery products 
issued annually from Seattle. 

Halibut and Troll Salmon Landings and Ex- 
Vessel Prices, for Seattle, Alaska Ports and Brit- 
ish Columbia, issued annually from Seattle. 

Explanatory Statement Reports issued by Bos- 
ton, New York, San Pedro and Chicago field offices 
outlining contents of and procedures for collec- 
tion of data for daily reports and summaries. 

BUREAU OF SPORT FISHERIES AND 
WILDLIFE 

[For regulations codified tinder this heading, see Ck>de (tf 
Federal Regulations, Title 50, Chapter I] 

OBJECTIVES 

The obiectives of the Bureau of Sport FisherieB 
and Wildlife are to insure the conservation of thia 



FEDERAL HANDBOOK FOB SMALL BUSINESS 



113 



Xation's wild birds, mammals, and sport fish, both 
for their recreational and economic values, and to 
prevent their destruction or depletion while still 
encouraging the maximum possible present use of 
the Nation's fish and wildlife resources. 

ORGANIZATION 

The Bureau of Spoit Fislieries and Wildlife 
consists of a headquarters office at Washington, 
D.C., five regional offices, and wildlife refuges, fish 
hatcheries, research laboratories, and other offices 
located tliroughout the United States. 

ACTIVITIES 

Migratory Birds. — The Bureau is responsible for 
the conservation of migratory bird resources pur- 
suant to the Migratory Bird Treaty Act, other 
Federal acts, and treaties with the Governments of 
Canada and Mexico. Research is conducted on 
the histories, habits, distribution, and diseases of 
the species, and serves as a basis for management. 
Annual studies are made of breeding gi*ound con- 
ditions, hunter kills, and the relative abundance of 
birds in cooperation wtih the States and the Gov- 
ernments of Canada and Mexico. The studies 
serve as the basis for promulgating Federal hunt- 
ing regulations which are administered by the Bu- 
reau in cooperation with the States. Coordinated 
flyway management plans are developed in coop- 
eration with State flyway councils, and take into 
account all factors affecting the resource, includ- 
ing the need for nesting, resting, and wintering 
sanctuaries. 

Sport Fisheries. — ^A system of over 100 fish 
hatcheries is operated for the propagation and dis- 
tribution of various species of sport fishes, includ- 
ing trout, salmon, bass, and catfish. The stocking 
of public waters and farm fish ponds is carried out 
in cooperation with State fish and game depart- 
ments. 

Besearch is conducted on the nutritional and 
disease factors that affect hatchery-raised fish and 
the factors that affect their survival and growth 
after they are planted in various waters. 

The objective of the fishery management serv- 
ices is to increase the value to the public of hatch- 
ery-raised fish by coordinating the stocking pro- 
gram with State, Federal, and private agencies 
and by rendering an extension service to furnish 
these agencies modem techniques for the manage* 
ment of fishing waters for the maximum public 
enjoyment. 

National Wildlife Refuges. — Approximately 300 
national wildlife refuge areas, encompassing about 
28,500,000 acres, are managed throughout the 
United States and Puerto Rico. These refuges 
variously provide nesting, restmg, and wintering 
sanctuaries for migratory birds; range for big 
game, such as the bison, elk, and mountain sheep; 
and nesting grounds for upland birds and scarce 



exotic species, such as the whooping crane and the 
trumpeter swan. Portions of some of the areas are 
open to public hunting and fishing as biological 
conditions permit. When not incompatible with 
their wildlife management functions, the areas 
provide recreation for large segments of the public 
and economic benefits from agricultural crops, furs, 
timber, mineral royalties, and public concession 
fees. 

Wildlife Services. — The basic objective of this 
program is the scientific management of wild ani- 
mals to achieve the maximum desirable popula- 
tions at times, places, and circumstances, in sending 
man's increasing interest in natural beauty and 
recreation. The Division's program has four ba- 
sic functions: (1) Wildlife enhancement to im- 
prove conditions for wildlife; (2) pesticide sur- 
veillance and monitoring to prevent adverse effects 
of pesticides on wildlife resources; (3) animal 
control, as a management tool, to control those 
species which, under certain circumstances, ad- 
versely affect man's interests; and (4) education to 
improve public understanding of the management 
and enjoyment of wildlife resources and their en- 
vironment. 

Federal Aid to States and Possessions. — The 
Bureau administers the Federal aid in Fish and 
Wildlife Restoration Acts which authorize grants- 
in-aid to the States and Puerto Rico, Guam, and 
the Virgin Islands. Under this program grants- 
in-aid are authorized up to 75 percent of the cost of 
projects for investigation, acquisition of land, and 
development and maintenance of fish and wildlife 
habitat. 

River Basin Studies. — ^This program examines 
the effects on fish and wildlife resources of water 
use projects of Federal agencies and public and 
private agencies under Federal license. It is au- 
thorized by the Fish and Wildlife Coordination 
Act, the Federal Power Act, and the Watershed 
Protection and Flood Prevention Act. Studies 
have as their objective the recommending of meas- 
ures for the protection and improvement of fish 
and wildlife resources and are conducted in co- 
operation with State fish and game departments 
and conservation agencies. 

REGIONAL OFFICES— BUREAU OF SPORT FISH- 
ERIES AND WILDLIFE 

Region: Headquarters 

1. Pacific Fenleral Building, Portland, 

Oreg., 97208. 

2. Southwest Federal Building, Albuquerque, 

N. Mex., 87103. 

3. North Central— 1006 West Lake Street, Minne- 

apolis, Minn., 55408. 

4. Southeast 809 Peachtree-Seventh Building 

NB., Atlanta, Ga., 30323. 

5. Northeast U.S. Post OflSce and Courthouse, 

Boston, Mass., 02109. 



114 



FEDERAL HANDBOOK FOR SliCALL BUSINESS 



OFFICE OF TERRITORIES 

LOANS TO SMALL BUSINESS 

The Guam Economic and Development Author- 
ity is authorized to make loans to private enter- 
prises. Inquiries should be directed to the Guam 
Economic Development Authority, Agana, Guam, 
96910. 

The Government of the Trust Territory of the 
Pacific Islands has a development loan fund from 
which loans are made to locally-owned private 
enterprises. Inquiries should be directed to the 
High Commissioner, Trust Territory of the Pacific 
Islands, Saipan, Mariana Islands, 96950. 



TAX INCENTIVES 

The three U.S. territories, American Samoa, 
Guam, and the U.S. Virgin Islands, have tax in- 
centive programs to encourage the development 
and expansion of private enterprise. Inquiries 
regarding these programs should be addressed to 
the following officials : 

Governor of American Samoa 
Pago Pago, Tutuila 
American Samoa, 96920 

Director, Department of Commerce 
Government of Guam 
Agana, Guam, 96910. 

Commissioner, Department of Commerce 

Government of the Virgin Islands 

St. Thomas, U.S. Virgin Islands, 00802 



Department of Agriculture 



INTRODUCTION 

The U.S. Department of Agriculture (USDA) 

Srovides information on its procurement proce- 
ures in a publication "Selling to USDA." This 
publication indicates who does the buying, the 
types of items bought for the various programs, 
where the biiying is done, and other general in- 
formation. It includes a directory of purchasing 
offices and their locations. Copies are available at 
no cost from : 

Contract and Procurement Management Di- 
vision. 
Office of Plant and Operations 
U.S. Department of Agriculture 
Washington, D.C. 20250 

RURAL AREAS DEVELOPMENT 

Kural areas development helps local people use 
Federal and State programs to promote economic 
growth, build community facilities, and develop 
]ob skills and abilities. 

The Department of Agriculture began encour- 
aging local people to organize rural areas develop- 
ment (RAD) committees in 1961. It backs up 
these local committees with on-the-spot technical 
advice from USDA and other Government em- 
ployees in the area. The Government employees 
form Technical Action Panels to work with the 
local people. 

By the start of 1965, more than 109,000 private 
citizens were serving on, local RAD committees in 
2,100 rural counties. They had carried out, or 
were working on, 13,500 community improvement 
projects. 

Projects ranged from development of new in- 
dustry to on-farm recreation for pay; from im- 
proved housing to installation of central water 
and sewer systems; from job training to better 
schools; and from special activities to help the 
poor to strengthening rural cooperatives. 

In line with President Johnson's directive to the 
Department of Agriculture to see that "no service 
of the Federal Government stops at the city line,*' 
a new agency — the Rural Community Develop- 
ment Service — was created within USDA. Its job 
is to help make the services of all Federal agencies 
completely available in rural areas. 

The Rural Community Development Service 
coordinates all USDA agency activities that con- 
tribute to rural development. 



In the field the Technical Action Panels help 
RAD committees plan projects, find outside capi- 
tal, and act, as requested, as coordinators between 
local people, who seek aid, and the Government 
agencies that may have the facilities to help, 

CONTACT 

Local RAD Cliairman or write to Office of In- 
formation, U.S. Department of Agriculture, 
Washington, D.C, 20250. 

GENERAL INFORMATION 

Rural Areas Development At Work — PA-625. 
Revitalizing America Today — PA-497. 
Upswing in Rural America (Unnumbered). 

SOIL CONSERVATION SERVICE 

The Soil Conservation Service administers the 
national program of resource conservation on pri- 
vate lana. Most of its work is done through 
nearly 3,000 locally organized and operated con- 
servation districts. 

Assistance to individual cooperators of soil con- 
servation districts includes: (1) Giving the co- 
operator a soil and land-capability map of his 
land; (2) giving him information about practical 
alternatives for treating and using the land with- 
in its cai)abilities as indicated on the map; ^3) 
helping him develop an orderly plan for installmg 
the treatment measures and making the land use 
clianges needed; and (4) helping him appl^ parts 
of the plan that require special skills or 
knowledge. 

Part of the cost of conservation improvements 
may be shai-ed under the Agricultural Conserva- 
tion Program of Agricultural Stabilization and 
Conservation Service. 

During the 30 years the program has been in op- 
eration, a new industry has emerged — ^land im- 
provement contracting. More than 20,000 of these 
contractors, most of them in the small-business 
category, now are earning a living by helping 
landowners install conservation practices. 

The SCS administers the watershed protection 
and flood prevention program; the Great Plains 
Conservation Program; the national inventory of 
soil and water conservation needs; and the Federal 
part of the National Cooperative Soil Survey. 

The SCS has USDA leadership in recreation- 
for-pay developments on private land and in 
watershed projects: helps local sponsors in Re- 

115 



116 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



source Conservation and Development Projects; 
makes snow surveys for water forecasting in the 
West ; and gives technical help in rural areas de- 
velopment, and related activities. 

For more information, write : Soil Conservation 
Service, U.S. Department of Agriculture, Wash* 
ington,D.C., 20250. 

LOCATION AND ADDRESSES OF STATE OF- 
FICES AND REGIONAL TECHNICAL SERVICE 
CENTERS 



STATE OFFICES 

WUUam B. Lingle 
Boil Conservation Building 
Post Office Box 311 
Auburn, Ala. 36830 

Harold W. Cooper 
Severus Building 
Post Office Box F 
Palmer, Alaska 99645 

M. D. Burdick 

230 North 1st Avenue 

Federal Building 

Room 6029 

Phoenix, Ariz. 85025 

William B. Davey 
Federal Office Building 
Room 5401 
Littie Bock, Ark. 72201 

T. P. Helseth 
Tioga Building, 2d Floor 
2020 Milvia Street 
Berkeley, Calif. 94704 

Frederick A. Mark 
12417 Federal Building 
Denver, Colo. 80202 

N. Paul Ted row 

Old Bookstore Building 

Route 195 

Storrs, Conn. 06268 

William R. Ratiedge 
501 Academy Street 
Post Office Box 418 
Newark, Del. 19711 

James W. Hammett 
Federal Building 
Post Office Box 1208 
Gainesville. Fla. 32601 

Cecil W. Chapman 
Old Post Office Building 
Post Office Box 832 
Athens, Ga. 30601 

Robert L. Brown 
Post Office Box 1840 
Honolulu, Hawaii 96805 

Lee T. Morgan 
5263 Emerald Street 
Post Office Box 38 
Boise, Idaho 83701 

Lester H. Binnie 
Nogle Building 
605 South Neil Street 
Champaign, 111. 61823 



Kenneth E. Grant 
Room 212 

311 West Washington Street 
Indianapolis, Ind. 46204 

Frank H. Mendell 
Iowa Building, 4th Floor 
505— 6th Avenue 
Des Moines, Iowa 50309 

Morrie A. Bolline 
760 South Broadway 
Post Office Box 600 
SaUna, Kans. 67402 

Homer A. Taff 
1409 Forbes Road 
Lexington, Ky. 40505 

Joe B. Earle 
3737 Government Street 
Post Office Box 1630 
Alexandria, La. 71301 

Floyd W. Campbell 
USDA Building 
University of Maine 
Orono, Maine 04473 

Edward R. Keil 
Hartwick Building 
Room 522 

4321 Hartwick Road 
College Park, Md. 20742 

Benjamin Isgur 
27-29 Cottage Street 
Amherst, Mass. 01002 

V. M. Bathnrst 
Room 101, 1405 South Har- 
rison Road 
East Lansing, Mich. 48823 

Herbert A. Flueck 
517 Federal Courts Build- 
ing 
St. Paul, Minn. 55102 

William L. Heard 
Milner Building, Room 490 
Lamar and Pearl Streets 
Post Office Box 610 
Jackson, Miss. 39205 

Howard C. Jackson 
Highway 40 and Illinois 

Avenue 
Post Office Box 180 
Columbia, Mo. 65202 



A. B. Linford 
33 East Mendenhall 
Post Office Box 855 
Bozeman, Mont. 59715 

C. Dale Jaedicke 
Room 604 

134 South 12th Street 
Lincoln, Nebr. 68508 

Charles W. Cleary, Jr. 
1479 Wells Avenue, Room 3 
Reno, Nev. 89502 

Albert C. Addison 
Federal Building 
Durham, N.H. 03824 

Selden L. Tinsley 
Feher Building 
103 Bayard Street 
Post Office Box 670 
New Brunswick, N. J. 
08903 

Einar L. Roget 
517 Gold Avenue SW. 
Post Office Box 1348 
Albuquerque, N. Mex. 
87103 

Wallace L. Anderson 
400 Midtown Plaza 
700 Bast Water Street 
Syracuse, N.Y. 13210 

Joseph P. Kuykendall 
1330 St Mary's Street 
Post Office Box 12045 
Raleigh, N.C. 27605 

LynesB G. Lloyd 
Federal Building 
Post Office Box 1458 
Bismarck, N. Dak. 58502 

Raymond S. Brown 
311 Old Federal Building 
3d and State Streets 
Columbus, Ohio 43215 

Courtney A. Tidwell 
Agricultural Center Build- 
ing 
Farm and Admiral Road 
StiUwater, Okla. 74074 

Albert J. Webber 
1218 Southwest Washing- 
ton Street 
Portland, Oreg. 97206 

Ivan McKeever 
Central Industrial Building 
100 North Cameron Street 
Harrisburg, Pa. 17101 



N. Paul Tedrow 
(Rhode Island combined 
with Connecticut) 

Albin T. Clialk 
Federal Building, 6th Floor 
901 Sumter Street 
Columbia, S.C. 29201 

Keith F. Myers 
239 Wisconsin Avenue SW. 
Post Office Box 1357 
Huron, S. Dak. 57350 

J. Ral]^ Sasser 

561 U.S. Court House 

NashviUe, Tenn. 37203 

Henry N. Smith 

First National Bank BuUd- 

ing 16-20 South Biain 

Street 
Post Office Box 648 
Temple^ Tex. 76502 

J. A. LiM)y 

125 South State Street 

Federal Building, Room 

4012 
Salt Lake City, Utah 

84111 

Lemuel J. Peet 
19 Church Street 
Burlington, Vt. 05401 

Tom F. McGourin 
400 North 8th Street 
Federal Building 
Post Office Box 10086 
Richmond, Ta. 23240 

Orlo W. Krauter 

Bon Marche Building Roos 

840 
Spokane, Wash. 99201 

Thomas B. Evans 
209 Prairie Avenue 
Post Office Box 865 
Morgantown, W. Va. 2^505 

William W. Russell 
4601 Hammersley Road 
Post Office Box 4248 
Madison, Wis. 53701 

Bernard H. Hoi^ins 
Tip Top Building 
845 East 2d Street 
Post Office Box 340 
Casper, Wyo. 82602 

Harry M. Chambers 
1409 Ponce de Leon Avenue 
Post Office Box 9681 
Santurce, P.R. 00908 



REGIONAL TECHNICAL SERVICE CENTERS 



H. G. Bobst 

134 South 12th Street 

Room 503 

Lincoln,, Nebr. 68508 

S.J. Kortan 

507 Federal Building 

701 Northwest Glisan 

Street 
Portland, Oreg. 97209 

Prepared by Administrative Services Division, Records 
and Communications Management Branch. 



H. E. Tower 

7600 West Chester Pike 

Upper Darby, Pa. 19082 

H. B. Martin 
3600 McOart Street 
Post Office Box 11222 
Ft Worth, Tex. 76110 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



117 



FARMERS HOME ADMINISTRATION 

GENERAL 

The Farmers Home Administration, a Depart- 
ment of Agriculture agency, provides supervised 
credit and management advice to farm and other 
rural people unable to get credit from any source 
at reasonable rates and terms. Programs admin- 
istered by the agency strengthen family farms and 
rural communities. 

lOANS 

Operating Loans, Operating loans are made to 
help family farmers and ranchers make improved 
use of their land and labor. Loans may be used 
for equipment, livestock, feed, fertilizer and other 
farm and home operating needs; refinance chattel 
debts; improve the management of fai-m wood- 
lands ; ana develop and operate income-producing 
recreation facilities. 

Farm Ownership Loans. These loans are made 
to eligible farmers to enlarge, develop, and buy 
family farms, refinance debts, and install farm- 
based, income-eaniing recreation facilities. 




Rural Housing Loans, This supervised credit 
is available to rural families to build, buy, and re- 
pair homes and farm buildings with special provi- 
sions for persons over 62. Loans are also available 
to build rental housing for elderly rural residents. 
There are also farm labor housing loans and 
grants to public agencies and nonprofit associa- 
tions to construct or repair housing for farm 
workers. 

Rural CommAjmity Water and Sewer System 
Loans. Loans and grants are extended to farmers 
and rural residents in towns of less than 5,500 for 
community water and sewer systems. 

Recreation Area Loans. Funds are available to 
groups of farmers and rural residents in towns of 
less than 2,500 for development of nonprofit rec- 
reational areas. 

Rural Renewal Loans. Such credit is made to 
public agencies in designated rural renewal areas, 
where family incomes are abnormally low, to help 
rebuild the area's economy. Some grant funds 
also may be made available for planning, surveys, 
feasibility and engineering studies, or similar 



plannmg essential to preparing the entire plan or 
for individual projects. 

Emergency Loans. These loans are made to 
farmers or ranchers in designated areas where 
natural disasters, such as floods and drought have 
brought about the temporary need for credit not 
available from other sources. I^oans may be made 
for purchase of feed, seed, fertilizer, replacement 
equipment, livestock, and for otlier items needed to 
mainUiin normal operations. 

Watershed Loans. These loans are made to lo- 
cal organizations -to help finance projects that pro- 
tect and develop land and water in small water- 
sheds. Loans are made only under watershed 
plans approved by the USDA's Soil Conserva- 
tion Service. 

Loans to Cooperatives. The agency — ^under 
the Economic Opportunity Act of 1964 — ^makes 
loans to cooperatives which furnish essential proc- 
essing, purchasing, and marketing services, sup- 
plies, or facilities to low-mcome rural families. A 
borrowing cooperative association must be oper- 
ated for the mutual benefit of its members and 
imder their control. At least two-thirds of the 
members must be low-income rural families. The 
loan funds can be used to develop facilities that 
are not otherwise available and which will serve 
to raise the income and living standards of mem- 
ber families. 

Oppo7*tunity Loans. These Economic Oppor- 
tunity Act loans are made to low-income rur»l 
families who need small amounts of capital to im- 
prove their earnings but are unable to obtain credit 
from other sources. Loans to nonf arm rural resi- 
dents can finance a small business, trade, or service 
that supplements the family income. Such loans 
to farmers are made to finance farm operating ex- 
penses, improvements and development, including 
purcliase of land, or to pay for the equipment, 
machinery, buildings or other items needed in a 
small family business, trade or service that will 
add to income from farming. 

GENERAL INFORMATION BIBLIOGRAPHY 

Farmers Hom^ Administration in Brief — PA- 
547. 

Fa7*m Ownership Loans — PA-62. 

Operating Loans for Better Farming^ Better 
Living.— PA-1S2. 

Loans to Rural Groups — PA-560. 

Loans to Cooperatives — FIIA Bulletin. 

Oppo7'tunity Loans — FHA Bulletin. 

Loans for Water Development and Soil Con- 
servation — PA-554. 

Watershed Loans — PA-406. 

Rural Housing Loans — PA-^76. 

Tlousing for Senior Citizens — PA-640. 

Loans for Farm Labor Housing — PA-521. 

Emergency Loans — PA-490. 

Loans to Family Farmers for Recreation En- 
terpri^nes — PA-563. 

Loans for Forestry Purposes — PA-624. 



118 



FEDERAL HANDBOOK TOR SMALL BUSINBBS 



Most counties have a local Farmers Home Ad- 
ministration Office, often located in the courthouse 
or agricultural center ; check the telephone direc- 
tory under U.S. Government; or write: Farmers 
Home Administration, U.S. Department of Agri- 
culture, Washmgton, D.C., 20250. 

RURAL ELECTRIFICATION ADMINISTRATION 

GENERAL 

The KEA, an agency in the Department of 
Agriculture, makes self-liquidating loans to rural 
electric cooperatives, public utility or power dis- 
tricts, municipalities, and power companies to 
bring initial and continued adequate electric serv- 
ice to persons in rural areas. REA loan funds 
may be used to finance facilities serving farms and 
nonfarm rural people, rural industries, and other 
enterprises. The KEA also makes loans for ex- 
tending or improving rural telephone service, and 
for financing house wiring, plumbing, and electri- 
cal appliances and equipment for rural consumers. 

LOANS 

Loans for Rural Electric Systems. The law pro- 
vides that in making electrification loans, prefer- 
ence be given to public bodies, cooperatives, and 
nonprofit limited dividend associations. Loans 
are available for construction of electric genera- 
tion and transmission facilities. Funds may be 
made available also to increase the capacity of ex- 
isting lines (system improvements) to meet the in- 
creasing use by rural residents. 




REA will assist also with problems of the bor- 
rower's plant design, construction, and operations. 
The Agency advises borrowers on accounting, en- 
gineering, and other management matters. 

Loans for Wiring^ and the Acquisition and In- 
stallation of Electrical and Plumbing Appliances 
and Equipment. Loans are authorized to finance 
the wiring of premises and acquisiticm and instal- 
lation of electrical and plumbing appliances and 



equipment, including machinery, for persons in 
rural areas receiving or about to receive electric 
service from REA efectric borrowers. Such loans 
will generally be made for a period of 10 years, 
but may be made for a longer period in case of 
demonstrated need, not to exceed two-thirds of Uie 
estimated life of the equipment. No loans are 
made directly to the consumer. The funds are 
loaned to REA borrowers operating electric sys- 
tems to finance these appliances of tneir members. 

Rural Telephone Loan Program. Loans are 
made to independent telephone companies and co- 
operatives for extending or improvmg rural serv^- 
icc. A specific requirement of rural telephone 
legislation is that the program be conducted so as 
to make telephone service available to the widest 
practical number of rural users. 

Loan Terms. An amendment to the Rural Elec- 
trification Act established the rate of all REA 
loans at 2 percent and fixed the permissible loan 
period at a maximum of 35 years. 

CONTACT 

Applications must be made to Rural Electrifica- 
tion Administration, Department of Agriculture, 
Washington, D.C., 20250. Interested parties 
should secure copies of the recommended printed 
references which specify in detail the procedures 
to be used in making application. 

CURRENT INFORMATION BULLETINS 

"Electric Loan Policy for Section 4 Loans," 
REA Bulletin 20-2. 

"Electric Loan Policy for Section 5 Loans," 
REA Bulletin 24-1. 

"Preloan Procedures for Rural Telephone Co- 
operatives," REA Bulletin 320-1. 

"Preloan Procedures for Telephone Loan Ap- 
plicants," REA Bulletin 320-4. 

THE FOREST SERVICE 

The Forest Service works actively with the eco- 
nomic and busuiess life of conununities through- 
out the country, including small business. Tnis 
is d(Mie through management of 154 National For- 
ests, cooperativ'e work with States, and forestry 
research. 

Each year more than $125 million worth of Na- 
tional-Forest timber is sold to private sawmill 
operators. The Forest Service cooperates with 
the Small Business Administration to make sure 
that small businesses (those with fewer than 500 
employees) get a fair diare of timber sale offers. 
Of some 30,000 timber sales annually, abc^t 90 
percent are made to smaU businesses. 

Many businesses operate on National Forests 
through special use permits issued to individuals 
or firms. These are recreational developments 
such as resorts, boat launching sites, earapgroimds, 
stores, gas stations, and other facilities to serve the 
public. 



FEDERAL HANDBOOK FW 6BCALL BUSINESS 



119 



Forest Service research develops new wood 
products, improves prooessing methods, and opens 
up new markets for forest products. For exam- 
ple, the manufacture of plywood from southern 
pine is a new industry that grew out of Forest 
Service research. Results of this broad research 

J)rogram are available to the public and the entire 
orest products industry. This is especially help- 
txA to small wood-using industries who do not do 
research on their own. 

The Forest Service provides advice and tech- 
nical assistance to State, county, and community 
committees in the development of new business 
and industry from woodland management, proc- 
essing of forest products, and outdoor recreation 
enterprises on private lands. 

For more information, write: Forest Swvice, 
TJ.S. Department of Agriculture, Washington, 
D.C., 20250. 

AGRICULTURAL STABILIZATION AND 
CONSERVATION SERVICE 

■EUTIONSHIPS WITH BUSINESS 

The Agricultural Stabilization and Conservation 
Service requires the services of many businesses 
in supporting prices of farm commodities and in 
disposing of faun surpluses. 

ASCS enters into contracts with business to 
bay, sell, (process, package, stores and transport 
Tarious price-supported and other farm com- 
nodities. 

Certain processed products, particularly dairy, 
am purchased from processors to support farm 
prices of milk and butterfat. Under other sur- 
plus removal operations, processed products are 
purchased to stabilize farm prices and are dis- 
tributed through school lunch programs and wel- 
fare organizations, both at home and abroad. 

Commodities acquired in supporting farm prices 
are offered for sale to the trade to provide supplies 
needed for export and in some instances to aug- 
iMnl supplies for domestic consumption. 

In disposing of price-supported ccMumodities to 
needy persons at hcmie and abroad, services of the 
food waoeasing and packaging industry are 
afledra to transform the raw bulk product as ac> 
quired under th^ support program into a food 
{onoduct or in other instances to put a bulk product 
into consumer-sized packages. 

Seirvioes of the warehouse industry are required 
to store the Commodity Credit Corporation inven- 
tory of price-supported commodities. 

In managing the inventory in a businesslike 
manner, it is often necessary to move commodities 
to more advantageous storage points. Bailroads, 
trucks, and barges are called upon to do this job 
and also to move commodities to ports for export. 

To maintain exports of U.S.-produced farm 
commodities, export payments are made to ex- 
porters to enable them to offset the margin by 

54-543«— 4J6 9 



which domestic prices for farm commodities are 
above worid prices. 

Services of private lending agencies, mostly 
banks, are used for making price-support loans to 
farmers. 

EXTENT OF SERVICES AND RELATIONSHIPS 

CCC is directed by its charter to carry out its 
commodity operations — ^buying, selling, transport- 
ing, warehousing, milling, crushing or such other 
handling as may be nee^d — to the fullest extent 
practicwle by utilizing ^^e usual and customary 
channels, facilities, and arrang^nents of trade and 
commerce." 

Accordingly, ASCS uses storage facilities in 
thousands of warehouses, and uses the service of 
thousands of domestic and ocean earners, proces- 
sors, handlers, cooperative associations and ex- 
porters in carrying out its programs. 

Lending a^ncies help in the price support pro- 
gram by making loans directly to cotton producers. 
Settlement of cotton loans is made in certificates 
of interest Funds are advanced direct to gmin 
farmers on certificates of interest. Lending 
agencies, including local banks, gins and ware- 
houses, may hold these certificates of interest as an 
interest-bearing item, transfer them to another 
bank or cash them throug[h the banking system. 

CCC adapts its operations wherever feasible to 
adopted trade customs and practices. It carries 
on its day-to-day dealing with trade elements 
much as would a commercial corporation conduct- 
ing a commercial-type business. 

Information on CCC-owned commodities avail- 
able for sale is contained in a Monthly Sales List 
issued by CCC on the last day of each month and 
effective for the following month. This list aids 
in moving CCC-owned commodities into domestic 
or export use through regular commercial chan- 
nels. It specifies the kinds of oommodites avail- 
able, the terms and conditions under which the 
commodities are offered, and tlie numbers of the 
different sales announcements. 

The job of carrying out tliese varied activities 
and of guarding the investment of post- farm oper- 
ations for CCC lies primarily in the four ASCS 
Commodity field offices at Evanston, HI., Kansas 
City, Mo., New Orleans, La., and Minneapolis, 
Minn. 

The Evanston and Kansas City offices are grain 
and bean offices. 

The New Orleans office handles the cotton price 
support program. Catalogs for upland and extra 
long staple cotton, showing quantities, qualities 
and locations, are issued every two weeks. They 
may be purchased for a nominal fee. 

The Minneapolis office is responsible for all proc- 
essed products, such as butter, cheese, nonfat dry 
milk, flour, cornmeal, linseed oil, honey and vege- 
table oil products. In addition, this office handles 
a variety of other products which are donated to 



120 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



the national school lunch program and other eligi- 
ble groups. 

Each of these field offices provides warehouse 
handbooks to assist businessmen in filing invoices 
with CCC for storage. 

CONSERVATION 

More than $400 million have been invested in 
conservation each year as result of the Agricul- 
tural Conservation Program. 

Through this program the Grovemment each 
year shares with more than a million land owners 
the cost of increasing soil, water, woodland, and 
wildlife conservation practices on farms and 
ranclies. 

Cost-shares may be in the form of either cash 
or a purchase order for a conservation service or 
material. 

Under tlie cash plan, farmers and ranchers pay 
the total cost of establishing the approved practice 
and later are reimbursed for the Government's 
share of tlie cost. 

Under the purchase order plan, the Govern- 
ment's cost-share is advanced through the purchase 
for farmers and ranchers of a conservation mate- 
rial, such as seed, trees, or essential minerals, or for 
a service, such as earth moving or tree planting. 

Vendors who furnish the material or service bill 
the Government and receive payment for the Gov- 
ernment's share of the cost. Ranchers and farmers 
pay the difference. 

Conservation practices under ACP vary, bring- 
ing divergent activity to the local scene. These 
many activities stimulate need for fuel, tires, ma- 
chinery, and the many other materials and services 
farmers require. They also provide jobs. 

The ACP is administered locally by ASCS offi- 
cials in more than 3,000 agricultural counties, usu- 
ally located in county seat towns or cities. 

STORAGE 

Also stimulating the local economy is the storage 
program under which farmers borrow money from 
CCC to build new on-the-farm storage space to 
house commodities they put under price support. 
From July 1949 through November 1963, CCC had 
made about 182,000 loans. These loans are repaid 
in four installments over a period of 5 years, at 
4 percent interest. 

To keep commodities in on-the-farm storage in 
sound condition, 10,200 loans were made from De- 
cember 1949 to November 1963 for drying equip- 
ment. Drymg equipment loans are payable in 
three installments over a period of 3 yeara, also 
at 4 perc<ent interest. 

WHERE AND HOW SERVICES MAY BE OBTAINED 
BY BUSINESSMEN 

Interested businessmen are invited to write to 
Uie Agricultural Stabilization and Conservation 
Service, U.S. Department of Agriculture, Wash- 



ington, D.C., 20250, with respject to all commodi- 
ties, or for specified commodities to the designated 
ASCS commodity office. 

To be placed on the mailing list to receive CCC 
Monthly Sales List, address: Director, Procure- 
ment and Sales Division, ASCS, U.S. Department 
of Agriculture, Washington, D.C., 20250. 

To receive offers based on announcements for 
purchasing or processing dairy products, other 
than those owned by CCC, milled rice, rolled 
wheat, bulgur, rolled oats and fats and oils, ad- 
dress : Director, Procurement and Sales Division, 
ASCS, U.S. Department of Agriculture, Washing- 
ington, D.C., 20250. 

To receive offers based on aimouncements for 
packaging or processing dairy products owned by 
CCC, address : Director, Minneapolis ASCS Com- 
modity Office, 6400 France Avenue, South Min- 
neapolis, Minn., 55410. 

Programs on peanuti?, tobacco, and rosin are 
handled in producticm areas by associations of pro- 
ducer cooperatives working under contractual 
agreements with CCC. For their names and loca- 
tions, address: Director, Producer Associations 
Division, ASCS, U.S. Department of Agriculture, 
Washington, D.C., 20250. 

GRAIN OFFICES 

Evanston ASCS Commodity Office, 2201 Howard 
St., Evanston, 111., 60202. Tel: Long Dis- 
tance — University 9-0600 (Evanston exchange) 
local— Rogers Park 1-5000 (Chicago, 111). 
(Connecticut, Delaware, Florida, Georgia, Illi- 
nois, Indiana, Iowa, Kentucky, Maine, Mary- 
land, Massachusetts, Michigan, New Hampshire, 
New Jersey, New York, North Carolina, Ohio, 
Pennsylvania, Rhode Island, South Carolina, 
Tennessee, Virginia, Vermont, and West 
Virginia.) 

Branch Office — ^Minneapolis ASCS Branch 
Office, 310 Grain Exchange Building, Minneap- 
olis, Minn., 55415, Tel: 334^2051. (Minnesota, 
Montana, North Dakota, South Dakota, and 
Wisconsin.) 
Kansas City ASCS Commodity Office, 8930 Ward 
Parkway (P.O. Box 205), Kansas City, Mo., 
64141. Tel: Emerson 1-0860. (Alabama, Ar- 
kansas, Colorado, Kansas, Louisiana, Missis- 
sippi, Missouri, Nebraska, New Mexico, Okla- 
homa, Texas, and Wyoming.) 

Branch Office— Portland ASCS Branch Of- 
fice, 1218 Southwest Washington Street, Port- 
land, Oreg., 97205. Tel: Capitol 6-3361. 
(Alaska, Hawaii, Idaho, Nevada, Oregon, Utah, 
and Washington, and Arizona and California 
(export sales only).) 

Branch Office— Berkeley ASCS Branch Of- 
fice, 2020 Milvia Street, Berkeley, Calif., 94704. 
Tel : Thomwall 1-5121. (Arizona and Califor- 
nia (domestic sales only) .) 



FEDERAL HANDBOOK JFOR SMALL BU8INEBS 



121 



PROCESSED COMMODITIES OFFICE— (AU States) 

Minneapolis ASCS Commodity Office, 6400 
France Avenue, Sooth Minneapolis, Minn., 
65410. Tel:3a4-8200 

COnON OFFICES— (All Stotes) 

New Orleans ASCS Commodity Office, Wirth 

Building, 120 Marais Street, New Orleans, La., 

70112. Tel: 529-2411. 
Cotton Products and Export Operations Office, 80 

Lafayette Street, New York, N. Y., 10013. Tel : 

Hector 2-8000. 

Representative of General Sales Manager, New 
York area: Joseph Reidinger, 80 Lafayette 
Street, New York, N.Y., 10013. Tel : Rector 2- 
8000. 

Representative of €reneral Sales Manager^ West 
Coast Area: Callan B. Duffy, Balboa Building, 
593 Market Street, San Francisco 5, Calif. Tel : 
Sutter 1-^179. 

CONSUMER AND MARKETING SERVICE 

GENERAL 

Small businessmen can benefit particularly from 
many of the programs of the Consumer and Mar- 
keting Service (established in Februaiy 1905). 

These fall into broad groupings of Marketing 
Services, Regulatory Programs, CSmsumer Protec- 
tion, and Consumer Food Programs. 

MARKETING SERVICES. 

^Market News*^ reports on supply, demand, 
prices, and movement of all major farm conunod- 
ities, issued daily (or seasonally for some com- 
modities), provide small businesses with market 
information that narrows their handicap in com- 
peting with larger organizations. 

Standards^ grades and grading, acceptance serv- 
ices, and cotton classing offer small businesses a 
uhiversal language of trade, and a variety of serv- 
ices that let them buy agricultural products, even 
in distant markets, without a personal represent- 
ative to examine tlxem; or sell agricultural prod- 
ucts to distant customers — with assurance the 
quality will be as agreed upon. Although used by 
large companies as well, these services are espe- 
ciaSy helpful to smaller companies that cannot 
afford extensive brand promotion or sales repre- 
sentatives. 

REGULATORY PROGRAMS 

The Packers and Stockyards Act makes it un- 
lawf cd for any packer or any live poultry dealer 
or handler to do anyUiing that has the effect of 
creating a monopoly, manipulating prices, or re* 
straming. commerce. It is representative of many 
laws administered by the C^IS to maintain fair 
play and competition in-marketing — with the effect 



of helping many small businesses escape being 
squeezed out. 

The United States WareJiouse Act established a 
program both voluntary and regulatory. Busi- 
nessmen who choose to apply for Federal ware- 
house licenses, furnishing the bonds and permit- 
ting the inspections that go along with it. ^ain 
several advantages--chiefly the confidence of £eir 
customers, and the ability of the owners of stored 
products to use warehouse receipts as security for 
loans. 

CONSUMER PROTECTION 

Inspection of farm products (compulsory for 
meat and poultry sold across State lines and volun- 
tary for many other products) helps make U.S. 
food the safest, most wnolesome in the world. Be- 
lated requirements of plant sanitation and proper 
labeling of products build customer confidence in 
businesses, large and small — ^so much so that many 
companies advertise the fact their products have 
been inspected or graded by the USDA. 

CONSUMER FOOD PROGRAMS 

Cmmnodity Distribution Programs are a meet- 
ing point for programs to make sure that all Amer- 
icans (and many people in other lands) are ade- 
quately fed, and programs to make sure that farm- 
ers get decent incomes. Sometimes this means 
Federal purchase of processed or perishable foods 
specifically for distribution to low-income fami- 
lies, to institutions, or to schools. In general, small 
businesses are assured of an opportunity to share 
fairly in supplying such commodities. 

The National School Lunch Program, requiring 
that Federal funds be matched at least three to one 
from State and local resources, creates local mar- 
kets for foods worth $700 million to $800 million. 

The Special Milk Program, through cash pay- 
ments to schools and child care institutions, en- 
larges this local market for foods still more. 
' Small businesses would do well to study their po- 
tential for sharing in these local markets. 

The Food Stamp Program, made permanent in 
1964 after a 3-year tryout, is expanding steadily 
to more areas and more people. Wherever it goes, 
local grocers and the many businesses that supply 
or service them are benefiting from the added 
food-buying power of low-income customers. 

I'he Plentiful Foods Program helps all parts of 
the food industry, in many ways, to merchandise 
more of the foods that are particularly abundant 
at any given time. 

CONTACT 

Further information can be obtained from the 
Consumer and Marketing Service, U-S. Depart- 
ment of Agriculture, WashingUm, D.C., 20260; or 
from any of the following area offices of the In- 



122 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



formation Division, Consumer and Marketing 
Service, U.S. Department of Agriculture: 



50 Seventh Street NB., 
Atlanta, Ga. 30323 

536 South Clark Street 
Chicago, 111. 60605 

500 South Brvay Street, 
Dallas, Tex. 75201 



346 Broadway 

New York, N.Y. 10013 

630 Sansome Street, 
San IYanci8C0, Calif. 
94111 



COMMODITY EXCHANGE AUTHORITY 

The Commodity Exchange Authority provides 
reguhition of futures trading on licensed com- 
modity exchanges. The agency maintains re- 
gional offices in Chicago, Minneapolis, Kansas 
City, New York and New Orleans. Major pur- 
poses of regulation by the agency are to maintain 
fair trading practices and competitive prices on the 
exchanges and to prevent price manipulation and 
other violations of the Commodity Exchange Act. 
Quotations from tlie exchanges are used for price 
basing of such leading commodities as wheat, corn, 
cotton, wool, soybeans, and vegetable oils, and 
their products and byproducts. The proper func- 
tioning of futures trading and pricing thus has a 
significant bearing on prices to producers and con- 
sumers. Regulatory services of the Commodity 
Exchange Autliority include daily surveillance of 
large tradei's' operations, registration and auditing 
of brokerage firms to protect commodity customers 
funds, and investigations to provide evidence in 
prosecutions of persons and finns charged with 
violation of the Commodity Exchange Act. 

CEA REGIONAL OFFICES 

Commodity Exchange Authority, 
U.S. Department of Agriculture, 
141 West Jackson Boulevard, Room 1200. 
(Chicago, 111., 60604. 

Commodity Exchange Authority, 
U.S. Department of Agriculture, 
854 Board of Trade Building, 
Kansas City, Mo., 64105. 

Commodity Exchange Authority, 
U.S. Department of Agriculture, 
44 Beaver Street, Room 1202, 
New York, N.Y., 10004. 

Commodity Exchange Authority, 
U.S. Department of Agriculture, 
510 Grain Exchange Building, 
Minneapolis, Minn., 55415* 

Commodity Exchange Authority, 
U.S. Department of Agriculture, 
508 Cotton Exchange Building, 
New Orleans, La., 70130. 

FEDERAL CROP INSURANCE CORPORATION 

Federal Crop Insurance has a double value to 
its farmer-pohcyholders and to the community 
and businessmen affected when crop failure occurs. 
It provides indemnity checks to replace money lost 
in the effort to produce a crop, and collateral for 
credit to continue farming. 



Collateral assignments accepted on Federal 
Crop Insurance policies amount to several mil- 
lions of dollars annually. Assignments against 
individual policies sometimes exceed $100,000. 

Benefits of Crop Insurance extend far beyond 
the farmer. When crop disaster strikes, the stabi- 
lizing influence of Crop Insurance is of real value 
not only to the insured fanner, but those with 
whom he trades or from whom he borrows money. 
It has become almost automatic, when the impact 
of crop disaster is felt, for the farm and business 
community to request help from the Federal Gov- 
ernment. They seek it for the very reason that 
Federal Crop Insurance was initiated and oper- 
ates — to cushion the shock of the financial impact 
when there is little or no crop to sell or feed. 

Bankers and others who extend credit on the 
basis of a crop mortgage realize that such col- 
lateral has value only if a crop is produced. How- 
ever, this fact does not keep them from getting 
caught along with the farmer when crop disaster 
strikes. 

Federal Crop Insurance is available in over 1,200 
counties. Congress allows an addition of 150 coun- 
ties yearly if funds are available. It insures 
against crop loss from drought, insect infestation, 
plant disease, flood, hail, wind, frost, freeze, ex- 
cessive rain, hurricane, tornado, and over 100 other 
unavoidable causes. 

To put up his Crop Insurance policy as collat- 
eral for a loan or credit, an insured farmer need 
only file an assignment form at the county Crop 
Insurance office. The Corporation will then pay 
an indemnity due by a joint check to the insured 
and the person or firm in whose favor the assign- 
ment was executed. 

For more information, write: Federal Crop 
Insurance Corporation, U.S. Department of Agri- 
culture, Washington, D.C., 20250. 

ECONOMIC RESEARCH SERVICE 

The Economic Research Service conducts re- 
search in agricultural economics and marketing, 
both domestic and foreign commerce. 

Economic and Statistical Analysis. — Includes 
broad economic research and analysis on factors 
affecting agricultural prices and income, commod- 
ity outlook and situation, food demand and con- 
sumption, and relationships between agriculture 
and the national economy. 

Marketing Econoinics, — ^Marketing research is 
concerned with market costs, structure, and devel- 
opment, market potentials, and the distribution 
and merchandising of agricultural products. 
Studies are conducted to determine the potentials 
for market expansion of agricultural products. 
Cost analysis research is conducted on the market- 
ing of crops and animal products to determine 
ways of increasing efficiency and reducing costs, 
increasing I'etums to growers and providing con- 



FEDERAL HANDBOOKvFOE SMALL BUSINESS 



123 



sumers with the choices they desire. The research 
results are widely disseminated. 

Farm Production Eoonomics, — Research is con- 
ducted on the economics of farm organization and 
management, financial requirements and returns, 
adjustments in production to prospective market 
demands and changing technology, development 
of measures of output and productivity, and ap- 
praisal of alternative agricultural production poli- 
cies and programs. 

Natural Resource Economics, — Studied are the 
economics of use, conservation, development, man- 
agement, and control of natural resources and their 
relationship to general economic activity. In- 
cluded are economic analyses of land and water 
resources, and the economic and social conditions 
affecting their use. 

EcoTwmic Development Research, — ^A broad re- 
search program is conducted on economic advance- 
ment of rural areas, the opportimities and employ- 
ment available to the people in these regions, and 
the factors affecting them, such as local govern- 
ments and other organizations. Special attention 
is given to problems of poverty among rural 
people. 

Foreign Regional Analysis, — Effort is on eco- 
nomic analyses and interpretations of conditions 
and development affecting supply, demand, and 
trade in farm products in foreign countries and 
iheir impact on U.S. agricultural exports. Stud- 
ies are conducted on flie long-range outlook for 
U.S. agricultural exports, based in part on re- 
search contracts with foreign institutions to 
n'ect. the demand and supply of farm products 
areign countries for several years. 

Foreign Development and Trade, — Economic 
development processes in foreign countries are 
analyzed to ascertain the contribution of agricul- 
tural development to general economic growth, the 
priority of various aspects of agricultural develop- 
ment, trends in national income, and economic ef- 
fects of present and proposed Food for Peace pro- 
grams. 

STATISTICAL REPORTING SERVICE 

The Statistical Reporting Service prepares es- 
timates and reports of production, supply, price, 
and other aspects of the agricultural economy. 
These include prices received by f armei^s for prod- 
ucts sold and prices paid by farmers for com- 
modities and services; preparation of indexes of 
prices received and paid; and computation of 
parity prices, farm employment, and wage rates. 

The reports include statistics on field crops, 
fruits and vegetables, and numbers of milk cows, 
livestock, livestock products, and poultry. 

Other activities involve statistical standards, 
methodological research, automatic data process- 
ing, and special consumer surveys for the Depart- 
ment of Agriculture. 



For lists of publications and research reports, 
including annual and monthly summaries, write 
to Division of Information, OMS, U.S. ^Depart- 
ment of Agriculture, Washington, D.C., 20250. 

NATIONAL AGRICULTURAL LIBRARY 

The National Agricultural Library cooperates 
jointly with the other national libraries, to collect, 
on a worldwide basis, publications in the sciences 
and organize them for best use. Its services are 
made available not only to the Department of 
Agriculture but throughout the world to research 
and educational institutions, scientists, industry, 
and the general public. 

With resources of about 1,248,000 volumes, it is 
the largest agricultural library in the United 
States, covering the field of agriculture in its 
broadest sense — ^botany, zoology, chemistry, veter- 
inary medicine, forestry, plant pathology, live- 
stock, poultry, entomology, and general agricul- 
ture. Publications are received regularly from 
more than 200 countries, printed in approximately 
50 different languages. 

Information contained in the Library's col- 
lection is made available through loans of publi- 
cations, reference services, photocopies oi ma- 
terials and bibliographies. 

For more inf oimation, write : Program Coordi- 
nation Services, National Agricultural Library, 
U.S. Department of Agriculture, Washington, 
D.C., 20250. 

AGRICULTURAL RESEARCH SERVICE 

Managers of small businesses involved in the 
production, processing, or marketing of goods — 
particularly those related to agriculture — can ben- 
efit in many ways from Agricultural Research 
Service programs. At the end of the fiscal year 
1966, for example, there were 1,327 unexpired 
public service patents available for licensing. 
Manv of these patents, all stemming from agricul- 
tural research, cover processes now being used by 
small businessmen. 

In agricultural engineering, for example, I'e- 
search on farm equipment benefits not only the 
small busineiss farmer who uses the equipment but 
also the small businessman who manufactures 
it. * * * In the area of marketing, numerous 
managers of egg crating and packaging plants 
have been able to mechanize their plants because of 
automatic candling equipment — an outcome of 
agricultural research. * * * Many businesses — ^both 
large and small — are licensed to use patents that 
have come out of utilization research. Examples 
are businesses that produced dehydrated potato 
products and concentrated fruit juices. 

Information concerning patents may be obtained 
by writing to the Agricultural Research Service, 
U.S. Department of Agriculture, Washington, 
D.C., 20260. 



124 



^DERAL HANDBOOK FOR SMALL BUSINESS 



Small businessmen are in regular contact with 
USDA's four Utilization Research and Develop- 
ment Divisions, where they obtain information on 
new or improved methods of utilizing agricultural 
materials, wastes, and byproducts. 

Broiler plant operators faced a problem, for ex- 
ample, of getting rid of feathers — until utilization 
re-search found that they could be used in feed. 
Not only did the broiler oi)erators benefit, but 
feed processors did, too. 

USDA's four Utilization Research and Devel- 
opment Divisions, and their areas of work, are 
listed here and may be contacted with specific re- 
quests for information. 

The Northern Division, 1815 North University 
Street, Peoria, 111., conducts research on corn, 
wheat, and other cereal grains, soybeans, flaxseed, 
and other oilseeds of the region, and new crops to 
serve as profitable alternates to those in surplus. 

The Eastern Division^ 600 East Mermaid Lane, 
Philadelphia 18, Pa., conducts research primarily 
on livestock and dairy products and byproducts, 
eastern fruits and vegetables, and tobacco. 

The Southern Division, Post Office Box 19687, 
New Orleans 19, La., conducts research on cotton 
and cottonseed, rice, citrus and other fruits of the 
region, sweetpotatoes and other southern vege- 
tables, peanuts, and pine-gum products. 

The Western Division, 800 Buchanan Street, Al- 
bany 10, Calif., conducts research on western 
fruits and vegetables, wheat, barley, rice, poultry, 
and eggs, sugarbeets, wool, alfalfa and otner for- 
age crops. 

Results of agricultural research of interest and 
use to small businessmen are published regularly 
in trade papers, magazines, and newspapers. 
Trade groups keep in touch with this work 
through research advisory comniittees. At each 
of the four ARS utilization research division lab- 
oratories, a technically trained official is designated 
as liaison between the utilization division and in- 
dustry. And USDA representatives attend meet- 
ings of industrial associations and discuss research 
results that pertain to many fields of interest to 
small businessmen. 

Publications aimed specifically at helping a 
given trade are made available by the USDA. 
And frequently, when a research project has been 
completed and tested in a pilot plant, representa- 
tives of industrial groups are invited to see the 
operation and to discuss the possibilities of com- 
mercial adaptation. 

FOREIGN AGRICULTURAL SERVICE 

The Foreign Agricultural Service administers 
several programs which are of both immediate 
and long-range benefit to small business. Chief 
of these are a foreign market development pro- 
gram carried out in cooperation with agricultural 
trade organizations, sales of agricultural commod- 



ities on special terms under the Food for Peace 
program, a worldwide agricultural intelligence 
system through agricultural attaches abroad, and 
a continuing program of activities designed to im- 
prove access to forei^ markets for U-S. farmers 
and agricultural tradmg firms. 

The market development program is designed 
to develop increased markets for U.S. farm prod- 
ucts in coimtries that buy for hard currencies. 
While promotional work is done chiefly by trade 
organizations, it is U.S. business firms which make 
the actual sales. 

Approximately 50 trade organizations partici- 
pate in this program. They carry on foreign pro- 
motion in behalf of producers, processors, handlers 
and exporters of farm commodities. Among the 
products represented are cotton, dairy products, 
poultry, dairy cattle, soybeans and soybean prod- 
ucts, dried fruits, citrus fruits, cranberries, canned 
fruits, deciduous fruits, wheat and flour, feed 
grains, rice, drv beans and peas, seeds, lard, tallow, 
leather, beef, beef cattle, tobacco, and processed 
foods. Firms handling these or other exportable 
agricultural products may obtain additional infor- 
mation about the export market by communicat- 
ing with their national association or writing to 
Foreign Agricultural Service, U.S. Department of 
Agriculture^ Washington, D.C^20250. 

The Foreign Agricultural Service also makes 
available to U.S. farmers, processors, exporters, 
and other small business groups a wide ran^e or 
information to aid foreign marketing. This in- 
formation is published in the weekly magazine, 
"Foreign Agriculture," and in foreign agricul- 
ture circulars issued at irregular intervals. These 
publications cover such topics as world agricul- 
tural production, foreign competition, market 
prospects, trade promotion^ and many other topics 
of concern to U.S. business m making necessary ad- 
justments to meet changing market situations 
abroad. "Foreign Agriculture" is available on a 
subscription basis to business firms at $7 a year. 
Subscription orders should be placed with Super- 
intendent of Documents, Government Printing 
Office, Washington, D.C., 20402. Write to For- 
eign Market Information Division, Forei^ Agri- 
cultural Service, U.S. Department of Agriculture, 
Washington, D.C, 20250, for a sample copy of 
"Foreign Agriculture" or to be placed on the free 
list for foreign agriculture circulars. 

The Food for Peace program makes farm com- 
modities available on special terms to foreign 
countries that cannot pay cash. This provides im- 
mediate market outlets for U.S. agricultural busi- 
ness firms. It also stimulates the economic devel- 
opment of the recipient countries and speeds the 
time when they will be cash customers of U.S. 
business. 

In this program, the Foreign Agricultural Serv- 
ice issues authorizations for purchase of commodi- 
ties for shipment under Title I {sales for foreign 



FEDERAL HANDBOOK FOB GMAUj BUSINESS 



125 



currencies) and Title IV (long-term dollar 
credits). The actual exports in both cases are 
made by private U.S. business firms which deal 
with authorized purchasing agents of the recip- 
ient countries. 

For further information, write Program Opera- 
tions Division, Foreign Agricultural Service, U.S. 
Department of Agriculture, Washington, D.C., 
20250. 

HOW THE DEPARTMENT OF AGRICULTURE 
SERVES YOU 

Every day your life and the lives of your family 
and friends are benefited by the services of the U.S. 
Department of Agriculture. It is involved direct- 
ly or indirectly with — 

The food on your table, 

The cotton or wool in your clothes. 

The wood in your house and its furnishings. 

HOW IT STARTED 

In 1862 President Lincoln approved an Act of 
Congress creating the Department of Agriculture 
"the general design and duties of which shall be to 
acquire and diffuse among the people of the United 
States useful information on subjects connected 
with agriculture in the most general and compre- 
hensive sense of that word * * *." 

In 1889 the Department, again by Act of Con- 
gress, became the eighth Executive Department in 
the Federal Government with Cabinet rank. 

HOW IT WORKS 

In Washington, D.C., the Secretary of Agricul- 
ture and his staflf direct the programs and activi- 
ties assigned to the Department oy Congress. In 
every part of the United States, and in many for- 
eign countries, employees administer programs 
and carry out responsibilities authorized by 
Congress. 

As new laws have been added to its functions, 
the Department has grown. It currently is or^- 
nized mto various service and administrative 
agencies, which are divided into major groups. 
(See p. 128.) An Assistant Secretary or other 
designated official heads each group and interprets 
and executes its policies. 

RELATIONSHIP TO LAND-GRANT COLLEGES 

In 1862 Congress passed and President Lincoln 
signed the Land-Grant College Act. This Act do- 
nated 11 million acres of public lands to the States 
and Territories to provide colleges for the benefit 
of agriculture and the mechanical arts. 

This Act was followed by others to strengthen 
the experimental and extension activities of the 
States in their relations with the Department. 

In 1887 Congress authorized an agricultural 
expei-iment station in each State and Territory. 

In 1914 it established the Cooperative Extension 
Service to extend agricultural and home economics 



research information of tJie Department and land- 
grant colleges to farmers and other people. 

AaiVITIES OF USDA 
RESEARCH 

Five USDA agencies conduct and administer i*e- 
search. The Director of Science and Education 
coordinates the work. 

The Department works closely on research pro- 
grams with State experiment stations, State de- 
partments of agriculture, schools of forestry, and 
cooperative and other public and private agencies. 
It administers Federal-grant funds voted for the 
States by Congress. 

Agriculturol Reseorch Service. Carries out re- 
search on crops, soil and water conservation, a^- 
cultural engineering, livestock, human nutrition 
and home economics. Also develops new and ex- 
panded uses for farm conmiodities. 

Conducts and administers a research program, 
using the physical and biological sciences to solve 
problems of market quality, transportation, and 
facilities. 

Conducts control and regulatory programs, in- 
cluding plant and animal quarantines, meat in- 
spection, and others. 

Cooperative State Research Service. Adminis- 
ters Federal-grant payments to States under 
Hatch Act of 1955 and Mclntire-Stennis Coopera- 
tive Forestry Research Act of 1962, for research 
at the agricultui-al experiment stations and eligible 
schools of forestry. Assists State experiment sta- 
tions and USDA agencies in planning and co- 
ordinating scientific research programs. 

Economic Research Service. Does research in 
general economic and statistical analysis, mar- 
keting economics, farm and resource economics, 
and S)reign economic analysis. 

Farmer Cooperative Service. Carries on re- 
search to help farmers market their products, pur- 
chase supplies, and obtain other business services 
through cooperatives. 

Forest Service. Conducts research on growing 
and harvesting timber; improving water and 
range i-esources; protecting forests from fire, in- 
sects, and disease; the use of wood products and 
developing new ones; and improving methods of 
marketing forest products. 

EDUCATION 

Cooperative Extension Service is the field edu- 
cational arm of the Department and land-grant 
colleges. Its work is jointly sponsored and 
financed by Federal, State, and local governments. 
The Federal Extension Service i-epresents USDA 
in this activity. 

In every rural county, extension workei*s con- 
duct an educational program designed to help 
farm families and others use research findings and 
other Grovemment aids. Through this program 
. extension workers provide assistance toward more 



126 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



efficient production and marketing of agricultural 
products, improved family living, and the ad- 
vancement of community affairs. 

Farmer Cooperative Service carries on educa- 
tional work to help farmers improve the effective- 
ness of their cooperatives. In these activities it 
cooperates with land-grant colleges, State eitten- 
sion offices and county agents, and with coopera- 
tives, and the State and national organizations 
representing these farmer businesses. 

The National Agricultural Library, largest agri- 
cultural library in the world, extends services to 
researchers, other libraries, institutions, and the 
general public; provides, at cost, microfilm and 
photocopy service of material in the collection; 
and issues monthly Bibliography of Agriculture^ 
a comprehensive index to current agricultural 
literature. 

INFORMATION 

Each USDA agency provides information on its 
work for farmers, homemakers, and others. Tlie 
Office of Information coordinates : 

Pul)licatio7is^ technical and popular, which pre- 
sent research results, program, regulatory, and 
otlier information on the work of TJSDA. 

Current information^ which includes press, 
radio and television materials, and special reports. 

Vlnuah, which include exliibits, photos, graph- 
ics, and motion pictures. 

MARKETING 

The Consumer and Marketing Service carries out 
marketing and distribution programs and works 
with States on marketing problems. 

Administers sev^eral regulatory acts i-elating to 
the marketing of farm products, and the national 
school lunch, food stamp, and other food distribu- 
tion and surplus removal programs. 

Administers marketing agreements and orders 
for milk, fruits and vegetables, and issues volun- 
tary acreage marketing guides for vegetables. 

Develops standards ; grades and inspects a wide 
range of farm products. 

Collects and disseminates market news on fann 
products in major producing and marketing areas. 

The Commodity Exchonge Authority keeps watch 
on and investigates traders' and bix)kers' opera- 
tions on commodity exchanges, to prevent price 
manipulation and ifraud, and to safeguard pro- 
ducer and consumer interests in pricing and mar- 
keting services of exchanges. 

CONSUMER SERVICES 

Consumers benefit from the work of all USDA 
agencies. Research is constantly serving the pub- 
lic interest through better plants and animals, 
food and nutrition, pest controls, and a host of 
other ways. 

(Consumers also gain through inspection and 
grading, school lunches, rural housing, electrifica* 
tion, conservation, and outdoor recreation pro- 



grams. Send your name, address, and ZIP Code 
on aoostcard to Office of Information for a copy 
of "Consumer's Guide to USDA Service." Ask 
for MP 959. 

INTERNATIONAL AFFAIRS 

The Foreign Agriculturol Service administers 
USDA foreign programs in the interest of U.S. 
agriculture, with special emphasis on market pro- 
motion abroad. Attaches at 61 foreign posts 
maintain a constant flow of world agricultural 
intelligence. 

The International Agricultural Development 
Service coordinates the Department's participation 
in overseas t-echnical assistance programs. Its 
work includes sending agricultural teclinicians 
abroad, and training foi-eign specialists in the 
United States. 

ECONOMICS 

The Economic Reseorch Service analj^zes factors 
affecting farm production, prices and mcome, and 
the outlook for various commodities. It studies 
production efficiency, marketing costs and poten- 
tials, rural development, and agricultural finance 
problems. It also analyzes foreign agricultural 
ti*ade, production, and Government policies. 

The Statistical Reporting Service reports on crop 
and liv^estock production and prices paid and re- 
ceived by farmers; conducts surveys of consumer 
purchases and attitudes, and seelvs to improve 
statistical methods in the Department. 

CONSERVATION 

The Agricultural Stabilizotion and Censervotien 
Service administers tlie national Agricultural Con- 
servation program that yearly shares with more 
than one million fanners and ranchere costs of ap- 
proved soil and water conserving practices. 

The Soil Conservation Service develops and car- 
ries out a national soil and water conservation pro- 
gram through 2,900 soil conservation districts. 

Has USDA leadership for: Watershed protec- 
tion projects, Great Plains Conservation Program, 
resource conservation and development projects, 
income-producing recreation enterprises, river 
basin investigations, and flood damage reduction 
in 11 major watereheds. 

Administers the Federal part of the National 
Cooperative Soil Surv^ey. 

Makes and coordinates snow sur\'eys for water 
forecasting in the Western States. 

The Forest Service administers the National 
Forest System — 186 million acres of forests and 
grasslands — for the best use and conservation of 
their resources, including water, timber, outdoor 
recreation, wildlife, and range. It manages pub- 
licly owned watersheds to regulate streamflow, 
control floods, protect water sources for industrial 
power, irrigation, and home use. It carries on co- 
operative work with States to aid private forest 
landowners. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



127 



STABILIZATION 

The Agricultural Stabilization and Conserva- 
tion Service is responsible for — 

• Acreage allotments and marketing quotas, to 
help keep supi)lie8 in line with demand. 

• Feed grain program, to divert corn, barley, 
and grain soi^hiun acreage to conservation use. 

• Voluntary wheat program providing to co- 
operators domestic and export certificates, price- 
suppoit loans, and payments for diversion of 
wheat acreage to conservation use. 

• Cotton choice program providing domestic 
and export acreage allotments and price-support 
payments and loans to cooperators. 

• Equalization payment for cotton designed to 
remove price inequity between domestic and for- 
eign users of U.S. cotton. 

• Cropland conversion program, <m a pilot basis 
in 1963, to shift umieedea cropland to other uses 
such as grassland, trees, wildlife habitat, and rec- 
reational facilities. Continued administration 
of Conservation Reserve under which cropland has 
been shifted to conservation use. 

• Price support for numerous commodities and 
management or commodity inventory. 

• Reduction of surpluses through sales, trans- 
fers and other means. Assist Foreign Agricul- 
tural Service in foreign sales^ donations, and bar- 
ter of surpluses under Public Law 480 and the 
Agricultural Marketing Service in donating sur- 
plus commodities tlirough domestic channels. 

• Helping obtain adequate farm and commer- 
cial stora^ for farm products. 

• Administering tne Sugar Act, the National 
Wool Act, and the International Wheat Agree- 
ment. 

• Assisting farmei*s in designated areas to meet 
conditions caused by natural disasters and other 
emergencies. 

The Commodity Credit Corporation with its $14,- 
600,000,000 borrowing authority, finances such 
programs as price support, domestic and export 
surplus commodity disposal, foreign assistance, 
storage activities, and other varied operations of 
the U.S. Department of Agriculture. 

The Federal Crop Insurance Corporation pro- 
vides farmers "all risk" insurance protection of 
Eroduction expenses against unavoidable causes 
Byond their control such as weather, insects, and 
diseases. FCIC protection is available in more 
than one-third of the Nation's farm counties. 

RURAL AREAS DEVELOPMENT 

Through Rural Areas Development (RAD), rural 
people work together in an organized fashion to 
improve their communities, to create new economic 
opportunities, and to upgrade their skills and hu- 
man resources. The Department of Agriculture 
helps local people organize and survey their re- 
sources. Local people on the BAD committee de- 
cide what will be aone, when, and how. USDA 
field i)ersonnel form a Technical Action Panel to 



work with the local organization in an advisory 
capacity and to help bring to the community the 
services of other Federal and State agencies. 

The Rural Commiiiiify Development Service has 
general responsibility to coordinate and expedite 
rural areas development programs at the Federal 
level, and to arrange full utilization of the Depart- 
ment's resources in advancing rural development 
objectives. 

The Farmers Home Administration strengthens 
family farm and rural communities through credit 
accompanied by technical farm and financial man- 
agement assistance. 

Funds are advanced for farm operating ex- 
penses, the purchase, enlargement, and improve- 
ment of family farms, construction of rural nomes 
and farm buildings, development of rural com- 
munity water systems and recreational facilities; 
rural renewal projects, watershed development, 
soil and water conservation, shifts in land use, 
housing for senior citizens, farm labor housing, 
and the emergency credit needs of farmers. 

Loans supplement and in no case compete with 
credit provided by other lenders. There is an 
FHA office serving every rural county of the 
United States. 

The Rural Electriflcotion Administration makes 
long-term loans to provide initial and continuing 
electric service in unserved rural areas. Most bor- 
rowers are nonprofit, consumer-owned coopera- 
tives. 

REA also makes loans to extend and improve 
telephone service in rural areas. Loans are made 
to telephone companies and to nonprofit associa- 
tions. 

Other USDA agencies that aid in rural areas 
development include Agricultural Stabilization 
and Conservation Service, Agricultural Research 
Service, Federal Extension Service, Forest Serv- 
ice, Soil Conservation Service, Farmer Coopera- 
tive Service, Consumer and Marketing Service, 
Cooperative State Research Service^ Federal Crop 
Insurance Corporation, and Statistical Reporting 
Service. 

EMERGENCY PROGRAMS 

An emergency organization has been set up with- 
in USDA at national. State, and county levels to 
handle both natural disasters and defense pro- 
grams. A special assistant to the Secretary co- 
ordinates and directs this work. 

Those administering programs to feed people 
and to help farmers affected by floods, drought 
and other natural disasters would use this experi- 
ence to meet USDA responsibilities in case of nu- 
clear war. In the national defense program, 
USDA is responsible for food from farmer to 
retailer, for emergency food stockpiling, for 
radiological defense and fire control in rural areas, 
and biological and chemical warfare defense for 
animals and crops. 



128 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



HOW USDA IS ORGANIZED 

SECRETARY 
Undeb Secoietabt 



Deputy Under Secretary 
General Counsel 



Staff Assistants 
Inspector General 



Departmental Adi£inibtration 

Administrative Assistant Secretary 
Budget and Finance, Office of 
Hearing Examiners, Office of 
Information, Office of 
Management Appraisal and Systems Deyelop- 

ment, Office of 
Management Services, Office of 
Personnel, Office of 
Plant and Operations, Office of 

AOBICULTURAL ECONOMICS 

Director 

Economic Research Service 

Statistical Reporting Service 
Bubal Development and Ck)N8EBVATiON 
Assistant Secretary 

Farmer Cooperative Service 

Farmers Home Administration 



Bubal Development and Consebvation — Continued 
Assistant Secretary — Continued 
Forest Service 

Rural Community Development Service 
Rural Blectriftcation Administration 
Soil Conservation Service 
Aobicultubal Stabilization 
Under Secretary 

Agricultural Stabilization and C'OiiservatioH 

Service 
Commodity Credit Corporation 
Federal Crop Insurance Corporation 
Intebnational Affaibs 
Assistant Secretary 

Foreign Agricultural Service 
International Agricultural Development Service 
Mabketing and Consumes Sebvices 
Assistant Secretary 

Commodity Exchange Authority 
Consumer and Marketing Service 
Science and Education 
Director 

Agricultural Research Service 
Cooperative State Research Service 
Federal Extension Service 
National Agricultural Library 
Washington, D.C. Revised December, 1965 



FEBfiRAIif HANDBOOK FOR iMiOiU BOSQOIM 



129 



-71 




a Si OEPAin'MEKT OF AGRICULTURE OFFICE OF IMFORMATION WASHINGTON n,O.C 

HOW To Get Intbrmatfon 

FROM THE U. s/ DEPARTMENT OF AGRICULTURE 



]|«Tl0«d Iforoh 1965 



Shit list ^iTes sottroei of infoxm^tion itt tha U&DA Office of Inforaaiion laid tb« Tftriout 
agenoiet of tha Department* The chart oa the laat page ahowa the reXationahip of one 
•geno/ to another. 

CUiestiona nay be mailed to the Office of Information^ V. S. Department of Agriculture, 
Haahingtoa, D« C. 20250, or telephone by using the "thru" dialing exchange, DUdley 8 
plua the extenaion desired* (Ixamplet The telephone number for the Director of 
Information ia Dudley 8-5247«) If you are calling long diataaoa, cur ^direct dialing* 
area code is 202* 

7or more detailed information, vrite or telephone the person in charge of information 
on the subject matter in which you -are interested* Vhen writing, address the person 
by name and title, the name of the agency^ U* 8. Department of Agriculture, Washington 
J>. C. 20250. The room numbera are lie ted for the conTonience of those who call in 
person* 

oFFict or iwroHigyiow 

Shis Office, a staff agency of the Secretary* a Office, directs and coordinates informa- 
tion work with the rarious agencies and haa final roTiew of all informational materiala 
inrolTing departmental policy* It proridea aaaiatanoe and facilities in the production 
•f motion pictures, still photography (including a Central Photo Ifibrary}# exhibits, 
and art and graphics* 

Title 

fiincToa or iwroBMATiow 

XaPUTY DIRXCTOR 
ASSISTANT DIRECTOR 

V 

International DeTolopoMat Programa 

Chief, Press Serrice 

Chief, Publioationa DiTiaioa 

Chief, Radio A Teleriaioa Serrica 

Chief, Special Reports Dirisioa 

Zditor, USDA Parm Paper Letter 

Xditor, Pood and Home Votea 

Consumer Information 

Great Plains Cons* Program News 

Jhural Araaa DoTelopment Program 

Chief, Art A Graphica Dirision 
Chief, Ixhibits Serrice 
Chief, Motion Picture Serrice 
Chief, Photography Dirisioa 

(Includes the Central Photo Library, filmatripa, and alida aets) 

1/ Contact Mrs* Park for information of general interest in women's field* 
7or detailed information in home economics and human nutrition, contact 
the Current Information Branch, Agricultural Rsaearch Serrice, Rm. 5141-6, 
extension 4435* 



Name 


llDom 


Xxtension 


Barold R. Lewis 


402-A 


5247-6311 


Gordon Webb 


406-A 


7903 


Jama a U* McComiok 


409-A 


4613 


Joa P. Greeneisen 


105-A 


6965 


Hanry P. Clark 


404-A 


4026 


Harry P. Mileham 


500-A 


6623 


Layne R. Deaty 


406-A 


5163 


Daniel Alfieri 


409-A 


4335 


Xdward D. Cur ran 


460-A 


5480 


Mra* Jeanne 8» Park 2/ 


461-A 


5437 


Daniel Alfieri 


409-A 


4335 


Gordon Webb 


406-A 


7903 


Joaeph T* MoDaTid 


457-A 


2505 


time J. White 


516-A 


6641 


Darid M* Granahan 


0338-8 


4337 


Calle A. Carrello 


1081-8 


6072-6073 


Albert A. Matthews 


4I2-A 


. 6633 



130 FEDERAL HANDBOOK FOft SMALIi BUBINEBS 

-2- 
>TABILiaAtIOy 

AGRICULTPRAL STABILIZJ^IOy AlfO COMSgRYATIOW SMLVICK — (Znoludes iftfonMiioB terrlo* for CCC 
and Agrioultural Stabilisation and Cons orrat ion Conmittees)* Roiponsiblo for production 
and adjustmont aotiTitios inoludintf aoreago allotmonto and farm narkoting quotas; the A^* 
oultural Conserration Program; tho cropland oonTortion program^ tho stabilisation of sugar 
production and marktting; prioa support; foroiga supply and purchase^ commodity disposal, 
storage faoilitios, and otber assigned programs of CCC} and related serrioes on assigned 
purchase and export programs, drought emergency feed program; and for certain defense food 
aotiTities. 

Director of Information Dlrisioa M. L. DuMars 24HV S237 

Dep^ Dir* (Price Support & 

Consodity Operations) James S. IfoMahoa 24-V 5239 

Sep, Xiir* (production Programs) Willard Lamphere 3<MI 4094 

fgpgRAL CROP IMSURINCE CORPORATIOM — • Insures farmers against loss of crop inTOstmenis dtt« 
to risk beyond their control* 

Director, Sales Management R. A. Dimock 4621-S 4364 

Asst, Dir., Sales Management M* G« Reed 4621HI 4364 

SCIIMCI AMD RDUCATIOM 

AGRICPLTDRAL RKSEARCH SERVICE -~ Conducts basic and applied research on tho production and 
utilisation of plants and animals, and does research pertaining to human nutrition to do 
with plant and. 'animal quarantines, and control of diseases and insect pests of animals anA 
plants. Also conducts studies on methods of managing soil, water, machinorj^ and buildings 
for more efficient farming* 

Director, Information DiTisioa Smest G. Moore 5133-A 4433 
Aseistant Director R« B. Rathbono 5133-« 5787 

Chief, Audio -Visual Bramoh H. G. Bass 5149-^ 5082 

Chief, Current Inf* Branch Janes E* Reynolds 5141-4 4435 

Chief, Program Serrices Branch Yal Weyl 5130-« 5533 

Chief, Publications Branch Darid G. Hall 5145-8 5923 

Chief, Re port S.Branch J. 8. Silbaugh 5130-8 4046 

COOPERATIVE STATE RESEARCH SERVICE — Administers federal-grant funds for research at Siai« 
Agricultural Experiment Stations and coordinates agricultural research among States and 
between States and the U* S« Department of Agriculture* 

Asst. to Admin* (Res* Comm*) Verner P* Meyer 316-A 3079 

(See also, the listing under Office of Management Serrices below.) 

PEDERAL EXTEMSIOK SERVICE — Has primary responsibility for and leadership in USDJL eduoa- 
tlonai programs snd coordination of all educational actirities of the Department* 
Director, DiTision of Information Walter W* John 5503-8 6283 
Assistant Director Ralph M* Pulghua 5503-S 2805 

NATIONAL AGRICUIiTURAL LIBRABT •— ProTides reference, bibliographic, loan, and photocopy 
serrices of technicsi sgricultural literature and its related biological and chemical 
science, and oeordinsltes scientific information and documentation actirities of the De*« 
partment* 

Asst* Dir* for Public Serrices Angelina J* Carabelli 1059-8 7660 
Asst* Dir* for Program Coord* 8err« Blanche L* Olirerl 1420-4 3961 

INTERNATIOMAIi AfPAIRS 

POREIGN AGRICULTURAL SERVICE — Promotes export of U* S* fani products, protects domestitf 
agricultural markets from unfair foreign competition; serres as a basic source of infor- 
mation to American agriculture on world crops, policies, and markets* 

Director, Poreign Mkt* Inf* Dir* E* W. Olson 5554-4 3448 

Assistant Director Robert H* Ingram 5554-S 7115 

Assistsnt Director Harry W* Henderson 5554-4 3448 

INTERNATIONAL AGRICULTURAL DEVELOPMENT SERVICE — Coordinates USDA programs in international 
agricultural derelopment in foreign countries and training in U. 8* of foreign officials^ 
loaders and scientists in fields of agriculture and home economics* 

(Per information contacts, see listing under Office of Informatioh, page 1) 

MARIETING AND CONSUMER SERVICE 

CONSUMER AND MARKETING SERVICE — Responsible for consumer protection, ooaiumer food progrsm, 
marketing regulatory programs, and marketing serrices* 

Director, Inf* Dir* Pranklin Thackrey. 1744-8 6766 

Deputy Director Philip V. Pleming 1744-4 6766 



FEDERAL HANDBOOK/ (FOR i SBOALIa BUBINSSS 131 

COmiQDITYllCHAMGie AUTHORITY — Superrltet fatttret trftdlft^ On ooBModiiy asol&anget to Mia* 

tola loir .trftding prootioeo and ooBp«tltiTO pricing^ ond to preyoat prioo iMaipalatioa 
aad other Violatioao of tho Cooaodity XxoliOBge lot* 
Tradlag Dlrioloa 

Aooiotant Director a. Corbia Dorse/ 42-V 3030 

AAmlnietratiTO Asoistaat JIath D« Graat 44-V 4987 

yjJMIlt COOPIRATIVI SIRYICI — Does researoh, edaoatioaal, and sorrloo vork for faraers vho 
boXoag to agrioalturoi market latf^ parohaslag, aad serrioe cooper at ires, aad proTldes sta« 
t is tics oa treads ia agrioalturoi cooperatives* 

(Tor iafomatloB ooataots, see listiag aader Offioo of Moaageaeat SerTioes, page 3) 

fAailRS HOtll ADMIHIBTRATIOy — Uakoo loaas^ aooenpaaied to tbe ezteat aeoessary by teohai* 
oal assistaace ia fem aad aoaey maaageaeatf for farm operating expeases, farm ealarg«Mn\ 
improTomeat aad parobaoe^ raral housiag, soil aad water ooasorratioa^ emergeaoy credit 
needs, rural reaeiral, rural water systems, shifts in land use to recreatioa facilities 
aad graiiag purposes, watershed derelepoMat^ housiag for senior citiieas, aad farm labor 
housiag* Uader Icoaomic Opportunity Act of 1964, prorides superTised credit to low^inoomo 
fomilieo and cooperatiTes composed of low-income families to finance agricultural aad asa* 
agricultural enterprises which will increase their income sad raioe their otandardo of 
liTing. 

Director, Information Dirioion Philip 8. Brown 5340-8 4031 

yOHlST gygVICK — Jlispoasible for applying sound conserration and utiliaatioa praotices to 
the aotural resources of the National Torests aad Natioaal Grasslands, for promoting those 
practices oa all forest loads through coo'peratioa with 8tatoo aad prirate laadowners, 
aad carries out ezteasiTO forest and range research* 

Director, Dir. Inf. 4 Iduc, Clint Doris 3223-8 3760-5920 

Assistant Director Nolaad O'Koal 3219-S 3709 

Goaerol laformatioa Borhoro 8paha 3207-« 3957 

Pttblicatioao C. J. Vorquest 3205-8 3957 

MJHAL C0>ilUNITY DIVlLOattW SgRVICI — > ProTides leadership aad coerdiaotioa. withia the Do- 
partsieat of Agriculture ia the fermalatioa of plaas and programs for adToncing and dorel- 
opiag aotural aad humaa resources ia rural communities i aad maiataias lioisoa with locol 
orgaaiiatieao aa4 loadero ia helpiag them to locote aad utilise the facilitieo oad re- 
sources of private^ State ond Tedorol agencies for the improrement of economic conditiono 
in rural areas* 
(for information contact, see Rurol Aroao DoyelopiMat listiag under Office of laformatioa) 

lOlUL mCTBiyiCATIOW ADMIMISTHATIOM — Makes losas to locol ^ooperotires aad other orgaaif- 
aotioas to briag electric power aad modera telephoae serrico to rurol aroao and works with 
t^em to stimulote economic dOTolopment in their oerrioo areas* 

Director, Inf. Ser* DiT* William X* Spirey ' 4038-6 5606 

SOIL COWlRYATIOIt 8IRTICI — Corrioo oa a aatioaal ooil oad wotor ooaoorTOtioa program with 
the oooperatioa of lead owaero ond operators aad otber GoTornaent ogeaciesi admiaistero 
the Dopartmeat'o Greet Plaias CoaoerTOtioa Program oad Small Wotershed Protectioa oad 
Flood Prereatioa Progromi corrioo oa the Natioaal CeoperatiTe Soil Surroyi hao departmoaU 
leadorohip ia assist&ag laadowaero aad local greupo ia Reoource Coaoerratioa aad DoTolop- 
Aoat projects aad ia eotabliohiseat of laoomo-produoiag recrootioa eatorprioes* 
Director, laformatioa DiTisioa D. Harper Siostf 5112-S 4543 
Assistoat Director P* Gleaaoa Xioyd 5112-8 4544 

ICONOMIC RB8g ARCH SIRYICl — » Coaducts raseorch ia agricultural ocoaomics aad market lag, de* 
mestio and ro reign} onoiyses factors of footing ogricultural productioa, supplies, priceo 
aad iaoomoi reporto outlook for major obmmoditiooi OTOluatoo morket peteatials aad derols^ 
meat marketing oootsi aaalyseo farm produotirety oooto, fiaaaciag, uee of reoourcos, po- 
teatials of low- iacome oreosi otudioo u« 8* trode ia agrioaltural products, role of agri- 
oalture ia economic doTelopoMat of other aotioas* 

(Per laformatioa ooatacto, see listiag uader Offioo of Ifoaogemeat 8errioos below*) 

STATI8TICAL RI PORTING SIRYICl — Preporoo moathly, quarterly, or oaauol estimotes of produo- 
tioa, supply, prices of agricultural eommoditloo, farm labor^ lirootock numbers, otc*^ 
aatioaally aad by Stateo* 

(Per iaformatioa contacts, seo listing under Offiooof Uaaagomoat Sorriooo below*) 

OPPICl OP liAWACKMINT SIKYICIS 
Sorriooo Icoaomic Research Serrico, Parmer Cooperatiro Sorrloo^ Stat.istiool Rosoaroli 
Sorrloo, oad Cooperotiro State Reseorch Serrico* 

Director, Dir* of laformatioa Vayao Y* Dexter 1447-S 7133 

Chief, Reoeorch & Stat* laf* B% Jbel W* Vheeler 1447-4 5455 

Chief, Progrom Serricos Br* Borylo B* Staatoa 1474-8 S486 

Chief, Publicotioas Braaoh jomoo iiadisoa 1467-6 6557 



132 



FBDEBAIi HANDBOOK FOR SMALL BUSmESS 






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Department of the Treasury 

Internal Revenue Senrice 



GENERAL 

The Internal Revenue Service of the Depart- 
ment of the Treasury has several programs de- 
signed to assist the businessman with his tax re- 
sponsibilities. 

MR. BUSINESSMAN'S KIT 

A Mr. Businessman's Kit has been developed for 
presentation to operators of new businesses, as they 
are formed. Its purpose primarily is to encour- 
age more effective voluntary compliance by help- 
ing new businessmen to become fully aware of 
their responsibilities for filing all the Federal tax 
returns for which they may be liable, and for 
paying the taxes due. 

The kit is a four-pocket folder designed to hold 
forms and instructions for preparing most busi- 
ness tax returns. 

On each pocket is a list of the various forms and 
documents applicable to the particular business. 
It also contains a check list of tax returns, a cal- 
endar of due dates for filing returns and paying 
taxes, a convenient place to Keep employment tax 
information for employers, and a pocket for keep- 
ing retained copies of tax returns and related 
materials. 

The principal feature of this program, however, 
is the personal presentation of the kit to the tax- 
payer. Internal Revenue Officers will present the 
Kite and explain the various forms and documents 
applicable to the particular business. Thus each 
kit is tailored to the needs of the taxpayer. 

The Revenue Officer will make every eflFort to 
assist and advise the businessman of his tax filing 
requiremente. A place has been provided on the 
kit for the Revenue Officer's name, address and 
telephone number. The businessman will be en- 
couraged to contact the Revenue Officer at any 
time to obtain further assistance or information. 

TAX GUIDE FOR SMALL BUSINESS 

The Internal Revenue Service publishes an- 
nually a Tiix GvAde for Small Business which ex- 
plains Federal tax problems for sole proprietors, 
partners, partnerships and corporations. 

Income, excise and employment taxes are ex- 
plained in nontechnical language and many ex- 
amples are used to illustrate the application of the 
tax laws. 

A Check List, of particular interest to the new 
businessman, shows, at a glance, the taxes for 



which diflferent kinds of business organizations 
and business activities may be liable and what the 
businessman should do about them. 

A Tax Calendar is included, which explains, 
on a day-by-day basis^ what the businessman 
should do in regard to his Federal taxes and when 
he should do it. The two pages may be removed 
from the booklet and posted in a prominent place 
as a reminder of the various due dates for the 
taxes discussed. 

Establishing a new business, purchasing a going 
concern, operating a business, organizing a part- 
nership and corporation, the sale of a business as 
a unit, the dissolution of a partnership, and the 
liquidation of a corporation are among the sub- 
jects covered in detail in the booklet. 

The publication is revised annually to include 
new rules and changes in tax laws, regulations and 
rulings. Plain language is used in the text, sup- 
plemented by many examples explaining such 
things as: the need for adequate records and how 
long thej should be retained; income averaging; 
declaration of estimated tax ; business insurance ; 
entertainment expenses; bad debts; rental ex- 
penses and leases; depreciation; educational ex- 
penses ; how to compute net profit, the cost of goods 
sold and inventories. 

The booklet is available at local Internal Reve- 
nue Service offices. It may also be ordered from 
the Superintendent of Documents, U.S. Govern- 
ment Printing Office, Washington, D.C., 20402, for 
60^ a copy. Quantities of 100 or more may be pur- 
chased at a 25 percent discount from the Superin- 
tendent of Documents. 

PARTICIPATION IN TAX CLINICS 

The Internal Revenue Service participates in 
tax clinics for small bu9inessmen conductea jointly 
with the Small Business Administration, in co- 
operation with universities, chambers of com- 
merce, and local civic groups. 

The clinics have the general theme, "Tax As- 
pecte of Small Business Management Decisions." 

Internal Revenue technicians head discussions 
of such matters as the form of a business enter- 
prise; the type of accounting methods that they 
may use; the different methods of taking deprecia- 
tion and the advantages of each, and the tax prob- 
lems that face a small, family-owned business. 

These sessions are scheduled in accordance with 
the needs of each particular community. In- 
formation about the clinics is available from the 
Small Business Administration and the Internal 
Revenue Service. 

133 



Department of Justice 



ANTITRUST ACTIVITIES 

The Department of Justice is not a "service" 
agency furnishing direct aid to small businesses. 
As a law enforcement arm of tlie Federal Govern- 
ment, its prmcipal duty is prosecuting violations 
of Federal laws entrusted to it by the (5)ngress for 
enforcement. 

However, small firms receive a great measure of 
indirect assistance from the Department's en- 
forcement of the Federal antitrust laws. Small 
business is generally the primary victim of tlie 
illegal practices which those enforcement activities 
seek to eliminate. 

The antitrust laws, most notably tlie Sherman 
Act and the Clayton Act, were designed to break 
up or prevent undue concentration of economic 
power in any business or industry. They prohibit 
conspiracies to restrain trade or commerce, monop- 
olization or attempts to monopolize a field, and a 
variety of practices which may have the effect of 
substantially lessening competition or tending to 
create a monopoly. Thus, vigorous prosecution 
of the antitrust laws maintains free competition in 
the American economy, and permits the develop- 
ment and growth of a sound body of small business 
concerns. 

Examples could be cited of many antitrust cases 
which have resulted in substantial benefits in many 
fields traditionally associated with small business 
firms. These include gas station operators, build- 
ing contractors, grocery stores, funeral homes, fuel 
oil dealers, film processing, tabulating machines, 
motion picture exhibitors, and many othei*s. 

The Department's Antitrust Division has al- 
ways been eager to assist small business firms in 
problems involvingviolation of the Federal anti- 
tinist laws. The Division welcomes, and is in 
great measure dependent upon, complaints from 
the small concerns about such violations. Its in- 
dependent investigations of phases of the business 
economy are necessarily restricted by limitations 
in available manpower and financial resources. 
Tlierefore, the great majority of antitrust investi- 
gations and cases are initiated as a result of 
complaints from the public. 

VIOLATIONS OF ANTITRUST LAWS 

It is often difficult to determine what constitutes 
violations of the antitrust laws. Nevertheless, for 
the assistance of small business owners and man- 
agers, it may be possible to set forth some of the 
business practices in which, among others, the 
Antitrust Division is particularly interested : 
134 



(1) Any agreement to fix prices or to regulate 
prices, 

(2) Any boycotting activities, involving, for 
example, members of a trade association agreeing 
to exclude competitors or a businessman inducing 
suppliers to withhold supplies from a competitor. 

(3) Tie-in sales in wiiich a businessman will 
sell a product, either patented or unpatented, to 
a customer only if the latter will purchase another 
product as well. 

(4) Full-line forcing of products, whereby the 
purchaser must take all of his suppliers' line of 
products or get none at all. 

(5) Agreements by competitors to assign eacli 
other separate sales territories, and to refi'uin 
from competing in each other's territories. 

(6) Discriminatory pricing to some customers 
at the expense of otliers by means of rebates, dis- 
counts, service charges, and other excuses for price 
differentials. 

(7) Tlie obtiiining by a business or group of 
businesses in an industry of a percentage of the 
market sufficient to have the power to control 
prices and exclude competition. 

(8) The merger of two corporations by a trans- 
fer of stock of of assets which may have the effect 
of subst4intially lessening competition or tending 
to create a monopoly. 

(9) Various general predatory practices, such 
as Dusmess espionage or the pohcing of competi- 
tor's to ensure that they conform to the industry's 
traditions and customs. 

Small businessmen who have observed any of 
these practices in their business experience or have 
had their business suffer as a result of such prac- 
tices by competitors or suppliers, are invited to 
bring the facts of these cases to the attention of 
the Antitrust Division. 

Letters may be addressed to the Antitrust Divi- 
sion, Department of Justice, Washington 25, D.C., 
or interviews may be arranged with officials of the 
Division at the Washington office, or at one of the 
field offices in New York, Philadelphia, Cleveland, 
Chicago, Los Angeles, San Francisco, or Honolulu. 
If these cities are too distant, tlie nearest local of- 
fice of the Federal Bureau of Investigation may be 
contacted; the complaint will then be forwarded 
to the Washington office of the Antitrust Division. 

FORM OF COMPLAINT 

It must be understood that only a few of tJie 
foregoing list of business practices are illegal in 
and of themselves under the antitrust laws. 
Others may or may not be violations, depending 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



135 



upon the total factual picture. Therefore, to en- 
able the Antitrust Division to make an accurate 
analysis of the problem, it is desirable that all the 
facts of the problem be stated in as much detail as 
possible. 

A description must be included of the business 
or industry involved, all relevant dates, all names 
and addresses of tlie parties, and an indication of 
the size, importance, and percentage of the market 
held by each business involved, if such mforma- 
tion is available. In addition, it would be help- 
ful if copies of any relevant documents — such as 
{>rice lists, agreements, minutes of meetings, or 
etters — were submitted. 

The Antitrust Division has jurisdiction to take 
action only if these illegal activities affect the 
movement of goods or services in interstate com- 
merce. Therefore, it is essential that statements 
show that the goods or services affected are in the 
stream of interstate commerce. If part of such 
goods or services are sold in interstate commerce 
and the rest wholly within the State, the relative 



percentage sold in interstate commerce should be 
mdicated. 

PROCESSING OF COMPLAINTS 

When a complaint is submitted to the Antitrust 
Division, immediate institution of a suit cannot 
be expected. After a complaint is acknowledged, 
it is assigned to a member of the staff for analysis 
to determine whether it presents substantial ques- 
tions under the Federal antitrust laws. It may 
be correlated with other complaints of a similar 
nature involving the same industry or business. 

A preliminary investigation may be ordered 
and, if the facts warrant, a full-scale investiga- 
tion of the problem will be undertaken. There- 
fore, unless the person submitting the complaint 
is contacted for further information, a consider- 
able period may elapse between the time a com- 
plaint is received and the time when an interview 
is scheduled by a representative of the Antitrust 
Division or an agent of the Federal Bureau of 
Investigation. 



54'643« 



-10 



Federal Trade Commission 



ANTITRUST AND TRADE REGULATION 
LAWS 

The Federal Trade C(Mnmission was established 
by Congress in 1914 to protect business and the 
public against unfair methods of competition and 
to prevent practices which would lessen competi- 
tion or tend to create monopoly. The Commis- 
sion is, in short, charged with the basic duty of 
protecting our competitive free-enterprise econ- 
omy. 

The Conmiission acts : 

(a) To prevent the use of unfair methods of 
competition and unfair or deceptive acts or pr.ac- 
tices in interstate commerce, such as acts or prac- 
tices which are unfair or oppressive or tend to 
monopoly; combinations which unreasonably 
restrain competition, and representations, express 
or implied, which have the capacity of misleading 
or deceiving members of tlie public with respect 
to commodities being offered for sale, all as pro- 
hibited by section 5 of the Federal Trade Com- 
mission Act. 

(b) To prevent the dissemination of false 
advertisements of foods, drugs, cosmetics, and 
devices, as provided in sections 12 through 15 of 
tlie Federal Trade Commission Act. 

(c) To prevent discriminations in price, serv- 
ices, or facilities, including quantity discounts 
which are unjustly discriminatory or promotive 
of monopoly, by the establishment, when neces- 
sary, of quantity limits; payment or reecipt of 
brokerage, commissions, or discounts in lieu 
thereof; the use of tying or exclusive dealing 
leases, sales, or contracts; the acquisition by one 
corporation of stock or assets of another, and con- 
tinuance of interlocking directoi'ates among cor- 
porations, all under the circumstances of whicli 
tliese things are prohibited i*espectively by sections 
2, 3, 7, and 8 of the Clayton Act as amended. 

(d) To prevent the misbranding of wool or 
wool products through failure to comply with the 
provisions of the Wool Products Labeling Act of 
1939. 

(e) To prevent misbranding, false advertising, 
or false invoicing of furs or fur products througli 
failure to comply witli the Fur Products Labeling 
Act. 

(f) To prevent the introduction or movement 
in interstate commerce of articles of wearing ap- 
parel and fabrics which are so highly flammable 
as to be dangerous when worn by individuals, in 
violation of tlie Flammable Fabrics Act. 

136 



(g) To prevent misbranding or false advertis- 
ing of textile fiber products through failure to 
comply with the Textile Fiber Products Identifica- 
tion Act. 

(h) To prevent unfair methods of competition 
and unfair or deceptive act^ or practices in the 
business of insurance to the extent that such busi- 
ness is not regulated by State law, under the 
Federal Trade Commission Act and Public Law 
15, of 1945 relating to the regulation of the busi- 
ness of insurance. 

(i) To administer the provisions of the Export 
Trade Act, providing for the registration and 
operation of associations of American exporters 
eMga'gi^:^ solely in export trade. 

(j) To bring about the cancellation of registra- 
tion of trade marks which have been illegally 
registered or which have been used for purposes 
contrary to the intent of the Trade Mark Act of 
1946. 

(k) To investigate the organization, business, 
conduct, practices, or management of corporations 
and to make public reports thereon as the Com- 
inission deems expedient in the public interest ; to 
investigate, at the direction of the President or 
the Congress, and report upon alleged violations 
of the antitrust laws by corporations; to make 
various other investigations and reports, including 
recommendation to Congress for legislation, and 
reports to the Attorney General, to the extent and 
in the maimer provided in section 6 of the Federal 
Trade Commission Act. 

REQUESTS FOR COMMISSION ACTION 

Any individual, partnership, corporation, asso- 
ciation or organization may request the Commis- 
sion to institute a proceeding in resi)ect to any 
violation of law over which the Commission has 
jurisdiction. Such requests should be in the form 
of a signed statement setting forth the alleged 
violation of law and the name and address of 
the party or parties complained about. No for- 
mal procedure or forms are required. Eequests 
should be mailed to Federal Trade Commission, 
Washington, D.C., 20580. The person making the 
request is not regarded as a party, for the Commis- 
sion acts only in the public interest and its pro- 
ceedings are for the purpose of vindicating pub- 
lic, not private, rights. It is Commission policy 
not to publish or divulge the name of an applicant 
or complaining party, except as required by law. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



137 



ADVISORY OPINIONS 

It is the policy of the Commission to afford busi- 
nessmen assistance in determining, in advance, 
whether a proposed course of action, if pursued, 
may violate any of the laws administered by the 
Commission, and, where practicable, to give them 
the boiefit of the Commission's views. 

Any person, partnership or corporation may re- 
quest advice from the Commission as to whether 
a proposed course of action, if pursued, would 
probably violate any of the laws administered by 
the Commission. A request for advice should be 
addressed to the Secretary and should include 
complete information. Conferences with mem- 
bers of the Commission's staff may be held be- 
fore or after the request is submitted. Submission 
of additional information may be required. 

On the basis of the facts submitted, as well as 
other information available to the Commission, the 
Commission, when practicable, will advise the re- 
questing party whether or not the proposed course 
of action, if pursued, would be likely to result in 
further action by the Commission. Any advice 
given is without prejudice to the right of the Com- 
mission to reconsider the questions involved and, 
where the public interest requires, to rescind or 
revoke the advice. However, information sub- 
mitted will not be used as the basis for a pro- 
ceeding until an opportunity is afforded for the 
party to discontinue the course of action pursued 
in good faith in reliance upon the Commission's 
advice. 

EXPORT OPPORTUNITIES FOR SMALL 
BUSINESS 

On April 9, 1963, the Federal Trade Commis- 
sion created the Division of Export Trade in the 
Office of the General Counsel for the purpose of 
administering the Webb-Pomerene [Export 
Trade] Act of 1918. 

This Division was successor to the Export Trade 
Division which was originally created in the Com- 
mission in 1918 to administer this Act which was 
entitled "An Act to promote export trade and 
for other purposes." The Webb-Pomerene Act 
provides exemptions from the Sherman Act of 
1890 and the Federal Trade Commission and Clay- 
ton Acts of 1914 for cooperatively organized 
American exporters engaged solely in export trade. 

Under the provisions of this Act members of 
associations are permitted to fix prices, allocate 
quotas for export and agree on terms and condi- 
tions for export. Export savings to association 
members may be realized through joint office man- 
agement, allocation of expenses on export sales 
and the pooling of products for foreign shipment 
Associaticms may also collect and disseminate 
trade information on market conditions abroad. 



forei^ exchange situations, tariff requirements, 
shippmg rules and regulati<ms and foreign laws 
affecting foreign trade. 

At the present time there are M registered as- 
sociations and many of the active members are 
small business concerns which have combined for 
the purpose of competing with foreign combines 
and cartels. 

Legal formalities for setting up a Webb-Pom- 
erene association are simple. The Act requires 
only that the association file with the Federal 
Trade Commission within 30 days after its organ- 
ization a verified written statement setting forth 
the location of its offices or places of business; the 
names and addresses of all its officers, stockholders, 
and members; and if incorporated, a ccwpy of the 
certificate or articles of incorporation and by-laws ; 
or if unincorporated, a copy of the articles or con- 
tract of association. 

Inquiries regarding the operations of the Webb- 
Pomerene Export Trade Act or information relat- 
ing to the formation of a new export association 
can be addressed to the Assistant General Coun- 
sel for Export Trade, Federal Trade Commission, 
Washington, D.C., 20580. 

FTC FIELD OFFICES 

Field offices are maintained at Atlanta, Boston, 
Chicago, Cleveland, Kansas City, Los Angeles, 
New Orleans, Houston, New York, San Francisco, 
Seattle and Washington, D.C. (Falls Church, Va.) 
Their addresses are : 



Federal Trade Commission 
915 Forsyth Building 
86 Forysth Street NVT. 
Atlanta, Ga. 30303 

Federal Trade Commission 
Room 1001 
131 State Street 
Boston, Mass. 02109 

Federal Trade Commission 
Room 486 

U.S. Courthouse and Fed- 
eral Office Building 
219 South Dearborn Street 
Chicago, 111. 60604 

Federal Trade Commission 
1128 Standard Building 
Cleveland, Ohio 44113 

Federal Trade Commission 
2806 Federal Office Building 
Kansas City, Mo. 64106 

Federal Trade Commission 
215 West Seventh Street 
Room 1212 
Los Angeles, Calif. 90014 



Federal Trade Commission 
1000 Masonic Temple Build- 
ing 
333 St Charles Street 
New Orleans, La. 70130 

Federal Trade Commission 
U.S. Courthouse Building 
Room 10511 
Post Office Box 61165 
Houston, Tex. 77061 

Federal Trade Commission 
30 Church Street 
New York, N.Y. 10007 

Federal Trade Commission 
450 Golden Gate Avenue 
Box 36005 
San Francisco, Calif . 94102 

Federal Trade Commission 
511 U.S. Court House 
Seattle, Wash. 98104 

Federal Trade Commission 
450 West Broad Street 
Falls Church, Va. 22046 



For the limited purpose of administering the 
Wool, Fur, Textile Products, and Flammable 
Fabrics Acts, additional offices are located at 
Dallas, Charlotte, Denver, Los Angeles, Miami, 
Philadelphia, St. Louis, and Portland, Oreg. 



138 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



The addresses of these Inspection and Industry 
Counseling Units are : 



Federal Trade Commission 
915 Forsyth Building 
86 Forsyth Street 
Atlanta, Ga. 30303 

Federal Trade Ck)mmission 
131 State Street, Room 

1001 
Boston, Mass. 02109 

Federal Trade Commission 
Cutter Building, Room 204 
327 North Tryon Street 
Charlotte, N.C. 28202 

Federal Trade Commission 

U.S. Courthouse and Fed- 
eral Office Building, 
Room 486 

219 South Dearborn Street 

Chicago, 111. 60604 

Federal Trade Commission 
1128 Standard Building 
1370 Ontario Street 
Cleveland, Ohio 44113 



Federal Trade Commission 
405 Thomas Building 
1314 Wood Street 
Dallas, Tex. 75202 

Federal Trade Conmiission 
18013 Federal Office Build- 
ing 
1961 Stout Street 
Denver, Colo. 80202 

Federal Trade Commission 
U.S. Courthouse Building, 

Room 10511 
Post Office Box 61165 
Houston, Tex. 77061 

Federal Trade Commission 
2806 Federal Office Build- 
ing 
911 Walnut Street 
Kansas City, Mo. 64106 



Federal Trade Commission 
215 West Seventh Street, 

Boom 1212 
Los Angeles, Calif. 90014 

Federal Trade Commission 
1631 New Federal Building 
51 Southwest First Avenue 
Miami, Fla. 83130 

Federal Trade Commission 
1000 Masonic Temple 

Building 
333 St. Charles Street 
New Orleans, La. 70130 

Federal Trade Commission 
30 Church Street 
New York, N.Y. 10007 

Federal Trade Commission 

53 Long Lane 

Upper Darby, Pa. 19082 



Federal Trade Commission 
231 tJ.S. Courthouse 
Portland, Oreg. 97205 

Federal Trade Commission 
450 Golden Gate Avenue 
Box 36006 

San Francisco, Calif. 
94102 

Federal Trade Commission 
511 U.S. Court Honse 
Seattle, Wash. 98104 

Federal Trade Commission 
400 U.S. Court and Custom 

House 
1114 Market Street 
St Louis, Mo. 63101 

Federal Trade Commission 
450 West Broad Street 
Anderson Building 
Falls Church, Va. 22046 



Veterans Administration 



GENERAL 

The Veterans Administration, in carrying out 
its mission of administering veterans' laws, (1) 

grovides a medical program equivalent to the 
nest in civilian practice, (2) operates the third 
largest ordinary life insurance program in the 
world, and (3) administers a wide variety of 
benefits, such as compensation and pensions for 
disabled veterans and dependants of deceased vet- 
erans, vocational rehabilitation and education, and 
guaranteed or insured loans. 

While the major portion of our approximately 
$5 billion budget is expended in direct benefits 
to veterans, various aspects of our operations have 
considerable meaning to industry and business — 
both large and small. A prodigious amount of 
supplies, equipment and services are needed to sup- 
port an operation employing approximately 172,- 
000 persons and including a field network of 165 
hospitals (8 percent of the Nation's hospital beds) , 
80 outpatient clinics, 6 domiciliaries, 57 regional 
offices, and 2 insurance offices. 

CONTRAaS 

The major categories of purchases are as 
follows : 

1. Medical, surgical, dental, laboratory, X-ray, 
pharmaceutical and hospital equipment, supplies 
and services. 

2. Foodstuffs, kitchen, laundry and plant main- 
tenance equipment supplies and sei'vices. 

3. Clothing, linens. 

Note: The Veterans Administration contracts 
for the drugs and medicines, and nonperishable 
food items required by all civil agencies of 
Government. 

For items centralljr procured for all stations. 
Marketing Divisions in specific commodity ai*eas 
have been established. Applications for inclusion 
on bidders lists should be addressed to the Market- 
ing Division, Chief — 



Ml — ^Dental and Surgical 
Supplies and Equipment, 
VA Supply Depot, Hines, 

in. 

M3 — Hospital Furnishings, 
VA Supply Depot, Hines, 

in. 

M4 — Subsistence, VA Sup- 
ply Depot, Hines, 111. 

M5 — Drugs and Chemicals, 
VA Supply Depot, Som- 
erville, N.J. 



MO— Technical Medical, VA 
Supply Depot, Somor- 
ville, N.J. 

M7 — Laboratory and Phys- 
ical Medical and Reha- 
biUtation Supplies and 
Equipment, VA Supply 
Depot, Hines, lU. 

Books and Periodicals, VA 
Supply Depot, Somer- 
viUe, N.J. 

Motion Picture, VA Supply 
Depot, Somerville, N.J. 



In addition, all VA hospitals procure in their 
local areas many off-the-shelf items such as perish- 
able subsistence, maintenance supplies, etc. and 
services. Requests for bidders information should 
be addressed to the Chief, Supply Division, of the 
appropriate VA office. See List A. 

ARCHITECTURAL AND PROFESSIONAL 
ENGINEERING DESIGN SERVICES 

The Veterans Administration construction pro- 
gram invohes the design and construction of com- 
Clete new hospital facilities including auxiliary 
uildings and utilities as well as additions, con- 
vex ions and alterations to existing hospital struc- 
tui'es. The Veterans Administration uses private 
Architects, Arcliitect-Engiiieers, and Profes- 
sional Engineei's to accomplish a major portion of 
its design mission. 




Architectural, Architectural-Engineering and 
Professional Engineering firms interested in pro- 
viding design and other professional services for 
the Veterans Administration should forward a 
completed Form 251, U.S. Government Architect- 
Engineer Questiomiaire to tlie Chairman, Archi- 
tect-Engineer Selection Board, Office of Assistant 
Administrator for Construction, Veterans Admin- 
istration, Washington, D.C., 20420. These forms 
are available from the Chairman, Architect-Engi- 
neer Selection Board, as well as from other Grov- 
ernment agencies using this form. It is important 
that firms submit complete, accurate and resjwn- 
sive information concerning their qualifications in 
executing this Form 251. The forms, and any ad- 
ditional brochure material which the firms may 
elect to submit, are filed in the Veterans Admin- 
istration Architect-Engineer Library for use by the 
Architect-Engineer Selection Board. 

139 



140 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



There is no competitive bidding on desim and 
other professional services contracts. The fee for 
such services is negotiated on a strictly profes- 
sional basis. 

CONSTRUCTION SERVICES 

Tlie Assistant Administrator for Construction 
Service, Veterans Administration, Washington, 
D.C., 20420, maintains a list of general contractors 
and electrical, plumbing, air conditioning, heating, 
and certain other categories, of subcontractors. 
Firms in these categories who ai*e interested in 
bidding for VA construction should write to the 
Assistant Administrator for Construction. In 
reply, they will receive a questionnaire concerning 
their Small Business status and the categories of 
work which they desire to perform. ^Vlien a proj- 
ect is ready for the market, the firms located with- 
in the state of the project and neighboring states, 
will be mailed copies oi the Invitation for Bids. 

VETERANS' LOANS 

The VA ^arantees or insures various types of 
loans made Dy private lenders (banks^ savings and 
loan associations, and the like) to ehgible World 
War II and Korean Conflict veterans. Under cer- 
tain conditions, it also makes direct home loans to 
them. 

Purpose : To assist in the purchase, construction, 
alteration, improvement and repair of home, farm, 
or business real estate, and the acquisition of sup- 
l)lies, equipment, and working capital. 

Terms: The loan may be short-term (5 years 
and under), or long-term (amortized). If the 
maturity is 6 years or less, no payments on prin- 
cipal are required until maturity. With a long- 
term loan, regular amortization is required which 
will pay off the principal plus interest over the 
period of the loan. 

The loan may be either guaranteed or insured by 
the VA. Generally, long-tenn loans are guaran- 
teed and short-term non-real estate business and 
farm loans tend to be insured. If guaranteed, or 
if for real estate purposes, the interest rate on the 
loan may not exceed 5^4 percent per annum under 
present law. If insured, 15 percent of each loan is 
credited by the VA to an insurance account of the 
lender, limited by the entitlement available to the 
veteran borrower, from which the lender is paid 
for losses on such insured loans up to the amount 
of the insurance account. The interest rate on a 
non-real estate insured loan may not exceed 5.7 
percent per annum, or 3 percent discomit. 



REAL ESTATE LOANS 

A home or business real estate loan may be re- 
paid up to 30 years and a farm real estate loan up 
to 40 years. The VA guaranty may not exceed 
$7,500, or 60 percent of a loan for the purchase, 
construction, alteration, improvement, or repair 
of residential property whicn the veteran will, or 
does, occupy as his some. Nonresidential real 
estate (farm or business) loans may be guaranteed 
up to a maximum of $4,000 or 50 percent of the 
loan. The purchase price of property (real or per- 
sonal) being acquired with the proceeos of a guar- 
anteed or insured loan may not exceed the reason- 
able value as determined by the Administrator. 

NON-REAL ESTATE LOANS 

These are for the purchase of property other 
than real estate, such as machinery, tools, equip- 
ment, livestock, and working capital required in 
the operation of a farm or business. This type of 
loan may be repaid in up to 10 yeare and may be 
guaranteed by VA up to a maximum of $2,000 or 
50 percent of the loan. 

DIRECT LOANS 

Under certain conditions the VA makes dii-ect 
loans to veterans for the purchase, construction, 
alteration, improvement, and repair of residential 
property (including a farm residence) which tlie 
veteran will, or does, occupy as his home. Direct 
loans are not authorized for business purposes. 
Such loans may not exceed $15,000 and may only 
be made in specified direct loan areas. The inter- 
est rate on a direct loan is 51^4 percent per annum, 
the same as a guaranteed home loan, and may be 
repaid in up to 30 years. The security is the prop- 
erty being acquired with the proceeds of the loan. 

CONTACTS 

All active lenders are aware of tlie VA's loan 
program. For additional information VA Pam- 
phlet 26-4, "Questions and Answers on Guaranteed 
and Direct Loans for Veterans," and VA Fact 
Sheet lS-1, "Federal Benefits for Veterans and 
Dependents," may be obtained at the nearest Vet- 
erans Administration Regional Office as indicated 
on List B. 

Note: Veterans have eligibUity for loan benefits for 
10 years from the date of discharge or release from the 
last period of active dat;y, any part of which occurred 
during World War II or the Korean Conflict, plus one 
year of eligibility for each 3 months (90 days) of active 
wartime duty. Eligibility of World War II veterans wUl 
not extend beyond July 25, 1967. EUgibllity of Korean 
Conflict veterans wiU not extend beyond January 31, 1975. 



List A 
VETERANS ADMINISTRATION HOSPITALS BY STATES 





ALABAMA 




GEORGIA 


VAH 


Birmingham 3 


VAH 


AUanta 19, 4158 


VAH 


Montgomery 10, 




Peachtree Rd., 




Perry HiU Rd, 




NB. 


VAH 


Tuscaloosa 


VAH 


Augusta 


VAH 


Tuskegee 


VAC 


Dublin 




ARIZONA 




IDAHO 


VAH 


Phoenix, 7th St. and 


VAC 


Boise, 5th and Fort 




Indian School Rd. 




Sts. 


VAH 


Tucson 






VAO 


Whipple 




IlJilNOIS 




ARKANSAS 


VAH 


Chicago 11, 333 E. 
Huron St. 


VAH 
VAH 


Fayetteville 
Little Rock, 300 E. 


VAII 


Chicago 12, 820 S. 
Damen Ave. 




Roosevelt Rd. 


VAH 


Danville 




CALIFORNIA 


VAH 
VAH 


Downey 
nines 


VAH 


Fresno, 2615 Clinton 


VAH 


Marion 




Ave. 


VASD Hines, P.O. Box 27 


VAH 


Livermore 






VAH 


Long Beach, 5901 




INDIANA 


VAO 


Seventh St. 
Los Angeles 25, Saw- 

telle and Wilshire 

Blvds. 
MarUnez, 150 Muir 

Road 


VAH 
VAH 


Fort Wayne 3, 1600 

Randalia Dr. 
Indianapolis 7, 1481 


VAH 


VAII 


W. 10th St. 
Marlon 


VAH 


Oakland 12, 13th 




IOWA 




and Harrison Sts. 




VAH 


Palo Alto 


VAC 


Des Moines 8 


VAH 


San Fernando 


VAH 


Iowa City 


VAH 


San Francisco 21, 
42d Ave. and Cle- 


VAH 


Knoxville 




ment St. 




KANSAS 


VAH 


Sepulveda 


VAC 


Wichita 18, 5500 E. 


VASD Wilmington, 2401 




Kellogg 
Topeka, 2200 Gage 
Blvd. 




B. Pacific Coast 
Highway 


VAH 




COLORADO 


VAC 


Wadsworth 



VAH Denver 20, 1055 

Clermont St. 
VAH Fort Lyon 
VAH Grand Junction 

CONNECTICUT 

VAH Newington 11 
VAH West Haven 16, W. 
Spring St. 

DELAWARE 
VAH Wilmington 

DISTRICT OF 
COLUMBIA 

VAH Washington, 50 Irv- 
ing St, NW. 20422 

FLORIDA • 

VAO Bay Pines 
VAH Coral Gables 
VAH Lake City 



KENTUCKY 

VAH Lexington 

VAH LouisviUe 2, Mell- 

wood and Zorn 

Ave. 

LOUISIANA 

VAH Shreveport 12, 510 

E. Stoner Ave. 
VAII Alexandria 
VAH New Orleans 12, 

1001 Perdido St. 

MAINE 
VAC Togus 

MARYLAND 

VAH Baltimore 18, 3900 
Loch Raven Blvd. 
VAH Fort Howard 
VAH Perry Point 



MASSACHUSETTS 

VAH Bedford 

VAH Boston 30, 150 S. 
Huntington Ave. 

VAH Brockton 

VAH Northampton 

VAH West Roxbury 32, 

Veterans of For- 
eign Wars Park- 
way 

MICHIGAN 

VAII Ann Arbor, 2215 

Fuller Rd. 
VAH Battle Creek 
VAH Dearborn 
VAH Iron Mountain 
VAH Saginaw, 1500 Weiss 

SL 

MINNESOTA 

VAH Minneapolis 17, 54th 
St. and 48th Ave., 
S. 

VAH St. Cloud 

VAO St. Paul 11, Fort 
Snelling 

MISSISSIPPI 

VAC Biloxi 
VAC Jackson 

MISSOURI 

VAH Jefferson Barracks 
St Louis 25 

VAH Kansas City 28, 4801 
Linwood Blvd. 

VAH Poplar Blult 

VAH St. Louis 6, 915 N. 
Grand Blvd. 

MONTANA 

VAC Fort Harrison 
VAII Miles City 

NEBRASKA 

VAH Grand Island 
VAH Lincoln 1 
VAH Omaha 5, 4101 Wool- 
worth Ave. 

NEVADA 
VAC Reno 

NEW HAMPSHIRE 

VAH Manchester, Smyth 
Rd. 

NEW JERSEY 

VAH East Orange 
VAH Lyons 
VASD SomervUle 



NEW MEXICO 
VAH Albuquerque 

NEW YORK 

VAH Albany 

VAH Batavia 

VAC Bath 

VAH Bronx 68, 130 W. 

Kingsbridge Rd. 
VAH Brooklyn 9, 800 Poly 

PI. 
VAH Buffalo 15, 3405 

Bailey Ave. 
VAH Oanandaigua 
VAH Castle Point 
VAH Montrose 
VAH New York 10, First 

Ave. at E. 24th St 
VAH Northport, Long 

Island 
VAII Syracuse 10, Irving 

Ave. and Univer- 
sity PI. 

NORTH CAROLINA 

VAH Durham, Fulton St 

and Brwln Rd. 
VAH Fayetteville 
VAH Oteen 
VAH Salisbury 

NORTH DAKOTA 
VAC Fargo 

OHIO 

VAH Brecksville 
VAH Chillicothe 
VAH Cincinnati 20, 3200 

Vine St. 
VAH Cleveland 30, 7300 

York Rd. 
VAC Dayton 

OKLAHOMA 

VAH Muskogee, Memori- 
al Station, Honor 
Heights Dr. 

VAII Oklahoma City 4, 
921 N.E. 13th St 

OREGON 

VAD White City 

VAH Portland 7, Sam 

Jackson Park 
VAH Roseburg 

PENNSYLVANIA 

VAH Altoona 

VAH Butler 

VAH Coatesville 

VAH Erie 5, 135 E. 38th 
Street Blvd. 

VAH Lebanon 

VAH Philadelphia 4, Uni- 
versity and Wood- 
land Ave. 

141 



142 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



PENNSYLVANIA— Con. 

VAH Pittsburgh 6, Leach 
Farm Rd. 

VAII Pittsburgh 40, Uni- 
versity Dr. 

VAH Wilkes-Barre, East 
End Blvd. 

PUERTO RICO 

VAC San Juan, 521 Ponce 
de Leon Ave. 



RHODE ISLAND 



VAH 



Providence 8, Davis 
Park 



SOUTH CAROLINA 
VAH Columbia 

SOUTH DAKOTA 

VAC Sioux Falls 
VAH Fort Meade 
VAC Hot Springs 



TENNESSEE 

VAH Memphis 15, Park 
Ave. and Getwell 
St. 
VAH Murfreesboro 
VAC Mountain Home 
VAH Nashville 5, 90 

White Bridge Rd. 

TEXAS 

VAH Amarillo 

VAH Big Spring 

VAC Bonham 

VAH DaHas2 

VAH Houston 31, 2002 

Holcombe Blvd. 

VAH Kerrville 

VAH Marlin 

VAC Temple 

VAH Waco, Memorial Dr. 

UTAH 
VAH Salt l4ike City 1 



VERMONT 

VAC White River Junc- 
tion 

VIRGINIA 

VAC Kecoughtan 

VAH Richmond 19, Broad 

Rock Rd., and 

Belt Blvd. 
Salem VA Hospital 

(Roanoke) 

WASHINGTON 

VAH American Lake 

VAH SeatUe 8, 4435 Bea- 
con Ave. 

VAH Spokane 15. N. 4815 
Assembly St. 

VAH Vancouver 



WASHINGTON— Con. 

VAH WaUa Walla 

WEST VIRGINIA 

VAH Beckley 
VAH Clarksburg 
VAH Huntington 1, 1540 
Spring Valley Dr. 
VAC Martinsborg 



VAH 
VAH 
VAC 



VAC 
VAH 



WISCONSIN 

Madison 

Tomah 

Wood 

WYOMING 

Cheyenne, 2360 
Pershing Blvd. 
Sheridan 



Abbreviations used: 

VAC— Veterans AdministraUon Center 
VAD— Veterans Administration Domiciliary 
VAH— Veterans Administration Hospital 
VASD— Veterans Administration Supply Depot 



List B 
VETERANS ADMINISTRATION REGIONAl OFFICES 



ALABAMA 

Montgomery 
ALASKA 

Juneau 
ARIZONA 

Phoenix 
ARKANSAS 

Little Rock 

CALIFORNIA 

Ix)s Angeles 
San Francisco 

COIX)RADO 

Denver 
CONNECTICUT 

Hartford 
DELAWARE 

Wilmington 

DISTRICT OF 
COLUMBIA 

WaHhington 

FLORIDA 

St. Petersburg 

GEORGIA 

Atlanta 
HAWAII 

Honolulu 
IDAHO 

Boise 



ILLINOIS 

Chicago 
INDIANA 

Indianapolis 
IOWA 

Des Moines 
KANSAS 

Wichita 
KENTUCKY 

Louisville 
LOUISIANA 

New Orleans 
MAINE 

Togus 
MARYLAND 

Baltimore 

MASSACHUSETTS 

Boston 
MICHIGAN 

Detroit 
MINNESOTA 

St Paul 
MISSISSIPPI 

Jackson 
MISSOURI 

St. Louis 
MONTANA 

Fort Harrison 



NEBRASKA 

Lincoln 
NEVADA 

Reno 
NEW HAMPSHIRE 

Manchester 
NEW JERSEY 

Newark 
NEW MEXICO 

Albuquerque 
NEW YORK 

Brooklyn 

Buffalo 

New York City 

NORTH CAROLINA 

Winston-Salem 
NORTH DAKOTA 

Fargo 
OHIO 

Cleveland 
OKLAHOMA 

Muskogee 
OREGON 

Portland 
PENNSYLVANIA 

Philadelplita 
Pittsburgh 

PHILIPPINES 
Manila 



PUERTO RICO (and VIR- 
GXN ISLANDS) 
San Juan 

RHODE ISLAND 

Providence 
SOUTH CAROLINA 

Columbia 
SOUTH DAKOTA 

Sioux Falls 
TENNESSEE 

NashviUe 
TEXAS 

Houston 
Waco 

UTAH 

Salt Lake City 
VERMONT 

White River Junction 
VIRGINIA 

Roanoke 

WASHINGTON 

Seattle 
WEST VIRGINIA 

IKintington 
WISCONSIN 

Milwaukee 
WYOMING 

Cheyenne 



Atomic Energy Commission 



The bulk of the procurement of supplies and 
services in connection with AEC programs is done 
by the contractors which operate AEC plants and 
laboratories. The AEC's small business program 
centers around these operating contractors, and a 
large number of the opportunities for small busi- 
ness participation anses with them. However, 
emphasis is also placed on small business partici- 
pation with prime contractors other than those op- 
erating AEC plants. 

It is the policy of AEC to provide the broadest 
opportunity for business concerns to participate 
in meeting the procurement needs of the atomic 
energy programs and to give special attention to 
assisting small business concerns, and concerns, 
located m labor surplus areas. A booklet ^'Selling 
to AEC" has been prepared to provide general in- 
formation helpful to those who want to do busi- 
ness with AEC or its contractors. This booklet 
(which may be purchased at nominal cost from 
the Superintendent of Documents, Government 
Printing Office, Washington, D.C., 20402) indi- 
cates generally what is bought, how nmch is 
bought, who does the buying, and where procure- 
ment offices are located. Other items include in- 
formation wliich should assist concerns interested 
in the atomic energy industry, and provides guid- 
ance as to the sources of technical information, 
availability of royalty-free patents, and industrial 
uses of radioisotopes. The booklet, as an aid to 
manufacturers of reactor components, also lists 
the companies that have built, are building, or pro- 
pose to build reactors. 

LOCATION OF PRINCIPAL OFFICES 

(a) The agency Headquarters is located at Ger- 
mantown, Md. Headquarters office facilities are 
also maintained in the District of Columbia nt 
1717 H Street NW. The mail address of the 
Headquarters is Washington, D.C., 20545. 

(b) The major operating field offices are located 
as follows: 



Albuquerque Operations 

OfBce 
Post Office Box 5400 
Albuquerque, N. Mex. 

87115 

Brookhaveu OflSce 
Upton, N.Y. 11073 

Chicago Operations Office 
0800 South Cass Ayenne 
Argonne, 111. «04S9 



Grand Junction Office 
Grand Junction, Colo. 
81502 

Idaho Oi)erations Office 
Pof?t Office Box 2108 
Idaho Falls, Idaho 83401 

Nevada Operations Office 
Post Office Box 1676 
Las Vegas, Nev. 80101 



New York Operations Office 
376 Hudson Street 
New York, N.Y. 10014 

Oak Ridge Operations 

Office 
Post Office Box E 
Oak Ridge, Tenn. 37831 

Pitt.sburgh Naval Reactors 

Office 
Post Office Box 109 
West Mifflin, Pa. 15122 

Richland Oi^erations 

Office 
Post Office Box 550 
Richland, Wash. 01)352 



San Francisco Operations 

Office 
2111 Bancroft Way 
Berkeley, Calif. 94704 

Savannah River Operations 

Office 
Post Office Box A 
Aiken, S.C. 29802 

Schenectady Naval 

Reactors Office 
Post Office Box 1069 
Schenectady, N.Y. 12301 



OPERATION OF AEC PLANTS AND LABORATORIES 

Most AEC work is accomplished by contrac- 
tors. There are more than 135,000 persons work- 
ing directly in the program, of which approxi- 
mately 7,000 are AEC employees. The rest work 
for AEC contractors. At present, the AEC in- 
vestment in plant, e<^uipment, and real estate is 
approximately $8 Dillion, and operating costs are 
at an annual level of approximately $2.7 billion. 
These Government-owned facilities are managed 
and operated for the AEC by contractors. AEC 
operating contractors comprise a variety of indus- 
trial, academic and not-for-profit organizations. 

The addresses of AEC principal operating con- 
tractors, names of individuals who may be c<m- 
tacted, and lists of supplies, materials, equipment 
and services purchased for the AEC are contained 
in the booklet "Selling to AEC." 

RESEARCH 

(a) Basle Research. — In addition to the re- 
search conducted at its national laboratories and 
other major research centei*s, the AEC makes ar- 
rangements for the conduct of basic research in 
fields related to nuclear energy with institutions 
of higher education and other nonprofit research 
organizations. Such research contracts are 
granted on the basis of solicited or unsolicited pro- 
posals submitted to and approved by AEC in 
Washington. 

Those interested in obtaining contracts for basic 
research may obtain a copy of a "Guide for the 
Submission of Research Proposals" from the U.S. 
Atomic Energy Commission, Washington, D.C, 
20545 or from any AEC field office. 

(b) Applied Research and Development. — Some 
AEC program requirements for applied research 
and development are performed by private con- 

143 



144 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



cems in their own facilities pursuant to contracts 
and subcontracts administered by AEC field offices 
and cost-type contractors. Interested parties 
should contract the appropriate AEC field offices 
for information concerning these contracts. 

SECURITY REQUIREMENTS 

Vendors of material, equipment, supplies, and 
services who solicit business from the AEC, its 
contractors, subcontractors, or access permit 
holders may be aflfected by the security provisions 
of the Atomic Energy Act of 1954, as amended, 
and other Federal laws governing the handling 
of classified defense information. The Atomic 
Energy Act defines certain information relating 
to the design, manufacture, production, or use of 
special nuclear material as "Restricted Data" and 
prescribes conditions under which access to Re- 
stricted Data may be granted. One of the impor- 
tant provisions pertains to AEC authorization for 
access to Restricted Data. 

In any case where access to Restricted Data is 
required in order for a vendor to furnish — or ne- 
gotiate in connection with furnishing — ^material, 
equipment, supplies, or services to the AEC or its 
contractors, subcontractors, or access permit 
holders, the vendor must obtain access authoriza- 
tion from the AEC for all personnel who will 
require access to the Restricted Data involved. 
Hie AEC field offices and their contractors have 
full information concerning this and other appli- 
cable AEC security requirements. 

In most cases discussions with vendors can be 
handled without Restricted Data becoming in- 
volved and in these instances AEC access authori- 
zation is not required. When access to Restricted 
Data is required, the AEC, its contractors or sub- 
contractors will initiate action to obtain the nec- 
essary access authorization. 

PATENTS 

Commission-owned patents constitute a source 
of opportunity for manufacturers who are inter- 
ested in entering the atomic energy field. More 
than 3,000 U.S. patents are available for licensing 
at this time. Abstracts of issued patents are pub- 
lished in Nuclear Science Abstracts, a Commission 
publication, and in the publications of the Small 
Business Administration and the Department of 
Commerce. 

Patents held by tlie Commission cover all phases 
of the atomic energy field including nuclear reac- 
tors and components, processes for producing 
source and special nuclear materials, processes for 
producing other materials i^equired in atomic en- 
ergy work, special fabrication techniques, instru- 
mentation, and a wide variety of mechanical 
equipment and apparatus. 

Patents have not been issued on some significant 
inventions because of the classified nature of the 
subject matter. Many of the inventions covered 



bj Commission-held patents have actual or poten- 
tial use outside the atomic energy field. 

On request, the Atomic Energy Commission 
grants nonexclusive, royaltj-free, revocable li- 
censes on the patents for which it has the right to 
grant licenses. Policies and rules governing li- 
censes were published on page 606 of the Federal 
Register, January 27, 1956, and also appear in 
Part 81^ Title 10. Code of Federal Reflations. 

Applications for licenses should contain the 
numoer of the patent, the name and address of 
the applicant, and the state of incorporation, if 
the applicant is a corporation. 

Requests for further information and applic4i- 
tions for licenses should be directed to the Assist- 
ant General Counsel for Patents, Office of the 
General Counsel, Atomic Energy Commission, 
Washington, D.C., 20545. 

RADIOISOTOPES 

Radioisotopes are unstable isotopes of an ele- 
ment that decay or disintegrate spontaneously, 
emitting radiation. They are potentially appli- 
cable to a wide range of industrial activities, xhe 
Oak Ridge National Laboratory is still the pri- 
mary source of supply; however, several other 
AEC laboratories are also distributing radioiso- 
topes. Several dozen firms now act as retailers 
and secondary distributors of the more than 100 
different radioisotopes which are produced by the 
various AEC laboratories and distributed by the 
Atomic Energy Commission. In addition, radio- 
isotopes are now being produced to a limited extent 
in privately-owned reactors. 

Individuals and concerns wishing to obtaui ad- 
ditional information regarding radioisotopes, ra- 
dioactive materials, or information regarding 
general industrial applications of atomic energy 
should direct their inquiries to either the Division 
of Isotopes Development or the AEC's Division of 
Reactor Development, Washington, D.C., 20545. 

LICENSING REQUIREMENTS 

The Atomic Energy Act of 1954, as amended, 
established a system of licensing requirements ap- 
plicable to virtually all private activities involving 
the use of by products, source, special nuclear ma- 
terials, or production and utilization facilities, all 
of which are defined in the Act. Under this sys- 
tem, which is administered by the Director "of 
Regulation, anyone who wants to possess or use 
these materials must get a license from the AEC's 
Division of Materials Licensing, Atomic Energy 
Commission, Washington, D.C., 20545, except in 
States which have entered into agreements with 
the Commission pursuant to Section 274 of the 
Atomic Energy Act. This provides that the Com- 
mission is authorized to enter into agreements witli 
the Governor of any State providing for discon- 
tinuance of the regulatory authority of the Com- 
mission with respect to any one or more of the 
following materials within the State : 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



145 



fa) byproduct materials; 

(b) source materials; and 

(c) special nuclear materials in quantities not 

sufficient to form a critical mass. 

Under such an agreement, the State has author- 
ity to regulate the materials covered by the agree- 
ment for the protection of the public health and 
safety from radiation hazards. 

As of April 1965, nine States^Arkansas, Cali- 
fornia, Florida, Kansas, Kentucky, Mississippi, 
New York, North Carolina, and Texas — have en- 
tered into such agreements with AEC. 

REGULATIONS 

The Atomic Energy Commission's Rules and 
Regulations are published in Title 10, Chapter 1, 
of the Code of Federal Regulations. 

The Atomic Energy Commission's Procurement 
Regulations, which implement and supplement the 
Federal Procurement Regulations, are published 
in Title 41, Chapter 9, of the Code of Federal 
Regulations. 

Copies of either of these regulations may be 
purchased at nominal cost from the Superintend- 



ent of Documents; Government Printing Office, 
Washington, D.C., 20402. 

NUCLEAR REACTORS BUILT, BEING BUILT, OR 
PLANNED 

Many of the commercial business opportunities 
that grow out of the development of nuclear reac- 
tors undoubtedly will occur at the level of Uie 
first and second tier of subcontracts. The oppor- 
tunities probably will involve the components, ma- 
terials, and services which are required for the 
construction and operation of nuclear reactors. A 
number of industrial concerns have built, are 
building, or plan to build nuclear reactors. List 
of contractors, designers, shipbuilders, and facility 
operators are compiled in the booklet "Nuclear 
Reactors Built, Being Built, or Planned in the 
United States" (latest revision) and is available 
from tlie Clearinghouse for Federal Scientific and 
Technical Information, National Bureau of Stand- 
ards, U.S. Department of Commerce, Springfidd, 
Va., at nominal cost. 



Tennessee Valley Authority 



MANAGEMENT SERVICES AND COUNSEL 

Fertilizer Production Technology developed by 
TVA is freely available to small business. Kesults 
of research and the developnjent of new or im- 
proved processes for the manufacture of fertilizers 
are maae available to prospective users through 
technical reports, articles published in trade and 
technical journals, various meetings, correspond- 
ence and visits. Those cooperating directly in 
TVA's fertilizer development programs are given 
technical assistance with problems and opportuni- 
ties in the use of TVA produced mat-erials. Rep- 
resentatives of companies may visit the TVA lab- 
oratories and plants at Muscle Shoals, Ala., to 
observe tests, pilot-plant demonstrations of new 
fertilizer processes, and large-scale manufactur- 
ing operations, and to consult with TVA scientists 
and engineers. Patents covering new processes 
and equipment are obtained by TVA, and licenses 
for use of the developments are granted without 
royalty. By April 1965, TVA had granted 409 
licenses to 254 companies for the use of patented 
developments in 390 plants. 

In the distributor demonstration program, an 
educational program designed to encourage scien- 
tific use of fertilizer, limited quantities of TVA 
fertilizers are made available to interested manu- 
facturers and distributors for improving products 
and processes, and systems of fertilizer distribu- 
tion. A field staff gives technical educational and 
engineering advisory service in connection with 
use of the experimental TVA materials. During 
fiscal year 1964, TVA fertilizers were used by 204 
firms in 40 States in projects to encourage im- 
proved fertilization practices on farms, and to 
reduce plant nutrient costs in fertilizers through 
improved products and manufacturing processes. 
The participation of small businesses is encour- 
aged. Currently, three- fourths of the firms hav- 
ing contracts to handle TVA fertilizers for the 
educational programs are small businesses. 

Forest Resources of the Tennessee Valley are 
inventoried by TVA, making timber quantity and 
quality data available in a form that can be used 
by local industry. Studies of sawmill and log- 
ging operations provide information which is 
passed on to the industry through literature and 
sawmill conferences. 

TVA Fisheries investigotions include inventories 
of fish populations in reservoirs, testing of new 
types of commercial fishing gear, and development 
of new markets for rough fish — ^nongame species 
for which markets are now inadequate or nonexist- 
146 



ent. Studies aimed at maintaining and develop- 
ing the mussel population and shell harvest are 
also underway. 

TVA Assistance on Navogiation Matters relative 
tx) the Tennessee waterway is available to barge 
lines and industries. State agencies and water- 
front communities are also assisted in providing 
developmental services. These services include 
identification of sites suitable for river terminals 
and for waterfront industries requiring water 
transportation and processing water supply; en- 
gineering data in respect to channel depths and 
reservoir levels; and information on barge line 
and other transportation services. 

Assistance is Availoble on Regional and Locol 
Economic Analyses and in obtaining related infor- 
mation on resources of importance to business ac- 
tivity through business and industry work groups 
of Tributary Area Development Associations. 

TVA Sejls Power to 156 municipal and coopera- 
tive distributors who retail the power to their in- 
dustrial and other customers. TVA also sells 
power directly, at retail, to a few industries with 
large or unusual i)Ower requirements. The dis- 
tributors have their own engineering and sales 
staffs and, in most areas, engage the services of 
professional industrial developers. TVA offers, 
m addition, advisory engineering services to assist 
the distributors with special customer problems. 

Engineering information resulting from many 
vears of experiment and study is available to small 
business. TVA's Engineering Laboratory in 
Norris, Tenn.^ has developed useful know-how in 
hydromechamcs, in the field of air and gas han- 
dling equipment, and in the uses of instrumenta- 
tion to record and analyze data collected in the 
Laboratory and in the field. 

The Laboratory's WcUer Quality Management 
Stvdies^ for example, are developing the means to 
predict water temperatures, dissolve oxygen con- 
tent and general water quality in Tennessee Val- 
ley streams and reservoirs. These continuing 
studies will provide information concerning plant 
location and the proper uses of water intake struc- 
tures for those facilities requiring water in 
processing. 

TVA maintains and operates streamflow, rain- 
fall, and evaporation stations for operational and 
water management purposes, and collects infor- 
mation on the quality of water within the Ten- 
nessee Eiver basin in connection with water 
management and pollution studies. 

TVA has published local flood reports for most 
of the conununities in the region that experience 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



147 



periodic flooding. These reports contain data on 
historic floods as well as those which may occur 
in the future. This inf ormaAion is useful in evalu- 
ating the risk associated with developments in the 
flood plain. 

Topographic Mops of standard 1:24,000 scale 
are available for the entire Tennessee Valley area, 
and may be purchased from TV A. Also, prints of 
aerial photographs and copies of compilation 
manuscripts used in the preparation of these maps 
may be had at reproduction cost. 

GOVERNMENT CONTRAaS 

In its contracting for materials, equipment, and 
supplies, small business is given the following 
prexerences : 

(1) Bidders' mailing lists on certain selected 
items are limited to small business concerns. 

(2) Where a small business and a large one are 
equal low bidders and have equal labor surplus 
area classification, the small business is given the 
award. 

(3) In evaluating foreign bids a factor of 12 
percent is added to them when the low domestic 
bidder is a small business concern. 

In addition, some of TVA's purcliasing policies 
directly benefit small concerns. For example, the 
practice of buying part of its coal requirements in 
small quantities over short terms permits small 
producers to share in supplying coal to TVA. In 
fiscal year 1964, about 46 percent of TVA's coal 
purchases were from small business concerns. 
TVA makes wide use of motor carriers and con- 
tract barge lines for shipments to, from, and 
within TVA ; these carriers are principally small 
business concerns. For fiscal year 1964, about $146 
million or 43 percent of the total amount of TVA 
contracts went to small business. 

NEW BUSINESS OPPORTUNITIES 

RESEARCH AND DEVELOPMENT 

TVA advances in fertilizer technology are being 
adopted by members of the industry and by new 
producers at an increasing rate. The expanding 
need for production of liquid and suspension ferti- 
lizers, higli-analysis granular fertilizers of various 
types, and intermediate materials of high concen- 
tration offer new business opportunities in which 
TVA can be of considerable assistance. TVA 
developments in these and other fertilizer fields 
are becoming increasingly important in improving 
and lowering the costs of fertilizers. Availability 
of improved fertilizer materials under the TVA 
distributor demonstration program, open to any 
firm willing to carry on designated developmental 
activities, has enabled many companies to try out 
applications of new technology or new types of 
operation. 

TVA has done research and development work 



on laminated hardwood flooring, wood molasses, 
and wood preservation with oil-soluble preserva- 
tives. Analysis reports on additional hardwood 
and pine pulpmill sites were published recently. 
Integrated wood utilization centers are being 
encouraged through publications that analjrze 
resources, markets, and economic opportunities 
for specific areas. Research is underway with the 
U.S. Forest Products Laboratory on continuous 
wood laminating processes, treatment of wood 
with polyphosphates to make it fire resistant, and 
increased chemical utilization of hardwoods. 
Other investigations are aimed at cutting the cost 
of han'-esting and delivering wood to processing 
plants and developing new methods for reducing 
roundwood to fibei'S. 

GENERAL INFORMATION BIBLIOGRAPHY 

OFFICE OF AGRICULTURAL AND CHEMICAL DE- 
VELOPMENT PUBLICATIONS 

Fertilizer Science and tlie American Fanner. 

General Outline of Ghemicdl Engineering 
Activities, 

Fertilizer Trends and the Scope of TVA^s Fer- 
tilizer Activities. 

TVA Fertilizers in the Dmtrihutor Demonstra- 
tion Program. 

Abstracts of TVA reports on such subjects and 
publications on research and development projects 
of po^ible interest to small concerns, are sent 
periodically to the Small Business Administration. 

DIVISION OF FORESTRY DEVELOPMENT PUBLICA- 
TIONS 

Skidding \^Logs'\ with Rubher-Tired Wheel 
Tractors. 

A Guide for Evaluating Black Walnut Sawlog 
Quality. 

Quality Control in Circular SaurniUl Overation. 

Utilizing Pine SawmiU Residue for Pulp Chips. 

Harvesting Pine Pulpwood. 

Pulpwood Marketing Trends in the Tennessee 
Valley. 

A Forest Restored — An Industn^ Expand-ed. 

An Industrial Opportunity for Southwest Vir- 
ginia — Hardwood Furniture Dimension. 

Furniture Industry Expanuon in the Tennessee 
Valley. 

Hardwood Utilization Centers. 

Hickory — Wood with a Future. 

Forest Industry Prospects for Upper French 
Broad Watershea. 

A Forest Industry Prospectus for East Ten- 
nessee. 

OFFICE OF POWER PUBLICATIONS 

Po wer A nnual Report ( TVA ) . 
Annual Summary of New and Expanded Indus- 
trial Plant Annoimcements. 



Export-Import Bank 



The basic purpose of the Export-Import Bank 
(EXIMBANK) is to facilitate the foreign trade 
of the United States. Eximbank has three major 
programs which benefit U.S. exporters : 

1. Export Credit insurance issued to U.S. sup- 
pliers in cooperation with the Forei^ Credit In- 
surance Association (FCIA) covermg political 
and commercial risks on both short- and medium- 
term export sales transactions. 

2. Guarantees offered to commercial banks fur- 
nishing nonrecourse financing to U.S. exporters on 
their medium-term sales. 

3. Direct loans to foreign borrowers to assist 
them in financing the purchase of U.S. goods and 
services. 

EXIMBANK's operations are guided by the fol- 
lowing principles : 

Loans, guarantees, and insurance are extended 
for the primary purpose of promoting the export 
of U.S. materials, e(mipment and services. 

Loans, and guaranteiBd or insured credits, are 
in dollars and payable in dollars. 

Each transaction must offer reasonable assur- 
ance of repayment. 

Eximbank cooperates with and assists private 
capital and does not compete with it. 

EXPORT CREDIT INSURANCE 

A small businessman desiring to increase sales 
abroad but uncertain about extending credit over- 
seas, or who may be forced to meet credit terms 
offered by his foreign competitors, may find it 
helpful to. make use of the credit insurance pro- 
gram now available through the Foreign Credit 
Insurance Association (F(JlA). 

The Foreign Credit Insurance Association — an 
unincori)orated group of more than 70 major 
American marine, casualty, and property insur- 
ance companies — was formed in 1961 with the sup- 
port of Eximbank to provide U.S. exporters with 
msurance of their short- and medium-term ac- 
counts receivable arising out of export sales. By 
the end of calendar year 1964 cumulative insur- 
ance authorizations had totaled about $2 billion. 
Coverage is provided for either comprehensive 
risks (both political and credit risks) or for polit- 
ical risks only. Also, the proceeds of the FCIA 
insurance pohcv may be assigned to a commercial 
bank, thus making it easier for the exporter to 
obtain financing if needed. * 

Payment of principal (and intei^est up to 6 per- 
cent) is insured from the time of shipment of the 
148 



goods— or, if the insured desires, from the date 
the order is received — until final payment date. 

Short-term policies provide coverage during a 
1-year period on all credit sales transactions to all 
or selected countries where the term extended by 
the exporter does not exceed 180 days. The com- 
prehensive policy covers 90 ])ercent of losses due to 
credit risks and 95 percent for political risks. 
FCIA will negotiate policies excluaing particular 
markets if the remaining markets provide a rea- 
sonable spread of risk. 

Medium-term policies f payment from 181 days 
up to 5 years) permit the exporter to insure a 
smgle sale, or repetitive sales to one biyer during 
1 year; the policy covers 90 percent of losses due 
to either credit or political risks. 

For further information, U.S. exporters may 
apply either through their insurance broker or di- 
rectly to the Foreign Credit Insurance Associa- 
tion, 250 Broadway, New York, N.Y., 10007. 

COMMERCIAL BANK GUARANTEE 
PROGRAM 

The small businessman may more easily obtain 
financing from his commercial bank on his me- 
dium-term sales abroad because of the guarantees 
offered to the banks by the Export-Import Bank 
By the end of 1964 nearly $1 billion of guarantees 
had been authorized under this program. If a 
commercial bank desires to obtain a guarantee 
from Export-Import Bank it must be willing to 
provide credit to the exporter on a nonrecourse 
basis. The commercial bank prepares and submits 
to Eximbank an application for a guarantee 
which covers the commercial bank against the 
risk of nonpayment by the foreign buyer for cither 
political or commercial reasons. To be eligible 
for a guarantee the underlying sales transaction 
must provide for an initial cash payment by the 
foreign buyer (usually 20 percent of the contract 
price), the exporter must retain for his own ac- 
count 10 percent of the balance or financed 
portion, and financing for the remaining 90 per- 
cent of the financed portion of tlie sale is to be 
provided without recourse on the exporter. Guar- 
antee fees vary according to the term of the credit 
and the degree of risk in the particular market. 

For further information, exporters should con- 
tact their commercial banks or through them a 
correspondent bank in a major city. 



FEDERAL HANDBOOK FOR SMALL BUSINESS 



149 



LONG-TERM CAPITAL LOANS 

Also, small businessmen may benefit directly or 
indirectly when Eximbank finances exports 
through long-term capital loans extended directly 
to private and public borrowers abroad. The 
amount of these loans varies f TOm a few thousand 
to many millions of dollars. They may be used 
to finance the dollar cost of such varied projects as 
the purchase of equipment for plant expansion, 
the erection of a bridge, the equipping of a huge 
electric power station, or the construction of a 
complex chemical plant. These loans currently 
carry a standard interest rate of 6^ percent per 
annum regardless of where the project is located, 
and maturities of from 5 to around 20 years as may 
be appropriate. Such credits enable the U.S. sup- 
pliers of equipment, materials, and services to re- 
ceive prompt and full payment in cash from the 



foreign buyer. Since Eximbank's establislunent 
in 1934, such direct loans have totalled nearly $15 
billion and have benefited not only the principal 
suppliers but thousands of subcontractors and 
small manufacturers throughout the United 
States. 

OTHER PROGRAMS 

In addition to the three major export financing 
programs described above, some of the Bank's 
other activities which may be of special interest 
to the small businessman are: The issuance of 
guarantees on U.S. goods shipped abroad for dis- 
j)lay at trade f aire and exhibits or on lease or con- 
signment, or on the sale abroad of U.S. technical 
services such as engineering studies and reports, 
economic surveys, and design and architectural 
services, and direct commodity credits to oversea 
purchasers of agricultural commodities. 



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COHXITTEE PBUTT 



LIST OF PUBLICATIONS 

ISSUED BY THE 

SELECT COMMITTEE ON SMALL BUSINESS 
UNITED STATES SENATE 



81ST CONGRESS, 2D SESSION (1950) 

THROUGH 

88TH CONGRESS, 2D SESSION (1964) 




REVISED MARCH 31, 1965 



Printed for the use of the Select Committee on Small Business 



47-431 



U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1965 



ACT 




SELECT COMMITTEE ON SMALL BUSINESS 

[Created pursuant to 8. Res. 68, 81st Cong.] 
JOHN 8PARKMAN, Alabama, Chairman 
RITSSELL B. LONG, Louisiana LEVERETT 8ALT0NSTALL, Maasachosetts 

GEORGE A. SMATHERS, Florida JACOB K. JAVIT8, New York 

WAYNE MORSE, Oregon JOHN SHERMAN COOFER, Kentucky 

ALAN BIBLE, Nevada HUGH SCOTT, Fennsylvania 

JENNINGS RANDOLPH, West Virginia WINSTON L. PROUT Y, Vermont 

E. L. BARTLETT, Alaska NORRIS COTTON, New Hampshire 

HARRISON A. WILLDLMS, JE., New Jersey 
GAYLORD NELSON, Wisconsin 
JOSEPH M. MONTO YA, New Mexico 
FRED R. HARRIS, Oklahoma 

LEWD G. Odom, Jr., Staff Diredor and Oenerai Caumd 

Blake O* CoTmoR, Auiitant Staff Director 

ROBEET R. LocKUN, AttodoU QtMTal Omntd 

Elizabeth A. Bybnb, Chief Clerk 

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LIST OF PUBLICATIONS 

ISSUED BY THE 

SELECT COMMITTEE ON SMALL BUSINESS 
UNITED STATES SENATE 

8l8t Congress, 2d Session (1950), tlurongh the 88th Congress* 2d Session (1964) 



81st Congress, 2d Session, 1950 

HSARINOB 

Small Business and Credit, Reoonstruction Finance Corporation: The degree of 
availability of Reoonstruction Finance Corporation funds to small business, 
June 14, 1950.1 

Small Business and Procurement, Department of Commerce: Dissemination of 
procurement information; technical and management aids to small business, 
June 15, 1950.1 

Small Business and Procurement, Department of Defense: Participation of small 
business in Government procurement, June 19, 1950.^ 

Small Business and Procurement, General Services Administration and Veterans 
Administration : Participation of small business in Government procurement, 
June 20, 1950.» 

Small Business and Procurement, Economic Cooperation Administration: Par- 
ticipation of small business in Government procurement, June 21, 1950.i 

Fuel Situation in Chicago, Chicago, ill., December 14, 1950.^ 

SBPOBT 

Senate Report No. 2633 : The New England Fuel Situation and Prospects. Report 
of the Select Committee on Small Business, United States Senate, pursuant to 
S. Res. 344. December 14, 1950.* 

Committee Prints 

No. 1. The New England Fuel Situation and Prospects. Report of the Subcom- 
mittee on Fuel of the Select Committee on Small Business, United States 
Senate, October 21, 1950.* 

Small-Business Clinic — Proceedings ofsmall-business clinic held at Tucson, 
Ariz., December 15, 1950, including excerpts from the Oklahoma City 
clinic, December 16, 1950.* 

Selling to Your Government: Data prepared by the Select Committee on 
Small Business, United States Senate, relative to participation of small 
business in the Federal Procurement Program in National Defense, 1950.^ 

82d Congress, 1st Session, 1951 

Hbarin^gs 
Material Shortages: 

Part I. Impact on Small Business, January 18, 1951.^ 
Part II. Steel: Impact on Small Business, January 19, 20, 1951." 
Part III. Plastics: Impact on Small Business, January 23, 1951.^ 
Partly. Aluminum: Impact on Small Business, January 26, 1951.^ 
Industrial Manpower: Subcommittee on Manpower, March 6, 7, 22, 1951. > 
Rubber Survey: Subcommittee on Rubber. March 26, 27, 28, 29, 30, April 2, 
3, 4, 5, 9, 1 0, 1951.1 

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2 UST OF PUBLICATIONS 

Role of Irregular Airlines in United States Air Transportation Industry: Sub- 
committee on Irregular Airlines, April 23, 24, 25, 27, 30, May 1 and 6, 1951.» 

Small Business Participation in the Military Procurement Program, May 21, 23, 
24, 28, 29, 1951.1 » » J * , 

Price Discrimination and the Basing-Point System: Subcommittee on Price Di»-, 
crimination and the Basing-Point System, July 13, 16, 17, 18, 19, 23, 24, 25, 
26, and 27, 1951.i 

Small-Business Problems in the Mobilization Program: Subcommittee on Military 
Procurement, Detroit, Mich., July 14 and 16, 1951.i 

2«Tickel Gray Market: Subcommittee to Study the Gray Market in Nickel, August 
21, 22, and 28. 1951.i ^ 

.Small-Business Programs of the National Production Authority, October 4, 1951. 

Steel Gray Market: Subcommittee on Mobilization and Procurement, Pittsburgh, 
Pa., October 25, 1951; Chicago, lU., November 20, 1951; Detroit, Mich., No- 
vember 29 and 30, 1951; Cleveland, Ohw, December 19, 1951.» 

:Steel Outlook for 1952: Subcommittee on Mobilization and Procurem^t, Decem- 
ber 3, 1951. 

Joint Hearings 

Small-Business Participation in Military Procurement: Joint hearings before the 
Senate and House Select Committees on Small Business, May 7, 8, 14, 15, and 
16, 1951.» 

Production and AUocations: Joint hearing before the Senate and House Com- 
mittees on Banking and Currency and the Senate and House Select Committees 
on Small Business, October 12, 1951.^ 

Repobtb 

Senate Report No. 2: Annual Report of the Select Committee on Small BusinesB. 
January 15, 1951. 

Senate Report No. 77: Report on Material Shortages. February 5, 1951. 

Senate Report No. 438: Report on Small-Business Manpower Problemfl — Indus- 
trial Manpower, June 18, 1951. 

Senate Rep>ort No. 469: Report on Participation of Small Business in Military 
Procurement, June 21, 1951. 

Senate Report No. 540: Report on Role of Irregular Airlines in United States Ast 
Transportation Industry, July 10, 1951. 

Senate Keport No. 551: Concentration of Defense Contracts, July 19, 1951. 

Senate Report No. 586: Report on Price Discrimination and the Basing-PoiBt 
System, July 30, 1951. 

Senate Report No. 785: The Gray Market in Nickel, September 18, 1951. 

CouiaTTEE Prints 

Supplies for a Free Press: A preliminary report on newsprint by the Subcommiiiee 

on Newsprint of the Select Committee on Small Business, United States Senate, 

1951. 
Prevalence of Price Cutting of Merchandise Marketed Under Price Maintenance 

Agreements: Study prepared for the Joint Committee on the Eoonomie R^x>rt 

and the Select Committee on Small Business, United States Senate, May 28 

through June 25, 1951.^ 
Second Report of the Attorney General of the United States, prepared pureuani 

to section 708(e) of the Defense Production Act of 1950, April 30, 1951. ^ 
Small Defense Plants Administration: Section 714 of the Defense Production Act 

of 1950, October 15, 1951. 
New En^^and Fuel Supplies: Staff report to the Subcommittee on Fuel of the 

Select Committee on small Business, December 5, 1951. 
Aluminum Inventories of West Coast Aicerait Industry: Staff Report, December 

26, 1951. 

82d Congress, 2d Sesgion, 1952 

Hearings 

Small Business Participation in Military Procurement, No. 3: Plant expansion, 
part 1, Air Force program on landing gear struts. January 30 and 31, 1952. 

Machine-Tool Shortages: The impact of machine-tool shortages on small mann- 
facturera. February 27, 28, and 29, March 10, 11, 12, 14, 17, 18, and 19, and 
April 1 and 2, 1952. 

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Small Business Participation in Military Procurement, No. 4: Administration of 
Public Law 921, Slst Congress, an act whereby the Department of Defense 
received authority to grant relief to contractors CRifTering hardships under fixed- 
price contracts. February 13 and 14, 1952.^ 
Aluminum Supply: Outlook for small aluminum fabricators. March 7, 1952. 
Defense Manpower Policy No. 4: The implementation of defense manpower policy 
No. 4, issued February 7, 1952, by the Director of Defense Mobilization, and 
its impjict on small business. March 20, 1952. 
Tax Problems of Small Business, Part I: Impact of Federal tax programs on small 
business concerns: ^ 
March 13, 1952, Bridgeport, Conn. 
March 14, 1952, Newark, N.J. 
March 28, 1952, Los An^^les, Calif. 
April 4, 1952, Minneapolis, Minn. 
April 10, 1952, Birmingham, Ala. 
May 15, 1952, Chicago, 111. 
Tax Problems of Small Business, Part II: Impact of Federal tax program on small 

business concerns: July 15, 1952 — Cleveland, Ohio. 
Rubber Program: The conduct of the rubber program. March 27 and 28, 1952. 
Use of Unauthorized Aluminum in the Storm- Wmdow Industry. April 21 and 22, 

1952. 
MUitary Procurement, No. 5: Participation of small business in military procure* 

ment. April 28 and 29, May 2, 5, 6, and 8, 1952. 
Monopoly and Cartels, Part I: The impact of monopoly and cartel practices on 
small business. April 23 and 29, May 23, July 16 and 17, 1952. 

Reports 

Senate Report No. 1068: Annual Rep>ort of the Select Committee on Small 

Business, United States Senate. January 21, 1952. ' 
Senate Report No. 1141: The Gray Market in Steel: Impact of gray market in 

steel on small manufacturers and fabricators. January 31, 1952. 
Senate Report No. 1404: Newsprint for Tomorrow: Report and conclusions of 

the Select Committee on Small Business, including individual views of Senator 

Thye and statement of Senator Schoeppel. April 7, 1952.> 
Senate Report No. 1459: The Administration of Public Law 921, Slst Congress 

AprU 16, 1952. 
Senate Report No. 1597: Defense Production Pools. May 26, 1952. 
Senate Report No. 1860: The Unauthorized Use of Aluminum in the Storm- 

Window Industry. June 27, 1962. 
Senate Report No. 1988: Machine-Tool Shortages: Impact of machine-tool 

shortages on small manufacturers. June 30, 1952. 
Senate Report No. 2070: Military Procurement: Participation of small business 

in military procurement. July 2, 1952.i 



Committee Prints 



No. 1. 



Monopolistic Practices and Small Business: Staff report to the Federal 
Trade Commission for the Subcommittee on Monopoly of the Select 
Committee on Small Business, United States Senate. March 31, 1952. 

The Distribution of Steel Consumption, 1949-50: Report of the Federal 
Trade Commission to the Subcommittee on Monopoly of the Select 
Committee on Small Business, United States Senate. March 31, 1952. 

A Study of the Development of the Antitrust Laws and Current Problems 
of Antitrust Enforcement: Report of the Department of Justice to the 
Subcommittee on Monopoly of the Select Committee on Small Business, 
United States Senate. May 23, 1952. 

The Public Utility Holding Company Act of 1935: Report of the Securities 
and Exchange Commission to the Subcommittee on Monopoly of the 
Select Committee on Small Business, United States Senate. June 3, 
1952. 

Foreign Legislation Concerning Monopoly and Cartel Practices: Report 
of the Department of State to the Subcommittee on Monopoly of the 
Select Committee on Small Business, United States Senate. July 9, 
1952. 
No. 6. The International Petroleum Cartel: Staff report to the Federal Trade 
Commission submitted to the Subcommittee on Monopoly of the Select 
Committee on Small Business, United States Senate. August 22, 1952.* 

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No. 2. 



No. 3. 



No. 4. 



No. 5. 



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4 UBT OP PUBLICATIONS 

No. 7. Concentration of Banking in the United States: Staff report to the Board 
of Governors of the Federal Reserve System, submitted to the Sub- 
committee on Monopoly of the Select Committee on Small Business, 
United States Senate. September 10, 1952. 

No. 8. The Cost and Availability of Credit and Capital to Small Business: Staff 
report to the Board of Governors of the Federal Reserve System, sub- 
mitted to the Subcommittee on Monopoly of the Select Committee on 
Small Business, United States Senate. October 30, 1952. 

No. 9. The Role of Competition in Commercial Air Transportation: A report 
by the Civil Aeronautics Board, submitted to the Subcommittee on 
Monopoly of the Select Committee on Small Business, United States 
Senate. November 24, 1952. 

JOINT COMMITTEE PRINT 

The Third World Petroleum Congress: A report to the Select Committee on 
Small Business, United States Senate, and the Select Committee on Small 
Business, House of Representatives.^ 

83d Congress, 1st Session, 1953 

Hbarinqs 

Military procurement, participation of small business in: March 6, May 4, 8, 9, 
11, 13, 14, and 15, 1953.> 

Future of irregular airlines in the United States air transportation industry; 
March 31, May 1, 4, 5, 6, 7, and 8, 1953.^ 

Motion-picture distribution trade practice — Problems of independent motion- 
picture exhibitors relating to distribution trade practices ; Los Angeles, Calif., 
March 31, April 1 and 2, 1953; Washington, D.C, April 15, 16, 17, 27, 28, 29, 
30, May 28, and July 10, 1953.» 

Battery AD-X2: Investigation of battery additive AD-X2; March 31, June 22, 
23, 24, 25, and 26, 1953.i 

Aluminum sweating operations, the extent of Government competition with pri- 
vate enterprise; September 28, 1953. 

Petroleum marketing and distribution problems of independent west coast 
marketers; Seattle, Wash., November 16 and 17, 1953. 

Reports 

Senate Report 49: Annual Report of the Select Committee on Small Business, 

United States Senate; March 2, 1953. 
Senate Report 206: Small Business and Defense Subcontracts; April 28, 1953. 
Senate Report 442: Tax Problems of Small Business; June 18, 1953. 
Senate Report 882: Future of Irregular Airlines; July 31, 1953. 
Senate Report 835: Problems of Independent Motion-Picture Exhibitors; August 

3, 1953. 

Committee Prints 

Effect of battery additive AD-X2 on lead acid batteries; report of the Massachu- 
setts Institute of Technology submitted to the Select Committee on Small 
Business, United States Senate, April 6, 1953.> 

Problems of independent tire dealers, staff rejwrt to the Select Committee on 
Small Business. United States Senate, July 27, 1953. 

Small Business Administration: Title II of Small Business Act of 1953 (Public 
Law 163, approved July 30, 1953), August 10, 1953. 

83d Congress, 2d Session, 1954 

Heabinos 

Military Procurement Program. 1954: Participation of Small Business in Military 

Procurement; March 17, 19, 24, 25, 31, April 2, 7, 8. 13, and 14, 1954.i 
Small Business Administration Loan Policy; May 13, 1954.^ 
Navy Procurement of Tugboats: Participation of Small Business in Military 
Procurement; May 19 and 20, 1954. 

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Rbports 

Senate Report 1092: Annual Report of the Select Committee on Small Business; 

March 25, 1954.i 
Senate Report 2487: Military Procurement, 1954: Participation of Small Busi* 

ness in Military Procurement; August 14, 1954.> 
Senate Report 2506: Navy Procurement of Tugboats; August 24, 1954.* 

84tii Congress, 1st Session* 1955 

Hbarinob 

Small Business Administration Progress Report, March 21, 1955. 

Government Competition With Private Business, April 6, 1955. 

Military Procurement, 1955 — Participation of Small Business in Military Pro- 
curement, April 20, 21, 22, 25, May 4 and 5, 1955. 

Report of the Attorney General's National Committee to Study the Antitrust 
Laws — To consider the report of the Attorney General's National Committee, 
April 27, 28, and 29, 1955. 

Maintenance of the Mobilization Base — Policies of the Office of Defense Mobili- 
zation and the Department of Defense, as they affect small business (DM0 
VII-7; DOD 3005.3), July 20, 1955. 

Gasoline Price War in New Jersey — A Study of Petroleum Marketing Practices 
in New Jersey; July 22, 1955, part 1. 

Gasoline Price War in New Jersey — A Studv of Petroleum Marketing Practices 
in New Jeisey, October 19 and 20, 1955 (iJewark, N.J.), part 2. 

Administration of the Motor Carrier Act by the Interstate Commerce Commission, 
as it affects small truckers and shippers; November 30, December 1 and 2, 1955.^ 

Reports 

Senate Report No. 129: Annual Report of the Select Committee on Small Busi- 
ness, United States Senate, March 30, 1955. 

Senate Report No. 1272: Maintenance of the Mobilization Base: Directives and 
Orders Relating to the Maintenance of the Mobilization Base, July 30, 1955. 

Senate Report No. 1273: Military Sea Transportation Service Bidding Pro- 
cedures, July 30, 1955. 

Senate Report No. 1274: Military Procurement, 1955: Participation of Small 
Business in Military Procurement, July 30, 1955. 

Committee Print 

Small Business Act of 1955— Text of Small Business Act of 1953 (Public Law 
163, 83d Cong., 1st sess.), as amended by Public Law 268 of the 84th Congress, 
1st session; August 20, 1955.^ 

84th Congress, 2d Session* 1956 

Hearings 

Military Procurement, 1956: Small Business Problems in Military Procurement, 

January 9 and 10, 1956. 
Machine-Tool Programs: Mobilization Planning, Reserve and Replacement 

Programs, February 7 and 8, 1956. 
Gasoline Price War in New Jersey: A Study of Petroleum Marketing Practices in 

New Jersey, December 15 and*^16, 1955, and February 18, 1956, part 3.* 
Motion-Picture Distribution Trade Practices, 1956: Problems of Independent 

Motion-Picture Exhibitors, March 21, 22; May 21 and 22, 1956.i 
Small Business Administration, 1956: Progress Report of the Small Business 

Administration, April 18 and 19, 1956. 
Supply and Distribution of Nickel: The Impact of the Nickel Shortage on Small 

£lectroplaters, May 30 and 31, 1956. 
Government Procurement, 1956: Small Business Policies and Programs of 

Governmen t Agencies, March 28, 29; May 22, 23, 24; June 26 and 27, 1956. 

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6 LIST OF PT7BUCATI0NS 

Rbpobts 

Senate Report No. 1368: Sixth Annual Report of the Select Committee on Small 
Business, United States Senate, January 12, 1956. 

Senate Report No. 1693: Competition, Regulation, and the Public Interests in the 
Motor Carrier Industry — Administration of the Motor Carrier Act by the 
Interstate Commerce Commission, together with minority views, March 19, 
1956. 

Senate Report No. 1723: Military Procurement, 1956 — Military Procurement 
Practices — Case Studies — April 3, 1956. 

Senate Report No. 2229: Machine-Tool Program — Mobilization Planning, Re- 
serve and Replacement Programs, June 14, 1956. 

Senate Report No. 2810: Gasoline Price War in New Jersey — A Study of Petro- 
leum Marketing Practices, July 26, 1956.' 

Senate Report No. 2818: Motion-Picture Distribution Trade Practices, 1956; 
Problems of Independent Motion-Picture Exhibitors, July 27, 1956. 

Senate Report No. 2819: Fair Trade — A study on Fair Trade, Based on a Survey 
of Manufacturers and Retailers, July 27, 1956. 

Senate Report No. 2826: Supply and Distribution of Nickel and the Impact of 
the Nickel Shortage on Small Electroplaters, August 1, 1956. 

Senate Report No. 2827 : Government Procurement, 1956 — Small Business Par- 
ticipation in Government Procurement, August 1, 1956. 

CoMBnTTEE Prints 

Material Relative to Competition in the Regulated Civil- Aviation Industry, 1956, 

transmitted by the Civil Aeronautics Board to the Select Committee on Small 

Business, United States Senate, April 18, 1956.* 
Tax Guide for Small Business — Transmitted by the Internal Revenue Service of 

the Department of the Treasury to the Select Committee on Small Business, 

United States Senate, December 1956.' 

85tii Congress, 1st Session, 1957 

Heabings 

Government Procurement, 1957: Case Studies in Government Procurement, 

March 11, 12, and 13, 1957. 
Small Business Administration, 1957: Annual review of the activities of the Small 

Business Administration, March 14 and 15, 1957. 
Government Competition with Private Business, 1957: Progress report on dis- 
continuance of commercial-type operations by the Federal Government, April 
16 and May 22, 1957.^ 
Daytime Radio Broadcasting, 1957: Problems arising out of the petition filed 
by the Daytime Broadcasting Association, Inc., with the Federal Communica- 
tions Commission for extended hours of operation, April 29 and 30, 1957.' 
Trucking Mergers and Concentration: Mergers and possible Mjowth of concen- 
tration in the trucking industry (and an appendix entitled, '^Trucking Mergers, 
Concentration, and Small Business: An Analysis of Interstate Commerce 
Commission Policy, 1950-56," prepared by Dr. Walter Adams and Dr. James B. 
Hendry, for the Senate Small Business Committee), July 1, 2, 11, and 12, 1957. 
Small- Business Participation in Government Procurement, 1957: Small-business 
policies and programs of Government agencies, June 25, 26, 28, July 11, 12, 
and 30, 1957.» 
Tax Problems of Small Business : The impact of Federal taxation on small business, 
part 1 : i 

September 16, 1957, Phoenix, Ariz. 
September 18, 1957, Los Angeles, Calif. 
September 20, 1957, San Francisco, Calif. 
September 30, 1957, Boston, Mass. 
October 2, 1957, New York, N.Y. 
Tax Problems of Small Business: The impact of Federal taxation on small business, 
part 2:1 

November 5, 1957, Miami, Fla. 
November 12, 1957, Chicago, 111. 
November 13, 1957, Minneapolis, Minn. 
November 15, 1957, Portland, Oreg. 

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Tax Problems of Small Business: The impact of Federal taxation on small busi- 
iness, part 3: » 
November 20, 1957, Denver, Colo. 
November 22, 1967, Wichita, Kans. 
December 2, 1957, Birmingham, Ala. 
December 4, 1967, Dallas, Tex. 
December 10, 1957, Milwaukee, Wis. 
Small-Business Problems in the Pacific Northwest, 1957, Portland, Oreg., Novem- 
ber 14, 1957. 

Rbpoets 

Senate Report No. 46: Seventh Annual Report of the Select Committee on Small 
Business, United States Senate, February 1, 1967.^ 

Senate Report No. 1015: Government Competition With Private Business: Dis- 
continuance of commercial-type operations by the Federal Government, August 
19, 1957. 

Senate Report No. 1111: Government Procurement, 1967: Case studies in Gov- 
ernment procurement, August 23, 1957.^ 

Senate Report No. 1168: Daytime Radio Stations: Extended hours of operation 
for daytime radio stations, September 11, 1957. 

Senate Report No. 1170: Government Procurement Policies: Small-Business 
participation in Government procurement, 1957, December 30, 1957. 

Documents 

Senate Document No. 32: The Right To Buy — And Its Denial to Small Busmess: 
A report prepared by Dr. Vernon A. Mund for the Select Committee on Small 
Business, United States Senate, March 1957. 

85th Congress, 2d Session, 1958 

HSABINGB 

The Role of Private Antitrust Enforcement in Protecting Small Business, 1958: 
The extent to which private enforcement of the antitrust laws offers a practical 
form of protection to small business, victims of predatory pricing practices and 
other antitrust wrongdoing, March 3 and 4, 1958.' 

Small Business Administration, 1958: Annual review of the activities of the Small 
Business Administration, March 25, 1958. 

The Role of Small Business in Defense Missile Procurement, 1958: The partici- 
pation of small business in the missile, rocket, and outer space exploration 
programs of the Department of Defense, April 29, 30, and May 1, 1958. 

Discount-House Operations: Competitive impact of discount-house operations on 
small business, June 23, 24, and 25, 1958.^ 

Small-Business Participation in Government Procurement, 1958: Small-business 
programs, policies, and procedures of Government agencies, July 23 and 24, 
1958." 

Competitive Problems of Independent Flat- Glass Dealers: Dual distribution 
methods of flat-glass producers and competitive problems of independent flat- 
glass dealers and distributors, July 30 and 31, 1958; October 9 and 10, 1958. 

Independent Logging and Sawmill Industry, 1958: Problems of the independent 
logging and sawmill industry, November 13, 1958, Superior, Wis., part 1.^ 

Reports 

Senate Report No. 1237: Tax Problems of Small Business, January 30, 1958. 

Senate Report No. 1282: Eighth Annual Report of the Select Committee on 
Small Business, United Stotes Senate, February 10, 1958. 

Senate Report No. 1441 : Mergers and Concentration in the Trucking Industry, 
together with minority views of Mr. Schoeppel and Mr. Goldwater, April 21, 
1958. 

Senate Report No. 1855: The Role of Private Antitrust Enforcement in Protect- 
ing Small Business, July 18, 1958. 

Senate Report No. 2499: The Role of Small Business in Defense Missile Procure- 
ment, Sept ember 30, 1958. 

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8 LIST OF PUBLICATIONS 

Senate Report No. 2504: Discount-House Operations: Summarizing Testimony 
on Competitive Impact of Discount- House Operations on Small Business, No- 
vember 28, 1958. 

Senate Report No. 2505: Small-Business Participation in Government Procure- 
ment, December 30, 1958. 

Committee Prints 

The General Accounting Office and Small Business: Staff report to the Select 
Committee on Small Business, United States Senate, January 21, 1958. 

Financing Small Business: Report to the Committees on Banking and Currency 
and the Select Committees on Small Business, United States Congress, by the 
Federal Reserve System (pts. 1 and 2), April 11, 1958.* 

Small Business Act of 1958: Text of Small Business Act of 1958, Public Law 536, 
85th Congress, 2d session, July 23, 1958.* 

Small Business Investment Act: Text and explanation, Public Law 699, 85th 
Congress, 2d session, September 5, 1958.' 

Small Business Tax Adjustments (contained in the Technical Amendments Act 
of 1958, PubUc Law 85-866), September 15, 1958.* 

Briefing on the Investment Act: Briefing session on the Small Business Invest- 
ment Act of 1958, sponsored by the American Management Association in 
New York, December 1 and 2, 1958. 

Mimeograph 

Statistical Data on Small Business, prepared by the Select Committee on SmaQ 
Business, United States Senate, 1958.* 

86th Congress, 1st Session, 1959 

Hearings 

ndependent Logging and Sawmill Industry, 1959: The problems of the inde- 
pendent logging and sawmill industry (pt. 2, continued from 85th Cong.), 
January 31, 1959. 

Case Problems in Government Procurement: Government procurement problems 
of Aerosonic Corp., Clearwater, Fla.; and Hastiugs-Ravdist, Inc., Ilampton, 
Va., March 19 and 20, 1959. 

State Taxation on Interstate Commerce, 1959 (pt. 1), April 8, 1959. 

State Taxation on Interstate Commerce, 1959 (pt. 2), \iay 1, 1959. 

State Taxation on Interstate Commerce, 1959 (pt. 3): Written statements sub- 
mitted for the record, New York, N.Y., and 5sewark, N.J., June 19, 1959. 

Small-Business Participation in Defense Subcontracting, April 22, 23, and 24, 1959. 

Shopping Centers, 1959: Alleged discriminatory practices against small-business 
concerns in suburban shoppuig centers, April 28 and 29, 1959. 

Small Business Administration, 1959: Review of current programs and activities 
of Small Business Administration, June 3, 1959. 

Dual Distribution in the Automotive Tire Industrv, 1959 (pt. 1), June 17, 18, and 
19, 1959. 

Dual Distribution in the Automotive Tire Industry, 1959 (pt. 2) (Supplemental 
material to hearings), June 17, 18, and 19, 1959. 

Problems of the Scrap-Steel Industry, 1959: Technological and competitive prob- 
lems of independent scrap-steel dealers, June 24, 1959. 

Mergers and Unfair Competition in Food Marketing: The interim report of the 
Federal Trade Commission on its economic inquiry into food marketing, July 
2, 1959. 

Tax Depreciation Allowances on Capital Equipment: The efiPect of current Fed- 
eral tax depreciation policies on small business, July 24, 1959. 

Patent Policies of Departments and Agencies of the Federal Government: The 
effect of Federal patent policies on competition, monopoly, economic growth, 
and small business, December 8, 9, and 10, 1959. 

Reports 

Senate Report No. 6: Ninth Annual Report of the Select Committee on Small 
Business, United States Senate, January 23, 1959. 

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9 



Senate Report No. 240: The Small Independent Firm's Role in the Forest Prod- 
ucts Inaustry: Problems of the independent logging and sawmiU industry, 
together with a staff report, May 5, 1959. 

Senate Report No. 453: State Taxation on Interstate Commerce: Problems 
faced by small business in compl3dng with multistate taxation of income de- 
rived from interstate commerce, June 30, 1959. 

Senate Report No. 716: Small Business Participation in Defense Subcontracting, 
August 13, 1959. 

Senate Report No. 1013: Monopoly and Technological Problems in the Scrap 
Steel Induslary, together with individual views, October 16, 1959. 

Senate Report No. 1015: Studies of Dual Distribution: The Flat-Glass Indus- 
try — Dual-distribution methods of flat-glass producers and competitive prob- 
lems of independent flat-glass dealers and distributors, together with individual 
views and staff report, December 31, 1959. 

CoMMiTTEB Prints 

The Right To Buy, 1959: Staff report prepared by the Select Committee on Small 
Business (updated through February 1959), July 9, 1959. 

Set- Asides in Sale of Government Timber: Small Business Administration hear- 
ing on set-asides in sale of Government timber, together with SBA's summary, 
Portland, Greg., Auarust 26-27, 1959. 

Appendix to a Staff Report entitled "Dual Distribution Methods and Competi- 
tive Problems of Independent Flat- Glass Dealers and Distributors," prepared 
by the Select Committee on Small Business, United State Senate, December 
31, 1959. 

Congressional Record Reprint 

Significant Small-Business Legislation Passed by the 86th Congress, 1st Session: 
Remarks by Hon. John Sparkman, chairman. Select Committee on Small 
Business, United States Senate, appearing in Congressional Record, September 
14, 1959, p. 19983. 

86th Congress, 2d Session, 1960 

Hearings 

Small Business Investment Act, 1960: Review of the operations of the Small 
Business Investment Act, February 23, 24, and 25, 1960. 

Small Business Administration, 1960: Annual review of programs and activities 
of the Small Business Administration, March 22, 1960 Cpt. 1). 

Small Business Administration, 1960: Review of lending policies of the Small 
Business Administration, July 1, 1960 (pt. 2). 

Government Procurement, 1960: Lack of competition in mMitary procurement 
and its impact on small business, April 5, 6, 7, and 8, 1960. 

Case Study in Subcontracting by Weapon-System Contractor: Excessive costs 
of the groimd-support air-conditioning equipment for the B-58 bomber pro- 
gram, April 28, 1960. 

Government Competition With Business — Liquid Oxygen Production: Air Force 
plan to build liquid oxygen plants in competition with private enterprise, 
May 12 and 13, 1960. 

Government Competition With Business — Refrigerated Warehousing: Use of 
Government-owned facilities in competition with private commercial refriger- 
ated warehouses, June 15, 1960. 

Impact of Imports on American Small Business. June 16, 1960. 

Food-Marketing — Report of the Federal Trade Commission: Federal Trade 
Commission inquiry into concentration and integration in food marketing, 
June 22, 1960. 

Small Business Exports and the World Market, 1960: New York City, November 
17, 1960; New Orleans, La., December 9, 1960; San Francisco, Calif., December 
14, 1960. 

Reports 

Senate Report No. 1044; Tenth Annual Report of the Select Committee on Small 
Business, U.S. Senate, January 28, 1960. 

Senate Report No. 1016: The Impact of Suburban Shopping Centers on Inde- 
pendent Retailers: Alleged discriminatory practices against small-business con- 
cerns in suburban shopping centers, together with individual views, January 
5, 1960. 



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10 U8T OF FU6LIGATI0KS 

Senate Report No. 1017: Tax Depreciation AUowanoee on Capital Equipment: 
The efifect of current Federal tax depreciation policies on small buBiness, 
together with supplemental views, January 7, I960.* 

Senate Report No. 1031: Case Problems in Government Procurement: Govern* 
ment procurement problems of Aeroeonic Corp., Clearwater, Fla.; and 
Hastings^Raydist, Inc., Hampton, Va., January 20, 1960. 

Senate Report No. 1293: Small Business Investment Act. 1960: Review of the 
operations of the Small Business Investment Act, April 27, 1960. 

Senate Report No. 1588: Government Competition With Business — Liquid Oxy* 
gen Production: Air Force plan to build liquid oxygen plants in competition 
with private enterprise, June 15, 1960. 

Senate Report No. 1908: Impact of Imports on Small Business, August 23, 1960. 

Senate Report No. 1947: Case Study in Subcontracting by Weapon-System Con- 
tractor: Excessive costs of the ground-support air-conditioning equipment for 
the B~58 bomber program, September 16, 1960. 

Senate Report No. 1948: Government Competition with Business — Refrigerated 
Warehousing: Use of Government-owned facilities in competition with pri- 
vate commercial refrigerated warehousing, December 30, 1960 (pt. 1). Supple- 
mental views of Senator Andrew F. Schoeppel, December 31, 1960 (pt. 2). 

CoMMiTTBB Prints 

Ten- Year Record of the Select Committee on Small Business, U.S. Senate, 
1950-60: Statement by Senator John Sparkman, chairman, and list of com- 
mittee publications for the 81st Congress, 2d session, through 86th Congress, 
1st session, February 20, 1960. 

Patent Policies of Government Departments and Agencies, 1960: Conference 
on Federal patent policies — Senator Russell B. Long, chairman, Subcommittee 
on Monopoly of the Select Committee on Small Business, U.S. Senate, and 
Vice Adm. H. G. Rickover. U.S. Navy, April 8, 1960. 

Small Business Act (approveo July 18, 1958): Text of Small Business Act, (Public 
Law 536, 85th Congress, 2d session, as amended by Public Law 85-699 and 
Public Law 86-367, October 5, 1960) .» 

Small Business Investment Act, Public Law 699, 85th Congress, 2d session, as 
amended: Text, explanation and related tax provisions, October 5, I960.* 

87th Congress, 1st Session, 1961 

Hearings 

The Role of Small Business in Government Procurement, 1961: Small business 

procurement program of the administration, April 25 and 26, 1961. 
Small Business Administration, 1961: Annual review of the operations of the 

Small Business Administration, June 21 and 22, 1961. 
Space Satellite Communications: Public policy questions on the ownership and 

control of a space satellite communications system, August 2, 3, 4, 9, 10, and 11, 

1961 (pt. l).i 
Space Satellite Communications: Review of the Report of the Ad Hoc Carrier 

Committee, November 8 and 9, 1961 (pt. 2). 
Lease Guarantees, 1961: Feasibility of a rrogram of Federal Guarantees for Small 

Business Leases, December 18 and 19, 1961. 

Reports 

Senate Report No. 51: Eleventh Annual Report of the Select Committee on 

Small Business, U.S. Senate, together with supplemental views, Febniarv 16, 

1961. 
Senate Report No. 4: Government Procurement, 1960: Lack of competition in 

military procurement and its impact on small business, together with supple* 

mental views, January 17, 1961. 
Senate Report No. 30: Review of the Small Business Administration Activities, 

1959-60: Report of the Select Committee on Small Business, U.S. Senate, on 

the Small Business Administration, February 3, 1961. 

> Supply exhausted. 

> Revised in 1065. 






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LIST OF PUBLICATIONS 



11 



Senate Report No. 89: Small Busineis Exports and the World Market: Report 
of the Select Ommittee on Small Business, U.S. Senate, on encouragement 
and expansion of exports by small business, March 27, 1961. 

Senate Report No. 355: The Role of Small Business in Government Procurement, 
1961: Report of the Select Committee on Small Business, U.S. Senate, on small 
business procurement program of the administration, June 7, 1961. 

CoMMrrTEE Prints 

American Management Association Seminar: Going abroad; the profit oppor- 
tunities of international business for the smaller company. Briefing session on 
the profit opportunities of international business for the smaUer company, 
Sponsored by the International Management Division of the American Man- 
agement Association, Inc., held in New York City June 26, 27, and 28, 1961, 
published July 31, 1961.^ 

Small Business Investment Act: 1961 Text, Explanation, and related Tax Pro- 
visions, published October 31, 1961.^ 

Small Business Act: Text of Small Business Act (Public Law 536, 85th Cong., 
2d sess.) as amended by Public Law 85-699, Public Law 86-367, Public Law 
87-70, Public Law 87-198, Public Law 87-305, Public Law 87-341, and Public 
Law 87-367, published November 27, 1961. ^ 

A Primer on Government Contract Claims, published December 20, 1961. 

87th Congress, 2d Session, 1962 

Hearings 

Operations of Small Business Investment Companies: A review of the operations 

of small business investment companies: Portland, Oreg., February 24, 1962; 

Chicago, 111., February 26, 1962; New York, N.Y., March 16, 1962; Atlanta, 

Ga., March 30, 1962; Washington, D.C., April 17-18, 1962. 
Government Patent Policies in Meteorology and Weather Modification, 1962: 

The effect of Federal patent policies on competition, monopoly, economic 

growth and small business, March 26, 27, and 29, 1962. 
World Trade — The Small Business Potential, 1962: Opportunities for small 

business in world trade discussed by recipients of the Resident's E award for 

export expansion. May 23, 1962. 
SmaU Business Failures — Management Defects Held Largely Responsible: An 

inquiry into the availability and the adequacy of management counseling 

services for very small businesses, June 25, 26, and 27, 1962. 
Impact of Defense Spending on Labor Surplus Areas, 1962: Effect of defense 

spending on small business in labor surplus areas, August 29, 1962. 
The Role of Small Business in Government Procurement, 1962-63: Small business 

procurement programs of the Administration, September 12, 1962. 

Reports 

Senate Report No. 1491: Twelfth Annual Report of the Select Committee on 
Small Business, U.S. Senate, May 15, 1962. 

Senate Report No. 1532: Small Business Lease Guarantees: Feasibility of a pro- 
gram of Federal guarantees for small business leases. May 24, 1962. 

Senate Report No. 2270: Small Business Failures: Report of the Select Committee 
on Small Business, U.S. Senate, on factors influencing small business failures 
and the availability of management counseling to smaU firms, October 3, 1962. 

Senate Report No. 1117: Small Business Administration, 1961: Report of the 
Select Committee on Small Business, U.S. Senate, on annual review of the 
operations of the Small Business Administration together with individual views, 
January 15, 1962. 

Committee Prints 

Recent Developments in the Structure of Banking — A Supplemental to Concen- 
tration of Banking in the United States: Special staff report of the Board of 
Governors of the Federal Reserve System, submitted to tne Select Committee 
on SmaU B usiness, U.S. Senate, January 15, 1962. 

1 Sapply exhausted. 
sReviBedlnloefi. 



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12 LlS^r OF PUBLICATIONS 

Federal Handbook for Small Business: A survey of small business programs in 
the Federal Government agencies, sponsored by the Select Committee on Small 
Business, U.S. Senate; Select Committee on Small Business, U.S. House of 
Representatives; White House Committee on Small Business, and the Small 
Business Administration, 1962. 

88th Congress, 1st Session, 1963 

Hearings 

Economic Aspects of Government Patent Policies; Impact of Government 
patent policies on economic growth, scientific and technological progress, com- 
petition, monopoly, and opportunities for small business, March 7, 8, 13, and 

14, 1963. 

Impact of Current Tax Proposals on Small Business: Impact upon small busi- 
ness of the 1963 tax proposals of the administration, April 29 and 30, 1963. 

The Role and Effect of Technology in the Nation's Economy: A review of the 
effect of Government research and development on economic growth, May 20, 
1963 (pt. 1). 

The Role and Effect of Technology in the Nation's Economy: A review of the 
effect of Government research and development on economic growth, Jane 5 
and 6, 1963 (pt. 2). 

The Role and Effect of Technology in the Nation's Economy: A review of the 
effect of Government research and development on economic growth, June 20, 
December 17 and 18, 1963 (pt. 3). 

Advertising Allowances: Competitive antitrust aspects of joint advertising 
programs by retailers, and the nature and purpose of advertising allowances 
given to retailers by manufacturers and wholesalers, September 11, 1963. 

Small Business Administration — 1963: Annual review of the operations of the 
Small Business Administration, December 2, 1963. 

Reports 

Senate Report No. 104: Thirteenth Annual Report of the Select Committee on 
Small Business, U.S. Senate, April 2, 1963. 

Senate Report No. 161: Operations of small business investment companies: 
Report of the Select Committee on Small Business, U.S. Senate, on the opera- 
tions of small business investment companies, April 25, 1963. 

Senate Report No. 397: Impact of current tax proposals on small business: Re- 
port of the Select Committee on Small Business, U.S. Senate, on the impact 
upon small business of the 1963 tax proposals of the administration, August 

15, 1963. 

CoiiMiTTEE Prints 

Addenda to committee print of the Small Business Investment Act, Public Law 
699, 85th Congress, 2d session, as amended October 31, 1961, issued by the 
Select Committee on Small Busiaess, U.S. Senate, March 25, 1963.» 

Small Business Act: Text of the Small Business Act, Public Law 536, 85tb Con* 
gress, 2d session, as amended by Public Law 85-699, Public Law 86-367, 
PubUc Law 87-70, Public Law 87-198, Public Law 87-305, Public Law 87-341, 
Public Law 87-367, and Public Law 87-550; issued by the Select Committee 
on Small Business, U.S. Senate, March 25, 1963.« 

Conference Relating to Subcontractors' Claims, by staff members of the Select 
Committee on Small Business, U.S. Senate, with representatives of the Depart- 
ment of Defense, Small Business Administration, National Aeronautics and 
Space Administration, General Accounting Office, and General Services Ad- 
ministration, May 28. 1963. 

Economic and Legal Problems of Government Patent Policies: Report pre- 

Sared for the Subcommittee on Monopoly of the Select Committee on Small 
iusiness, U.S. Senate, June 15, 1963. 
Impact of Defense Spending on Labor-Surplus Areas: Report of the Subcom- 
mittee on Retailing, Distribution, and Marketing Practices to the Select Com- 
mittee on Small Business, on Grovernment programs and policies as they relate 
to the use of procurement in redeveloping distressed areas and a compilation 
of policy directives, statutes, and regulations relating to procurement in di** 
tressed areas, Aug\ist 19, 1963. 

* Small Business Investmeat Act revised in IMS. 

* Revised in 1M6. 



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LIST OF PUBLICATIONS 



13 



Conference Relating to Small Business Participation in Government Procure- 
ment — 1963, by staff members of the Select CJommittee on Small Business, 
U.S. Senate, with representatives of the Departments of the Army, Navy, and 
Air Force, Defense Supply Agency, National Aeronautics and Space Adminis- 
tration, and the Small Business Administration, September 24, 1963. 

SmaU Lumber Ck)mpanies in Western Oregon, October 1, 1963. 

The Federal Disaster Relief Program: A concise and practical guide to all disaster 
relief programs, prepared for the Select Ck)mmittee on Small Business, U.S. 
Senate, December 15, 1963. 

88th Congress, 2d Session, 1964 

H BARING 

Ford Tractor Distributors: The circumstances and effects of termination by the 
Ford Motor Co. of the franchises of its independent distributors of tractors and 
implements in the United States, February 10, 1964. 

Tax treatment of U.S. Concerns With Puerto Rican Affiliates: The economic de- 
velopment program, April 16 and 17, 1964. 

The Role of Small Business in Government Procurement — 1964: A review of the 
progress made in small business participation in Government procurement 
programs, June 2, 3, and 4, 1964. 

Sinall Business Conversion Problems — 1964: The impact of defense spending shifts 
and curtailments on small business; conversion problems of smaller firms, June 
23 and Julv 7, 1964. 

Oil Import Allocations: The impact of the system of allocations of crude oil under 
the mandatory oil import program on small business refiners, August 10 and 11, 
1964. 

Advertising Allowances — 1964: Competitive and antitrust aspects of joint ad- 
vertising programs by retailers, and the nature and purpose of advertising 
allowances given to retailers by manufacturers and wholesalers, August 12, 
1964. 

Impact of Defense Spending on Labor Surplus Areas — 1964: The positions of 
various Government agencies with regard to implementation of Defense Man- 
power Policy No. 4 and other policies and programs for the placing of defense 
contracts and facilities in labor surplus areas, August 13, 1964. 

Report 

Senate Report No. 1180: Fourteenth Annual Report of the Select Committee 
on Sm^ Business, U.S. Senate, July 9, 1964. 

CoifiaTTBB Pbints 

Studies of Dual Distribution — The Automotive Tire Industry: Report of the 
Subcommittee on Retailing. Distribution, and Marketing Practices to the 
Select Committee on Small business, U.S. Senate, January 15, 1964. 

American Management Association Briefing Session — Planning to Meet Major 
Shifts in Defense Programs: Briefing session on the problems of defense- 
oriented companies in converting to commercial products, sponsored by the 
American Management Association, Inc., New York, N.Y., July 9 and 10, 
1964« 

o 



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89th Congrees \ 
2d Sessioii J 



COMMITTEE PBINT 



LIST OF PUBLICATIONS 

ISSUED BY THE 

SELECT COMMITTEE ON SMALL BUSINESS 
UNITED STATES SENATE 



81ST CONGRESS, 2D SESSION (1950) 

THROUGH 

89TH CONGRESS, 2D SESSION (1966) 




" I AW U BWWCT'Seni. 1966 

MAYl 1967 

Printed for the use of the Select Committee on Small Business 



71-726 



U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1966 



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SELECT COMMITTEE ON SMALL BUSINESS 
[Created pursuant to S. Res. 68, 81st Cong.] 
JOHN 8PARKMAN, Alabama, Chairman 



RUSSELL B. LONG, Louisiana 

GEO ROE A. SBiATHERS, Florida 

WAYNE MORSE, Oregon 

ALAN BIBLE. Nevada 

JENNINGS RANDOLPH, West Virginia 

E. L. BARTLETT, Alaska 

HARRISON A. WILLIAMS, Jb., New Jersey 

GAYLORD NELSON, Wisconsin 

JOSEPH M. MONTO YA, New Mexico 

FRED R. HARRIS, Oklahoma 



LEVERETT 8ALT0NSTALL, MasBacbiisetU 

JACOB K. JAVITS, New York 

JOHN SHERMAN COOPER, Kentucky 

HUGH SCOTT, Pennsylvania 

WINSTON L. P ROUT Y.Vermont 

N0RRI8 COTTON, New Hampshire 



Liwis G. Odom, Jr., Staff IHrector 

Blakx O'Connob, A$9iitara Staff IHredor 

ROBBBT R. LocKUN, General Omneel 

EuzABBTH A. Btbnb, Chief Clerk 



n 



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WAJ 



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Y-'. . 



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LIST OF PUBLICATIONS 

ISSUED BY THE 

SELECT COMMITTEE ON SMALL BUSINESS 
UNITED STATES SENATE 

8l8t Congress, 2d Session (1950), through the S9th Congress, 2d Session (1966) 



8l8t Congress, 2d Session, 1950 

Hearings 

Small Business and Credit, Reconstruction Finance Corporation: The degree of 
availability of Reconstruction Finance Corporation funds to snuill business, 
June 14, 1950.1 

Somll Business and Procurement, Department of Commerce: Dissemination of 
procurement information; technical and management aids to small business, 
June 15, 1950.1 

Small Business and Procurement, Department of Defense: Participation of small 
business in Government procurement, June 19, 1950.^ 

Small Business and Procurement, General Services Administration and Veterans 

li Administration: Participation of small business in Government procurement, 
June 20, 1950.^ 

Small Business and Procurement, Economic Cooperation Administration: Par- 
ticipation of small business in Government procurement, June 21, 1950.i 

Fuel Situation in Chicago, Chicago, 111., December 14, 1950.^ 

BBPOBT 

Senate Report No. 2633: The New England Fuel Situation and Prospects. Report 
of the Sielect Committee on Small Business, U.S. Senate, pursuant to S. Res. 
344. December 14, 1950.^ 

CoMMiTTEB Prints 

No. 1. The New England Fuel Situation and Prospects. Report of the Subcom- 
mittee on Fuel of the Select Committee on Small Business, U.S. Senate, 
October 21, 1950.» 
Small Business Clinic — Proceedings of small business clinic held at Tucson, 
Ariz., December 15, 1950, including excerpts from the Oklahoma City clinic, 
December 16, 1950.^ 
Selling to Your Government: Data prepared by the Select Committee on Small 
Business, U.S. Senate, rdative to participation of small business in the Federal 
Procurement Program in National Defense, 1950.^ 

82d Congress, 1st Session, 1951 

Hbarinob 

Material Shortages: 

Part I. Impact on Small Business, January 18, 1951.^ 
Part II. Steel: Impact on Small Business, January 19 and 20, 1951.^ 
Part III. Plastics: Impact on Small Business, January 23, 1951.^ 
Part IV. Alimiinum: Impact on Small Business, January 26, 1951.^ 

Industri al Manpower: Subcommittee on Manpower, March 6, 7, 22, 1951.* 

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IV FOREWORD 

6. The maximum authorized term for all SBA disaster loans 
was increased from 20 years to 30 years, and SBA specifically 
authorized to suspend temporarily repayments by disaster lo&n 
borrowers in certain hardship cases. Durins such suspensions^ 
SBA could make the payments on or purwase the privately 
financed share of any such loan. 

7. The authorization for appropriations to SBA's revolving 
fund was increased from $1,666 million to $1 J21 million; the 
amount authorized to be outstanding for business- and disaster- 
loan purposes was increased from $1,325 million to $1,375 
million; the amount authorized to be outstanding for functions 
under the Small Business Investment Act of 1958 was increased 
from $341 million to $461 million; and $5 million was authorized 
for transfer to the new lease guarantee fund established by 
Public Law 89-117. 

A related provision of law, title IV of PubUc Law 88-452 (the 
Economic Opportunity Act of 1964), is also included at the end of the 
committee print. This new program of small business loans is particu- 
larly directed at reducing long-term unemployment. It is adminis- 
tered by SBA under a delegation from the Office of Economic 
Opportunity. 

Another related provision of law which is included at the end of the 
committee print is the new lease guarantee provision contained in 
Public Law 89-117. Under this new authoritv, SBA may guarantee 
the payment of rentals on leases of commercial or industnalproperty 
by small concerns displaced by Federal or federally aided construction 
or on leases by small concerns eligible for antipoverty loans under 
title IV of the Ilconomic Opportunity Act of 1964, to enable such 
concerns to obtain such leases. 

These new provisions represent significant steps forward in assist- 
ing and preserving the small business segment of the American 
economy. 

John Sparkman, 
Chairman^ Sdeet Committee on Small Business, 

U.S. SenaU. 

August 30, 1965. 



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CONTENTS 



Pass 

Foreword iii 

Small Business Act - 1 

PoKcy of Congress. 1 

Small business definition 1 

Revolvinff fund— _ 2 

Loan Policy Board - 3 

. Administrative powers 4 

Issue regulations 6 

Obtain services of attorneys 5 

Employ consultants 6 

Designate depositaries 6 

Business loans 7 

Purpose for which authorised — 7 

Restrictions _ ___ 7 

Priority on types of loans 7 

8 B A participation, loan limit, interest, and term 7 

Pool loans _ _ _._ _ _ 8 

Loan limit, interest, and term. 8 

SB A to encourage formation of small business pools 8 

Antitrust exemption 8 

Disaster loans _ 9 

Natural ._ _-_ 9 

Economic injury - — 9 

Displaced business (see also sec. 8(b)(14)) 9 

Product _ _ 10 

Term, interest, and participation 10 

Small business research ^nts. 11 

Procurement authorities 1 11 

Accept contracts from other agencies _ _ 12 

Let subcontracts _ 12 

Provide technical and managerial assistance... 12 

Make inventory of small business facilities.. ._ 13 

Consult with Government procurement and disposal officers 13 

Obtain information on subcontracting 13 

Define "small business" within industries. _ _ 13 

Certify individual concerns as "small" - 13 

Issue certificates of competency __ 13 

Obtain reports from Government procurement and disposal 

agencies 14 

Obtain information on allocation of materials 14 

Make studies and recommendations to Federal agencies 14 

Establish advisory groups _ _- 14 

Study competitive position of small business 15 

Develop small business subcontracting program 15 

Duty of Secretary of Commerce to publish proposed procurements 

daily _ 16 

Research and devdopment 17 

Policy of Congress 17 

Duties of SBA. _ 17 

Authority of SBA to consult and cooperate with other agencies.. 17 

Joint programs __ 17 

Antitrust exemption , 18 

Annual report of SBA... _. _ _ 18 

Duty of Attorney General to survey Government activities affecting 

small business and to submit reports 19 

Duty of Department of Defense to issue monthly fMocurement reports. 19 

V 



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VI CONTENTS 

Small BufliDesB Act — Continued ^ve 

Duty of SBA to maintain records ., 20 

Duty of SBA and other Government agendes to consult 20 

Defense production pools 20 

Authority of President to transfer smaU business functions of other 

agencies to SBA -_- 21 

Listing of agents and attorneys in connection with SBA loans 21 

Set-asides 22 

Subordination of SBA collateral 23 

SBA shall not duplicate work of other agencies. 28 

Related provisions of law 24 

Amendment of Federal Reserve Act 24 

Extension of certain RFC loans.. 24 

Review b^ Congress of business loan program.. 24 

Trade adjustment assistance _ 24 

War Claims Act of 1948 - 25 

Economic Opportunity Act of 1964 _ 25 

Financial assistance to small business concerns. 25 

Terms and conditions.. 26 

Limitations 27 

Lease guarantees __ 27 

Authority. -_ _ _ 27 

Powers 29 

Fund - 29 



^ 






SMALL BUSINESS ACT 

(as amended) 

Sec. 1. This Act may be cited as the "Small Business ci«ton. ^^_^ 

Act." AUi 

Sec. 2. (a) The essence of the American economic ^^^ 
system of private enterprise is free competition. Only uus.c.m, 
through full and free competition can free markets, free 
entry into business, and opportunities for the expression 

and grovrth of personal initiative and individual judg- * 

ment be assured. The preservation and expansion of 
such competition is basic not only to the economic well- 
being but to the security of this Nation. Such security 
and well-being cannot be realized unless the actual and 
potential capacity of small business is encouraged and 
developed. It is the declared policy of the Congress 

that the Government shoidd aid, counsel, assist, and pro- § 

tect, insofar as is possible, the interests of small-business 
concerns in order to preserve free competitive enterprise, 
to insure that a fair proportion of the total purchases ana 
contracts or subcontracts for property and services for 
the Government (including but not limited to contracts 
or subcontracts for maintenance, repair, and construc- 
tion) be placed with small-business enterprises, to insure 
that a fair proportion of the total sales of Government 
property be made to such enterprises, and to maintain 
and strengUien the overall economy ot the Nation.^ 

(b) Further, it is the declared policy of the Congress 
that the €k>vemment should aid and assist victims of 
floods and other catastrophes, and small-busiuess con- 
cerns which are displaced as a result of federally aided 
construction programs.* 

Sec. 3. For the purposes of this Act, a small-business SSi"''**" 
concern shall be deemed to be one whicn is independently ^ u.8.c.«82. 
owned and operated and which is not dominant in its 
field of operation. In addition to the foregoing criteria 
the Administrator, in making a detailed definition 
may use these criteria, among others: Number of em- 
ployees and dollar volume of business. Where the 
number of employees is used as one of the criteria in 
makiDg such definition for any of the purposes of this 
Act^ the maximum number of employees which a small- 
busmess concern may have under the definition shall 
vwy from industry to industry to the extent necessary 
to reflect differing characteristics of such industries and 
to take pro per account of other relevant factors. 

J2«jubpont»otB of eontraeton perfonning work or nadflring Mrvioes undflr 
"JJ^^jmt Dfowremmt oMiUBcJi were included within the pdiej stateowats of 

• 45"^ ^ aectton « of PL 87-80S. 

' The left 15 words of this nibeeetion added by section 801Kb) of PL 87-70. 




I 



SmaJl Busineii 
Adminlfltrmtion. 
15U.8.0.6». 



Under Pnsi- 
dtfit. 

Independent 
a«Bnc7. 



AdmJnistretor. 



Deputy Admln- 
totnton. 



16 U.8.0. 6S6, 
617, 661 note. 



SMALL BUSINESS ACT 

Sec. 4. (a) In order to carry out the policies of this 
Act there is hereby created an agency under the name 
''Small Business Administration'' (herein referred to u 
the Administration), which Administration shall be 
under the general direction and supervision of the Presi- 
dent and shall not be affiliated with or be within any other 
agency or department of the Federal Government. The 
principal office of the Administration shall be located in 
the District of Columbia. The Administration may 
establish such branch and regional offices in other places 
in the United States as may be determined by the Admin- 
istrator of the Administration. As used in this Act, the 
term "United States" includes the several States, the 
Territories and possessions of the United States, the 
Commonwealth of Puerto Rico, and the District of 
Columbia. 

(b) The management of the Administration shall be 
vested in an Administrator who shall be appointed from 
civilian life by the President, by and with the advice and 
consent of the Senate, and who shall be a person of out- 
standing qualifications known to be familiar and syi^^ 
thetic with small-business needs and problems. The 
Administrator shall not engage in any other busia^ 
vocation, or employment than that of serving as Ad- 
ministrator. The Administrator is authorized to ap- 
point three Deputy Administrators to assist in the execu- 
tion of the fimctions vested in the Administration.' 

(c) There is hereby established in the Treasury a re- 
volving fundj referred to in this section as "the fund", 
for the Administration's use in financing the functions 
performed under sections 7 fa), 7(b), 7(c)(2). and 8(a) and 
under the Small Business Investment Act of 1958, includ- 
ing the payment of administrative expenses ^ in connec- 
tion with such functions. All repayments of loans and 
debentures, payments^ of interest, and other receipts 
arising out of transactions financed from the fund shall 
be paid into the fund. As capitcd thereof, appropria- 

* Section am of the SinaU BnHOflaB Davestnittit Act provMet lor a fonrtii D«|»t7 
Administrator, as foUows: 

"Sic. 201. There is hereby estabUshed in the SmaU Bnslnen AdministrBtioB » 
division to be known as the SmaU Business InTestment Division. The Division shiu 
be headed by a Deputy Administrator who shall be appointed by tlie Administrate, 
and shall receive oompensatioo at the rate provided by law for other depnty admlnii' 
trators of the Small jBusiness Administration. The powers canfuied by this Act 
upon the Administration and upon the Administrator, with the exception of those 
conferred by Utles IV and V hereof. sbaU be exercised through the Small BoslMi 
Investment Division and through the Deputy Administrator appointed bereunoff- 
The powers conferred by this Act upon the Administration and upon the Adndnli' 
trator by titles IV and V hereof shaU be exercised through such division, aectiao, « 
other personnel as the Administrator in his discretion mall determine, m the pff* 
formanoe of, and with respect to the functions, powers, and dnttes vested by this Act, 
the Administrator and the Administration shall (in addition to any authority otMr 
wise vested by this Act) have the functions, powers, and duties set forth In the Smvi 
Business Act, and the provisions of sections 18 and 16 of that Act insofsr as applicw^ 
are extended to apply to the functions of the Administrator and the AdmimsCntMO 
under this Act." PubUo Law 8»-U7 excepted titles IV Hease guarantees) and V (d^ 
velopment company loans) fkom the requirement that all authority contained in tw 
Small Business Investment Act be administered through the Investment DivisoD 
and the Deputy Administrator for Investment. 

« That portion of former section 4(c) specifying the purposes for which the revoljioK 
fund might be used was rewritten, and spedflc authority to charge the revolving tim 
with administrative expenses applicable to operations under the Small Business InTCSt* 
ment Act was included bv secUons 11(h) (8) and II (h)(4) of PL 87-341. The indDij« 
of such authority was believed necessary in view of section 202(1^ of the SBIA, whin 
was repealed by seoUon 11(h)(1) of PL 87-841. PL 88-W added authority to use tte 
fund for section 7(c)(3). 



z' 



-\ 



(^. 



•1- J ■ ! V, Y ,'-■ I ^ ^ 



SBiAUi BUSINESS ACT 

tions not to exceed $1,721,000,000 * are hereby authorized 
to be made to the fund, which appropriations shall remain 
available until expended. Not to exceed an aggre^te 
of $1,375,000,000 ^ shall be outstanding at any one tune 
for the purposes enumerated in the following sections of 
this Act : 7(a) (relating to regular business loans), 7(b) and 
7(c)(2) (relating to disaster loans), and 8(a) (relatinjg to 
prime contract authority) : Provided, That the Admmis- 
tration shall report promptly to the Committees on Appro- 
priations and the Committees on Banking and Currency 
of the Senate and House of Representatives whMieyer 
(1) the aggregate amount outstanding for the purposes 
enumerated in sections 7(a) and 8(a) exceeds $1,222,- 
000,000, or (2) the agjgregate amount outstanding for the 
purpose enumerated in sections 7(b) and 7(c)(2) exceeds 
$103,000,000.^ Not to exceed an aggregate of $461,- 
ONOO,000 * shall be outstanding from the fund at any one 
time for the exercise of the functions of the Administra- 
tion under the Small Business Investment Act of 1968: 
Prodded f That such limitation shall not apply to func- 
tions under title IV thereof. The Administration shall 
pay into miscellaneous receipts of the Treasury, follow- 
ing the close of each fiscal year, interest on the outstand- 
ing cash disbursements from the fund, at rates deter- 
mined by the Secretary of the Treasury, taking into con- 
sideration the current average yields on outstanding 
interest-bearii^ marketable pm)lic debt obligations of the 
United States of comparable maturities as ciedculated for 
the month of June preceding such fiscal year.' 

(d) There is hereby created the Loan Policy Board of 
the Small Business Adnunistration, which shall consist 
of the following members, all ex officio: The Adminis- 
trator, as Chairman, the Secretary of the Treasury, and 
the Secretarv of Commerce. Either of the said Secre- 
taries may designate an officer of his Department, who 
has been appointed by the President by and with the 
advice and consent of the Senate, to act in his stead as 
a member of the Loan Policy Board with respect to any 

•IncroMod horn $000,000,000 to $900,000,000 by section 202(a)(1) of PL 86-400 and 
IJNnn $900,000,000 to $976,OOD,000 by PL 84-367, from $975,000,000 to $1,000,000,000 by 
PL 87-70, from $1,000,000,000 to $1,020,000,000 by PL 87-198, from $1^,000,000 to 
UATSJKOM by aecUon 8 of PL 87-805 and from $1,126,000,000 to $1,200,000,000 by 
section 12(1) of PL 87-341. Furthor increased to $1,666,000,000 by PL 87-660, to 
$1,716,000,000 bv PL 80-60, and to $1,721,000,000 by PL 80-1 17. PL 89-117 alao aathorlBed 
tmnirttor of $6,000,000 to a lease guarantee fund. 

• The amount of authorised aggregate advances for section 7(a) was increased from 
$800,000,000 to $676,000,000 by PL 86^7 and flrom $676,000,000 to $606iK)0,000 by PL 
87-19S. This authorixation was raised to $700,000,000 and combined with the existing 
$26,Q0OJ00O anthoricatian for section 8(a) , by section 8 of PL 87-806. Further increased 
to $1,»6;000,000 by PL 87-^650, and to $1,376^000,000 by PL 80^60. 

V Increased from $125,000,000 by section 306(c)(2) of PL 87-70. PL 87-660 reduced 
tUa amount fhnn $160,(i00,000 to $108,000,000^ 

i Incre as ed Ihmi $250,000,000 by section 12(2) of PL 87-Ml; further raised to 
$841,000,000 by PL 87-660, and to $461,000,000 by PL 8(h78. The statement that the 
Umitatlon does not apply to lease guarantee functions under title IV of the Small 
Business Investment Act was added by PL 80-117. 

* Thoee portions of this section authorising expenditure of funds trom the revolving 
land in the exercise of the functions of the Administration under the Small Business 
Inveetment Act of 1068, and setting a limit upon the aggregate advances for such 
purpoeeB, originated firom section 202(a)(2) and section 203(a)(3) of PL 86-699. The 
entfre section 4(c) was generally revised by section 8 of PL 87-306 and further revised 
by PL 87-650. References in the section to section 7(o)C2) were added by PL 80^60. 



Business loans 
and prime 
contracts: 
$1,876,000,000. 
16 U.8.0. 636. 
16 U.8.C. 687. 



ACT 



Disaster loans : 
$103,000,000. 



Small Business 
Investment Aet: 
$461,000,000. 



Loan Policy 
Board. 




J 



AdminiBtratiTe 

powers. 

25 U.8.C. 684. 



AdrntDlstrttor 
may: 



Sue and be foed. 



Dispose of 
property. 



SBiALL BUSINEBS ACT 

matter or matters. The Lioan Policy Board shaU estab- 
lish general policies (particularly with reference to the 
pubhc interest involved in the granting and denial of 
applications for iSnancial assistance by the Administra- 
tion and with reference to the coordination of the func- 
tions of the Administration with other activities and 
policies of the Government), which shall govern the 
granting and denial of applications for foiancial assist- 
ance by the Administration.^ 

Sec. 5. (a) The Administration shall have power to 
adopt, alter, and use a seal, which shall be judicially 
noticed. The Administrator is authorized, subject to 
the civil-service and classification laws, to select, employ, 
appoint, and fix the compensation of such ofiicers, em- 
ployees, attorneys, and a!gents as shall be necessary to 
carry out the provisions of this Act; to define their 
authority and duties; to provide bonds for them in such 
amounts as the Administrator shall determine; and to 
pay the costs of qualification of certain of them as 
notaries public. The Administration, with the consent 
of any board, commission, independent establishment, or 
executive department of the Government, may avail itsdf 
on a reimbursable or nonreimbursable basis of the use of 
information, services, facilities (including any field sm- 
ice thereof), officers, and employees thereof, in carrying 
out the provisions of this Act.^® 

(b) In the performance of, and with respect to, the 
functions, powers, and duties vested in him by this Act 
the Administrator may — 

(1) sue and be sued in anjr court of record of a 
State having general jurisdiction, or in any United 
States district court, and jurisdiction is conferred 
upon such district court to determine such contro- 
versies without regard to the amount in controversy; 
but no attachment, injunction, garnishment, or otlier 
similar process, mesne or final, shall be issued against 
the Administrator or his property; 

(2) under regulations prescribed by him, assign 
or sell at pubUc or private sale, or otherwise dispose 
of for cash or credit, in his discretion and upon such 
terms and conditions and for such consideration 
as the Administrator shall determine to be reason- 
able, any evidence of debt, contract, claim, personal 
property, or security assigned to or held by him in 
connection with the payment of loans granted under 
this Act, and to collect or compromise all obligations 
assigned to or held by him and all legal or equitable 
rights accruing to him in connection with the 
payment of such loans until such time as such obli- 

•• The SBA Loan Policy Board was abolished by Reorgaiiisation Plan No. 4 of IW 

(effective July 27, IMS; 30 F.R. 0353) and its functions transferred to the SBA 

Administrator. . ^^ 

!• The last sentence of former section 6(a), authorising 15 positions within Sp^i° 

» placed in grades 16, 17, and 18 of the General Schedule established by the CltfSfl- 

'^ Act of 1048, was deleted by section 108(8) of PL 87-4167. 



I"' 



y « 1 ^^ y / / 6 ^ 



SBiAUi BUSINESS ACT 



Utillte 
property. 



eations may be referred to the Attorney General 
tor suit or collection; 

(3) deal witibi, complete, renovate, improve, 
modernize, insure, or rent, or sell for cash or credit 
upon such terms and conditions and for such con- 
sideration as the Administrator shall determine to 
be reasonable, any real property conveyed to or 
otherwise acquired by him in connection with the 
payment of loans granted under this Act; 

(4) pursue to final collection, by way of compro- cdiectcwms. 
mise or otherwise, all claims against third parties 
assigned to the Administrator in connection with 

loans made by him. This shall include authority 
to obtain deficiency judgments or otherwise in the 
case of mortgages assigned to the Administrator. 
Section 3709 of the Revised Statutes, as amended 
(41 U.S.C., sec. 6), shall not be construed to apply 
to any contract of hazard insurance or to any pur- 
chase or contract for services or supplies on account 
of property obtained by the Administrator as a result 
of loans made under this Act if the premium there- 
for or the amount thereof does not exceed $1,000. 
The power to convey and to execute in the name of 
the Administrator deeds of conveyance, deeds of re- 
lease, assignments and satisfactions of mortgages, 
and any other written instrument relating to real 
property or any interest therein acc]^uirea by the 
Administrator pursuant to the provisions of this 
Act may be exercised by the Administrator or by 
any officer or agent appointed by him without the 
execution of any express delejgation of power or 
power of attorney. Nothing in this section shall 
DO construed to prevent the Administrator from 
delegating such power by order or by power of 
attorney, in his discretion, to any officer or agent 
he may appoint; 

(5). acquire, in any lawful manner, any property Aeqiun 
(real, personal, or mixed, tangible or intangible), p'^p*^- 
whenever deemed necessary or appropriate to the 
conduct of the activities authorized in sections 7(a) 
and 7(b); 

(6) make such rules and r^ulations as he deems 
necessary to carry out the authority vested in him 
by or pursuant to this Act; 

(7) m addition to any powers, functions, priv- 
ileges, and immunities otherwise vested in nim, 
take any and all actions, including the procurernent 
of the services of attorneys by contract, determined SgJSSJi' 
by him to be necessary or desirable in making, 
servicing, compromising, modifying, liquidating, or 
otherwise deahn^ with or realizing on loans made 
under the provisions of this Act; but no attom^s' 
services shall be procured by contract in any omce 



ACT 



ngfMkma. 






I 



6 



Employ and 
raimboTse 
temponry 
employees. 



Accept free 



Employ 
oonsaltaats. 



DttMeitaries 

of rands. 

15 U.S.C. 630. 



SBiALL BUSINESS ACT 



where an attorney or attorneys are or can be eco- 
nomically employed full time to render such services; 

(8) pay the transportation expenses and per 
diem in ueu of subsistence expenses, in accordance 
with the Travel Expense Act of 1949, for travel of 
any person employed by the Adndnistration to ren- 
der temporary services not in excess of six mondis 
in connection with any disaster referred to in section 
7(b) from place of appointment to, and while at, the 
disaster area and any other temporary posts of duty 
and return upon completion of the assignment; and 

(9) accept the services and facilities of Federal, 
State, and local agencies and groups, both public 
and private, and utilize such gratuitous services and 
facUities as may, from time to time, be necessaiy, 
to further the objectives of section 7(b). 

(c) To such extent as he finds necessary to carry out 
the provisions of this Act, the Administrator is author- 
ized to procure the temporary (not in excess of one year) 
or intermittent services of experts or consultants or oi^a- 
nizations thereof, including stenographic reporting serv- 
ices, by contract or appointment, and in such cases such 
services shall be vdthout regard to the civil-service and 
classification laws and, except in Uie case of stenographic 
reporting services by organizations, without r^ard U> 
section 3709 of the Revised Statutes, as amended (41 
U.S.C, sec. 5). Any individual so employed may be 
compensated at a rate not in excess of $60 per diem, and, 
while such individual is away from his home or regular 
place of business, he may be allowed transportation and 
not to exceed $16 per diem in lieu of subsistence and other 
expenses. 

(d) Section 3648 of the Revised Statutes (31 U.S.C. 
629) shall not afiply to prepayments of rentals made by 
the Adndnistration on safety deposit boxes used by the 
Admiiustration for the safeguarcung of instruments held 
as security for loans or for the ^eguarding of other 
documents." 

Sec. 6. (a) All moneys of the Administration not 
otherwise employed may be deposited with the Treasury 
of the United States subject to check by authority of the 
Admiiustration. The Federal Reserve banks are author- 
ized and directed to act as depositaries, custodians, and 
fiscal agents for the Administration in the general pe^ 
formance of its powers conferred by this Act. Any 
banks insured by the Federal Deposit Insurance Cor- 
poration, when designated by the Secretary of the Treas- 
ury, shall act as custodians and financial agents for the 
Administration. Each Federal Reserve oank, when 
designated by the Admirustrator as fiscal agent for the 

" SubaecttonSCd) added by sectioii 4 of PL 87-aQB. 



^ 






SMALL BUSINESS ACT 7 

Administration, shall be entitled to be reimbursed for all 

expenses incurred as such fiscal agent. 

(b) The Administrator shall contribute to the em- SJSSSS««. 
ployees' compensation fund, on the basis of annual bill- 
ings as determined by the Secretary of Labor, for the 
benefit payments made from such fund on account of 
employees engaged in carrying out functions financed 

by the revolvmg fimd established hy section 4(c) of this ACTT 

Act. The annual billings shall also iaclude a statement xxv^x 

of the fair portion of the cost of the administration of 
such fund, which shall be paid by the Administrator 
into the* Treasu^ as miscellaneous receipts. 

Sec. 7. (a) The Administration is empowered to ^^^ 
make loans to enable small-business concerns to finance is u.s.c. 6m. I 

plant construction, conversion, or expan^on, including 
the acquisition of land; or to finance the acquisition of 
equipment, facilities, machinery, supplies, or materials; 
or to supply such concerns with worldng capital to be 
used in tne manufacture of articles, equipment, supplies, 

or materials for war, defense, or civilian production or ^ 

as may be necessary to insure a well-balanced national ^ 

economy; and such loans may be made or effected either 
directly or in cooperation with banks or other lending 
institutions through agreements to participate on an 
immediate or deferred basis. The foregoing powers shall 
be subject, however, to the following restrictions and ^SSf"" 
limitations: 

(1) No financial assistance shall be extended 
pursuant to this subsection unless the financial ^^ ^ dM here 
sistance applied for is not otherwise available on rea- a\^bir 
sonable terms. 

(2) No immediate participation may be pui^ 

chased unless it is shown that a deferred participa- ^SJonwuw. 
Uon is not available; and no loan may be made un- 
less it is shown that a participation is not available. 

(3) In agreements to participate in loans on a de- 
ferred basis under this subsection, such participation 

by the Administration shall not be in excess of 90 ^^^^ gg . 
per centum of the balance of the loan outstanding at partidpauon. 
the time of disbursement. 

(4) Except as provided in paragraph (5) (A), no 
loan under this siibsection shall be made if the total 
amount outstanding and committed (by participa- S£'2mim sba 
tion or otherwise) to the borrower from the re- share. 
volving fund established by this Act would exceed 
$350,000; (B) the rate of interest for the Adminis- 
tration's share of any such loan shall be no more 
than 5% per centum per annum; and (C) no such SJj^SSsba 
loan, including renewals or extensions thereof, may interest. 



46-464 O— 65 2 




I 



8 



10-year 
term. 



PoolkMiiB: 
limit. 



Intenst 
between 8 and 
5 percent 

period. 



SBAmaj 
enooiingiB 
fcnnationof 
pooia. 



Antttnist 
esMmptioii. 



BBlAIJi BUSmiSSS ACT 

be made for a period or periods exceeding ten yean 
except that a loan made for the purpose of cod- 
stnictin^ facilities may have a maturity of ten yean 
plus such additional period as is estimated may be 
required to complete such construction. 

(5) In the case of any loan made under this sab- 
section to a cornoration formed and capitalized by a 
group of small-business concerns with resources 
provided by them for the purpose of obtaining for 
the use of such concerns raw materials, equipment, 
inventories, supplies or the benefits of research and 
development, or for establishing facilities for such 
purpose, (A) the limitation of $350,000 prescribed 
m paragraph (4) shall not appl^, but the limit of 
such loan shall be $250,000 miutiplied bv the num- 
ber of separate small businesses which formed and 
capitalized such corporation; (B) the rate' of interest 
for the Administration's i^are of such loan shall be 
no less than 3 nor more than 5 per centum per 
annuni; and (C) such loan, including renewals and 
extensions thereof, may not be made for a period or 
periods exceeding ten years except that if such loan 
IS made for the purpose of constructing facilities it 
maj have a maturity of twenty years plus such ad- 
ditional time as is required to complete such 
construction. 

(6) The Administrator is authorized to consult 
with representatives of small-business concerns with 
a view to encouraging the formation by such con- 
cerns of the corporation referred to in paragraph 
(5). No act or omission to act, if requested by the 
Administrator pursuant to this paragraph, and if 
found and approved by the Admmistration as con- 
tributing to the needs of small business, shall be 
construra to be within the prohibitions of the anti- 
trust laws or the Federal Trade Commission Act of 
the United States. A copy of the statement of any 
such finding and approval mtended to be within the 
coverage of this section, and any modification or 
withdrawal thereof, shall be f urmshed to the Atto^ 
ney General and the Chairman of the Federal Trade 
Commission when made, and it shall be published in 
the Federal Register. The authority granted in this 
paragraph shafi be exercised only (A) by the Ad- 
ministrator, (B) upon the condition that the Ad- 
ministrator consult with tJie Attomev Oeneral and 
with the Chairman of the Federal Trade Comniis- 
sion, and (C) upon the condition that the Admin- 
istrator obtain the approval of the Attorney General 
before exercising sucn authority. Upon withdrawal 
of any request or finding hereunder or upon with- 
drawal by the Attorney General of his approval 



Is 



1 J^ ^^'{/i^^ 



. A 



BBlAIJi BUSINESS ACT 



9 



granted under the preceding sentence, the provisions 
of this paragraph shall not apply to any subscNquent 
act or omission to act by reason of such Abiding or 
request. 

(7) All loans made under Ihis subsection shall be 
of such sound value or so secured as reasonably to 
assure repa^ent. 
(b) The A(umnistration also is empowered ^ — 

(1) to make such loans (either directljr or in 
cooperation with banks or other lending institutions 
through agreements to participate on an immediate 
or deierrM basis) as the Administration may de- 
termine to be necessary or appropriate because of 
floods or other catastrophes; 

(2) to make such loans (either directl3r or in 
cooperation with banks or other lending institutions 
through agreements to participate on an inmiediate 
or de^rred basis) as the Admmistration may deter- 
mine to be necessary or appropriate to any small 
business concern located in an area affected by a 
disaster, if the Admimstration determines that the 
concern has suffered a substantial economic injury 
as a result of such disaster and if such disaster 
constitutes — 

(A) a major disaster, as determined by the 
President under the Act entitled "An Act to 
authorize Federal assistance to States and local 
governments in major disasters, and for other 
purposes", approved September 30, 1950, as 
amended (42 U.S.C. 1855-1855g), or 

(B) a natural disaster, as determined by the 
Secretary of Agriculture pursuant to the Con- 
solidated Farmers Home Administration Act 
of 1961 (7U.S.C. 1961); 

(3) to make such loans (either directly or in 
cooperation with banks or other lending institutions 
through agreements to participate on an immediate 
or deierrra basis) as the Administration may de- 
termine to be necessary or appropriate to assist any 
small business concern in reestabushing its business, 
if the Administration determines that such concern 
has suffered substantial economic injury as a result 
of its displacement by a federally aided urban re- 
newal or highway construction program or by any 
other construction conducted by or with funds pro- 
vided by the Federal Government; and the purposes 
of a loan made pursuant to this paragraph may, in 



Reasonable 
sararanoeof 
repayment. 



ACT 



Plsaster loans. 



Eoonomlc 
Injury disaster 
loans. 



ilaoed 



disaster loans. 



»RARY 



B A mimber of recent amendments bave been made to subsection 7(b): 
PL 87-70 added paragraph (8); 

PL 88-264 added paragraph (4) and extended paragraph (2) beyond its former 
scope relating solely to drought and excessive rainfall disasters; and 
PL 88-MO added the phrase after the word "Ooyemment" in paragraph (^). 
PL 80-N extended the maximum term of disaster loans to thirty years, and 
provided for suspension of repayments in certain hardship cases. 



I 



10 



Prodnet dJflMter 



30 yean. 

Intwestnte 

Speroent. 



Maximum 

partlGlpatlon 

Mperoent. 



SBCALL BUSINESS ACT 



the discretion of the Admmistrator, indude the 
purchase or construction of other premises whether 
or not the borrower owned the premises from which 
it was displaced; 

(4) to make such loans (either directly or in oo- 
operation with banks or other lending mstitutioDs 
through agreements to participate on an immediate 
or de^rrea basis) as the Admmistration majr deter- 
mine to be necessary or appropriate to assist any 
small business concern in reestaoUshing its business 
if the Administration determines that such concern 
has suffered substantial economic injury as a result 
of the inability of such concern to process or market 
a product for human consumption because of dis- 
ease or toxicity occurring in such product through 
natural or undetermined causes. 

No loan under this subsection, including renewab 
and extensions thereof, may be made for a period or 
periods exceeding thirty years: Provided, That the 
Administrator may consent to a suspension in the 
payment of principal and interest charges on, and 
to an extension in the matxirity of, the Federal share 
of any loan under this subsection for a period of not 
to exceed five years, if (A) the borrower under such 
loan is a homeowner or a small-business concern, 
(B) the loan was made to enable (i) such homeowner 
to repair or replace his home, or (ii) such concern to 
repau: or replace plant or equipment which was 
damaged or destroyed as the result of a disaster 
meeting the requirements of clause (A) or (B) of 
paragraph (2) of this subsection, and (C) the Ad- 
ministrator determines such action is necessary to 
avoid severe financial hardship: Provided furUyBf, 
That the provisions of paragraph (1) of subsection 
(c) of this section shall not be applicable to any such 
loan having a maturity in excess of twenty years. 
The interest rate on the Administration's share 
of any loan made under this subsection shsdl not 
exceed 3 per centum per annum, except that in the 
case of a loan made pursuant to paragraph (3), the 
rate of interest on the Administration's share of 
such loan shall not be more than the higher of 
(A) 2Ji per centum per annum; or (B) the average 
annual mterest rate on all interest-bearing obliga- 
tions of the United States then forming a part of flie 
public debt as computed at the end of the fiscal 
year next preceding the date of the loan and adjusted 
to the nearest one-eighth of 1 per centum, plus one- 
quarter of 1 per centum per annum.** In ^ee- 
ments to participate in loans on a deferred basis un- 
der this subsection, such participation by the Ad- 



i> The Interest rate applicable to loana made pursuant to subsectloD 7(b) (I) «» 
spedfled by sectkm 806(4) of PL 87-70. 



■f\ 



■1 J- IviY/"^^ 



SMALL BUSINESS ACT 

ministration shall not be in excess of 90 per centum 
of tibie biJance of the loan outstanding at the time of 
disbursement. 

(c) (1) The Administration may further extend the ma- 
turity of or renew any loan made pursuant to this section, 
or any loan transferred to the Administration pursuant 
to Reorganization Plan Numbered 2 of 1954, or Reorga- 
nization Plan Numbered 1 of 1957, for additional periods 
not to exceed ten years beyond the period stated tnerein, 
if such extension or renewal will aid in the orderly Uqui- 
dation of such loan. 

(2) During any period in which principal and interest 
charges are suspended on the Federal share of any loan, as 
provided in subsection (b), the Administrator shall, upon 
the rec|uest of any person, firm, or corporation haying a 
participation in such loan, purchase such participation, or 
assume the obligation of the borrower, for the balance of 
such period, to make principal and interest payments on 
the non-Federal share of such loan: Provided j That no 
such payments shall be made by the Administrator in 
behalt of any borrower unless (i) the Administrator 
determines that such action is necessary in order to avoid 
a default, and (ii) the borrower agrees to make payments 
to the Administration in an aggregate amount equal to 
the amount paid in its behalf by the Administrator, in 
such manner and at such times (during or after the term 
of the loan) as the Administrator shalldetermine having 
due r^ard to the purposes sought to be achieved by this 
paragraph.^^ 

(d) The Administration also is empowered to make 
grants to any State government or any' agency thereof, 
any State-chartered development credit or finance cor- 
poration, any land-grant collie or university, any col- 
lege or school of business, engineering, commerce, or 
aericulture, or to an^ corporation formed by two or more 
of the entities heremabove described which are eligible 
to receive such grants, for studies, research, and counsel- 
ing concerning me managing, financing, and operation of 
small business enterprises and technical and statbtical 
information necessary thereto in order to carry out the 
purposes of section 8(b)(1) by coordinating such infor- 
mation with existing information facilities within the 
State and by making such information available to State 
and local agencies. The Administrator may recommend 
to grant applicants particular studies or research which 
are to be financed by such grants. The total of all grants 
(including amendments and modifications thereof) made 
under this subsection within any one State in any one 
year shall not exceed $40,000. The Administration may 
require, as a condition to any grant (or amendment or 
modification thereof) made under this subsection, that 

M Paragraph 7(c)(2) added by PL 81H». 



11 



Temumaybe 
extended. 



ACT 



»RARY 



i 



12 



8BA may: 



Take oontnots. 



MU.8.0.687. 



Let 
saboontraots. 



SBAinay: 



Provide 
technical and 
nuuugerial aids. 



SMALL BUSINESS. ACT 

an additional amount not exceeding the amount of such 
grant be provided from sources other than the Adminis- 
tration to assist in carryin^^ out the purposes for which 
such erant is made: ProvuUdy That it such grant or any 
part Uiereof is to be utilized for the purpose of providing 
counseling services to individual small business ento^ 
prises the Administration sludl require that such addi- 
tional amount be provided and in an amount which is 
equal to the amount of such grant. What constitutes 
such additional amount may be defined by the Admin- 
istration.^' 

Sec. 8. (a) It shall be the duty of the Administration 
and it is hereby empowared, whenever it determines sudi 
action is necessary — 

(1) to enter into contracts with the United States 
Oovemment and any department, agency, or officer 
thereof having procurement powers obhgating the 
Administration to furnish articles, equipment, sup- 
plies, or materials to the Government. In any case 
m which the Administration certifies to any officer 
of the Oovemment having procurement powers that 
the Administration is competent to perform any 
specific Oovemment procurement contract to be let 
by any such officer, such officer shall be authorized 
in his discretion to let such procurement contract 
to the Administration upon such terms and condi- 
tions as mar be agreed upon between the Admin- 
istration ana the procurement officer; and 

(2) to arrange for the performance of such con- 
tracts by negotiating or otherwise letting subcon- 
tracts to smul-businees concerns or others for the 
manufacture, supply, or assembly of such articles, 
equipment, supphes, or materials, or parts thereof, 
or servicing or processing in connection therewith, 
or such management services as may be necessary 
to enable the Administration to perform such 
contracts. 

(b) It shall also be the duty of the Administration 
and it is hereby empowered, whenever it determines 
such action is necessary — 

(1) to provide technical and managerial aids to 
smaU-busmess concerns, by advising and counseling 
on matters in connection with Oovemment procure- 
ment and property disposal and on policies, nrinci- 
Eles, and practices of good management, including 
ut not limited to cost accounting, methods of fi- 
nancing, business insurance, accident control, wage 
incentives^ and methods engineering, by cooperatii^ 
and advismg with voluntary business, professional, 
educational, and other nonprofit orgamzations, as- 
sociations, and institutions and with other Federal 
and State agencies, by maintaining a clearinghouse 
for information concerning the managing, financing, 

u Former sabsecttoD 7(d) was rewritten by seotton of PL 87-406. 



/', 



•1- .y • 1 v; v/ ' '^ ^ 



ShdALL BXT8INBB8 ACT 



13 



and operation of smaU-buamess enterprises, by dis- 
seminating such information, and hj such other 
activities as are deemed appropriate by the 
Administration ; 

(2) to make a complete inventory of all produc- ^S?-i?2Su!2. 

.• m 'i**' # 11 c • J. of small bunnew 

tive faciuties of small-busmess concerns or to arrange fadiities. 
for such inventorv to be made by any other govern- 
mental agency which has the facilities. In making 
any such inventory, the appropriate agencies in the 
several States mav be requested to furnish an inven- 
tory of the productive fadUties of small-business 
concerns in each respective State if such an inventory 
is available or in prospect; 

(3) to coordinate and to ascertain the means by Jt^SSJ^^, 
which the productive capacity of small-business con- smaii biuji^aB. 
cems can be most effectively utilized; 

(4) to consult and cooperate with officers of the SS""^*7**? 
Government havmg procurement or property dis- procurement 
posal powers, in order to utilize the potential pro- Smcen!^'**^ 
ductive capacity of plants operated by small-busi- 
ness concerns; 

(5) to obtain information as to methods and ^{J^^^' 

Cctices which Government prime contractors uti- subcontracting. 
in letting subcontracts and to take action to en- 
courage the letting of subcontracts by prime con- 
tractors to smaU-business concerns at prices and on 
conditions and terms which are fair and equitable; 

(6) to determine within any industry the con- Define what is 
cems, firms, persons, corporations, partnerships, co- S^i^^ 
operatives, or other busmess enterprises which are 

to be designated ''small-business concerns" for the 

?urpo6e of effectuating the provisions of this Act. 
'o cany out this purpose the Admimstrat'or, when 
requested to do so, shall issue in response to each 
such request an appropriate certificate certifying an 
individual concern as a ''small-business concern'' in certify concerns 
accordance with the criteria expressed in this Act. as^^'smaii." 
Any such certificate shall be subject to revocation 
when the concern covered thereby ceases to be a 
"small-business concern". Offices of the (rovem- 
ment having procurement or lending powers, or 
engaging in the disposal of Federal property or 
allocating materials or supi>hes, or promul^ting 
regulations affecting the distribution of materials or 
supplies, shall accept as conclusive the Administra- 
tion's determination as to which enterprises are to 
be designated "small-business concerns", as author- 
ized and directed under this paragraph; 

(7) to certify to Government procurement offi- Jj^catesof 
cers, and officers engaged in the sale and disposal competency. 
of Federal property, with respect to the competency, 

as to capacity and credit, of any smaU-business con- 
cern or group of such concerns to perform a specific 
Government contract. In any case in which a small- 



ACT 




J 



14 



Obtain reports 

from 

Ooyemment 

procurement 

agendes. 



Obtoin reports 

from 

Ooyemment 



agendee. 



Obtain Infor- 
mation on 
allocation of 
materials. 



Stady 

procurement 
and disposal 
programs. 



Insure fair 
treatment for 
small business. 



Establish ad- 
visory groups. 



Assistance to 
businesses to be 
displaced by 
urban renewal. 



SMALL BUSINESS ACT 

busmess concern or group of such concerns has been 
certified by or under the authority of the Adminis- 
trati(Hi to be a competent Oovemment contractor 
with respect to capacity and credit as to a spedfic 
Ooyemment contract, the officers of the QovernineDt 
having procurement or property disposal powers an 
directed to accept such certification as conclusive, 
and are authorized to let such Oovemment contract 
to such concern or group of concerns without requir- 
ing it to meet any other requirement with respect to 
capacity and credit; 

(8) to obtain from imy Federal department, ei- 
tabUshment, or agency engaged in procurement or 
in the financing of procurement or production, such 
reports concerning the letting of contracts and sub- 
contracts^ and the making of loans to business con- 
cerns as it may deem pertinent in carrying out its 
functions under this Act; 

(9) to obtain from any Federal department, es- 
tablishment, or agency engaged in the disposal of 
Federal property such reports concerning the solici- 
tation of bids, time of sale, or otherwise as it may 
deem pertinent in carrying out its functions under 
this Act; 

(10) to obtain from suppUers of materials infor- 
mation pertaining to the method of filling orders 
and the bases for allocating their supply, whenever it 
appears that any small business is unable to obtain 
materials from its normal sources; 

(11) To make studies and recommendations to the 
appropriate Federal agencies to insure that a fair 
proportion of the total purchases and contracts for 
property and services for the Oovemment be placed 
with small-business enterprises, to insure that a fair 
proportion of Oovemment contracts for research 
and development be placed with small-business con- 
cerns, to insure that a fair proportion of the total 
sales of Oovemment property be made to small- 
business concerns, and to insure a fair and equitable 
share of materials, supplies, and equipment to small- 
business concerns; 

(12) to consult and cooperate with all Oovem- 
ment agencies for the purpose of insuring that small* 
business concerns shall receive fair and reasonable 
treatment from such agencies; 

(13) to establish such small business advisory 
boards and conmiittees truly representative of small 
business as may be necessary to achieve the purposes 
of this Act; and 

(14) to provide at the earliest practicable time 
such information and assistance as may be appro- 
priate, including information concerning eligibility 
for loans under section 7(b)(3), to local pubfe 
agencies (as defined in section 110(h) of the Housing 









SMALL BUSmiSSS ACT 



15 



Act of 1949) and to small-busmess concerns to be 
displaced by federally aided urban renewal projects 
in order to assist such small-business concerns in 
reestablishing their operations.^* 
(c) The Administration shall from time to time make stadyoompeti. 
studies of matters materially affecting the competitive ofnnSi 
strength of small business, and of the effect on small ^«»»»»- 
business of Federal laws, programs, and r^ulations, and 
shall make recommendations to the appropriate Federal 
agency or agencies for the adjustment of such programs 
and r^ulations to the needs of small business. 

(d)(1) Withm ninety days after the effective date of ^nuSSS 
this subsection, the Administrator, the Secretary of program. 
Defense, and the Administrator of General Services shall 
cooperatively develop a small business subcontracting 
program which shall contain such provisions as may be 
appropriate to (A) enable small business concerns to be 
considered fairly as subcontractors and suppliers to 
contractors performing work or rendering services as 
prime contractors or subcontractors imder Oovemment 
procurement contracts, (B) insure that such prime con- 
tractors and subcontractors will consult through the 
appropriate procuring amncy with the Administration 
when requested by the Administration, and (C) enable 
the Administration to obtain from any Government pro- 
curement agency such available or reasonably obtainable 
information and records concerning subcontracting by 
its prime contractors and their subcontractors as the 
Administration may deem necessary: Pramded, That 
such program shall not authorize the Administration to 
()) prescribe the extent to which any contractor or sub- 
contractor shall subcontract, (ii) specify the business 
concerns to which subcontracts shall be granted, or (iii) 
vest in the Administration authority respecting the 
administration of individual prime contracts or sub- 
contracts: Provided further, Tnat such program shall 
provide that in evaluating bids or in selecting contractors 
for negotiated contracts, the extensive use of subcon- 
tractors by a proposed contractor shall be considered a 
favorable factor. The Secretary of Defense and the 
AdmiBistrator of General Services each shall promulgate 
regulations implementing the program as developed: 
Provided, That prior to the promulgation of such regu- 
lations, or any chanees therein, the concurrence of the 
Administration shall Be obtained, and if such concurrence 
cannot be obtained the matter in disagreement shall be 
submitted to the President who shaS make the final 
determination. In addition, the Administrator of Gen- 
eral Services and the Secretary of Defense may issue 
such other relations concerning subcontracting not 
inconsistent with the small business subcontracting 
program as they each deem necessary or appropriate to 
effectuate their functions and responsibilities. 

» Pirasnph 14of aeetlOQ8<b) was added by PL8M00. 



ACT 



3 



'RARY 1 



'ALIFORNIA 



J 



16 



Contracts 
Included. 



8BA report 
and recom- 
mendations. 



Proprietary 
rights protected. 



Proposed 
procurements 

Eubliciced dally 
y Secretary of 
Commerce. 



SBiALL BUSINESS ACT 

(2) Every contract for property or services (including 
but not limited to contracts for research and deyelop- 
ment, maintenance, repair and construction, but exclud- 
ing contracts to be performed entirely outside of the 
United States or its territories) in excess of $1,000,000 
made by^ a Government department or agency, which in 
the opinion of the procurmg aj^ncy oners substaotial 
subcontracting possibilities, shau require the contractor 
to conform to the small business subcontracting program 
promulgated under this subsection^ and to insert in all 
subcontracts and purchase orders m excess of $500,000 
which offer substantial possibilities for further subcon- 
tracting a provision requiring the subcontractor or sup- 
plier to conform to such small business subcontracting 
program. 

(3) The Administration shall include in anjr report 
filed under section 10(b) of this Act, information and 
such recommendations as it may deem appropriate, with 
respect to the administration of the small business sub- 
contracting pro-am established under this subsection. 

(4) Nothing m this subsection shall be construed to 
authorize the Administrator, the Secretary of Defens^ 
or the Administrator of General Services to secure and 
disseminate technical data or processes developed by any 
business concern at its own expense. ^^ 

(e) It shall be the duty of the Secretary of Commerce, 
and he is hereby empowered, to obtain notice of all pro- 
posed defense procurement actions of $10,000 and above, 
and all civilian procurement actions of $5,000 and above, 
from any Federal department, establishment, or s^ency 
engaged in procurement of supplies and services in the 
United States; and to publicise such notices in the daily 
publication "United States Department of Conunerce 
Synopsis of the United States Government Proposed 
Procurements, Sales, and Contract Awards", immediate^ 
after the necessity for the procurement is established: 
except that nothing herein shall require pubUcation of 
such notices with respect to those procurements (1) which 
for security reasons are of a classified nature, or (2) 
which involve perishable subsistence supplies, or (3) 
which are for utility services and the procuring agency 
in accordance with applicable law has predetermined the 
utiUty concern to whom the award wul be made, or (v 
which are of such unusued and compelling emereency 
that the Government would be seriously iniured if bids 
or offers were permitted to be made more than 15 days 
after the issuance of the invitation for bids or solicita- 
tion for proposals, or (5) which are made by an order 
fdaced under an existing contract, or (6) which are made 
rom another Government department or agency, or a 
mandatory source of supply, or (7) which are for per- 
sonal or professional services, or (8) which are for serv- 
ices from educational institutions, or (9) in which only 



17 Entire section 8(d) was added by section 7 of PL 87-406. 



'{- 



^\ 



V 



/6S 



SMAU. BUSmXSSS ACT 



17 



foreign sources are to be solicited, or (10) for which it is 
determined in writing b^ the procuring agency, with the 
concurrence of the Administrator, that advance publicity 
is not appropriate or reasonable.^* 

Sec. 9. (a) Research and development are major fac- 
tors in the growth and progress of industry and the 
national economy. The expense of carrying on research 
and development programs is beyond the means of man^ 
small-business concerns, and such concerns are handi- 
capped in obtaining the benefits of research and develop- 
ment programs^ conducted at Oovemment expense. 
These smdl-business concerns are thereby placed at a 
competitive disadvantage. This weakens the competi- 
tive free enterprise system and prevents the orderly 
development of the national economy. It is the policy 
of the Congress that assistance be given to small-business 
concerns to enable them to undertake and to obtain the 
benefits of research and development in order to main- 
tain and strengthen the competitive free enterprise sys- 
tem and the national economy. 

(b) It shall be the duty of the Administration, and it 
is hereby empowered — 

(1) to assist small-business concerns to obtain 
Government contracts for research and develop- 
ment; 

(2) to assist small-business concerns to obtain 
the benefits of research and development performed 
under Government contracts or at Government 
expense; and 

(3) to provide technical assistance to small- 
business concerns to accomplish the purposes of this 
section. 

(c) The Administration is authorized to consult and 
cooperate with all Government agencies and to make 
studies and recommendations to such agencies, and such 
agencies are authorized and directed to cooperate with 
the Administration in order to carry out and to accom- 
plish the purposes of this section., 

(d) (1) The Administrator is authorized to consult 
with representatives of small-business concerns with a 
view to assisting and encouraging such firms to under- 
take joint programs for research and development car- 
ried out through such corporate or other mechanism as 
may be most appropriate for the purpose. Such joint 
programs may, among other things, include the following 
purposes: 

(A) to construct, acquire, or establish laborato- 
ries and other facilities for the conduct of research; 

(B) to imdertake and utilize appHed research; 

(C) to collect research information related to a 
particulate industry and disseminate it to participat- 
ing members; 

n Seedon 8<e) WW added by aectkm 8 of PL 87-^06. 



ResetfQhand 
deyelopment. 
UU.S.C.(tt8. 



ACT 



Policy Of 
ConcresB. 



SBA BhaU: 



Assist In 
obtaining 
research 
contracts. 

Assist In 
obtaining 
benefits of 
research. 



Provide 
technical 



Other agencies 
to cooperate 
with SBA. 



Joint research 
and develop- 
ment programs. 



Acquisition of 
facilities. 

Utilization of 
applied researCt 
Collection of 
research 
information. 




I 



18 



Applied research 
ptogmnB. 



Apply for 
patents. 



Grant Uoenses. 



Antitrust 
exemption. 



Reports: 
Operations 
under Act. 
16 U.S.C. «3 



SMALL BUSINESS ACT 



(D) to conduct applied research on a protected, 
proprietary, and contractual basis with membw or 
nonmember firms, Government agencies, and others; 

(E) to prosecute applications for patents and 
render patent services for participating members; 
and 

(F) to n^otiate and grant licenses under patents 
held imder the joint program, and to establish cor- 
porations designed to exploit particular patents 
obtained by it. 

(2) The Administrator may, after consultation with 
the Attorney General and the Chairman of the Federal 
Trade Commission, and with the prior written approval 
of the Attorney General, approve any agreement between 
small-business firms providing for a joint program of 
research and development, if the Administrator finds 
that the joint program proposed wiU maintain and 
strengthen the free enterprise system and the economy of 
the Nation. The Administrator or the Attorney Gen- 
eral may at any time withdraw his approval of the agree- 
ment and the joint program of researcn and development 
covered thereby, if he finds that the agreement or the 
joint program carried on under it is no longer in the best 
interests of the competitive free enterprise system and 
the economy of the Nation. A copy of the statement of 
any such finding and approval intended to be within the 
coverage of this subsection, and a copy of any modifica- 
tion or withdrawal of approval, shall be pubUshed in 
the Federal Register. The authority conferred by this 
subsection on the Administrator shall not be delegated 
I y him. 

X3) No act or omission to act pursuant to and within 
the scope of any joint program for research and develop- 
ment, under an agreement approved by the Admima- 
trator under this subsection, shall be construed to be 
within the prohibitions of the antitrust laws of the Fed- 
eral Trade Commission Act. Upon publication in the 
Federal Register of the notice of withdrawal of his 
approval of the agreement granted under this subsection, 
either by the Administrator or by the Attorney General, 
the provisions of this subsection shall not apply to any 
subsequent act or omission to act by reason of such 
agreement or approval. 

Sec. 10. (a) The Administration shall make a report 
on December 31 of each year of operations under thfe 
Act to the President, the President of the Senate, and 
the Speaker of the House of Representatives. Such 
report shall include the names of the business concerns 
to whom contracts are let and for whom financing is 
arranged by the Administration, together with the 
amounts involved, and such report shaUinclude informa- 
tion on the progress of the Administration in liquidating 
the assets and winding up the affairs of the Reconstruc- 
tion Finance Corporation, and such other information 



Y- 



. ^\ 



y //6^ 



Antitrust 
reports. 



SMALL BUSINESS ACT 19 

and such comments and recommendations as the Admm- 
istration may deem appropriate. The reauirement con- 
tained in this subsection with respect to the inclusion of 
information respecting the progress of the Administra- 
tion in liquidatmg the assets and winding up the affairs 
of the Reconstruction Finance Corporation in such report 
shsdl be in lieu of any requirement, pursuant to section 
106(b) of the Reconstruction Finance Corporation 
Liquidation Act, and Reorganization Plan Niunbered 1 
of 1957, that progress reports with respect to such liq^ui- 
dation or winding up of affairs by the Administration 
be made to the Congress on a quarterly basis.^* 

(b) The Administration shall make a report to the S*^^^*'"* 
President, the President of the Senate, and the Speaker 

of t^e House of Representatives, to the Senate Select 
Committee on Small Business, and to the House Select 
Committee To Conduct a Study and Investigation of 
the Problems of Small Business, on December 31 of each 
year, showing as accurately as possible for each such 
period the amount of funds appropriated to it that it has 
expended in the conduct of each of its principal activites 
such as lending, procurement, contracting, and providing 
technical and managerial aids.'^ 

(c) (1) The Attorney General is directed to make, or 
direct the Federal Trade Commission to make for him, 
surveys of any activity of the Government which may 
a£Fect small business, for the purpose of determining any 
factors which may tend to ehminate competition, create 
or strengthen monopolies, promote undue concentration 
of economic power, or otherwise injure small business. 

(2) The Attorney General shall submit to the Con- 
gress and the President, at such times as he deems desir- 
able, but not less than once every year, reports -^tting 
forth the results of such surveys and including ^uch 
recommendations as he may deem desirable.^ 

(d) For the purpose of aiding in carrying out the 
national policy to insure that a fair proportion of the 
total purchases and contracts for property and services 
for the Government be placed with small-business enter- 
prises, and to maintain and strengthen the overall econ- 
omy of the Nation, the Department of Defense shall make 
a monthly report to the President, the President of the 
Senate, and the Speaker of the House of Representatives 
not less than forty-five days after the close of the month, 
showing the amount of funds appropriated to the De- 
partment of Defense, which have been expended, obli- 
gated, or contracted to be spent with small-business 
concerns and the amount of such funds expended, obli- 
gated, or contracted to be spent with firms other than 

u Former subsection 10(a) was rewritten and the reporting requirement changed 
from swniannnal to annual by section 6(a)(1) of PL 87-405. 

>• The reporting requirement of subsection 10(b) was changed from semiannual to 
annoAl by sectlim 5(a)(2) of PL 87-^305. 

n Pormer subsection 10(e) was rewritten and annual reports by the Attorney Oeneral 
made mandatory by section 5(a)(3) of PL 87-305. 



ACT 



Defense 

procurement 

reports. 




J 



20 



Maintenanoe 
of records. 



Consultation 
with other 
Ooyemment 
agencies. 



15 U.8.C. MO. 



Defense pro- 
duction pools. 



SMALL BUSINESS ACT 

small business in the same fields of operation; and mA 
monthly reports shall show separately the funds ex- 
pended, obl^ated, or contracted to be spent for basic 
and applied scientific research and development. 

(e) The Administration shidl retain lOl correspond- 
ence, records of inquiries^memoranda, reports, books, 
and records, including memoranda as to all mvestigatioiis 
conducted by or for the Administration, for a period 
of at least one year from the date of each thereof, and 
shall at all times keep the same ayailable for inspection 
and examination by the Senate Select Committee on 
Small Business and the House Select Committee To 
Conduct a Study and Investigation of the Problems of 
Small Business, or their duly authorized representatim 

(f) To the extent deemed necessary hj the Adminis- 
trator to protect and preserve small-business interests, 
the Administration shall consult and cooperate with 
other departments and aeencies of the Federal Goyern- 
ment in the formulation oy the Administration of poli- 
cies affecting small-business concerns. When requested 
by the Admmistrator, each department and agency of the 
Inderal Government shall consult and cooperate with 
the Administration in the formulation by such depart- 
ment or agency of policies affecting small-business con- 
cerns, in order to insure that small-business interests wili 
be recognized, protected, and preserved. This subsec- 
tion shall not require any department or agency to con- 
sult or cooperate with the Administration in any case 
where the head of such department or agency determines 
that such consultation or cooperation would unduly de- 
lay action which must be taken by such department or 
agency to protect the national interest in an emergency. 

Sec. 11 (a) The President is authorized to consult 
with reiH'esentatives of small-business concerns with a 
view to encouraging the making by such persons with the 
approval of the President of voluntary agreements and 
programs to further the objectives of this Act. 

(b) No act or omission to act pursuant to thb Act 
which occurs while this Act is in effect, if requested by 
the President pursuant to a voluntary agreement or pro- 
gram approved under subsection (a) of this section and 
found by the President to be in the public interest as 
contributing to the national defense, snail be construed 
to be within the prohibitions of the antitrust laws or the 
Federal Trade Conmiission Act of the United States. A 
copy of each such request intended to be within the cov- 
erage of this section, and any modification or withdrawal 
thereof, shall be furnished to the Attorney General and 
the Chairman of the Federal Trade Commission when 
made, and it shall be published in the Federal Raster 
unless publication thereof woidd, in the opinion of the 
President, endanger the national security. , . 

(c) The authonty granted in subsection (b) of tD|| 
section shall be delegated only (1) to an official who ^ ^ 



^ 



i^ 



; - I ,., 7 / (C^ 



v^ 



, Y '■ 



SBiALL BUSINESS ACT 



21 



for the purpose of such delegation be required to be 
appointed by the President by and with the advice and 
consent of the Senate, (2) upon the condition that such 
official consult with the Attorney General and the Chair- 
man of the Federal Trade Commission not less than ten 
days before making any request or finding thereunder, 
and (3) upon the condition that such official obtain the 
approval of the Attorney General to any request there- 
under before making the request. 

(d) Upon withdrawal of any request or finding here- 
under, or upon withdrawal by the Attorney General of 
his approval of the voluntary agreement or program on 
w^hich the request or finding is based, the provisions of 
this section shall not apply to any subsequent act, or 
omission to act, by reason of such finding or request. 

Sec. 12. The Fresident may transfer to the Admin- 
istration any fimctions, powers, and duties of any depart- 
ment or agency which relate primarily to small-business 
problems. In connection with any such transfer, the 
Freeident may provide for appropriate transfers of rec- 
ords, property, necessary personnel, and unexpended 
balances of appropriations and other funds available to 
the department or agency from which the transfer is 
made. 

Sec. 13. No loan shall be made or equipment, facili- 
ties, or services furnished by the Administration under 
this Act to any business enterprise unless the owners, 
partners, or officers of such business enterprise (1) certify 
to the Administration the names of any attorneys, agents, 
or other persons engaged by or on behalf of such business 
enterprise for the purpose of expediting applications 
made to the Administration for assistance of any sort, 
and the fees paid or to be paid to any such persons; (2) 
execute an agreement binding any such busmess enter- 
prise for a period of two years after any assistance is ren- 
dered by the Administration to such business enterprise, 
to refrain from employing, tendering any office or em- 
ployment to, or retaining for professional services, any 
person who, on the date such assistance or anv part 
thereof was rendered, or within one year prior thereto, 
shall have served as an officer, attorney, agent, or em- 
ployee of the Administration occupying a position or 
engaging in activities which the Administration shall 
have determined involve discretion with respect to the 
granting of assistance under this Act; and (3) furnish 
the names of lending institutions to which such business 
enterprise has applied for loans together with dates, 
amounts, tel'ms, and proof of refusal. 

Sec. 14. To the fullest extent the Administration 
deems practicable, it shall make a fair charge for the use 
of Government-owned property and make and let con- 
tracts on a basis that wiU result in a recovery of the direct 
costs incurred by the Administration. 



ACT 



Transfer of 
small-business 
functions. 
16 U.S.C. 641. 



Listing of 
af^ents and 
attorneys. 
15 U.S.C. 642. 



Employment 
agreement. 




Charges for 
Oovernment- 
owned property. 
16 U.S.C. 643. 



i 



22 



Joint-determl- 
nation proeram 
for awarding 
contracts 
orselltng 



.S.C. 644. 



sro: 



Penalty for fUie 
statements. 
15 U.8.C. 645. 



Peultrfor 

wrongful 

conduct. 



8B£ALL BUSINESS ACT 



Sec. 15. To effectuate the purposes of this Act, small 
business concerns within the meaning of this Act shall 
receive any award or contract or any part thereof, and 
be awarded any contract for the sale of Government 
property, as to which it is determined by the Administra- 
tion and the contracting procurement or disposal agency 
(1) to be in the interest of maintaining or mobilizing the 
Nation's full productive capacity, (2) to be in the interest 
of war or national defense programs, (3) to be in the 
interest of assuring that a fair proportion of the total 
purchases and contracts for property and services for the 
Oovemment are placed with small-business concerns, or 
(4) to be in the interest of assuring that a fair proportion 
of the total sales of Government property be made to 
small-business concerns; but nothing contained in this 
Act shall be construed to change any preferences or 
priorities established by law with respect to the sale ol 
electrical power or other property by the Government or 
any agency thereof. These determinations may be made 
for individual awards or contracts or for classes of 
awards or contracts. Whenever the Administration and 
the contracting procurement agency fail to agree, the 
matter shall be submitted for determination to the Sec- 
retary or the head of the appropriate department or 
agency by the Administrator. 

Sec. 16. (a) Whoever makes any statement knoiring 
it to be false, or whoever willfully overvalues any secu- 
rity, for the purpose of obtaining for himself or for anv 
applicant any loan, or extension thereof by renewal, 
deferment of action, or otherwise, or the acceptance, 
release, or substitution of security therefor, or for the 
piirpose of influencing in any way the action of the Ad- 
ministration, or for the purpose of obtaining money, 
property, or anything of value, under this Act, shall be 
pumshed by a fme of not more than $6,000 or by impris- 
onment for not more than two years, or both. 

(b) Whoever, being connected in any capacity with 
the Administration, (1) embezzles, abstracts, purloins, 
or willfully misapplies any monevs, funds, securities, (^ 
other things of value, whether belon^n^ to it or pledged 
or otherwise entrusted to it, or (2) with mtent to defiaud 
the Administration or any other body pohtic or corpo- 
rate, or any individual, or to deceive any officer, auditor, 
or examiner of the Administration, makes any false entiy 
in i^ny book, report, or statement of or to the Adminis- 
tration, or, without bein^ duly authorized, draws any 
order or issues, puts forth, or assigns any note, deben- 
ture, bond, or otner obligation, or draft, bill of exchange, 
mortgage, judgment, or decree thereof, or (3) with intent 
to defraud participates or shares in or receives directy 
or indirectly any money, profit, property, or benefit 
through any transaction, loan, commission, contract, or 
any other act of the Administration, or (4) gives any 
unauthorized information concerning any future action 



ya. 



i ^ 



V/ 



tc^ 



SMALL BUSINESS ACT 



23 



or plan of the Administration which mi^t affect the 
value of securities, or, having such knowledge, invests 
or speculates, directly or indirectly, in the securities or 
property of any company or corporation receiving loans 
or other assistance from the Administration, shall be 
punished by a fine of not more than $10,000 or by im- 
prisonment for not more than five years, or both. 

(c) Whoever, with intent to defraud, knowingly con- 
ceals, removes, disposes of, or converts to his own use or 
to that of another, any propea*ty mortgaged or pledged 
to, or held by, the Admmistration, shall be fined not more 
than $5,000 or imprisoned not more than five years, or 
both; but if the value of such property does not exceed 
$100, he shall be fined not more than $1 ,000 or imprisoned 
not more than one year, or both.** 

Sec. 17. Any interest held by the Administration in 
property, as security for a loan, shall be subordinate to 
any lien on such property for taxes due on the propery 
to a State, or political subdivision thereof, in any case 
where such lien would, under applicable State law, be 
superior to such interest if such interest were held by any 
paxty other than the United States. 

Sec. 18. The Administration shall not duplicate the 
work or activity of any other department or agency of 
the Federal Government and nothing contained in this 
Act shall be construed to authorize any such duplication 
unless such work or activity is expressly provided for in 
this Act. 

Sec. 19. If any provision of this Act, or the applica- 
tion thereof to any person or circumstances, is held in- 
valid, the remainder of this Act, and the application 
of such provision to other persons or circumstances, shall 
not be affected thereby. 

Sec. 20. There are hereby authorized to be appropri- 
ated such sums as may be necessary and appropriate 
for the carrying out of the provisions and purposes of 
this Act other than those for which appropriations to 
the revolving fund are authorized by section 4(c).*^ 

Sec. 21. All laws and parts of laws inconsistent with 
this Act are hereby repealed to the extent of such incon- 
sistency. 

B Subflection (c) of section 16 was added by PL 88-264. 

» The clause excluding the appropriation authority covered by section 4(c) was 
added by section 11(h)(2) of PL 87-^1. 



ACT 



Subordination 
ofSBA 
collateral. 
16 U.S.C. 646. 



Avoidance of 
duplication. 
15 U.S.C. 647. 



Separability. 
15 U.S.C. 648. 



Authorization 
for appropri- 
ations. 
15 U.S.C. 649. 



Repeal of 

inconsistent 

laws. 

15 U.S.C. 650. 



3 



JRARY I 



24 



I 



BMALIi BUSOnSSS ACT 



RELATED PROVISIONS OF LAW 



Amendinent 
of Federal 
Reeenre Aet. 



Eztenaion 
of certain 
RFC loans. 



10 U.8.C. 



Review by 
Congren. 



Trade 
Adjustment 
Assistance. 
15 U.8.C. 687a. 



PUBLIC LAW 68e — 66TH CONGRESS 
APPROVED JULY 18, 1968 

Sec. 3. The fourth paragraph of section 24 of the 
Federal Reserve Act is amended (1) by striking out "or 
the Small Business Administration" and ''or of the Small 
Business Act of 1953,", and (2) by adding at the end 
thereof the following new sentence: "Loans in which 
the Small Business Administration cooperates through 
agreements to participate on an immediate or deferred 
basis imder the Small Business Act shall not be subject 
to the restrictions or limitations of this section imposed 
upon loans secured by real estate." 

Sec. 4. The Secretary of the Treasury is hereby au- 
thorized to further extend the maturity of or renew any 
loan transferred to the SeOTetanr of we Treasury pu^ 
suant to Reorganization Plan Numbered 1 of 1967, for 
additional periods not to exceed ten years^ if such exten- 
sion ot renewal will aid in the orderly liqmdation of such 
loan. 

PUBLIC LAW 660 — 87TH CONOBB8S 
APPROVED JULY 26, 1962 

1(b) It is the sense of the Congress that the regular 
business loan program of the Small Business Admin- 
istration should be reviewed by the Congress at least 
once every two years. It is furtner the sense of the Con- 
gress that the Small Business Administration should sub- 
mit its estimated needs for additional authorization for 
such program to the Congress at least one jear in ad- 
vance of the date on whioi such authorization is to be 
provided, in order to assure an orderly and recur 
review of such program and to avoid emergency tm 
for additional authorization. Compliance oy uie SmaD 
Business Administration with the foreeoioe policy will 
enable the Congress hereafter to provide additioual au- 
thorization for such program on a two-^ear basis. 

2(a) The Small Business Administration is m- 
powered to make loans (either directly or in cooperation 
with banks or other lenders through agreements to par- 
ticipate on an immediate or deferred basis) to assist any 
firm to adjust to changed economic conditions resulting 
from increased competition from imported articles,^ but 
onljr if (1) an adjustment proposal of such firm has been 
certified by the Secretary of Commerce pursuant to the 
Trade Expansion Act of 1962. (2) the Secretary has re- 
ferred such proposal to the Administration imder that 
Act and the loan would provide part or all of the financial 
assistance necessary to carry out such proposal, and (3) 
the Secretary's certification is in force at the time the 
Administration makes the loan. 

M This section was added by PL 87-460 In conneetten with the Trade 
Aet of 1M2, PL 87-7M, approred October 11. 1002. 



i^ 



) • i 



i A 



Y 



/ / ^ ^ 



SBIALL BUSINESS ACT 



25 



(b) The Small Business Administration's authority 
to make loans under this section shall be in addition to 
and. separate from its authority to make loans under the 
Small business Act. With respect to loans made under 
this section the Administration shall apply the provisions 
of sections 314, 315, 316, 318, 319, and 320 of the Trade 
Expansion Act of 1962 as though such loans had been 
made under section 314 of that Act. 

(c) There are hereby authorized to be appropriated, 
vvitiiout fiscal year limitation, such sums as may be neces- 
sary to carry out this section. 

(d) This section shall take effect on such date (on or 
after the enactment of the Trade Expansion Act of 1962) 
as the President may specify in a proclamation duly pub- 
lished in the Federal R^;i3ter but in no case later than 60 
days after the date of the enactment of such Act. 



16 U.S.C. 681 
note. 



ACT 



PITBIilC LAW 846 — STTH CONGRESS APPROVED OCTOBER 22, 

1962 

Sec. 213. (a) The Secretary of the Treasury shall pay 
out of the War Claims Fund on account of awards cer- 
tified by the Conimission pursuant to this title as follows 
and in the following order of priority: 

(1) Payment in full of awards made pursuant to sec- 
tioo 202(d) (1) and (2), and thereafter of any award 
made pursuant to section 202(a) to any claimant certified 
to the Commission by the Small Business Administration 
as having been, on the date of loss, damage, or destruc- 
tion, a small business concern within the meaning now 
set forth in the Small Business Act, as amended. 

ECONOMIC OPPORTUNITY ACT OP 1964 

PUBLIC LAW 8S--462 — APPROVED AUGUST 20,1964 

TITLE IV— EMPLOYMENT AND INVESTMENT 
INCENTIVES ^ 



War Claims 
Act of 1948. 
76 Stat, nil 



3 



16 U.S.C. 681 
note. 



STATEMBNT OF PURPOSE 

Ssc. 401. It is the purpose of this title to assist in SSSmT*"*'" 
the establishment, preservation, and strengthening of assistance. 
small business concerns and improve the managerial 
skills emplojred in such enterprises; and to mobilize for 
these objectives private as well as public managerial 
skills and resources. 

» 78 Stat. 526-7; 42 U.S.C. 2901-7 (codification to be published summer of 1965.) 




J 



26 SICALL BUBIMBSS ACT 

LOANS, PARTICIPATIONBi AND GUARANTIES 

Sbc. 402. The Director is authorized to make, partici- 
pate (on an immediate basis) in, or guarantee loftos, 
repayable in not more than fifteen years, to any smaQ 
business concern (as defined in section 3 of the SmaH 
72Stat.s84. Business Act (15 U.S.C. 632) and regulations issued 
thereunder), or to any qualified person seeking to estab- 
lish such a concern, when he determines that such loans 
will assist in canning out the purposes of this title, with 
particular emphasis on employment of the long-term un- 
employed : Pravidedf however , That no such loans shall be 
made, participated in, or ^aranteed if the total of such 
Federal assistance to a single borrower outstanding at 
any one time would exceed $25,000. The Director may 
defer payments on the principal of such loans for a grace 
period and use such other methods as he deems necessary 
and approi)riate to assure the successful establishment 
and operation of such concern. The Director may, in 
his discretion, as a condition of such financial assistance, 
require that the borrower take step»s to improve his 
management' skills by participating in a management 
training program approved by the Du-ector. The Duw- 
tor shaD encourage, as far as possible, the participation of 
the private business community in the program of 
assistance to such concerns. 

COORDINATION WFTH COMMUNITY ACTION PB0GRAM8 

Sec. 403. No financial assistance shall be provided 
under section 402 in any community for which the Direc- 
tor has approved a community action program pursuant 
to title II of this Act unless such financial assistance is 
determined by him to be consistent with such program. 

FINANCING UNDER SMALL BUSINESS ACT 

Sec. 404. Such lending and guaranty functions imder 

this title as may be ddegated to the Small Busing 

Administration may be financed with funds appropriated 

76 Stat. 220. to the revolving fund established by section 4(c) of the 

w sSS* iwJ Small Business Act (16 U.S.C. 633 (c)) for the purposes of 

Afue,p.7/ sections 7(a), 7(b), and 8(a) of that Act (15 U-S-^* 

636(a), 636(b), 637(a)).» 

LOAN TEBMS AND CONDITIONS 

Sec. 406. Loans made i)ursuant to section 402 (includ- 
ing immediate participation in and guaranties of sucn 
loans) shall have such terms and conditions as the Direc- 
tor shall determine, subject to the following Umitations^ 

~»A^ithorltrto carry oat title IV o 

II688 Admlnistntfon by the Director of the Offiee of Economic Opportunity (» Fea«» 

Begister 147M» October 29, 19IM). 



•\ 



/^. 



1- J- \-aH/ ''^^ 



SMALL BUSINESS ACT 

(a) there is reasonable assurance of repayment 
of the loan; 

(b) the financial assistance is not otherwise 
available on reasonable terms from private sources 
or other Federal, State, or local programs; 

(c) the amount of the loan, together with other 
funds available, is adequate to assure completion of 
the project or achievement of the purposes for which 
the loan is made; 

(d) the loan bears interest at a rate not less than 
(1) a rate determined bv the Secretary of the Treas- 
ury, taking into consideration the average market 
yield on outstanding Treasury obligations of com- 
parable maturity, plus (2) such additional charge, 
if any, toward covering other costs of the program 
as the Director may determine to be consistent with 
its purposes: Promded, however ^ That the rate of 
interest charged on loans made in redevelopment 
areas designated under the Area Redevelopment 

Act (42 U.S.C. 2501 et seq.) shall not exceed the Tsstat.i?. 
rate currently applicable to new loans made under 
section 6 of that Act (42 U.S.C. 2505) ; and 

(e) fees not in excess of amounts necessary to 
cover administrative expenses and probable losses 
may be reqiiired on loan guaranties. 

LIMITATION ON FINANCIAL ASSISTANCE 

Sbc. 406. No financial assistance shall be extended pur- 
suant to this title where the Director determines that the 
assistance will be used in relocating establishments from 
one area to another or in financing subcontractors to 
enable them to undertake work theretofore performed in 
another area by other subcontractors or contractors. 

DURATION OF PROGRAM 

Sec. 407. The Director shall carry out the programs 

Srovided for in this title during the fiscal year ending 
une 30, 1965, and the two succeeding fiscal years. 



27 



ACT 



3 



»RARY 



Public Law 89-117 added the following new title IV to the Small 
Business Investment Act of 1958 (see a^o footnotes 3 (p. 2) and 
5 (p. 3)): 

TITLE IV— LEASE GUARANTEES 

AUTHOBITT OF THE ADMINISTRATION 

Sec. 401. (a) The Administration may, whenever it 
determines such action to be necessary or desirable, and 
upon such terms and conditions as it may presmbe, 
guarantee the payment of rentals imder leases of com- 




J 



28 SMALL BUSINESS ACT 

mercial and industrial property entered into by 
business concerns that are (1) eligible for loans under 
section 7(b)(3) of the Small Business Act, or (2) eligible 
for loans under title IV of the Economic Opportimitv 
Act of 1964, to enable such concerns to obtain such 
leases. Any such guarantee may be made or effected 
either direcUy or in cooperation with any qualified suretjr 
company or other qualified company throueh a partia- 
pation agreement with such company. The foregoing 
powers shall be subject, however, to the following re- 
strictions and limitations: 

(1) No guarantee shall be issued by the Adminis- 
tration (A) if a guarantee meeting the requirements 
of the applicant is otherwise available on reasonable 
terms, and (B) unless the Administration determines 
that there exists a reasonable expectation that the 
small business concern in behalf of which the 
guarantee is issued will perform the covenants 
and conditions of the lease. 

(2) The Administration shall, to the greatest ex- 
tent practicable, exercise the powers conferred by 
this section in cooperation with qualified surety or 
other companies on a participation basis. 

(b) The Administration shall fix a uniform annual fee 
for its share of any euarantee under^ this section which 
shall be payable in advance at such time as may be pre- 
scribed by the Administrator. The amount of any such 
fee shall be determined in accordance with sound ac- 
tuarial practices and procedures, to the extent prac- 
ticable, out in no case shall such amount exceed, on the 
Administration's share of any guarantee made under this 
title, 2J/^ per centum per annum of the minimum annual 
guaranteed rental payable under any guaranteed lease: 
Provided^ That the Administration shall fix the lowest 
fee that experience under theprogram established hereby 
has shown to be justified. The Administration niay also 
fix such uniform fees for the ]^rocessing of applicatioBs 
for guarantees under this section as the Admmistrator 
determines are reasonable and necessary to pay the ad- 
ministrative expenses that are incurred in connection 
therewith. 

(c) In connection with the guarantee of rentals under 
any lease pursuant to authority conferred by this section, 
the Administrator may require, in order to minimize the 
financial risk assumed under such guarantee — . 

(1) that the lessee pa3r an amount, not to exceed 
one-fourth of the minimum guaranteed annual 
rental required under the lease, which shall be held 
in escrow and shall be available (A) to meet rental 
charges accruing in any month for which the lessee 
is in default, or (B) if no default occurs during the 
term of the lease, for application (with accruw in- 
terest) toward final payments of rental charges under 
the lease; 



A 



J' !.^V/ f^^ 



SMALL BUSINESS ACT 

(2) that upon occurrence of a default under the 
lease, the lessor shall, as a condition precedent to 
enforcing any claim under the lease guarantee, 
utilize the entire period, for which there are funds 
available in escrow for parent of rentals, in reason- 
ably diligent efforts to eliminate or minimize losses, 
by releasing the commercial or industrial property 
covered by the lease to another qualified tenant, and 
no claim shall be made or paid under the guarantee 
until such effort has been made and such escrow 
funds have been exhausted; 

(3) that anv guarantor of the lease will become a 
successor of tne lessor for the purpose of collecting 
from a lessee in default rentals which are in arrears 
and with respect to which the lessor has received 
payment under a guarantee made pursuant to this 
section; and 

(4) such other provisions, not inconsistent with 
the purposes of this title, as the Administrator may 
in his discretion require. 

POWERS 

Sec. 402. Without limiting the authority conferred 
upon the Administrator and the Administration by 
section 201 of this Act, the Administrator and the Admin- 
istration shall have, in the performance of and with 
respect to the functions, powers, and duties conferred by 
this title, all the authority and be subject to the same 
conditions prescribed in section 5(b) of the Small 
Business Act with respect to loans, including the author- 
ity to execute subleases, assignments of lease and new 
leases with any person, firm, organization, or other 
entity, in order to aid in the liquidation of obligations 
of the Administration hereunder. 



29 



ACT 



3 



FUND 

Sec. 403. There is hereby estabUshed a revolving fund 
for use by the Administration in carrying out the pro- 
visions of this title. Initial capital for such fund snail 
consist of not to exceed $5,000,000 transferred from the 
fund established under section 4(c) of the Small Business 
Act: Provided, That the last sentence of such section 4(c) 
shall not apply to any amounts so transferred. Into the 
fund established by this section there shall be deposited 
all receipts from the guarantee piogram authorized by 
this title. Moneys in such fund not needed for the 
payment t>f current operating expenses or for the pay- 
ment of claims arising under such program may be 
invested in bonds or other obligations of, or bonds or 
jothev obligations guaranteed as to principal and interest 
by, the Imited States; except that moneys provided as 
initial capital for such fund shall be returned to the fund 




1 



30 SMALL BUSINESS ACT 

establmhed by section 4(c) of the Small Business Act,! 
such amounts and at such times as the Administntioi 
determines to be appropriate, whenever the level of Ai 
fund herein established is sufficiently high to pennit ill 
return of such moneys without danger to the sdveoc] 
of the program under this title. 

O 



^ 



(A , ; ... 1. .J 



vA 



V / 






88th Coxurress \ 
Ist SMsion / 



COMMITTEE FBIKT 



SMALL BUSINESS INVESTMENT ACT 



1965 TEXT, EXPLANATION, AND RELATED TAX 
PROVISIONS 



SELECT COMMITTEE ON SMALL BUSINESS 
UNITED STATES SENATE 




APRIL 1, 1966 



*-AW Library 
JUL 2 7 iooj 

UNIV£R|,nOf^CALIFORNIA 



Printed for the use of the Select Committee on Small Business 



4fr-000O 



U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1966 



For Bale by the Superintendent of Doooments, U.8. Goyerament Printing OiBoe 
Washington, D.C., 2Oi02 - Price 16 cents 



SELECT COMMITTEE ON SMALL BUSINESS 



(Created pursuant to S. Res. 58, Slst Cong.) 
JOHN SPAREMAN, Alabama, Chairman 



LEVERETT SALTONSTALL, Maasachusetts 
JACOB K. JAVITS, New York 
JOHN SHERMAN COOPER, Kentucky 
HUGH SCOTT, Pennsylvania 
WINSTON L. PROUTY, Vermont 
NORRIS COTTON, New Hampshire 



RUSSELL B. LONG, Louisiana 

GEORGE A. SMATHERS, Florida 

WAYNE MORSE, Oregon 

ALAN BIBLE, Nevada 

JENNINGS RANDOLPH, West Virginia 

E. L. BARTLETT, Alaska 

HARRISON A. WILLIAMS, Jr., New Jersey 

GAYLORD NELSON, Wisconsin 

JOSEPH M. MONTOYA, New Mexico 

FRED R. HARRIS, Oklahoma 

Lewis G. Odom, Jr., Staff Director and General Counsel 

Blakb O'Connor, Aesistant Staff Director 

RoBBRT R. LocKUN, Astociote General Counsel 



FOREWORD 

The Small Business Investment Act of 1958 (Public Law 85-699) was signed 
into law on August 21, 1958, less than 7 years ago. 

Since that date, the Act has imdergone three major revisions — one in each of 
the three succeeding Congresses. Public Law 86-502^ approved June 11, I960, 
authorized SBIC's to acquire a wide range of equity securities from smidi 
business concerns financed by them and doiibled the amounts that banks might 
invest in the stock of SBIC's. Public Law 87-341,. approved Octobei 3, 1961. 
increased trom $150,000 to $400,000 the amoimt of funds that the Small 
Business Administration might contribute to the capital of an SBIC. Public 
Law 88-273, approved February 28, 1964, further increased the matching 
Government funds provision to $700,000 and eliminated a previous restriction 
relating to the maximum amount an SBIC might invest in any one small 
business concern. Public Law 88-273 also added to the statute a direction to 
the Small Business Administration that it adopt effective regulations dealing 
with the matter of conflicts of interest. 

These and all other changes made in the Act are detailed in the following 
pages, where the Select Conmiittee on Smdl Business of the United States 
oenate sets out the full text of the Small Business Investment Act of 1958 as it 
staiids today, together with the related provisions of our tax laws and regu- 
lations. 

These changes in the law afford concrete evidence of the continuing interest 
of the Congress in the SBIC program and its determination to provide those 
statutory tools necessary to the realization of the program's mission ''to stimu- 
late and supplement the flow of private equity capital and long-term loan funds 
which small business concerns need for the sound financing of their business 
operations and for their growth, expansion and modernization.'* 

John Sparkman, 
Chairman, Select CommUtee en Small BtLsiness, 

United States SeruUe. 
Apbil 1, 1965. 

nz 



CONTENTS 



Page 

Foreword in 

Text of the Investment Act 1 

Text of tax provisions - 12 

Explanation of the act 16 



TEXT OF ACT 
SMALL BUSINESS INVESTMENT ACT OF 1958 
(Public Law 699, SSth Cong., 2d sess., as amended) 

AN ACT To make equity capital and long-term credit more readily available for emall- 
buBinees concerns, and for other purposes 

Be it enacted by the Senate and House of Representatives of the United States 
of America in Congress assembled, , . 

TITLE I-SHORT TITLE, STATEMENT OF POLICY, AND 

DEFINITIONS 

BHOBT TITLE 

Sbc. 101. This Act, divided into titles and sections according to the follow- 
ing table of contents, may be cited as the ''Small Business Investment Act of 
1968." 

TABLE OF CONTENTS 

TiTLS I — Shobt Title, Statbicbnt of Policy, and Definitionb 

Seo. 101. Short title. 

Seo. 102. Statement of policy. 

Seo. 103. Definitions. 

TiTLB II — Small Business Investment Division of the Small Business Administration 

Sec. 201. Establishment of Small Business Investment Division. 

Sec. 202. Provision and purposes of funds. (Omitted as no longer current.] 

Title III — Small Business Investment Companies 

Sec. 301. Organization of small business investment companies. 

Sec. 302. Capital stock and subordinated debentures. 

Sec. 303. Borrowing power. 

Seo. 304. Provision of equity capital for small-business concerns. 

Sec. 305. Long-term loans to small-business concerns. 

Seo. 306. Aggregate limitations. 

Seo. 307. Exemptions. 

Sec. 308. Miscellaneous. 

Sec. 309, Suspension of licenses; cease and desist orders.^ 

Sec. 310. Investigations.* 

Sec. 311. Injunctions and other orders.* 

Seo. 312. Conflicts of interest.' 

[AU of title IV of Public Law 85-699 repealed by sec. 11(f) of PubUc Law 87-341.] 
Title V — Loans to State and Local Development Companies 
Title VI — Changes in Federal Reserve Authority 
[Omitted as no longer current.] 
Title VII — Criminal Penalties 

1 Pnirfoiu seo. 800 repealed by see. 11 (e) of Public Uw 87-841 and new 800. 800 is added by se^ 

* This new section added by sec. of Public Law 87-841. 

* This new section added by see. of Public Law 87-841. 
« Added by Pablie Uw 88-378. 



SMALL BUSINESS INVESTMEMT ACT 



STATEMENT OF POLICY 



15U.8.C.061. Sec. 102. It is dedared to be the policy of the Congress and the purpose 

of this Act to improve and stimulate the national economy in general and the 
smaU-business segment thereof in particular by establishing a program to 
stimulate and supplement the flow of private equity capital and long- term 
loan funds which small^business concerns need for the sound financing of their 
business operations and for their growth, expansion, and modernization, and 
which are not available in adequate supply: Framded, however, That this policy 
shall be carried out in such manner as to insure the maximimi participation 
of private financing sources. 

It is the intention of the Congress that the provisions of this Act shaU be 
so administered that any financud assistance provided hereunder shaU not 
result in a substantial increase of imemployment in any area of the country. 

DEFINITIONS 

15 u.8.0. M3. Sec. 103. As used in this Act — 

(1) the term "Administration'' means the Small Business Ad- 
ministration; 

(2) the term "Administrator" means the Administrator of the 
Small Business AdminiBtration ; 

(3) the terms "small business investment company'' /'company", 
and 'licensee" mean a company approved by the Aaministration to 
operate imder the provisions of this Act and issued a license as 
provided in section 301 (c) ; * 

(4) the term "State" includes the several States, the Territories 
and possessions of the United States, the Commonwealth of Puerto 
Rico, and the District of Columbia;* 

(5) the term "smaU-business concern" shall have the same 
meaning as in the Small Business Act; 

(6) the term "development companies" means enterprises in- 
corporated imder State law with the authority to promote and assist 
the growth and development of small-business concerns in the areas 
covered bv their operations; and 

(7) the term "license" means a license issued by the Adminis- 
tration as provided in section 301(c).^ 

TITLE II— SMALL BUSINESS INVESTMENT DIVISION OF THE 
SMALL BUSINESS ADMINISTRATION 

ESTABLISHMENT OF SMALL BUSINESS INVESTMENT DIVISION 

i6U.8.c.en. Sec. 201. There is hereby established in the SmaU Business Administra- 

tion a division to be known as Uie SmaU Business Investment Division. The 
Division shall be headed by a Deputy Administrator who shaU be appointed 
by the Administrator, and shall receive compensation at the rate provided by 
law for other deputy administrators of the SmaU Business Administration 
The powers conferred by this Act upon the Administration shaU be^ exercised 
by the Administration through the SmaU Business Investment Division, and 
the powers herein conferred upon the Administrator shaU be exercised by him 
through the Deputy Administrator appointed hereunder. In the performance 

* This new langiufe aubstitated by ne. 2(1) of Public Law 87-Ml. 

• AmcDded by see. a of Public Law W-6Q2 to leflect admlsBloo of Alaaka and Hawttt to the Unlo^ 
' ThJa new languafB Imerted by nc 2(2) of Public Law 87-441. 



SMALL BUSINESS INVESTMENT ACT 3 

of, and with respect to the functions, powers, and duties vested by this Act, the 
Administrator and the Administration shall (in addition to any authoritv 
otherwise vested by this Act) have the functions, powers, and duties set forth 
in the Small Business Act, and the provisions of sections 13 and 16 of that Act, 
insofar as applicable, are extended to apply to the functions of the Administrator 
and Uie Administration under this Act. 

[Funds for exercise of functions under this Act authorized in sec. 4(c) of Small 
Business Act (15 U.S.C. 633(c)). Present authorization for appropriations for 
these functions is $341,000,000.] 

TITLE III— SMALL BUSINESS INVESTMENT COMPANIES 

ORGANIZATION OF SMALL BUSINESS INVESTMENT COMPANIES 

Sec. 301. (a) A small business investment company shall be an incor- u u.s.c. esi. 
porated body, organized and chartered under State law solely for the purpose 
of performing the functions and conducting the activities contemplated under 
this title, which has succession for a period of not less than thirty years unless 
sooner dissolved by its shareholders and possesses the powers reasonably 
necessary to perform such functions and conduct such activities. The area 
in which the company is to conduct its operations, and the establishment of 
branch offices or agencies (if authorized by the articles of incorporation), shall 
be subject to the approval of the Administration.^ 

(b) The articles of incorporation of any small business investment company 
shall specify in general terms the objects for which the company is formed, the 
name assumed by such company, the area or areas in^ whicn its operations are 
to be carried on, the place where its principal office is to be located, and the 
amount and classes of its shares of capital stock. Such articles may contain 
any other provisions not inconsistent with this Act that the company may see 
fit to adopt for the regidation of its business and the conduct of its affairs. 
Such articles and any amendments thereto adopted from time to time shall be 
subject to the approval of the Administration. 

(c) The articles of incorporation and amendments thereto shall be for- 
warded to the Administration for consideration and approval or disapproval. 
In detennining whether to approve such a company's articles of incorporation 
and permit it to operate under the provisions of this Act, the Administration 
shall rive due regard, among other things, to the need for the financing of 
small-business concerns in the area in which the proposed company is to com- 
mence business, the general character of the proposed management of the 
company, the number of such companies previously organized in the United 
States, and the volume of their operations. After consideration of all relevant 
factors, if it approves the company's articles of incorporation, the Administra- 
tion may in its discretion approve the company to operate under the provisions 
of this Act and issue the company a Ucense for such operation.* 

CAPITAL STOCK AND SUBORDINATED DEBENTURES 

Sec. 302. (a) Each company authorized to operate under this Act shall i5U.s.c.662. 
have a paid-in capital and surplus equal to at least $300,000. In order to 
facilitate the formation and growth of small business investment companies, 
the Administration is hereby authorized notwithstanding any other provisions 
of law (but only to the extent that the necessary funds are not available to the 

• New langaage, contained in see. 11(b) of Public Law 87-341. 

• New langoage in second and third sentences substituted by sec. 11(b) (1) and (2) of Public Law 87-841. Previous 
SDbMCi. (d) and (e) struck out by sec. 11(b)(8) of Public Law 87-841. 

4^^600 



4 SMALL BUSINESS INVE8TMBNT ACT 

company involved from private sources on reasonable terms), to purchase the 
debentures of any such company in an amount not to exceed the lesser of 
$700,000 or the amount of the paid-in capital and surplus of the company from 
other sources; but debentures of a smaU ousiness investment company may be 
purchased by the Administration under this subsection only during such period 
(in no case ending more than five years after the date of the issuance of its 
ucense under sec. 301(c) or the date of the enactment of the Small Business 
Investment Act Amendments of 1963/^ whichever is later) as may be fixed by 
the Administration.^^ Anv debentures purchased by the Administration under 
this subsection shaU be subordinate to any other debenture bonds, promissorv 
notes, or other obligations which may be issued by such companies, and shaU 
be deemed a part of the capital and surplus of such companies for purposes of 
this section and sections 303(b) and 306 of this Act. 

(b) Notwithstanding the provisions of section 6(a)(1) of the Bank Holding 
Company Act of 1956,^^ shares of stock in small business investment companies 
shall De eligible for purchase by national banks, and shaU be eligible for purchase 
by other member banks of the Federal Reserve System and nonmember insured 
banks to the extent permitted imder applicable State law; except that in no 
event shall any such bank hold shares in small business investment companies 
in an amount aggregating more than 2 percent of its capital and surplus.^ 

(c) The aggregate amount of shares in any such company or companies 
which may be owned or controlled by any stockholder^ or by any group or 
class of stockholders, may be limited by the Administration. 

BOBBOWIKG POWER 

i6u.8.c.an. Sec. 303. (a) Each smaU business investment company shaU have au- 

thority to borrow money and to issue its debenture bondsj promissory notes, 
or other obligations under such general conditions and subject to such limita^ 
tions and re^dations as the Administration may prescribe. 

(b) To encourage the formation and growth of smaU business investment 
companies, the Admmistration is authorized (but onlv to the extent that the 
necessary funds are not available to the company involved from private sources 
on reasonable terms) to lend funds to such companies either directly or bv loans 
made or effected in cooperation with banks or other lending institutions through 
agreements to participate on an inmiediate or deferred (standby) basis. Such 
loans shaU bear interest at such rate (in no case lower than the average invest- 
ment jrield, as determined by the Secretary of the Treasury, on marketable 
obligations of the United States outstanding at the time of the loan involved) 
and contain such other terms as the Administration may fix, and shaU be sub- 
ject to the following restrictions and limitations: 

(1) Tne total amount of obligations of any one company which 
may be purchased and outstanding at any one time by the Adminis- 
tration under this subsection (including commitments to purchase 
such obligations) shaU not exceed 50 per centum of the paid-m capital 
and surplus of such company or $4,000,000, whichever is less. 

(2) All loans made imder this subsection (b) shall be of such 
sound value as reasonably to assure repayment.^^ 

u "Small BusbMBS Investment Act Amendments of IMS" was enacted on Feb. 28, 1064. 

" This second sentence contains new language substituted by sec. 8(a) of Public Law 87-341, and amended by Public 
Law 88-278. 

» Added by PubUc Law 85-M2. 

u This amount raised from 1 to 2 percent by Public Law 87-841. 

14 This subaeotloo contains much new langiiage inserted by Public Law 87-841 and by Public Law 88-378. 



SliiALL BUSINESS INVESTMBNT ACT 5 

PROVISION OF BQUITT CAPITAL FOB SMALL-BUSINESS CONCERNS " u U.8.C. 684. 

Sec. 304. (a) It shaU be a function of each small business investment 
company to provide a source of equity capital for incorporated small-business 
concerns, in such manner and under such terms as the small business investment 
company may fix in accordance with the regulations of the Administration. 

(b) Before any capital is provided to a small-business concern under this 
section — 

(1) the company may reauire such concern to refinance any or 
all (rf its outstanding indebtedness so that the company is the only 
holder of any evidence of indebtedness of such concern; and 
* ^ (2) except as provided in regulations issued by the Administra- 

tion, such concern shall agree that it will not thereafter incur any in- 
debtedness without first securing the approval of the company and 
jnving the company the first opportunitv to finance such indebtedness. 

(c) whenever a company provides capital to a small-business concern 
under this section, such concern shall have the right, exercisable in whole or 
in such pskrt a^ such concern may elect, to become a stockholder-proprietor by 
investing in the capital stock of the company 5 per centum of the amount of , 
the capital so provided, in accordance witn regulations prescribed by the 
Administrator. 

(d) Equity capital provided to incorporated smaU-businees concerns under 
this section may be provided directly or in cooperation with other investors, 
incorporated or unincorporated, through agreements to participate on an im- 
mediate basis.^^ 

LONQ-TERM LOANS TO SMALL-BUSINESS CONCERNS 

Sec. 305. (a) Each company is authorized to make loans, in the manner i5u.8.c.086. 
and subject to tlie conditions described in this section, to incorporated and 
unincorporated small-business concerns in order to provide such concerns with 
funds needed for sound financing, growth, modernization, and expansion. 

(b) Loans made under this section may be made directly or in cooperation 
with other lenders, incorporated or unincorporated, through agreements to 
participate on an immediate or deferred basis.^^ In agreements to participate 
m loans on a deferred basis under this subsection, the participation by the com- 
pany shall not be in excess of 90 per centum of the balance of the loan out- 
standing at the time of disbursement. 

(c) The maximum rate of interest for the company's share of any loan 
made under this section shall be determined by the Administration. 

(d) Any loan made under this section shall have a maturity not exceeding 
twenty years. 

(e) Any loan made under this section shaU be of such sound value, or so 
secured, as reasonably to assure repayment. 

(f) Any company which has made a loan to a small-business concern 
under this section is authorized to extend the maturity of or renew such loan 
for additional periods, not exceeding ten vears, if the company &ids that such 
extension or renewal will aid in the orderly liquidation of such loan. 

u Prior to Its amendment by see. 6 of Public Law 85-S02, aeo. 304 authorised SBIC's to furnish equity capital only 
throogb the purchase of convertible debentures and required, rather than permitted, borrowing small-Duaness concerns 
to purchase stock in the lendhig SBIC. Subsec (c) was also rewritten by sec. 6 of Public Law 86-002. 

» This new subsection added by sec. 6 of Public Law 87-341. 

u This sentence rewritten by sec. 3 of Public Law 87-341. 



6 SMALL BUSINESS INVESTMENT ACT 



AGGREGATE LIMITATIONS 

16U.8.C.688. Sec. 306. Without the approval of the Administration, the aggregate 

amount of obligations and securities acquired and for which commitments may 
be issued by any small business investment company under the provisions of 
this Act for any single enterprise shall not exceed 20 per centum of tne combined 
capital and surplus of such small business investment company authorized bv 
th^Act.^« 

EXEMPTIONS 

Sec. 307. (a) Section 3 of the Securities Act of 1933, as amended (15 U.S.C. 
77c) , is hereby amended by inserting at the end thereof the following new sub- 
section (c): 

"(c) The Commission may from time to time by its rules and regulations 
and subject to such terms and conditions as may be prescribed therein, add to 
the securities exempted as provided in this section any class of securities issued 
by a small business investment company under the Small Business Investment 
Act of 1958 if it finds, having regard to the purposes of that Act, that the 
enforcement of this Act with respect to such securities is not necessary in the 
public interest and for the protection of investors." 

(b) Section 304 of the Trust Indenture Act of 1939 (15 U.S.C. 77ddd) is 
hereby amended by adding the following subsection (e) : 

"(e) The Commission may from time to time by its rules and regulations, 
and subject to such terms and conditions as may be prescribed herein, add to the 
securities exempted as provided in this section any class of securities issued by 
a small business investment company under the Small Business Investment 
Act of 1958 if it finds, having regard to the purposes of that Act, that the en- 
forcement of this Act with respect to such securities is not necessary in the 
public interest and for the protection of investors." 

(c) Section 18 of the Investment Company Act of 1940 (15 U.S.C. 80a-18) 
is amended by adding at the end thereof the following: 

"(k) The provisions of subparagraphs (A) and (B) of paragraph (1) of 
subsection (a) of this section shall not apply to investment companies operating 
under the Small Business Investment Act of 1958." 

MISCELLANEOUS 

KU.8.C.687. Sec 308. (a) Wherever practicable the operations of a small business 

investment company, including the generation of business, may be undertaken 
in cooperation with banks or other investors or lenders, incorporated or unin- 
corporated, and any servicing or initial investigation required for loans or 
acquisitions of securities by the company under the provisions of this Act 
may be handled through such banks or other investors or lenders on a fee basis. 
Any small business investment companv may receive fees for services rendered 
to such banks and other investors and lenders.^® 

(b) Each small business investment company may make use, wherever 
practicable, of the advisory services of the Federal Reserve System and of the 
Department of Commerce which are available for and useful to industrial and 
commercial businesses, and may provide consulting and advisory services on a 
fee basis and have on its staff persons competent to provide such services. Any 
Federal Reserve bank is authorized to act as a depository or fiscal agent for 
any company operating under the provisions of this Act.^ Such companies 

u This section rewritten by Pulblc Law 87-341 and by Public Law 88-278. 

>• This subsection rewritten by sec. 8 of Public Law 87-341. 

<* The last seven words of this sentence added by sec. 11(c) of Public Law 87-341. 



SMALL BUSINESS INVESTMENT ACT 7 

may invest funds not reasonably needed for their current operations in direct 
obligations of, or obligations guaranteed as to principal and interest by, the 
United States, or in insured savings accounts (up to the amount of the insur- 
ance) in any institution the accounts of which are insured by the Federal 
Savings and Loan Insurance Corporation.^^ 

(c) The Administration is authorized to prescribe regulations governing 
the operations of small business investment companies, and to carry out the 

Provisions of this Act, in accordance with the purposes of this Act. Each smaJl 
usiness investment company shall be subject to examinations made by direc- 
tion of the Administration by examiners selected or approved by the Administra- 
tion, and the cost of such examinations, including the compensation of the 
examiners, may in the discretion of the Administration be assessed against the 
company examined and when so assessed shall be paid by such company. 
Every such company shall make such reports to the Administration at such 
times and in such form as the Administration may require; except that the 
Administration is authorized to exempt from makmg such reports any such 
company which is registered under the Investment Company Act of 1940 to the 
extent necessaiy to avoid dupUcation in reporting requirements. 

(d) Should any small business investment company violate or fail to 
comply with any of the provisions of this Act or of regulations prescribed 
hereunder, all of its rights, privileges, and franchises denved therefrom may 
thereby be forfeited. Before any such company shall be declared dissolved, or 
its rights, privileges, and franchises forfeited., any noncompliance with or 
violation of this Act shall be determined and adjudged by a court of the United 
States of competent jurisdiction in a suit brought for that purpose in the district, 
territory, or other place subject to the jurisdiction of the United States, in 
which the principal office of such company is located. Any such suit shall be 
brought by the United States at the instance of the Administration or the 
Attorney General. 

(e) Nothing in this Act or in any other provision of law shall be deemed to 
impose any Uabmty on the United States witn respect to any obUgations entered 
into, or stocks issued, or commitments made, by any company operating under 
the provisions of this Act.*^ 

SUSPENSION OF LICENSES; CEASE AND DESIST ORDERS 

Sec. 309.® (a) A Ucense may be suspended by the Administration — w u.s.c. (»7« 

(1) for false statements knowingly made in any written state- 
ment required under this title, or under any regulation issued under 
this title by the Administration, for the purpose of obtaining the 
Ucense; 

(2) if any written statement rec^uired under this title, or under 
any regulation issued under this title by the Administrator, for 
the purpose of obtaining the Ucense, fails to state a material fact 
necessary in order to make the statement not misleading in the 
light of the circumstances under which the statement was made; 

(3) for willful or repeated violation of, or wiUful or repeated 
failure to observe, any provision of this Act; 



n Last sentence revised by Public Law 8^273 to permit deposits of Idle SBIC funds in insured savings accounts. 

» The last seven words added by sec. 11(d) of Public Law 87-341. The same subsection also struck out the previous 
subsecs. (e) and (f); and redesignated this subsection (formerly (g)) as (e). The former subsecs. (e) and (0 were rewTltten 
and expanded by Public Law 87-341 and are now designated as sees. 309, 310, and 311. 

>* Sees. 309, 310. and 31 1 are all new sections added by sec. 9 of Public Law 87-341 . The previous sec. 309 was repealed 
by see. n(e) o/ Public Uw 87-341. 



8 SMALL BUSINESS INVESTMENT ACT 

(4) for willful or repeated violation of, or wiUful or repeated 
failiire to observe, any rule or regulation of the Administration 
authorized by this Act; or 

(5) for violation of, or failure to observe, an^^ cease and desist 
order issued by the Administration under this section. 

(b) Where a licensee has not complied with any provision of this Act, or of 
any regidation issued imder this Act by the. Administration, the Administration 
mav order such licensee to cease and desist from such action or failmre to act; 
and the Administration may further order such Ucensee to take such action or to 
refrain from such action as the Administration deems necessary to ensure com- 
pliance with the Act and the regulations. The Administration mav also 
suspend the Ucense of such licensee until the licensee has complied with such 
order. 

(c) Before suspending a Ucense pursuant to subsection (a)^ or issuing a 
cease and desist order pursuant to subsection (b), the Administration shall serve 
upon the licensee involved an order to show cause why an order suspending the 
Ucense or a cease and desist order should not be issued. Any such order to 
show cause shaU contain a statement of the matters of fact and law asserted by 
the Administration and the legal authority and jurisdiction under which a hear- 
ing is to be heldj and shaU inform the Ucensee that a hearing wiU be held before 
the Administration at a time and place stated in the order. If after hearing, or 
a waiver thereof, the Administration determines on the record that an order 
suspending the Ucense or a cease and desist order should issue, it shaU promptly 
issue such order, which shaU include a statement of the findings of the Admin- 
istration and the n'ounds and reasons therefor and specify the effective date of 
the order, and shall cause the order to be served on the Ucensee. 

(d) The Administration may require bv subpena the attendance and testi- 
mony of witnesses and the production of aU books, papers, and dociunents relat- 
ing to the hearing from any place in the United States. Witnesses siunmoned 
before the Administration shaU be paid by the party at whose instance they 
were caUed the same fees and mileage that are paid witnesses in the courts of 
the United States. In case of disobedience to a subpena, the Administration, 
or any party to a proceeding before the Administration, may invoke the aid of 
any court of the United States in requiring the attendance and testimony of 
witnesses and the {production of books, papers, and documents. 

(e) An order issued by the Administration under this section shall be 
final and conclusive unless within thirty davs after the service thereof the 
licensee appeals to the United States court oi appeals for the circuit in which 
such Ucensee has its principal place of business b^ filing with the clerk of 
such court a petition praying that the Administration's order be set aside or 
modified in the manner stated in the petition. After the expiration of such 
thirty days, a petition may be filed only by leave of court on a showing of 
reasonable pounds for failure to file the petition theretofore. The clerk of the 
court shaU immediatelv cause a copy of the petition to be deUvered to the 
Administration, and the Administration shall thereupon certifv and file in 
the court a transcript of the record upon which the order complained of was 
entered. If before such record is filed the Administration amends or sets 
aside its order, in whole or in part, the petitioner may amend the petition 
within such time as the court may determine, on notice to the Administration. 
The filing of a petition for review shall not of itself stay or suspend the operation 
of the order of the Administration, but the court of appeals in its discretion 
may restrain or suspend, in whole or in part, the operation of the order pending 
the final hearing and determination of the petition. The proceedings in such 
cases in the court of appeals shaU bo made a preferred cause ana shall be 



SMALL BUSINESS INVESTMENT ACT 9 

expedited in every way. The court may affirm, modify, or set aside the order of 
the Administration. If the court determines that the just and proper disposi- 
tion of the case requires the taking of additional evidence, the court shall order 
the Administration to reopen the hearing for the taking of such evidence, in 
such manner and upon such terms and conditions as the court may deem 
proper. The Administration may modify its findings as to the facts, or make 
new findings, by reason of the additional evidence so taken, and it shall file 
its modified or new findings and the amendments, if any, of its order, with the 
record of such additional evidence. No objection to an order of the Admin- 
istration shall be considered by the court unless such objection was urged 
before the Administration or, if it was not so urged, unless there were reasonable 
grounds for failure to do so, The judgment and decree of the court affirming, 
modifying, or setting aside any such order of the Administration shall be sub- 
ject only to review bjr the Supreme Court of the United States upon certification 
or certiorari as provided in section 1254 of title 28, United States Code. 

(f) If any hcensee against which an order is issued under this section fails 
to obey the order, the Administration may apply to the United States court 
of appeals, within the circuit where the licensee has its principal place of 
business, for the enforcement of the order, and shall file a transcript of the 
record upon which the order complained of was entered. Upon the filing of 
the apphcation the court shall cause notice thereof to be served on the licensee. 
The evidence to be considered , the proced ure to be followed , and the j urisdiction 
of the court shall be the same as is provided in subsection (e) for applications 
to set aside or modify orders. The proceedings in such cases shaU oe made a 
preferred cause and shall be expedited in every way. 

INVESTIGATIONS 

Sec. 310.^ The Administration may make such investigations as it is u.s.c. osTb. 
deems necessary to determine whether a Ucensee or any other person has 
engaged or is about to engage in any acts or practices which constitute or will 
constitute a violation of any provision of this Act, or of any rule or relation 
under this Act, or of any order issued under this Act. The Administration 
shall permit any person to file with it a statement in writing, under oath 
or otherwise as the Administration shall determine, as to all the facts and 
circumstances concerning the matter to be investigated. For the purpose of 
amr investigation, the Administration is empowered to administer oaths and 
a&rmations, subpena witnesses, compel their attendance, take evidence, and 
require the production of any books, papers, and documents which are relevant 
to the inquiry. Such attendance of witnesses and the production of any such 
records may be required from any place in the United States. In case of 
contumacy by, or refusal to obey a subpena issued to, any person, including 
a licensee, the Administration may invoke the aid of any court of the United 
States within the jurisdiction of which such investigation or proceeding is 
carried on, or where such person resides or carries on business, in requiring 
the attendance and testimony of witnesses and the production of books, papers, 
and documents; and such court mav issue an order requiring such person to 
appear before the Administration, there to produce records, if so ordered, or 
to give testimony touching the matter under investigation. Any failure to 
obey such order of the court may be punished by such court as a contempt 
thereof. AU process in any such case may be served in the judicial district 
whereof such person is an inhabitant or wherever he may be found. 

» Sees. 300. 310. and 311 are all new sections added by sec. of Public Law 87-841. The xvevious sec. 900 was npealed 
tqr see. 11(e) of Public Law 87-841. 



10 SMALL BUSINESS INVESTMENT ACT 



INJUNCTIONS AND OTHER ORDERS 

15 U.B.C. «87c. Sec. 311.** (a) Whenever, in the judgment of the Administration, a 

licensee or any other person has engaged or is about to engage in any acts or 
practices which constitute or will constitute a violation of any provision of 
this Act, or of any rule or regulation under this Act, or of any order issued 
under this Act, the Administration may make application to the proper district 
court of the United States or a United States court of any place subject to 
the jurisdiction of the United States for an order enjoining sucn acts or practices, 
or for an order enforcing compliance with such provision, rule, regulation, or 
order, and such courts shall have jurisdiction of such actions and, upon a 
showing by the Administration that such licensee or other person has engaged 
or is about to engage in any such acts or practices, a permanent or temporaiy 
injunction, restraining order, or other order, shall be granted without bond. 
The proceedings in such a case shall be made a preferred cause and shall be 
expedited in every way. 

(b) In any such proceeding the court as a court of equity may, to such 
extent as it deems necessary, take exclusive jurisdiction of the hcensee or 
licensees and the assets thereof, wherever located; and the court shall have 
jurisdiction in any such proceeding to appoint a trustee or receiver to hold or 
administer under the direction of the court the assets so possessed. 

CONFLICTS OF INTEREST 

i5U.8.c.087d. Sec. 312. For the purpose of controlling conflicts of interest which may 

be detrimental to small business concerns, to small business investment com- 
panies, to the shareholders of either, or to the purposes of this Act, the Admin- 
istration shall adopt regulations to govern transactions with any officer, director, 
or shareholder of any small business investment company, or with any person 
or concern, in which any interest, direct or indirect, financial or otherwise, is 
held by any officer, director, or shareholder of (1) an;^ small business investment 
companv, or (2) an^ person or concern with an interest, direct or indirect, 
financial or otherwise, in any small business investment company. Such 
regulations shall include appropriate requirements for public disclosure (includ- 
ing disclosure in the locality most directly affected by tne transaction) necessary 
to the purposes of this section.** 

[All of title TV of Public Law 85-699 was repealed by sec. 11(f) of Public Law 
87-341.] 

TITLE V— LOANS TO STATE AND LOCAL DEVELOPMENT 

COMPANIES 



16 U.8.C. flW. 



Sec. 501. (a) The Administration is authorized to make loans to State 
development companies to assist in carrying out the purposes of this Act. 
Any funds advanced under this subsection shall be in exchange for obligations 
of the development company which bear interest at such rate, and contain 
such other terms, as the Administration may fix, and funds may be so ad- 
vanced without regard to the use and investment by the development com- 
pany of funds secured by it from other sources. 

(b) The total amount of obUgations purchased and outstanding at any 
one time by the Administration under this section from any one State develop- 
ment company shall not exceed the total amount borrowed by it from all other 

» Sees. 800, 810, and 311 are all new secttons added by see. of Public Law 87-841. The previoiu seo. 300 was repealed 
by sec 11(e) of PubUc Law 87-341. 
M Added by PubUc Law 88-278. 



SMALL BUSINESS INVESTMENT ACT 11 

sources. Funds advanced to a State development company under this section 
shall be treated on an equal basis with those funds borrowed by such company 
after the date of the enactment of this Act, regardless of source, which nave 
the highest priority, except when this requirement is waived by the Adminis- 
trator. 

Sec. 502. The Administration may, in addition to its authority under i5U.8.c.096. 
section 501, make loans for plant construction, conversion or expansion, includ- 
ing the acquisition of land, to State and local development companies, and such 
loans may be made or effected either directly or in cooperation with banks or 
other lending institutions through a^eements to participate on an immediate 
or deferred basis: Provided, however, That the foregoing powers shall be subject 
to the following restrictions and limitations: 

(1) All loans made shall be so secured as reasonably to assure 
repayment. In a^eements to participate in loans on a deferred basis 
under this subsection, such participation bv the Administration shall 
not be in excess of 90 per centum of the balance of the loan outstand- 
ing at the time of disbursement. 

(2) The proceeds of any such loan shall be used solely by such 
borrower to assist an identifiable small-business concern and for a 
sound business purpose approved by the Administration. 

(3) Loans made by the Administration imder this section shall be 
limited to $350,000 ^ for each such identifiable small-business concern. 

(4) Any development company assisted under this section must 
meet criteria established by the Aoministration, including the extent 
of participation to be required or amount of paid-in capital to be 
used in each instance as is determined to be reasonable by the 
Administration. 

(5) No loans, including extensions or renewals thereof, shall be 
made by the Administration for a period or periods exceeding twenty- 
five years ^^ plus such additional period as is estimated may be required 
to complete construction, conversion, or expansion, but the Adminis- 
tration may extend the maturity of or renew any loan made pursuant 
to this section beyond the period stated for additional periods, not to 
exceed ten years, if such extension or renewal will aid in the orderly 
liquidation of such loan. Any such loan shall bear interest at a rate 
fixed by the Administration.^ 

TITLE VI— CHANGES IN FEDERAL RESERVE AUTHORITY 

[Omitted as no longer current.] 

TITLE VII— CRIMINAL PENALTIES 

[This title amends the U.S. Code to include certain actions by persons affili- 
ated with or dealing with SBIC's as Federal crimes. See 18 U.S.C. 212, 213, 
216, 657, 10 06, and 1014.) 

» This Umitation was raised from $2M,000 to $850,000 by sec. 10(1) of Public Law 87-841. 
» This limitation was raised from 10 jrears to 26 years by sec. 10(2) of Public Law 87-841. 

« Previous limitation on the life of sec. 602 (June 30, 1061) was repealed by sec 20 of Public Law 87-27 (the Area Re- 
deTBlopmant Act). 



TEXT OP TAX PROVISIONS 

SECTION 67 OF TECHNICAL AMENDMENTS ACT OF 1968 

******* 
SEC. 57. SMALL BUSINESS INVESTMENT COMPANIES. 

(a) Losses on Small Business Investment Company Stock and 
Losses op Small Business Investment Companies. — Part IV of subchapter 
P of chapter 1 (relatmg to special rules for determming capital gains and 
losses) is amended by adding at the end thereof the following new sections: 

26 U.S.C. 1242. "SEC. 1242. losses ON SMALL BUSINESS INVESTMENT COMPANY STOCK. 
"If— 

"(1) a loss is on stock in a small business investment company 
operating under the Small Business Investment Act of 1958, and 

"(2) such loss would (but for this section) be a loss from the 
sale or exchange of a capital asset, 
then such loss shall be treated as a loss from the sale or exchange of property 
which is not a capital asset. For purposes of section 172 (relating to the net 
operating loss deduction) any amount of loss treated by reason of this section 
as a loss from the sale or exchange of property which is not a capital asset 
shall be treated as attributable to a trade or business of the taxpayer.^ 
26 U.8.C. 1248. ''SEC. 1243. LOSS OF SMALL BUSINESS INVESTMENT COMPANY. 

''In the case of a small business investment company operating under the 
Small Business Investment Act of 1958, if — 

"(1) a loss is on convertible debentures (including stock received 
pursuant to the conversion privilege) acquired pursuant to section 
304 of the Small Business Investment Act of 1958, and 

"(2) such loss would (but for this section) be a loss from the 
sale or exchange of a capital asset, 
then such loss shall be treated as a loss from the sale or exchange of property 
which is not a capital asset." ^ 

(b) Dividends Received by Small Business Investment Companies. — 
Section 243 (relating to dividends received by corporations) is amended — 

(1) by striking out in subsection (a) "In the case of a corpora- 
tion" and inserting in lieu thereof ''In the case of a corporation (other 
than a small business investment company operating under the Small 
Business Investment Act of 1958)"; 

(2) by redesimating subsection (b) as (c), and by inserting 
after subsection (a) the following new subsection: 

28 U.8.C. 243(b). "(b) Small Businbss INVESTMENT COMPANIES. — In the casc of a small 

business investment company operating under the Small Business Investment 
Act of 1958. there shall be allowed as a deduction an amount equal to 100 
percent of tne amount received as dividends (other than dividends described 
m paragraph (1) of section 244, relating to dividends on preferred stock of a 

» Under Internal Revenue Service Income Tax Regulation fi 1.1242-l(a) sec. 1242 ordinary loss deductions are made 
clearly available to subsequent purchasers as well as to original investors in 6BIC stock. 

M Sec. 304 of the Small Badness Investment Act of 1068 was amended in 1960 to permit SBIC's, under 8BA regu- 
lations, to accept securities other than convertible debuitures in exchange for equity capital supplied to small concerns. 
However, only convertible debentures and stock acquired by exercise of the conversion privilege are spedflcally covered 
by sec. 1243 of the Internal Revenue Code. 

12 



SMALL BUSINESS INVESTMENT ACT 13 

public utility) from a domestic corporation which is subject to taxation under 

this chapter."; and 

(3) by striking out in subsection (c) (as redesignated by para- 
graph (2)) "subsection (a)'' and inserting in Ueu thereof "subsections 
(a) and (b)". 

(c) Technical Amendments. — 

(1) Section 165(h) (relating to deduction for losses) is amended 
by adding at the end thereof the following new paragraphs: 

"(3) For special rule for losses on stock in a small bnsiness inyest- 
ment company, see section 1242. 

"(4) For special rnle for losses of a small business Inyestment 
company, see section 1243." 

(2) Section 246(b)(1) (relating to limitation on ag^egate amount 
of deductions for dividends received by corporations) is amended by 
striking out "243" each place it appears therein and insert in lieu 
thereof "243(a)". 

(3) The table of sections for part IV of subchapter P of chapter 
1 is amended by adding at the end thereof 

"Sec. 1242. Losses on small business investment company stock. 
"Sec. 1243. Loss of small business investment company.'' 

(d) Effective Date. — ^The amendments made by this section shall applj 
with respect to taxable years beginning after the date of the enactment of tnis 
Act. 

SECTION 3 OF PUBUC LAW 86-376 

Sec. 3. (a) Section 542(c) of the Internal Revenue Code of 1954 (relating m u.s.c. M2(c). 
to exceptions from definition of a personal holding company) is amended — 

(a) by inserting ";" in lieu of "." at the end thereof and 

(b) by adding at the end thereof the following new paragraph 
(11)^: 

"(11)^ A small business investment companv which is 
licensed by the Small Business Administration and operating 
under the Small Business Investment Act of 1958 and which 
is activeljr engaged in the business of providing funds to 
small business concerns under that Act. This paragraph 
shall not apply if any shareholder of the small business 
investment company owns at any time during the taxable 
year directly or mdirectly (includmg, in the case of an indi- 
vidual, ownership by the members o1 his family as defined in 
section 544(a)(2) a 5 per centum or more proprietary interest 
in a small business concern to which funds are provided by 
the investment company or 5 per centum or more in value 
of the outstanding stock of such concern." 
(b) The amendment made by this section shall apply to taxable years 
beginning after December 31, 1958. 

ae Rennmbend as par. (8) by Reyenne Act of 1004. 



14 SMALL BUSINESS INVE8TMBNT ACT 

ACCUMULATED EARNINGS SURTAX EXEMPTION 

Treasury Decision 6652, published May 13, 1963, added the'followiag 
language to Income Tax Regulation §1.533-1: 

''(d) iSmaU frtmn€^8 mve^tTnent comjMinie8. A corporation which is licensed 
to operate as a small business investment company under the Small Business 
Investment Act of 1958 (15 U.S.C. ch. 14B) and the regulations thereunder 
(13 CFR Part 107) will generally be considered to be a ''mere holding or invest- 
ment company" within the meaning of section 533(b). However, the pre- 
sumption of the existence of the purpose to avoid ijicome tax with respect 
to shareholders which results from the fact that such a company is a "mere 
holding or investment company" will be considered overcome so long as such 
company: 

"(1; Complies with all the provisions of the Small Business Investment 
Act of 1958 and the regulations tnereunder; and 

"(2) Actively engages in the business of providing funds to small busi- 
ness concerns through mvestment in the equity capital of, or through the 
disbursement of long-term loans to, such concerns in such manner and under 
such terms as the company may fix in accordance with regulations promul- 
gated by the SmaU Business Administration (see sees. 304 and 305 of the 
Small Business Investment Act of 1958, as amended (15 U.S.C. 684, 685)). 
On the other hand, if such a company violates or fails to comply with anv 
of the provisions of the Small Busmess Investment Act of 1958, as amended, 
or the regulations thereunder, or ceases to be actively engaged in the business 
of provimn^ funds to small business concerns in the manner provided in sub- 
paragraph (2) of this paragraph, it will not be considered to have overcome 
the presumption by reason of any rules provided in this paragraph." 

RESERVE FOR BAD DEBTS 

Following is the text of Revenue Ruling 64-48, published February 10, 1964' 

"Reserve Jfor bad debts: SmaU bimneaa investment companies: Bad debt reserve 
ceilings. — For a period of 10 years beginning with 1959, small business invest- 
ment companies are allowed bad debt reserve ceilings equal to ten percent of 
their outstanding loans as reasonable reserves under Code Sec. 166(c). When 
the ten-year penod expires, a small business investment corporation's own loss 
experience wul be used to determine the reasonableness of further additions to 
its reserve. 

"Small business investment companies (SBIC) are aUowed to establish bad 
debt reserve ceiUngs equal to ten percent of their outstanding loans as reason- 
able reserves under section 166(c) of the Internal Revenue Code of 1954. The 
ten-percent ceiling appUes for a period of ten years beginning with 1959. 
When the ten-year penod expires an SBIC's own loss experience will be used 
to determine the reasonableness of further additions to its reserve. After 1968 
a new SBIC, or one that has not been in existence a sufficient number of years 
to provide adequate loss experience data for establishing reasonable bad debt 
reserves, will be permitted to use an average loss experience factor computed 
on an industrjr-wide basis until it has sufficient loss experience of its own. 

"In allowing a flat percentage as a reasonable reserve ceiling, consideration 
has been given to the fact that the SBIC industry has been in exbtence only 
since 1959 and has no available bad debt loss experience of its own which would 
afford an adequate basis for determining reasonable bad debt reserves. Th^^ 
is no similar industiy which could provide the SBIC industry with comparable 
bad-debt experience data. 



SMALL BUSINESS INVESTMENT ACT 15 

"The ten-percent ceiling was arrived at after a thorough study of the nature 
of the SBIC industry and the inherent risks involved in the type of loans made. 
The increasing amount of charge-ofFs under current business trends and a com- 
parison of the principal features of the SBIC industry with those of other types 
of lending institutions were other factors considered. 

"The determination of the period of ten years as an appropriate length 
of time for the application of the ton-percent ceiling factor resulted from 
an analysis of the loan portfolio turnover of the SBIC industry." 

EXPLANATION OP THE ACT 

Establishment of Small Business Investment Division in the SBA 

The Act establishes a division of the SmaU Business Admimstration known 
as the SmaU Business Investment Division. This Division is headed by a 
Deputy Administrator appointed hj the Administrator of the Small Business 
Administration. Through such Division, the Administrator of SBA (a) 
licenses, regulates, and examines small business investment companies, (b) 
lends funds to such investment companies, and (c) lends fimds to State and 
local development companies. The SmaU Business Administration can suspend 
licenses of investment companies or issue cease and desist orders. 

The Act provides that the functions to be performed bj the SmaU Business 
Adininistration shall be carried out in such manner as to msure the maximiun 
participation of private financing sources and shall be administered so that any 
financial assistance shall not result in a substantial increase of unemployment 
in any area of the country. 

Provision of Funds 

The Act provides f imds for the program by authorizing $34 1 mOUon of appro- 
priations to the existing revolving fund of the Small Business Admimstration 
which was established by the SmaU Business Act of 1953. These funds are to 
be used, however, only to carry out the purposes of the SmaU Business Invest- 
ment Act, i.e., to make loans to small business investment companies, and to 
make loans to State and local development companies. 

Small Business Investment Companies 

Formation. — Small business investment companies formed to operate under 
this Act must be incorporated under State law solely for the j^urpose of con- 
ducting the activities contemplated by the Act. The SBA. in determining 
whether to permit a company to operate imder this Act, snaU consider the 
need for small-business financing in the area where the proposed company 
is to operate, the character of the proposed management of the company, and 
the number of such companies already formed in the United States and the 
volume of their business. 

The primary function of these small business investment companies is to 
provide equity capital and long-term loans to small business concerns. 

CamUd stock re^iremerUa. — A smaU business investment company is 
required to have a nunimum paid-in capital and surplus of $300,000 before it 
may commence business. Stock in such companies may, subject to State law, 
be purchased by individuals, partnerships, corporations, insurance companies, 
and financial institutions, including Federal Reserve member banks and non- 
member insured banks. No Federtd Reserve member bank nor any nonmember 



16 SMALL BUSINESS INVESTMENT ACT 

insured bank, however, may hold shares in such companies in an amount 
aggregating more than 2 percent of its capital and surplus. 

In order to encourage the formation and growth of small business invest- 
ment companies, the SBA is authorized to match, during such period as may 
be fixed by SBA, private funds on a doilar-for-dollar basis up to $700,000 for 
each company formed, through the purchase of subordinated debentures, to 
the extent necessary funds are not available from private sources on reasonable 
terms. These debentures are subordinate to any other obligations issued by a 
company, and are considered as part of such company's paid-in capital and 
surplus for purposeiB of the minimum capital required under the Act for forma- 
tion of an investment companv and for other specified purposes. 

Borrowing power.— ^jneML business investment companies are authorized to 
borrow money from private sources under such conditions and subject to such 
limitations and regulations as are prescribed by the SBA. 

To encoiu'age the formation and growth of these companies, the SBA is 
authorized to lend them monev on terms and at a rate of mterest set by the 
SBA, through the purchase of their obUgations and to the extent necessary 
funds are not available from private sources on reasonable terms. Such SBA 
assistance ma^ be provided either directly or through participations with banks 
or other lencung mstitutions on an immediate, deferred or guaranty basis. 
The amount the SBA may so lend (or commit to purchase such obligations) 
and have outstanding to any company may not exceed $4 miUion or 50 percent 
of the paid-in capital and surplus of such company, whichever is the lesser. 
The subordinated debentures of a company which are piu'chased by the SBA 
are, for purposes of the 50-percent Umitation, treated as part of the capital 
and surplus. This limitation on the amount the SBA may lend to an investment 
company is to prevent such companies from serving merely as intermediates 
in the disbursement of Government funds to small business concerns. The ^ 
SBA funds advanced to the small business investment companies are to ' 
encourage and facilitate the formation and growth of sucn companies. 
Utlimately, the major portion of their funds are expected to come from private 
sources. 

Equity capital jor small businesses, — Small business investment companies 
are authorized, in cooperation with other investors, to provide equity capital 
to small business concerns under such terms as the companies fix under SBA 
regulations. 

Before an investment company provides equity capital, it may require 
the small business concern to refinance its outstanding indebtedness so that 
the investment company is the only holder of indebtedness of such concern. 
Furthermore, to protect the investment company, such small business concern 
may be required to agree not to incur further indebtedness without approval of 
the investment company. 

Whenever an investment company provides capital to a small business 
concern, such concern may purchase stock in the investment company in an 
amount up to 5 percent of the amount of the capital provided, as established by 
SBA regulation. 

Loans to smaU-husiriess concerns. — Small business investment companies 
are authorized to make loans ''of such sound value, or so secured, as reasonably 
to assure repayment" to small-business concerns. These loans may be made 
directly or in participation with other lenders, incorporated or imincorporated. 
The maximum interest rate on such loans is to be set by the SBA. The 
maximum maturity of such loans is set at 20 years, but an inverstment company 
may extend the maturity of a loan for an additional 10 years if such extension 
will aid in the orderly liquidation of a loan. 



SMALL BUSINESS INVESTMENT ACT 17 

Without approval of the SBA, the total amount which a small business 
investment company may lend to or invest in a single small-business concern 
may not exceed 20 percent of the combined capital and surplus of such invest- 
ment company. Subordinated debentures purchased by the SBA are treated 
as part of capital and surplus for purposes of the 20-percent limitation. 

Exemptions from securities acts, — The Securities and Exchange Commission 
is granted the authority to exempt securities which are issued by small business 
investment companies from the regulatory provisions contained in the Securities 
Act of 1933 and the Trust Indenture Act of 1939, if it finds that such exemption 
will not jeopardize the protection of investors or the public interest. 

The Act also provides a specific exception from the Investment Company 
Act of 1910 for small business investment companies, releasing them from the 
three-to-one asset coverage in connection with borrowings. The SBA may 
prescribe limitations on borrowing by small business investment companies. 
No definite debt-to-capital ratio is prescribed in the Act because of the experi- 
mental nature of the program. By regulation, SBA has authorized a 4-to-l 
debt-to-equity ratio for SSlC's. 

SBA can suspend licenses and issue cease and desist orders. Further, 
after court action, SBA can terminate a license. 

SBA Loans to State and Local Development Companies 

^ The Act reco^izes that State and local development companies can play 
an important role m meeting the needs of small busmesses for lon^-term credit. 

Section 501 authorizes interest-bearing loans by the Admmistration to 
State development companies to assist in carrying out the purposes of the 
Act. The amount of such a loan shall not exceed the total amount borrowed 
by the company from all other sources. Unless waived by the Administration, 
such loans niust rank equally with those loans from other sources having the 
highest priority and made to the company subsequent to the enactment of the 
Act. 

Section 502 provides for interest-bearing secured loans by the Administra- 
tion to both State and local development companies for site acquisition and 
plant construction, conversion, or expansion. Such loans may not exceed 
$350,000 and the proceeds must be used solely to assist an indentifiable small 
business concern, and for a sound business purpose approved by the Adminis- 
tration. They may be made directly or in cooperation with banks or other 
lending institutions. Participation may be on an immediate or deferred 
basis and SBA's share may not exceed 90 percent of the balance outstanding at 
the time of disbursement. The term of such loans may not exceed 25 years, 
except that the Administration may extend or renew for periods not exceeding 
10 additional years where such extension or renewal will aid in the orderly 
liquidation of the loan. 

Tax Provisions 

Taxpayers investing in the stock of small business investment companies 
will be allowed an ordinary-loss deduction rather than a capital-loss deduction 
on losses arising from worthlessness or sale of such stock. Small business 
investment companies will also be allowed an ordinary-loss deduction, rather 
than a capital-loss deduction, on losses sustained on convertible debentures, 
including stock received pursuant to the conversion privilege.'* The loss 

SI Sec. 904 of the Small Business Investment Act of 1058 was amended in 1060 to permit SBIC's, under SBA reralationsp 
to accept securities other than convertible debentures in exchange for equi ty capitalsupplied to small concerns. However, 
only convertible debentures and stock acquired by exercise of the conversion privilege are specifically covered by sec. 
1213 of the Internal Revenue Code. 



18 SMALL BUSINESS INVESTMENT ACT 

deduction will include losses due to worthlessness as well as those arising from 
sale or exchange of the security. 

Such companies will cdso be allowed a deduction of 100 percent of dividends 
received from a taxable domestic corporation rather tnan the 85-percent 
deduction allowed corporate taxpayers generally. 

Section 542(c)(8) of the Internal Revenue Code of 1954 quaUfiedly exempts 
small business investment companies from the personal holding company surtax. 

Acting under its administrative authority, the Internal Revenue Service 
has given SBIC's a qualified exemption from the surtax on accumulated earnings 
and has authorized a bad-debt reserve equal to 10 percent of outstanding loans.'' 

tt See p. 14, supra. 



r 



®^ ^MkT^ } COMMITTEE PBINT 



SMALL BUSINESS PROCUREMENT 
CONFERENCES 



By Staff Members of 

SELECT COMMITTEE ON SMALL BUSINESS 
UNITED STATES SENATE 

WITH 

REPRESENTATIVES OF SMALL BUSINESS 




NOVEMBER 15, 1965— SHREVEPORT, LA. 
NOVEMBER 16, 1965— BIRMINGHAM, ALA. 
NOVEMBER 18, 1965— JACKSONVILLE, FLA. 



Printed for the use of the Select Committee on Small Business 



U.S. GOVERNMENT PRINTING OFFICE 
58-119 WASHINGTON : 1966 



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SELECT COMMITTEE ON SMALL BUSINESS 
[Created ptirsuant to S. Res. 58, 81st Cong.] 
JOHN 8PARKMAN, Alabama, Chairman 



LEVERETT SALTONSTALL, Massachusetts 

JACOB K. JAVITS, New York 

JOHN SHERMAN COOPER, Kentucky 

HUGH SCOTT, Pennsylvania 

WINSTON L. PROUTY, Vermont 

N ORRIS COTTON. New Hampshire 



RUSSELL B. LONG, Louisiana 

GEORQE A. 6MATHERS, Florida 

WAYNE MORSE, Oregon 

ALAN BIBLE, Nevada 

JENNINGS RANDOLPH, West Virginia 

E. L. BARTLETT, Alaska 

HARRISON A. WILLIAMS, JR., New Jersey 

GAYLORD NELSON, Wisconsin 

JOSEPH M. MONTOYA, New Mexico 

VRl D It '.HARRIS, Oklahoma 

Lewis G. Odom, Jr., Staff Director and Oenerai Counsel 

Blake O'Connor, AitiMant Staff Director 

BORXRT B. LOCKUN, Astociote General Oountd 

WlLUAM T. MclNARNAT, Countd 

E. Watnb Thetknot, Profettional Staff Member 



[ 



FOREWORD 



Tt continues to be the policy of your committee to maintain a 
constant, close relationship with individual small businessmen as an 
essential to a full appreciation of the needs and problems confronting 
small entrepreneurs generally. To this end, your committee directed 
its staff members to conduct a series of conferences with representative 
groups of small businessmen in Shreveport, La., Birmingham, Ala., 
and Jacksonville, Ma. Conferees were selected with the assistance of 
Uie diambers of conmierce in the three cities, and, in Birmingham and 
Jacksonville, of the district offices of the small Business Administration. 

In an informal setting, participants were encouraged to bring to 
light and discuss problems arising m the course of doing business under 
Government contracts either as a prime contractor or subcontractor 
and to express their views on any serious problems presented to the 
small busmessman as a result of requirements placed on him and his 
business by the Federal Government. 

The following is a transcript of these proceedings. 

John Sparkman, 
Chairman, Select Committee on Small Business, U.S. Senate. 
February 21, 1966. 

in 



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CONTENTS 



Shreveport, La., November 15, 1965 
Appearance of — 

Thevenot, Richard, director of public and governmental affairs, 

Chamber of Commerce, Shreveport, La -_ 1 

(Small business participants not identified) 

Birmingham, Ala., November 16, 1965 
Appearance of — 

Barksdale, J. C, loan specialist, Birmingham regional office. Small 

Business Administration, Birmingham, Ala 21 

Bartlett, R. H., chief, nnancial assistance division, Birmingham 

regional office. Small Business Administration, Birmingham, Ala 21 

Corley, J. L., Southern Precision, Inc., 1500 Georgia Road, Post 

Office Box 6637, Birmingham, Ala 22 

Hall, F. R., Superior Engraving Co., 5528 First Avenue South, Bir- 
mingham, Ala 37 

Jemison, Dean, Lynn Machine A Manufacttiring Co., 3722 10th 

Avenue North, Birmingham, Ala 2P 

Klein, Alvin, Steel Cot Corp., 1701 31st Place SW., Birmingham, 

Ala SO 

McNamee, V. C, Schwacha Machine Co., 1228 Water Street, Brighton, 

Ala ai 

Mitchell, Hugh W., executive vice president. Southern Products 

Co., Inc., 8707 First Avenue North, Birmingham, Ala 4lt 

Nail, E. Cary, department manager, Birmingham Chamber of Com- 
merce, Birmingham, Ala 31 

Proctor, Oden, airector of procurement, Hayes International Corp., 

Post Office Box 2287, Birmingham, Ala 40 

Roadruck, Mrs. Gayle, Roadruck Tool Co., Guntersville, Ala 2a 

Salzmann, Frank L., Jr., manager. Utility Tool Co., 1713 Lomb 

Avenue West, Birmingham, Ala 34 

Self, Forest M., Excello Machine Co., 4501 First Avenue North, 

Birmingham, Ala 45 

Self, Frank P., Excello Machine Co., 4501 First Avenue North, 

Birmingham, Ala 45 

Sykes, James B., Southeastern Products Corp., Highway 31 South 

Pelham, Ala 49 

Taylor, Carl, vice president, Foster Machine & Manufacturing Co., 

Inc., 3641 10th Avenue North, Birmingham, Ala_ _ 35 

Jacksonville, Fla., November 18, 1965 
Api>earance of — 

Boree, Henderson, Boree Concrete Block Co., Inc., 2036 Dennis, 

Jacksonville, Fla 58 

Dickson, Eldon, Dickson Tire Co., 1027 Edison Avenue, Jacksonville, 

Fla 63 

Goodloe, George M., secretary, Parkhill-Goodloe Co., Inc., 4137 

Arlington Road, Jacksonville, Fla 57 

Gregg, Charles P., Liberty Iron Works, 4039 Liberty, Jacksonville, 

Fla... __ 62 

Hohenhausen, Walter, Jr., general manager, Peninsula Pest Control 

Service, Inc., 701 South Main Street, Jacksonville, Fla__ _.- 57 

Hufnagel, Dan, Jack R. Winterbiirn, certified public accountants, 

Burnett Bank Building, Jacksonville, Fla 57 

V 



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^^ VI CONTENTS 

sa 

Appearance of — Continued 
ro Kelly, Joseph D., director, trade development, Jacksonville Area ^*w 

d( Chamber of Commerce, Jacksonville, Fla 53 

Koester, Edward A., Jr., Douglas Printing Co., Inc., 527 East Church, 

- Jacksonville, Fla 55 

^ Mason, Wilbur H» operations manager, Florida Tractor Equipment 

Co., 2575 West Fifth Street, Jacksonville, Fla 56 

hf Painter, Roger M., Painter's Poultry Co., Inc., 5421 West Beaver, 

at Jacksonville, Fla _ 55 

— Turner, Kennon, regional manager. Small Business Administration, 

Jacksonville, Fla __ 53 

Conference Dates 

Shreveport, La.. November 15, 1966 -- 1 

Birmingham, Ala., November 16, 1966 21 

Jacksonville, Fla., November 18, 1966 53 



I 



SMALL BUSINESS PROCUREMENT CONFERENCES 



MONDAY, NOVEMBEB 15, 1065 

U.S. Senate, 
Select Committee on Small Business, 

Shreveport, La. 

The staff conference met, pursuant to notice, in the offices of the 
chamber of commerce, at 1 p.m. 

Present: William T. Mclnamay, counsel, and E. Wayne Thevenot, 
professional staff member, Senate Small Business Committee (pre- 
siding). 

Also present: Richard Thevenot, public and governmental affairs 
director, chamber of commerce, Shreveport, La.; and representatives 
of small businesses in the area. 

Mr. Dick Thevenot. Gentlemen, I called you on the telephone 
the other day about the Select Committee on Small Business, and 
these two gentlemen are here from Washington, representing the 
committee. They do not propose to bring any specific solutions to 
your problems but they do wish to let you voice your opinions as to 
what can be done for the small businessman. They are looking into 
how some of your problems may be eliminated and what some of 
your problems are. 

Mr. Mclnarnay is the committee counsel. 

My brother, Wayne Thevenot, is a professional staff member of the 
committee. 

These gentlemen will discuss the purpose of the meeting. 

Mr. Wayne Thevenot. Mr. Mclnarnay and I represent the U.S* 
Senate Select Committee on Small Business, which is chartered by 
the Congress to deal with the problems that face small business and 
to oversee the Federal Government's role in matters affecting the 
small business community. 

We are not a legislative committee. Bills pertaining to small 
business are not referred to us for conmiittee action. We do have a 
great deal of influence in connection with the Federal Government's 
actions which affect small business. 

This conference, which is to be one of a series of meetings, results 
from the belief on the part of members of the committee, specifically 
S^iator Long and Senator John Sparkman, who is chairman of the 
Senate Small Business Committee, that it would be of great benefit to 
planning future committee action if the staff could sound out the 
thinking of small businessmen themselves — the people who have to 
deal with the day-to-day problems in the business world. 

They thought it would oe hdpf ul if the staff members could get as 
close to these people as possible, listen to their problems, and hear their 
suggestions. This is the first stop in a three-stop trip through the 
South. From here we are going to Birmingham, Ala., and Jackson- 
ville, Fla., for similar conferences in these cities. 



] 



1! 

2 SMALL BUSINESS PROCUREMENT CONFERENCES 

^* We hope to have a fruitful meeting with you gentlemen. You were 

carefully selected as representative of small business in Shreveport 

^ and the surrounding area. We hope you will be able to give us some 

d< new insights which we can follow as guidelines for future investiga- 

tions, and give some direction to our continuing efforts on your behalf. 

s° Mr. Mclnamay, you may want to add something. 

Mr. McInarnay. I will say this: this type of approach to the 

"* American small businessman is somewhat new to the committee. 

*f Senator Sparkman has been chairman most of the 15 years of the 

committee's existence, and Senator Long is the ranking majoritv 
member, and they are intensely interested in the problems small 
businessmen face. 

We have made various visits to many places in the United States, 
often to Army bases and military bases where they do a heavy load 
of Government contracting. The idea of going out into the cities 
of the country and sitting down with businessmen and getting from 
them, firsthand, the problems they experience in doing business is 
somewhat unique in the history of small business. 

The committee, as a whole, is intensely interested in this effort 
and anxious to find out what can be developed in the way of expanding 
our thinking on the problems you face. 

The Small Business Committee is a different animal from the 
Small Business Administration. The Small Business Administration 
is an agency of the executive branch of the Government. It is the 
agency that counsels small business. It renders management assist- 
ance. It helps with Government contracting as it pertains to small 
business. It is heavily involved in small-business financing in a 
number of ways. 

Our committee is not a part of the executive branch of the Govern- 
ment. It is part of the Congress. It was chartered to investigate 
the problems of American small business. Those are the exact words 
in the resolution. We have broad authority and responsibility in 
this area. 

One of the principal functions of the committee is contained in the 
Small Business Act itself, which says our committee is to survey and 
look over the accomplishments of the Small Business Administration 
and be sure their activities are best geared to small businessmen. 

I think it should be stressed, with importance, that you understand 
what your goal is to be. In a sense, you represent all the small busi- 
nessmen in Louisiana and the entire country. Obviously, we cannot 
get around the entire country but we hope to get enough of a cross 
section by listening to the small businessmen discuss various problems 
and make various recommendations so that we will be able to come up 
with a good overall view. 

What you have to say is extremely important to us. I woiddn't 
be concerned if you find one person talks about something you want 
to talk about because the very duplication of the particular idea would 
have some weight and merit in our consideration. 
Would you like to go on with the format? 

Mr. Wayne Thevenot. We have reserved the area to be covered 
by this discussion to two broad categories. One, Government pro- 
curement. This is doing business with the Government under 
Government contracts. If any of you are doing business with the 
Federal buying agencies, you know of the myriad problems inherent 
in this. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 3 

The other area we would like you to cover is what problems face 
small businesses as a result of the requirements placed on them by 
the Federal Government. By this we mean difficulties in meeting 
reporting requirements imder the wage and hour law, the require- 
ments of the Census Bureau, the Internal Revenue Service — any of 
these forms or reports that are required of you by the Federal 
Government. 

It would be a gi'eat help to the orderly presentation of the record 
if you would first give us yoiu- name, the business you represent, who 
you do business with, and give us some idea of the size of your business. 
After everyone has been introduced, we will go back and let each of 
you make whatever statements you would like in connection with your 
various problems and present any recommendations you might have. 

Mr. A. I am president of the AA Co.^ 

Mr. Wayne Thevenot. What type business is this? 

Mr. A. Mainly oilfield supply business. 

Mr. Wayne Thevenot. Mr^B? 

Mr. B. I am m the laundry and uniform service and we supply both 
laundry service and some uniform service to some Federal Govern- 
ment agencies. 

Mr. Wayne Thevenot. Not the uniforms themselves? 

Mr. B. These are workmen's uniforms, not the Army or Air Force 
or Navy uniforms. 

Mr. Wayne Thevenot. Mr. C? 

Mr. C. I am treasurer of the CXy Hardware Co., a wholesale hard- 
ware concern. 

Mr. Wayne Thevenot. Mr. D? 

Mr. D. I am with the DD Co. We do sell the Government some- 
times. 

Mr. Wayne Thevenot. Mr. E? 

Mr. E. I am vice president of the EE Co., primarily electrical con- 
tractors and retail supplies. 

Mr. Wayne Thevenot. Mr. F? 

Mr. F. I am in the commercial job printing business, representing 
the FF Printing Co. I am also a member of the Legislature of the 
State of Louisiana. 

Mr. Wayne Thevenot. Mr. G? 

Mr. G. I am manager of the GG Electrical Association. 

Mr. Wayne Thevenot. Mrs. H? 

Mrs. H. I am president of the HH Electric Motors. We are re- 
builders of automotive parts and sell to automotive supply houses. 

Mr. Wayne Thevenot. Mr. I? 

Mr. I. I am president of the II Corp., department stores. 

Mr. Wayne Thevenot. Mr. J? 

Mr. J. I am president of the JJ Co., a Chevrolet dealership. 

Mr. Wayne Thevenot. In keeping with our orderly procedure, 
Mr. A, do you have any statements you would like to make or do you 
have any views you would like to brmg out? 

Mr. A. Nothing at this time. 

Mr. Wayne Thevenot. Mr. B? 

Mr. B. I would like to wait and give my time to Mr. C. 

< Identities of participating businessmen at Shreveport conference concealed, at their request. 



at 



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4 SMALL BT7SINESS PROCUREMENT CONFERENCES 

®® Mr. C. I don't have all that much to say. Are we speaking only 

about our business relations with the Federal Government and the 
^ agencies thereof? 

"^ Mr. Wayne Thevenot. Your business with everybody. We 

would welcome any problems you may have in doing business with 
®° the Government. 

- Mr. C. Is this a gripe session? 

^l Mr. Wayne Thevenot. Certainly, gripes may be a part of it. 

Mr. McInarnay. We will welcome yoiur gripes and also welcome 
any particular recommendations you might have. 

Mr. C. Some of these problems I have here are probably commoii 
with everybody in here. 

The first is we now have become tax collectors for too many diflFere.ic 
taxing agencies. It has become very onerous and we are haviag 
trouble keeping oiu* customers happy because they blame us for 
collecting taxes. It is not only Fecieral taxes but State taxes too. 
The Louisiana Legislature imposed a sales tax on wholesalers mailing 
sales to retailers and that has been a tremendous headache. That, 
together with these other taxes for the State of Louisiana and the 
Federal Government, we are now collecting social security taxes, 
State income taxes^ and also Federal income taxes — collecting State 
income taxes for Louisiana and Arkansas, and we are paying un- 
employment taxes on om: payroll for Louisiana, Texas, and Arkansas 
ana the Federal Government. We are also collecting the State sales 
tax. as I said. Those are the main taxes we are collecting. 

The sum of all these taxes rei>re6ents a real substantial bookkeeping 
problem and also a public relations problem with our emploj^ees and 
customers. For a small concern that is not heavily computerized, we 
think it has become a substantial problem in our operation, and any 
assistance that can be given to us, either at the State or Federal 
levd, would be a help for us as small biisiness people. 

Mr. McInarnay. Do you have any estimate of the amount of man- 
hovLTQ and money it costs you to collect these various taxes? 

Mr. C. I daresay, in the aggregate, it probably takes one full-time 
person doing nothing but that, luthough we don't have f iybody in 
that category. We have a number of people that work At it from 
different angles. 

In our company, which employs between 45 and 50 people and 
with traveling outside salesmen in a 3-State area, that would be 
2 or 2}i percent of our personnel engaged full time in this business of 
paying taxes and making ui> reports and writing checks. 

Mr. McInarnay. You might be interested to know there has been 
an awful lot of pressure from the Congress to the executive agencies, 
particularly to the Revenue Service, to decrease the requirements of 
reporting, particularly on small businessmen. 

From the survey that Mr. Thevenot and I read on the way down 
here from Washington, it seems that the biggest problem is the form 
941, the social security form which is required quarte/.'ly, and a lot of 
businessmen believe this should be put on an annur 1 oasis. Others 
have said: "Why don't you let us give you a declaration of how much 
we paid and let the employee himself be responsible for the tax?" 
Tnere is a Federal Reports Act which was passed in 1942, which 
many people would say hasn't been tremendously eifective, but lately 
it has because they have cut down on a number of reports. 



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I want you to know there is pressure building up in Congress 
principally through the work of a subcommittee of the House of 
representatives to decrease this requirement. 

Mr. Wayne Thevenot. This is part of a broad study being done 
by the Post Office and Civil Service Committee of the House. 

Mr. C. One of the most onerous reports has been from the Bureau 
of the Census. It is almost impossible for us to make out an acciurate 
report. 

Mr. Dick Thevenot. There is a bill to be considered during the 
next Congress to have a census every 5 years instead of every 10 years. 

Mr. Wayne Thevenot. This is a problem which has been given a 
great deal of attention. 

As soon as President Johnson came into office he issued a directive 
to the Bureau of the Budget — which is the coordinating arm of the 
Federal executive branch — ^to completely review all of reporting 
requirements made on the business communitj^. This directive has 
resxdted in a tremendous number of forms being eliminated. The 
Bureau of the Budget now oversees every new form that requires more 
than 10 respondents. 

If a branch of one of the executive departments comes out with a 
form that touches more than 10 respondents this has to go before the 
Department Review Board and goes before the Board of tne Bureau of 
the Budget. Any new form has to stand a test of a great deal of 
justification. 

There is considerable emphasis being put on this. Not only does 
it cost the Federal Government an awfm lot of money but, as you say, 
it puts a burden on the small businessman who is not equipped with 
manpower and finances to make out all these reports. 

Mr. C. Speakine of burdens, I understand there is legislation 
which did not get through this session but may get through next time 
to increase the minimum wage from $1.25 to $1.75. 

I have written both our Senators and Congressmen about this 
l^islation. This is about a 40-percent increase in payroll. It will 
probably be 40-percent increase across the board over a period of 3 
years and that amoimts to about three times what we have left after 
taxes — that increase in payroll would amount to what our little 
companjr has after taxes. 

We tnink that would just about be the coup de grace if that legisla- 
tion is passed for people in our line. 

Let us pass on to somebody else. 

Mr. D. One of my problems is the system of communications from 
the higher level to tne lower. 

Publications come out, particularly referring to the wage and hour 
board. They have men that come to our place spasmodically and 
check and every time they will come up with, ''Didn't you kno\v?" 
And say, "Read this." They will hand you a big thick publication 
and I am not fixing to read it. We have many more things we have 
to do. 

We need some sort of simplified communication, which is necessary 
in every organization, as far as getting work done. 

They win make a check on us and they will find a difference of a 
minute nature — talking about the wage and hour board — and the 
small businessman will pay it because he doesn't have the time to 
check on it. 



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gg We definitely need a system to keep us informed as to what we 

have to do. 

Y^ Talking about this census report, I have thrown the thing in the 

^^ trash and they keep writing. So far I have gotten away with it. 

There is a limit to what we can do. I am president of the DD Co., Inc. 

SJ3 Mr. McInarnay. Do you have any ideas as to how communications 

might be improved? 
1^1 Mr. D. Yes. They seem to be able to write about every report, 

j^j; At least, they can keep it to simplified English so we can understand 

- what we are reading and know what we are doing. If we can keep it 

in a simplified form it will keep us abreast. Until we can get some 
sort of simplified form, we have to wait until it is brought to our 
attention by somebody else. 
' Mr. McInarnay. In other words, you feel the agency bringing 

about the change should be responsible to get the information to you 
in the simplest possible way? 

Mr. D. Yes. They don't mind writing us about flowers, or some- 
thing like that, but when it comes down to the basic thing, they will 
say, "Didn't you know?" 

Mr. McInarnay. Other than the forms that they give you, which 
are very thick and complicated, don't you now receive any communica- 
tions from the various agencies? 

Mr. D. None whatever. The next time I look at the man, he will 
make a demand and I will sit down with him. 

The last time the gentleman said I had to do it at that very moment 
and I was about to go to lunch and I told him that I wasn't about to 
read this booklet at that very moment and that he didn't have that 
prerogative, and from then on I have had a complex for these people. 

I know the job must be accomplished. The agency must be there 
and there is a reason for its creation. But, on the other hand, we have 
little enough privileges left in our organization and I believe if we 
could be informed in some simplified way we could be abreast and 
cognizant of what is expected of us and not some upstart coming in 
and saying, "Didn't you know?" 

Mr. McInarnay. To what extent do you have difficulties with the 
individuals involved who have this responsibility to come to you? 

Mr. D. We are at the mercy of the individual who walks in the door. 
The interpretation he gives to us, in many cases, would not be correct. 

As a small businessman, you do not have time to go back and make 
a complete check. If it amounts to a few dollars, you pay it and get 
it out of the way, but it always sticks in your craw. 

Mr. McInarnay. The Department of Commerce puts out a 
publication — I know it lists all the contracts the Government puts 
out. It is called the Commerce Business Daily. It seems to me some- 
thing like that would be directed to businessmen all over the country 
and would be an informative document. 

Mr. D. That's right. It would keep us abreast of what is going on. 

Like the other gentleman just mentioned, the minimum wage is 
going to eliminate the small businessman to some extent. This is one 
of my major problems — ^let me know before they walk in the door 
instead of waiting for you to come in. This has not happened on 
only one occasion. There have been several occasions similar to this. 

Mr. McInarnay. I wonder if any of these problems have affected 
any of you gentlemen? If they have, please feel free to join in. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 7 

Do you have any other particular areas? 
Mr. E. Mr. C. mentioned some of mine. 
Are we at liberty to discuss Government contracts? 
Mr. Wayne Thevenot. Very much so, sir. 

Mr. E. In fact, the job is in progress now. It was a competitive 
job. It is under the Navy at fearksdale Field. A typical example 
written in the job is that the maximum you would be allowed is 10 
percent on your labor, 6 percent on your overhead, and 5 percent for 
profit. In any electrical contractor's business in this area, and prob- 
ably anywhere in the United States, the labor is over 10 percent. 
Thore is no way you can break even at 10 percent. I woula say a 
ininimum of 13 percent, which means you automatically lose 3 percent 
in changes. 

Things like that written in specifications — I don't know whose 
responsibility it is, but there is no way that a man who bids on a 
highly competitive job and is awarded the job and there are change 
orders, he is going to lose. On small amounts, the contractor just 
foigets about it. He will lose money by the time he gets into the 
paperwork. 

Mr. Wayne Thevenot. You are talking about excessively re- 
strictive specifications? 

Mr. E. I don't know where they obtained 10 peicent on the labor 
charge. 

Mr. Wayne Thevenot. Are you talking about negotiated con- 
tracts? 

Mr. E. This is a contract which is existing and if you have a change 
order, like you have on all jobs, you would be allowed 10 percent on 
your labor. There is no way you can break even. 
Mr. McInarnay. You won the contract originally by sealed bid? 
Mr. E. Yes. 

Mr. Wayne Thevenot. This is written in the specifications? 
Mr. E. Yes. This is in progress at this time. 
Mr. Wayne Thevenot. This precludes you from actually doing 
much negotiation. 

Mr. E. If it was me, I would go ahead and do it and forget about 
the charge because you would be better off dollarwise not mentioning 
it. There was a change for $3.85 and the man had to leave the office 
and go to Barksdale Field and we would be allowed 6 percent and it 
wouldn't cover the paperwork on a change order like that. 

Lately, I have not been bidding these highly competitive Govern- 
ment jobs. One of the main reasons is that they have a person in 
charge of construction who knows as much about construction as I 
know about small business in Washington. It is usually a career 
man in the Navy or Air Force and he is not qualified to be a person in 
charge of construction, whether it be electrical, plumbing, or what 
have you. 

Mr. Wayne Thevenot. This is the man who is inspecting your 
work? 

Mr. E. Yes. In the majority of cases they have civilian inspectors 
and you don't have problems with them. It is usually a career man 
where you have your problems. 
Mr. McInarnay. Are they military or civilian people? 
Mr. E. A lot of them are military. Thev are totally unqualified. 
They wouldn't know an I-beam from a T-beam. This is true with 
general contractors or subcontractors. 



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8 fiMALL BUSINESS PROCUREMENT CONFERENCES 



re Mr. Wayne Thevenot. Where is the big difficulty vdth his 

di changing things? 

Mr. fi. Usually, his inability to comprehend construction, as such. 
sD That is primarily all I have to mention other than what Mr. C hit 

^n, and he hit pretty close to what I was going to say. 
hi Mr. McInarnay. The limitations placed on the overhead, profits, 

ar ^nd labor in change orders, is that a standard clause? 

- Mr. E. Not alwa3n3 in this percentage; no, sir. 

In all fairness, the Corps of Engineers — ^in past years I have nego- 
tiated with them on a time and material basis, which is cost plus, and 
we have been having very satisfactory arrangements on both sides. 

Mr. Wayne Thevenot. This is a fixed-fee situation? 

Mr. E. Yes. With the Corps of Engineers in Little Rock, we have 
had very little difficulty. When they write things of this character 
in the specifications, tne person who is low bidder better be very 
cautious oecause the change orders will eat it up, and the change orders 
are bound to be there. 

When they write in 10 percent for labor, 6 percent for overhead, 
and 5 percent for profit, there is no way to make it. 

Mr. Wayne Thevenot. Is this an unusual situation? 

Mr. E. I would not bid such a job as this. I am not involved in it, 

Mr. Wayne Thevenot. You are talking about an experience you 
are familiar with? 

Mr. E. Yes, sir. 

Mr. Wayne Thevenot. This is the reason you didn't bid? 

Mr. E. Yes. 

Mr. Wayne Thevenot. Not only are there problems after you get 
the contract, but very often the Government is hurt by contractors 
not wilUng to get involved in this type of thing. This cuts down on 
competition. 

Mr. E. There is one other thing that crossed my mind and it is a 
verv delicate subject and I don't have a solution to it and it has to do 
with qualified people to do certain types of work. 

For example, an Air Force official called me about bidding on an 
underground electrical svstem. I told him that there were some 
people that were qualified to do it. He asked who it was, and he said 
it was a new setup from Fort Worth and there would be three or four 
bidders who did this type of work. But when you ask a person who 
knows nothing about it and some local man bids low, he usually goes 
broke. 

Mr. Wayne Thevenot. Was this a request for a proposal on 
bidding? 

Mr. B. It was a request to see if we were interested in bidding this 
specific job. 

The point I am getting at is to see if the firm is qualified to bid this 
particular type of work. 

Mr. Wayne Thevenot. Of course, the responsibility is with the 
contracting officer to establish the competency of their bidders. I am 
sure that is what they attempt to do. 

Mr. E. It is a delicate thing. 

Mr. McInarnay. Manufacturing, for example, in some products 
they have what is called a qualified products list and your product has 
to be on that list before you are eligible to bid. 

Mr. E. I have heard something about it. 



L 



SMALL BUSINESS PROCUREMENT CONFERENCES 9 

As Mr. Thevenot said, the respoDsibility lies with the contracting 
officer to decide whether an individual is the lowest qualified bidder 
and not just a low bidder. 

I have no solution for it. It is a problem. 

Mr. Wayne Thevenot. The Small Business Administration itself 
enters thb field too by a certificate of competency program whereby a 
compan;^ bids on a job and if the company is determined by the 
contracting officer not to be capable of performing this contract, the 
bidder may appeal to the Small Business Administration. The Small 
Business Administration comes into his plant and makes a determina- 
tion as to his capabilities with regard to facilities and financing. If he 
is found to be thus capable of performing the contract, he is issued a 
certificate of competency which is binding on the contracting officer. 
The contracting officer must award the contract to the low bidder. 

Mr. B. They do this locally, and they investigate the plant and I 
think they use several agencies aside from the Small Business Ad- 
ministration. The Small Business Administration can come in and 
perhaps loan him the money to buy the equipment to perform the 
contract, but they do investigate it. 

Mr. Wayne Thevenot. This is very often a thorn in the side of the 
Defense Department. They may determine a company, for whatever 
reason, not competent to fulfill a contract and the Small Business 
Administration says they are. It is binding on the contracting officer, 
and the Department of Defense, or whatever agency involved, has to 
award the contract. 

Mr. McInarnay. The Small Business Administration is proud of 
its record for having salvaged contracts where they may have been 
turned down. 

Mr. Wayne Thevenot. They attempt, within limits, to help the 
business measure up. It has saved a great many small businessmen 
by being able to get Government contractis. 

Mr. E. I wish there was some setup where they couldn't do that 
on the subcontracting end of the busmess. 

Mr. B. I think maybe it is wrong in this respect for the Small 
Business Administration to come in. You might get a fly-by-night 
outfit to come in and bid a contract and the outfit goes to the Small 
Business Administration and gets enough money to compete against 
this fellow with Government money, which I am not sure is a good 
poUcy. 

Mr. McInarnay. There the man has to prove himself in more than 
one way. For example, in order to get that money he has got to 
have sufficient collateral and reasonable assurance of ability to repay. 
He has to prove technical competence. So that in those cases I 
would assume that the Small Busmess Administration thinks the man 
is well qualified except for the money problem. 

Mr. F. I believe I could make a speech. It may take up so much 
time that I would rather hear from others and then come in later. 

I do have some things which affect the morale of the business 
people. Being in politics myself, I can hear these things from the 
people. Actually, I can certainlv sympathize with them and agree 
with them. The gripes I have heard are in my mind, and I have 
listed them here, but I would rather let someone else talk. 

Mr. Wayne Thevenot. Mr. G? 

Mr. G. I have nothing at this time. 



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d< 10 SMALL BUSINESS PROCUREMENT CONFERENCES 

sa 

Mr. Wayne Thevenot. Mrs. H? 
re Mrs. H. I agree with Mr. C about the reports. I have that pretty 

dc well whipped. I had to buy office equipment which would eliminate 

one employee. Of course, that was bad, but it helped me out. 
SD Mr. Wayne Thevenot. This is what type equipment? 

Mis. H. Posting machines that would clo the work. I took it over 
hi and did the work. We carry about 20 to 30 employees, but my 

ar main concern is the taxes heaped on me. I can't raise my prices 

- and I am in competition even with General Motors and with these 

laiger rebuilders, and you know how that is. They get their mer- 
chandise cheaper than I can get mine because I am small. That is 
one of the main things. 

In January I have got to go up on my prices because of the social 
security going up so much as it has. I have held it down for 3 years 
now. We use a lot of copper and it has gone up about 7 percent and 
I have got to make a profit and have to compete with large companies. 

Mr. Wayne Thevenot. Do you have the problem of competing 
with companies — ^for instance, General Motors — ^with companies 
affiliated with General Motors? 

Mrs. H. Yes. They put out rebuilt generators and I don't think 
they have gotten into starters yet. 

Mr. Wayne Thevenot. This dual distribution is a problem Senator 
Long has been deeply involved in for a number of years. 

We have one of our staff members working practically full time on 
the problem of the small man in competition mth the large manufac- 
turer that has retail outlets all over the country. 

Mrs. H. Volume buying is hurting a lot of small businesses. 

I have also run into the same problem that Mr. D has in connection 
with getting a reply from the proper person in the Revenue Depart- 
ment in connectioto with excise taxes that we have to pay and I have 
written several letters to the Revenue Department and I still don't 
know what the outcome is. 

Mr. McInarnay. What effect did the tax cuts last year have? 
Did they help to any extent? 

Mrs. H. My employees ended up paying more and they have 
quite a gripe because I didn't take out quite enough withholding. 

Mr. Wayne Thevenot. This is a one-time problem because of 
when the tax cut came about. 

Mrs. H. I hope it is. 

Mr. Wa^-ne Thevenot. What effect has the excise tax had on your 
business? 

Mrs. H. I don't know. I am still paying 8 percent for the new 
parts going in the rebuilt units. 

I tried to get that situation straightened out with the Internal 
Revenue Department two or three times and I haven't heard from 
them. 

Mr. McInarnay. I suspect if you wrote a letter to Senator Long's 
office you would get an answer right quick. 

Mrs. H. This minimum wage has affected us quite a bit. 

Mr. McInarnay. Mr. I. 

Mr. I. I want to mention something about this minimum wage. 
We are operators of small stores and all except one or two come imder 
the minimum wage. There are a lot of people in Louisiana and in 
other areas who operate fom* or five small general stores such as we 



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SMALL BUSINESS PROCUREMENT CONFERENCES 11 

operate and if they have to pay $1.75 they will have to close their 
stores because we can't afford to pay $1.75, because most of our 
people are inexperienced people and we can't pay it out of profit. 
You have to pay it out of capital and we are not about to do that 
and we will close. 

I have had many people talk to me about it and they have asked 
me what I was going to do with my business. 

It is like a man who operates a filling station. They claim because 
there are a lot of Texaco filling stations that they shoidd be under the 
minimum wage. About 80 or 85 percent of the people are small 
businessmen or just working people and if I were a politician I would 
think about them because tnsy are in the majority. 

I have had people contact me about whether or not I would be 
interested in a certain location, but I am not going to do it as long 
as we are faced with $1.75 an hour. This is a serious thing for smafl 
retailers. We have tdephone calls every week about a location in 
a small town. I don't even look at them because I couldn't afford to 
take it. In the past, I could afford to look at a store that would 
gross $200,000 or $250,000. 

Another thing, just as fast as we can we are changing our stores to 
semiself-service and cutting down on our employees. With the 

f respect of a $1.75 minimum, it will put a lot of people out of work, 
n stores where we have foiu* cash registers, we will change it to one 
and put it at the door and instead of employing six women, we will 
employ two. 

Even S.R. Co. will not hii-e any more help than they have to at 
$1.75 minimum. They just don't need any more. 

We ^\iQ depend on the people that come in our stores to pick up 
their own merchandise. We can't afford to pay $1.75. 

Anotlier thing is the proposed increase in social security and 
unemployment compensation. I am not rejil familiar with this. I 
have a certified public accountant and I don't spend too much time 
worrying Avith it. 

I ask myself who is going to pay that? It is going to be us. The 
taxpayer will have to to pay it. This is an incentive for what we call 
the deadbeats to just work for a little wliile and get laid off and go 
for a year without having to do anvthing if tliis unemployment 
compensation is raised to 52 weeks. You wouldn't believe it if you 
knew how much of that is being done. 

We work anywhere from 250 to 600 people, depending on the time 
of year. Those people say that they only want to work a few weeks 
and then start getting unemployment. They say that it doesn't cost 
us anything anyway. It is a moral thing. The people just don't 
care. 

Mrs. H. A lot of housewives do that. They take a vacation on the 
money they get from their unemployment. I know this to be a fact 
because it happens in my place. 

Mr. I. There isn't any nousewife without experience that is worth 
$14 a day wrapping merchandise, and the same thing goes for the 
porters. When you have a porter working in your store, you have to 
point out everything he does just about every day. Is he worth 
$1.75? Is a housewife worth $14 a day that doesn't have any experi- 
ence? This increase has to come out of profit, and whenever you 
buck a big competitor, who is not supposed to be represented here in 

58-110- 66 2 



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^^ 12 SMALL BUSmesS PBOCUREMENT CONFERENCES 

Sfl 

this group, I can tell you now it is a real big problem and there is no 
j.g incentive for a small businessman to try to expand his business know- 

^^ ing these things are against him. With these increases and these 

various tax structures it takes just about all the profit away. 
gjj If I were a politician, I would look a long time before I would 

increase the minimum wage from $1.25 to $1.75. 

j^g If thejr would come out to some of these small towns where small 

^j. business is involved and find out what is going to take place, then I 

- think they would be against it. The big stores are already paying 

the minimum because they can do it, and in that way it makes it 

easier to get help and they pay a little more than we do and get the 

cream of the crop. 

I have had more than one small businessman say that he was going 
to close his business and go to work for one of the big ones. Wlien 
he does something like that, he becomes a competitor for the oUier 
people looking for jobs. It means the small towns are getting smaller 
and the big towns are getting bigger. 

We have many girls working for us in small towns that earn $250 
a month. We also have the deadbeat type that work a while and 
draw unemployment and come back and work a while and go back 
on unemployment. 

On this poverty thing — there are people looking for something like 
that and they don't want to work hard as long as the Government is 
taking care of them. These are plain facts. 

You can't go to the big city and talk to the b^ politicans and find 
out these things and you can't find it out in Washington. All you 
have to do is go to Jonesboro, Arcadia, Minden, and De Ridder and 
walk up and down the streets and see what is going on and you will 
find out that what I am talking about is true. 

In a little town of Hugo, Okla., a supermarket man told me that he 
surveyed the town with the idea of putting in a supermarket. He 
did some checking and found out that 65 percent of the people were 
drawing some sort of Government compensation — old age, unemploy- 
ment, and various other things — 65 percent of the people were hving 
off the Government. It is not hard for me to understand why he 
didn't consider that for a supermarket. That town has already been 
through the wringer. There is no industry there and there won't be 
any. Those people are not in the habit of working. 

I am not against the poverty program, but I am telling you what 
the small businessman is up against. We have 23 stores and we have 
investors looking for a return on their investment and when we talk 
about Uttle towns they say: "Don't go there. You got to go where 
you can do enough volume to pay the minimum wage." 

These are real problems that we, as small business people, have 
to face. 

Mrs. H. We have employees who make $1.65 an hour. Eveiy 
time the social security goes up or the witholding^oes up it makes it 
hard on them and they want to make a living. They don't want to 
get on reUef . 

Mr. I. This is in the form of a griipe: I write to Washington quite 
a bit to Russell Long and Senator EUender and Joe Waggonner and 
also Wright Patman. I know him. They will say: **They will 
take it under advisement," 

That means "No" in my book. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 13 

Once in a while you will get one that will tell you he is already 
for it but not very many* Most of the time they will tell you how 
happy they are to take it under advisement, but to me tiiat just 
means "No.'' 

Mr McInarnay. There are times, regrettably, where you are 
unable to help. 

Mr. I. I understand that, but there is an answer to section 14(b) 
and he can say "Yes" or "No'' and there is an answer to the minimum 
wage and he can answer "Yes" or "No." Joe Waggonner will tell 
you he is against it and some of the others will, too. 

Mr. McInarnay. You mentioned you were going into self-service 
anyhow? 

Mr. I. I am buying that particular kind of fixture. However, 
there is nothing better than a woman waiting on somebody to make 
a sale. 

Mr. Wayne Thevenot. Is this your reason for going into self- 
service? 

Mr. I. There is nothing that takes the place of a saleslady who 
knows what she is doing. 

Mr. Wayne Thevenot. The prospects of an increase in the mini- 
mum wage would cut you back? 

Mr. I. I know I am going to do less volmne. I know I am, but 
I also know I am going to have the payroll, too. 

Mr. J. When I first sat down I wrote out a few notes and almost 
everything I have written down has been covered in some shape or 
form. 

I am a Chevrolet dealer, and in this area probably a large Chevrolet 
dealer, but I am in a small pond compared to dealerships in Dallas, 
Memphis, New Orleans, and so on. 

Mention has been made about General Motors in this meeting and I 
have no General Motors stock nor does the general confide in me when 
he goes up, down, or sideways in his price. 

As a matter of fact, I sell General Motors products and I am still a 
small businessman because the general doesn't pay any of my emen- 
ses, nor does he subsidize me in any way. When I buy something from 
him it is cash as it leaves the factory gate and not on consignment or 
pay next month. 

I am in as much a competitive small business situation as anyone in 
the room. 

The No. 1 thing I wrote down when I first started making notes had 
to do with taxes. I have been in the car business 12 years, and in 
years gone by we used to figure oiu* mechanics' wages on Saturday 
morning and pay them Saturday noon. This was 12 years ago. 

Right now we have a National Cash Register machine and two 
ladies to run it so that we can do the accounting we used to do by hand 
with one lady. Granted our business has increased, but we have to 
cut oflF Thursday night at midnight in order to pay Saturday noon and 
work like the devil to ^et the thmgs out on Saturday noon. We have 
to figure all the deductions and the taxes for the State and the Federal 
Government and all that has to be done so that we can pay our people 
by Saturday noon. 

I have talked to other dealers in the Southwest part of the United 
States and they cut oflP around Wednesday noon or Wednesday night 



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®® SO that they can pay on Saturday, and in some cases they cut oflF Satur- 

day so they can pay the following Saturday. 
« Let me give you another example of the problems we face: We will 

get an application for a Federal job from some biu-eau. It might be 
in Washmgton or some place else. It will be on a former employee of 
ours and it takes my personnel at least 30 minutes to fill out the 
1 apphcation on somebody who might have worked a short time 4 or 5 

years ago. We put their name and social security number dowTi and 
send it back to them with one or two other things we can remember, 
but it certainly is an involved form for what we are going to get out 
of it. 

Twelve years ago we paid our starting workers in every department 
$35 a week. They worked 55 hours. 

In the car business you have to stay open early and stay open late 
so you can service the customer when he has time to see you. 

Arbitrarily, I went to the nunimum wage myself because I figured 
I could command a higher quality of personnel by paying whatever 
the minimum wage was, although according to the law the car dealers 
are exempted. 

Another reason, to be perfectly honest, why I went to the minimum 
wage because I was sure I would be under it sooner or later and I 
might have the advantage in hiring a better class of employee when 
it was an employer's market, so to speak, than to wait until I am 
forced into it and get the dregs or not get credit for having done any- 
thing the Government didn't force me to do. 

If and when the time comes that $1.75 is the minimum wage — just 
this morning I was reading: an automotive news report, which is the 
journal of the industry and it says the average dealer so far this year 
has averaged slightly more than 2 percent profit of the dealers reported 
on this national survey, whereas last year it was slightly less than 2 
percent. As long as I can recall, dealerships have never made 2 per- 
cent profit on sales. When you talk about 2 percent profit on sales 
and you talk about 40 percent minimum wage increase, naturally, 
it means in a very short time everybody will go up 40 percent or some 
pretty good percent. Two percent and 40 percent of the largest ex- 
pense that you have in your business or I assume anybody has in 
their business, does not jibe and there will be an awful lot of car 
dealers who \viU go out of business. Maybe the bigger car dealei's 
in the bigger towns will survive. I think we will survive because we 
are in a bigger town where industry is growing. 

But you take a little place where a car dealer is located and they 
are not getting any new industry and not getting any bigger and 
their population can't afford to pay the higher rates for servicing and 
parts, and so on, those are the ones that will fold, I believe. 

If we are going to continue to increase the amounts we spend on 
individual employee benefits in the dealership — for example, Christ- 
mas bonuses or paid vacations or sick leave or major medical or the 
other fringe benefits which have come along in the little time I have 
been in the business and at the same time have big brother watching 
over you who says that you got to do this besides what you are already 
doing, you will very soon reach the point of no return. You have got 
to raise your prices. The public is either going to pay or the business 
is going to fold. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 15 

We talked about General Motors, and I would like to throw this 
in as a side shot. Maybe there are only a few giants in the aluminum 
and steel business, and maybe there are only a few giants in the car 
business. But when you are in a competitive business, and my 
business is competitive — Mr. Ford may not outsell me today but he 
might put me out of business via the Studebaker people. 

Whatever happens in big business, whether we like it or not, affects 
us in a little business. T know my cost of doing business has increased 
and I don't see how big business costs have not increased. 

The right^to-work law seems to me the wrong thing to have happen, 
in other words, I don't see that it is fair to legislate an orpranization 
into existence which should have to compete — a union — which should 
have to compete on its own merits. 

If a union is good for employees in my business and I am not man 
enough or human enough or whatever it is to convince my people that 
I am a good man and I have to have somebody from out of town tell 
me how to run our organization, then it is my own fault. A union can 
come in and compete and be there. But for the Federal Government 
to tell my employees that all a imion has to do is ^et in there one time 
and there is nothing they can do, then I don't think it is fair. 

A new employee cannot go to work for me unless he joins the union 
and pays dues no matter how much they do good or how much they do 
bad for that man. That, to me, is absolutely wrong. 

In my opinion, small business or large business or in between bus- 
iness — right is right and wrong is wrong and that isn't one of the right 
things. 

I don't do business with Government agencies on a contract basis 
except once in a while we have supplied Chevrolet parts to Barksdale 
or the ordnance plant on a bid. Recently the procurement people 
at Barksdale put out a new set of rules. For instance, they mieht 
have a hundred trucks that are Chevrolet trucks and I feel that 
my genuine Chevrolet parts are as good as, and perhaps as com- 
petitive as anybody's. In order for me to bid on them, I must bid 
on running a store at Barksdale. In other words, physically have a 
man in a store at Barksdale to supply all the parts for all the brands 
that they have out there whether it be Ford, Chevrolet, Chrysler, 
or whatever it is. There is no way a Chevrolet dealer can be a Ford 
dealer at the same time. What happens is that I immediately back 
out of the bid based on the specifications being such that I cannot 
bid. I could, I guess, but if I am going to be a genuine Chevrolet 
dealer and back up my product I can't go into the off brand, or what- 
ever you want to call it, and handle other merchandise. 

Along comes a jobber who handles some other brand than Chevrolet 
parts and it might be as good as Chevrolet parts but it is never any 
better — the quaUty I mean — and he bids for this opportunity and 
the people who are capitalized and have the manpower and equipment 
to handle Chevrolet and Ford and Chrysler best are out of the picture. 

There is no way that I can, in my opinion, bid on the stuff and, 
therefore, there are no Chevrolet dealers supplying Chevrolet parts 
to Barksdale. 

Mr. Wayne Thevenot. What would you suggest as a remedy for 
that situation? 

Mr. J. I would suggest we bid it for a percentage above or below 
the book value on specific brands or parts. In other words, if we can 



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supply all the Chevrolet parts, let me bid on them. If you can supply 
re the Ford parts, bid on them. 

(j( Mr. Wayne Thevenot: The Air Force wants to put in an office 

which keeps in stock parts to service all their vehicles? 
SI] Mr. J. That's right. They have done that for the last year and a 

half or two years, as I recall. 
li£ Mr. Wayne Thevenot: They have done it the other way? 

ar Mr. J. Yes, and all of a sudden they came along with the store prop- 

- osition on the base where you are stocking the material. As I under- 

stand it, you are not specifically bidding on any brand of parts. You 
are bidding on whatever you want to provide. It looks uke it is not 
good business from the Government or taxpayer's standpoint or the 
public's standpoint. 

Mr. Wayne Thevenot. Mrs. H, are you in the parts business? 

Mrs. H. We are rebuilders. We sell to jobbers and they, in turn, 
retail them, but we do not go direct to Barksdale Field. They asked 
us to bid on a certain amount. 

Mr. Wayne Thevenot. You could conceivably subcontract to the 
jobber? 

Mrs. H. We would retail to them. 

Mr. J. So could we. Since we are talking about Government 
and small business, there is nothing I know of which says this man 
has to buy genuine Chevrolet parts, or anything else, and I don't 
know that the quality is good. From the Government's standpoint, 
it is possible they could get rooked. 

Mr. I. Do you represent Senator Long? 

Mr. Wayne Thevenot. I am on the Senate Small Business Com- 
mittee and I do a good deal of Senator Long's small business work. 

Mr. I. You should be able to explain the advantage of 14(b). 

Mr. Wayne Thevenot. No, sir; that is not within my purview 
at all. 

Mr. McInarnay. This comes under an entirely different committee. 

Mr. Wayne Thevenot. Do you have any more comments? 

Mr. J. It seeDM to me that certainly you don't want to get down 
to one General Motors or one Unitecf States Steel or anytning like 
that. As long as there are three or four competitors who are at 
each other tooth and nail and if j^ou can make the product better 
by doing it yourself on a small basis, which I think in a lot of cases 
you can, then we, the small businessmen, should siffvive. 

But if we are doing something in an inefficient manner compared 
to large business, personally, I don't see anything wrong with large 
business as such. I don't think because large business can do it 
better and cheaper that it makes it wrong. 

Mrs. H. I have to compete with them and the Government makes 
my taxes higher. 

Mr. I. If they will leave me alone I will make it. 

All I am asking is that they leave me alone. Don't legislate me 
out of business. I can't do it if they legislate me out of business. 

I don't know how I am going to hire a tailor to measure men's 
clothes when I don't know whether it is going to be a woman or a man. 
In other words, a woman can sue me for not giving her a chance to 
measure men's clothing. I am endeavoring to create an application 
blank that will be acceptable to Uncle Sam and at the same time 
keep me out of jail. I don't think we will have a problem with this 



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SMALL BUSINESS PROCUREMENT CONFERENCES 17 

if thev leave us alone. The fellow who wrote that doesn't know 
what he is doing. 

Mr. B. I know how Senator Long feels about the mmimuna wage. 
We have about 200 employees and we employ semiskilled people. 
They are women that supinement the family income in most cases. 
We feel actually that the minimum wage law would deprive the small 
wage earner of the right to make a Uving. We won^t be able to employ 
unskilled people at $1.75 an hour. We figure that with the gross 
income of our business^ we would have to lay off about 40 people. 
We are paying over a dollar an hoiu* voluntarily because we nave a 
union and thelowest scale in the union is 65 cents. What we will be 
doing is raising the deadbeats by raising the pay because there 
wouldn't be any incentive. We do have girls working in our plant 
that earn $2 and $2.25 an hour. 

My thoughts to Senator Long would be that this proposed minimum 
wage increase would be actually depriving low-wage earners of a 
living. 

I would Uke to add one thing about the Government contracts. 
We have had pleasant working conditions with the Government in 
our contract work, and on occasion when we have run into problenas 
with someone who doesn't know anything about the laundry busi- 
ness — ^it is always a career man in the service who gets his information 
from a manual — ^there is always a recourse to a little bit higher echelon 
where we find we have been given fair treatment. 

Mr. Wayne The VENOT. Most of your business is imder the small 
business set aside program? 

Mr. B. That's right. 

Mr. Wayne Thbvenot. Mr. F. 

Mr. F. The only thing I was going to say was in summation, but 
I believe you can perhaps get all of the unsatisfactory and unacceptable 
measiupes from the Federal or the State Government from the office 
accountants or the bookkeepers in small businesses because they are 
the ones who are fighting this problem constantly and daily. Natu- 
rally, they are caUing it to the attention of management. 

In the last several vears, and you can hear it practically from any- 
body, and particularly small business people, tnat there is no more 
incentive in business — ^there is no more initiative by business people. 

Just as was mentioned here a while ago, all of these broad regulations 
are destroying initiative and incentive, and I have heard small business 
people say it would be wiser for them to get a job somewhere and be 
reUeved of all these regulations and requirements by both the Federal 
and State Governments than it would be to remain in business. 
Naturally, that isn't only demoralizing but it is destructive to business 
when you run small busmessmen out of business and you are creating 
vacancies in all your buildings. That is taking money from the as- 
sessment rolls and the tax roUs. The fact that small businessmen are 
goine out of business aflfects the Government, because it takes money 
for tne Government to operate. 

Because of the vast amount of paperwork, and I particularly know 
this as a printer, that is required of business today is so enormous that 
it requires additional employees and then it throws the management 
into almost an utter state of confusion. He doesn't know where he is. 
He has lost control over his business. There is no more personal 



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authority on the part of management or the owner of a business as 
re there used to be. 

dc Just like Mr. I explained a while ago, he doesn't know how to go 

about getting an employee because of the fear of innocently violating 
SB some regulation of the trovemment. 

Small business people, as well as anybody in business, want to coop- 

hi erate mth Government. I have seen it in mv experience. Thej' want 

ar to be sure thev are doing it right but they have the constant fear of 

" innocently violating some part of the form as required by the business 

people to be filled out. 

Of course, with reference to taxes we had the withholding tax to 
come up in the State legislature. The State was suffering from lack of 
finances. The Governor appealed and everyone else appealed to the 
legislature to please put this into effect, that it would produce such 
revenue as the State needed for its services. I voted against it and I 
thought it was \\Tong and I never heard so much hollering from the 
people in Caddo Parish as I did from my own bookkeeper. 

In addition to the Federal requirements of tax collections, it makes 
the burden considerably heavier when you have to collect Stat-e taxes 
also. 

I have always heard about the specifications in Government bidding. 

The Government is my biggest competitor, but when it comes to 
receiving any specifications from the Federal Government, before I 
would attenipt to read the specifications, much less attempting to 
comply with them and bidding on the job, I wouldn't make any 
money on the job after I got it by the fact that I would have to offset 
the time required in reading and attempting to follow the requirements 
of the specifications. 

There is one thing that I think ought to be looked into and studied 
very, very strongly and that is a form of taxation that may simplify 
the burden of paying taxes by our State or Federal Government that 
is now being assessed upon the people. They have so many different 
taxes that are being paid, such as your unemployment tax and your 
workmen's compensation tax and social security tax and income tax 
and all the other forms of taxes we have. If there was some w^ay 
somebody could come up with a good solution of paying one tax it 
would certainly simplify the burden. We are going to come up with 
more and more taxes and more different kinds of taxes. Who thinks 
of them, I don't know. 

The Government is becoming so great and complex that it is working 
a hardship on the people who have to support the Government. 
There are experts in these fields and they have to come up with 
solutitms, but I believe firmly that if we were represented — we who 
are in management — were represented by our accounting offices, 
you could get the story in a mighty complete form. 

Mr. McInarnay. Mr. F, you might have seen Senator Long on 
tele\nsion yesterday where he explained his program for simplifying 
income tax forms. As chairman of the Finance Committee and ^Wth 
his ability to get various legislative programs, I would say it stands 
a very good chance, and it will greatly simplify an individual's dif- 
ficulty in filling out income tax forms. 

Mr. I. It seems to me that if we had 10 or 15 businessmen — not 
career Government men — they might be able to come up \\'ith a 



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SMALL BUSINESS PROCUREMENT CONFERENCES 19 

lot of simplified ideas which would save the Government a lot of 
money in having to handle all these forms that have to be sent in. 

Mr. McInarnay. There is an advisory board on Federal reports 
made up of businessmen all over the country — 12 or 15 of them — 
which meet periodically with the Bureau of the Budget people. 
I assume they wnll be playing a more and more prominent role. 

Mr. I. I haven't any gripe as far as the Government is concerned. 
I don't think the Government is doing anything dishonest. It just 
gets bigger and bigger and they don't know what else to do but send 
out more reports. 

Mr. Wayne Thevenot. As of quite recently there is a great deal 
of work going on, not only in Congress, but in the executive branch 
to eliminate this. It is recognized as a tremendous problem. 

Mr. McInarnay. I haven't heard from Mr. A. Do you have 
anything to add? 

Mr. A. I am in an ambiguous position. We hire less than 500 
people. We are large in the amount of business we do. As far as 
profits go, we are a charitable organization. We are beset by all the 
ills outlined here todav and probably some I don't know of. 

We have legal counsd in 13 States and in Washington, D.C. When 
most of these things come up we refer it to accountants or legal 
counsel and go from there. What it costs us, I don't know. I 
think our comptroller figures 40 percent of our accounting procedure 
is keeping records for some Government agency, not omy Federal, 
but State and city in making out reports as these gentlemen have 
outlined. 

Mr. Wayne Thevenot: Mr. G. 

Mr. G. Are you people making this s^ving through the South and 
then there will be other people coming here later? 

Mr. Wayne Thevenot: This is more or less a pilot program to 
determine whether it will benefit the committee. It will possibly 
be expanded to cover representative communities throughout the 
country. It is an attempt to get the staff very close to the business- 
men and Ikten to them personally to ascertain what problems they 
have. 

It is difficult sitting at a desk in Washington to get a feel for what 

Problems the businessmen are having. We handle case after case. 
*hese are the unusual problems and we are familiar with those be- 
cause we handle them from day to day. But the feel of the business 
community is what we are trying to assay. 

We certainly appreciate you gentlemen taking the time to come 
here and give us a very candid view of your business situation and 
problems. 

Thank you very much. 

(Whereupon the meeting was adjourned at 3:30 p.m.) 



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TUESDAY, NOVEICBEB 16, 1965 

U.S. Senate, 
Select Committee on Small Business, 

Birmingham, Ala, 

The staflp conference met, pursuant to notice in the offices of the 
Chamber of Commerce Buildmg, at 1:30 p.m. 

Present: William T. Mclnamay, counsel, and E. Wayne Thevenot, 
professional staff member, Senate Small Business Conmiittee (pre- 
siding); and R. H. Bartlett, Chief, Financial Assistance Division, 
and J. C. Barksdale, loan specialist, of the Birmingham regional 
office, Small Business Administration; and E. Cary N^, department 
manager, Bbmingham Chamber of Commerce. 

Also present: J. L. Corley, Mrs. Gayle Roadruck, Dean Jemison, 
Alvin KJein, V. C. McNamee, Frank L. Salzmann, Jr., Carl Taylor, 
F. R. Hall, Oden Proctor, Hugh W. Mitchell, Frank P. Self, Forest M. 
Self, James B. Sykes. 

Mr. McInarnay. Wayne, do you want to start off by explaining 
our procedures and purposes to Mr. Corley and Mrs. Roadruck? 

Mr. Thevenot. As vou know, we represent the Senate Small 
Business Conamittee, which is charged with the responsibility of look- 
ing after the interest of small business in this country and to oversee 
those functions in the Federal Government that are set up to assist 
the small businessman. Senator John Sparkman of Alabama, as you 
know, is chairman of the Small Business Conunittee. He has instruct- 
ed the staff, rather than spend most of our time holding hearings in 
Washington, to get out and talk to small business people themselves 
in order to get as closely as possible a feeling for their problems and to 
solicit recommendations from them. The areas we are primarily in- 
terested in are Government procurement, both prime contracting and 
subcontracting, and the small businessman's problems arising out of 
requirements that the Federal Government places on them, such as 
the reports required from the Bureau of the Census, wage and hour 
laws, and the internal Revenue Service, this type of thing. 

We are taking a tour through the South right now and have been 
to Shreveport, La. Birmingham is our second stop. We are going 
on to Jacl^onviUe for a meetmg with representatives of small business. 
Our object is to listen to your problems and try to elicit suggestions 
from you as the basis for our future efforts on the committee. 

Mr. McInabnay. I think it might be worthy to note that the type 
of things that you bring up we will consider as representative of small 
businessmen's problems all over the country. This is in the nature 
of apilot project. 

We think what you have to say is terribly important, and even 
though you might both bring up the same thing, that woula be impor- 
tant to us because it would indicate some breadth to the problems you 

21 



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22 SMALL BUSINESS PROCUREMENT CONFERENCES 

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sa raise. We also solicit your recommendations on any particulai sub- 

ject you bring up, because these, too, would be important for us to 

re consider. 

dc I think perhaps first we might ask Mr. Corley to just tell us what 

kind of business you are in. 

sn 

STATEMENT OF J. I. CORIEY, SOUTHERN PRECISION. INC., 

he BIRMINGHAM, ALA. 

ar 

"■ Mr. CoRLEY. We are in a jobbing pattern business which was estab- 

lished 20 years ago this month. We started out as a three-man part- 
nership and grew reasonably. I would say inside of 6 months we 
had a 12-man operation. That type of pattern work that we started 
doing was primarily metal patterns. There were jobbing pattern jobs 
in this locality that we are doing woodwork, but practically all, I 
would say more than 90 percent of all of the metal patterns that are 
being used in this area were being made in other localities, around the 
Cleveland or St. Ix)uis area or Cincinnati or somewhere in that area, 
so it left the field pretty well open for us. 

We encountered, of course, growing pains throughout the years. 
We now have an operation employing 73. I understand that the 
small business is considered 500 or under. 

Mr. Thevenot. It is diiferent for different ty^pes of businesses. 

Mr. CoRLEY. Yes, sir. Well, we currently are probably about 
the fourth largest jobbing pattern shop in the United States. We 
do business in about 23 States. 

We do about 10 percent of our business in the State of Alabama, 
about 20 percent in Texas, about 20 percent in Tennessee, and we do 
about close to 10 percent out in Caliiomia. 

It is primarily where there are large foundry areas that we do our 
principal business. 

In recent years, we have been doing probably half of the business 
that we do in the State of Alabama with Hayes Aircraft, which com- 
prises roughly 3 to 6 percent of our total business with Hayes Aircraft, 
and this year I anticipate it might rim as high as 10 percent. 

Mr. McInarnay. Tnis would put you in the category of defense 
subcontractor, then, with the Government work? 

Mr. CoRLEY. Yes, sir. We have supplied castings to Hayes- 
HuntsviUe branch. We supply some pattern equipment and castings 
to the Chrysler Corp., and others who are doing subwork up in the 
arsenal. 

We have done some work from time to time for the arsenal. 

The comment I had in mind was difiFerentiating between Hayes- 
Birmingham and Hayes-Huntsville. It is Hayes International. We 
have no associations or dealings with other branches other than the 
Huntsville branch and the local modification center here in Bir- 
mingham. 

Mr. McInarnay. Now, that more or less summarizes the business 
you are in? 

Mr. CoRLEY. Yes, sir; we are primarily producing patterns, cast- 
ings and machining operations, and sometimes submachining for 
Hayes International. 

Mr. McInarnay. Do you do any work directly for the Govern- 
ment? 



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SMALL BUSINESS PROCUREMENT CONFERENCES 23 

Mr. CoRLEY. We seldom have any opportunity to quote on them 
directly. 

Mr. McInarnay. Can you think of anything in any area that you 
would want to comment on? 

If not, Mrs. Roadruck, woidd you give us a brief summary of the 
type of business that you are in and who you do business witn. 

STATEMENT OF MBS. GATLE ROADBUCE, ROADRUCK TOOL CO., 
GUNTERSVILLE, ALA. 

Mrs. Roadruck. We are in the machine shop business manufac- 
turing custom-made metal parts and automated machinery, mostly 
prototype work, 

We have been in business here in Alabama for 7% years. 

Mr. McInarnay. How many employees do vou have? 

Mrs. Roadruck. We have 10 right now, and this hinges on part of 
our trouble. It goes up and down so. It fluctuates so. 

Mr. Thevenot. Most of it is prototype work? 

Mrs. Roadruck. Yes, sir, and 4 months out of the year we may have 
20 people work and then, boom, in 2 months we are without work and 
they leave our area and go elsewhere and it is hard to get them back. 

Mr. Thevenot. These are skilled employees? 

Mrs. Roadruck. SkiUed help. We use all skilled help and assembly 
help. Assembly help is very easy to get and very easy to train in our 
area. We do business with prime contractors in approximately six 
States. Ten percent of our business is out of the missile and rocket 
industry. About 90 percent of it is Government, subcontract work. 

Mr. McInarnay. Now, Mr. Corley, if you would begin just to tell 
us in your own words any particular things that you would like to 
touch upon. We welcome hearing from you. 

Mr. Corley. Having very limited experience with any of the 
Government agencies other than through Hayes International and the 
others I have mentioned, I really don't know just what would be 
feasible. 

We, once in a while, have inqiuries from, say, TVA, or some other 
Government agency, and when you speak of problems, one of the 
biggest problems there is that we have encountered when we have 
these inquiries, there is a multitude of papei*work to fill out and it 
just looks like a lot more stipulations than would be worth the while 
to try to get into to get Government contracts direct. 

Now, we have excefient associations with Hayes International. 
They need something and they call us in and we quote on it and we 
are able to work with a local organization and in the procurement 
division and also the engineering division, and, of course, being here 
locally and doing most of our work for the Birmingham center, it 
means that probably at least 90 percent of all of the work that we 
do that goes into the defense effort is through Hayes International. 

\Ir. McInarnay. So that you find that for your business at least 
it is better to deal at the subcontract level, remain at the subcontract 
level rather than to 

Mr. Corley. I would feel definitely that way. At the present, 
just about 2 or 3 weeks ago, we had an inquiry from TVA asking 
for a quote on a pattern. They gave us no indication as to how 
much usage was going to be expected, who woidd make the castings, 



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or what type of pattern equipment was needed, whether it would be 
re for 1 casting or 50, or anything of that sort. 

dc Mr. Thevengt. There were just inadequate specifications to enable 

you to make a responsive proposal? 
sn Mr. CoRLEY. Yes, sir; and about four or five different pages to be 

filled out in triplicate along with this inquiry just for one pattern. 

h£ Mr. McInarnay. I would be interested to know whether, as a 

ar result of your extensive experience as a contractor, and your somewhat 

~ Umited, and I take it, unhappy experience in dealing directly with 

Government agencies, if you nave any recommendations as to how 

the Federal Government, the executive agencies that procure, for 

example, TVA, and the Army, etc., anjrthing they might learn from 

the subcontractor that could be appUed in deaUng directly with these 

smaller businessmen. 

Mr. Thevengt. Perhaps, in the working relationship that you 
have with prime contractors as opposed to dealing directly with 
the Government. 

Mr. Cgrley. Well, just use this TVA inquiry for an example. 
They were specifying a nihard casting. That is a trade name for a 
type of casting that is very brazen resistant, and I know of one 
foundry in this locality that makes that kind of metal. It is Thomas 
Foundry. 

I called them to find out if they had had any inquiry for the casting, 
because it is quite important many times when you are quoting on 
pattern equipment to know who is going to run the casting. 

Different foundries will have their preferences about types of pattern 
equipment, and I called them and they said that they had not had an 
inqmry, that in recent years they had found so much red tape to 
making the quotes that it didn't really concern them whether they 
got the inquiry or not, but if they did get it, they would be glad to 
cooperate with me and teU me what type of pattern equipment they 
would prefer if they got the casting. 

I wound up caUing two or three others I thought might be prospects, 
and I didn't find anyone that was particularly interested in getting 
the inquiry for that reason, the same tvpe of reason. 

Mr. McInarnay. Are there any other areas of concern that you 
would like to mention? 

Mr. Cgrley. I don't think of any in particular right now. I 
would be glad to answer any questions you might have. Our time 
is getting dose on the half hour. Perhaps Mrs. Roadruck should 

Mr. McInarnay. Mrs. Roadruck, how about you? Could you 
give us the benefit of your views on this? 

Mrs. Roadruck. On subcontracting? 

Mr. McInarnay. On that or any other aspect of doing business 
as a small business. 

Mrs. Roadruck. Well, we have done them on about three prime 
contracts, and the paperwork was thick, but we had a lot of help from 
the ordnance on tne packaging and the DD-250's, etc., and we got 
through it just fine, but then we got nothing else to bid on, and when 
we went to Atlanta to a — ^it was some kind of a meeting where they had 
a lot of forms to fill out to do contracting, and we were encouraged to 
do this by Mr. Turbeville in Atlanta, head of Decast, and everything 
that we got to bid on after all of these extensive forms we filled out 
were too large for our shop. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 25 

There are page after page of things that you are supposed to cross 
that your shop can do. We never ^ot anything to bid on in our capac- 
ity. It was always over our capacity, or 

Mr. Thbvenot. Over your capacity? 

Mrs. BoADRUCK. In size of machinery. 

Mr. Thevenot. You could have handled a smaller portion of the 
same? 

Mrs. RoADRUCK. Oh, yes, and then there was a fact I was going to 
mention just now, and I forgot what it was. 

Mr. Thevenot. The i)aperwork you are talking about is required in 
order to be put on the bidder's list? 

Mrs. RoADRucK. Yes, sir; in order to get on the bidder's list, you 
have hours and hours of work on every prociuing office, and, as I said, 
when jrou do get something to bid on, the paperwork is so thick to 
bid on it and most of it that we have gotten, all of it has been too large 
for us, but almost all of it someone dse already owns the tooUng and, 
therefore, your bid would be out of line completely, so why ml out 
the bid when it is obvious that expensive toohng is held by someone 
else, so we find that subcontracting for Hayes International, as for 
Thiokol, is simplified for us because they mow and they have our 
machinerv list just like we presented it to aU of the ordnances, but 
they send us prints to quote on within our limit of machinery. 

Mr. Thevenot. You have to make out separate reports for each 
ordnance? 

Mrs. RoADRUCK. Yes, sir, for every Air Force base. 

Mr. Thevenot. This could be coordinated, vou think? 

Mrs. RoADRUCK. Yes, sir. I have had not less than one dozen 
applications. 

Mr. Thevenot. Is this vour suggestion? 

Mrs. RoADRucK. Yes, tJaat it be combined into one, and whatever 
is marked on those pages should be adhered to. 

Mr. Thevenot. You are, of course, talking about one Federal 
Government? 

Mrs. RoADRUCK. Yes, sir; that is true, but it is not combined 
into one and then if they would observe after they are filled out what 
you mark on there and send you what you could quote on, it would 
save a lot of time for the procurements, too. 

Mr. McInarnay. Do you have any indication that there is work 
to be done in the area that you are qualified to perform that you are 
not getting an opportunity to bid on? 

Mrs. RoADRUCK. Yes, sir. 

Mr. Thevenot. With the people to whom you have given infor- 
mation about your company? 

Mrs. RoADRUCK. Yes, sir. 

Mr. Thevenot. You are not being invited to bid on projects? 

Mrs. RoADRucK. Yes, sir. 

Mr. Thevenot. You are a known subcontractor and a known pro- 
ducer in this fidd? 

Mrs. RoADRUCK. Yes, sir, that is right. We have had visitors, 
you know, like Mr. TurbeviUe from the Air Force. We have had 
several surveys from various sources and we have been encouraged to 
find these things. We weren't really interested, but they insisted 
that we turn in our information. 



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Mr. Thevenot. Very often when you are asked to do it you would 

^ be asked to bid on contracts beyond your capacity? 

d^ Mrs. RoADRucK. Beyond the size of our machinery, yes, that is 

true. We get between 25 and 50 percent of all our business from 

®" Hayes-Birmingham and Hayes-Hunts ville, and the balance of it 

comes from otner places. 
*^^ The only customer that we have in the commercial line is Goodyear 

*f for automating machinery, and, as I said, our help goes from around 

25 down to 10 and sometimes it goes down to 5 when we do not 
get enough to bid on, and we are competitive, qualified, and passed 
all of the surveys. 

Mr. McInarnay. Is there any other area in Government contract- 
ing that either you or Mr. Corley want to touch upon? 

Mrs. RoADRucK. We do not get enough of it to know. We had 
two or three small prime contracts and filled them, and this was 
several years ago and never have gotten any more, and this came out 
of the Birmingham procurement before it was dissolved. 

Mr. Thevenot. And most of your competitors in tliis field are 
in the small-business category? 

Mrs. RoADRUCK. Yes, sir. 

Mr. McInarnay. What procurement oflBces are letting contracts 
for your type of work? 

Mrs. RoADRUCK. We have made application to Detroit — diet's see, 
what is the name of it? They use this — it is not Detroit Ordnance. 
It is in Detroit, Mich. It is in the Army. 

Mr. Thevenot. Army Ordnance? 

Mrs. RoADRUCK. It is an ordnance and then Middletown Air Force 
Base, and Warner Robbins and then in Atlanta with Mr. Turbeville. 

Mr. McInarnay. What is the name of that office; do you know? 

Mrs. RoADRUCK. Yes, sir. It is the Air Force. It was changed 
last February. They have seven States under them now. 

Mr. McInarnay. Defense Contract Administration Service? 

Mrs. RoADRUCK. Yes, sir. I cannot remember the exact name of 
the office, that they come out of. 

Mr. McInarnay. We will be glad to take up this point with the var- 
ious offices you mentioned, the military services, and see why you have 
not been receiving bids. 

Mrs. RoADRUCK. Bids within our range. 

Mr. McInarnay. Right. Now, is there any other area that con- 
cerns you generally as a small business that you would like to bring up? 

Mr. Thevenot. Are there problems in the way of requirements put 
on you by the Federal Government for reporting, for instance, with the 
Census Bureau or Internal Revenue vService or wage and hour laws? 

Mrs. RoADRUCK. Do you mean by this census that 

Mr. Thevenot. Part of their survey of business. 

Mrs. RoADRUCK. It is once a year, isn't it? 

Mr. Thevenot. In some cases. In some cases, they ask for a 
little more information, depending on what the size and what the 
type of business you run. 

Mrs. RoADRucK. I just wonder if that is the form I am thinking of, 
but I don't like it. 

Mr. Thevenot. In previous conferences, we have had a good deal 
of discussion of wliat was considered by small-business people to be 
excessive paperwork and excessive reports requu*ed by the Govern- 
ment. I just wondered if you had a comment on that? 



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SMALL BUSINESS PROCUREMENT CONFERENCES 27 

Mrs. RoADRucK. I don't have any complaint about anything except 
the paperwork that is just less, and Uke quoting on things that you 
know you are not going to get. 

Mr. Thbvbnot. But this is on bids and specifications and this type 
of thing? 
Mrs. RoADRucK. Yes, sir. 

Mr. Thevenot. Mr. Coriey, do you have any comments on this? 
Mr. CoRLEY. Well, we have grown up sort of getting used to this 
sort of thing. They have come on gradually over a period of 20 years; 
and when something new comes along, we have an ofiBce manager 
who is a pretty well qualified auditor. We send him to New Orleans 
once a year down to the seminar they have regarding the new regula- 
tions, and things of that sort. 

He handles most of that sort of thing, and I have not heard any 
new complaints in that field. It is just one of those things that I 
guess it is necessary to a large extent in helping to make sure that 
everybody pays their fair share to help finance the tremendous load 
that is being carried with the Federal Government nowadays. 

Mr. McInarnay. Do you speak of the seminar in New Orleans, 
the Internal Revenue Service? 
Mr. CoRLEY. Yes, sir. 

Mr. McInarnay. Well, we want to thank you both very much for 
coming and expressing your views and helping us to estaolish a rec- 
ord here to be taken back to Washington. 

Mr. Thevenot. You have been very helpful in giving us an idea 
of where the thrust of our effort in the committee should be in the 
coming months. 

Mr. CoRLEY. I am just wondering, if it is not too personal, has 
your company ever applied for a small business loan? 
Mrs. RoADRucK. No. 

Mr. CoRLEY. We have not, either. We considered it one time, 
and we felt like that the amoimt of information required and perhaps 
some of the possible restrictions didn't warrant it. 

We have been able to establish satisfactory credit with a local banking 
agency to be able to meet all our working capital needs, and I just 
wondered, you were asking about problems in particular. The big- 
gest complaint that I ever heard about in the Small Business Admini- 
stration is the loans when you got this to them, it seems like unduly 
restrictive and we considered it one time and we decided that unless 
it became necessary, that we just felt like that would not be the 
proper way to try to finance the expansion we had in mind. 

Mr. Thevenot. Are you referring to the amount of justification 
or collateral you had to provide in order to get a loan? 

Mr. CoRLEY. I think we have done that already. It seemed that 
the amount of information of the follow-up would have been consid- 
erably^ more for the Administration than it would have been for local 
bankmg facilities. We have had them ranging up as high as $92,000 
with local banking at times, and I am sure that some small businesses 
would not be able to satisfy banking a lot of times where a Small 
Business Administration can feel justified when they go to the extreme 
Umits of getting this information, but that has not been a real personal 
problem with us. That is just by way of comment. 

Mr. McInarnay. Do you have any particular thing that you 
would like to discuss about that? Mr. Bartlett is in charge of the 

5S-119~66 3 



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Financial Assistance Division of the local Small Business Administra- 
re tion Office and is here with us today. 

d€ Mr. Thevenot. I am sure they would be very glad to help you in 

the future, should you h^ve any problems. 

sn Mr. CoRLEY. We hope so. Our business is all locally owned and all 

six stockholders are active in the business, and we have tried to be 

h€ conservative in keeping within our range, you know, to where it has not 

ar been necessary to get bailed out by the Small Business Administration. 

There are some businesses who have tried to expand too fast. 

Mr. Thevenot. Mrs. Roadruck, have you gone to the Small Busi- 
ness Administration in an effort to be put on ihe bidding list? 

Mrs. RoADRUcK. No. 

Mr. Thevenot. You know they have a very active program in this 
Une. They will 

Mrs. RoADRUCK. I didn't know that. 

Mr. Thevenot. They can provide a great deal of assistance when 
you are seeking out new markets for your business, and I am sure they 
could be of great benefit to you. 

Mrs. RoADRUCK. Where would you contact them? 

Mr. Thevenot. I am sure Mr. feartlett could give you an idea. 

Mr. McInarnay. Where is your office located, Mr. Bartlett? 

Mr. Bartlett. 2030 First Avenue North, in Birmingham. 

Mr. Thevenot. I am sure they could have been of assistance to 
you. You might want to comment on that. 

Mr. Bartlett. Mr. Jim Allen is our procurement manager and 
assistant representative. He is the one you would get in touch with. 
Any problem you have in this area, he would be of assistance to you. 

We win work with you in the Financial Assistance Division on any 
of your financial problems to see if we can be of assistance to you in 
that way. 

Now, I would suggest that you drop us a line to tell us what your 
problems are, whether you are interested in a loan, either visit with 
us or write to us and tell us whether jrou are interested in a loan or in 
contract assistance or both, and we will be glad to furnish you with the 
information on both of them. 

Mrs. RoADRUCK. Fine. 

Mr. Bartlett. I will say this: That our loan program has been 
considerably streamlined. In fact, it has been streamlined to the 
extent now that we are out of monev. 

The only way we can consider a loan at the present time is on our 
loan guarantee program. If a bank will participate with us on our 
loan guarantee program, then we can accept an application, but in the 
meanwhile, we would be glad to discuss your financial situation with 
you and to see if we can be of service to you in locating funds through 
private enterprise, through small business investment companies, or 
other sources. 

Mr. McInarnay. I think our time is about up. 1 want to thank 
you again for coming. 

(Whereupon, Mr. Corley and Mrs. Roadruck were excused.) 

Mr. McInarnay. Gentlemen, I see that they have scheduled us so 
tightly, and to keep the schedule, we may not be able to cover as 
much as we would like. We are goin^ to be here, I suppose, at least 
until 4:30, or so, and you can stay as long as you like. We will be in 
town until 10:30 tonight, so if you have anything that you would 



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SMALL BUSINESS PROCUREMENT CONFERENCES 29 

like to discuss further after this little brief session here, we will be 
glad to talk with you. 

Let me just say veiy briefly that Senator Sparkman, as you know, 
13 chairman of the Small Business Committee. We are both staff 
memb»:s — Mr. Thevenot and myself. Senator wSparkman asked us to 
come down. We have been to Shreveport, La., we are in Birmingham 
today, and on Thursday, we will be in Jacksonville, Fla., meeting 
with small businessmen. The conference in each instance is being 
set up by the chamber of commerce in each community. 

Our purpose is to get down and talk to the businessmen in their 
own town and to learn directly from them anything that they may 
have on their mind in the problems that arise as a result of doing 
business directly with the Government or as a subcontractor, or in 
any particular problem that might arise in your business as a result 
of requirements imposed upon you by the Federal Government, so 
with that I think I will start with Mr. Jemison. 

Will you briefly tell us the nature of your business, who you do 
business with, the number of employees you have, and then perhaps 
we might hear from you as to any points you particularly want to 
comment on. 

STATEMENT OF BEAN JEMISON, LTNN MACHINE & MANUFAC- 
TURING CO., BIBMINGHAM, AIA. 

Mr. Jemison. Primarily, we are a small business, of course, and 
95 percent of our work is Government subcontract work. We sub- 
contract from Hayes here in Birmingham. 

We contract from the Engel Shipbuilding Corp. in Pascagoula, 
Miss., and also from Defoe Shipbuilding, Avondale Shipyards, pri- 
marily as Government subcontractors. 

We employ about 25 people, including out staff, overhead, etc. 

At the present time, I have no questions until we get further into 
this thing about finances, etc. We find that our biggest problem is 
the technical end, meeting the Government specifications for require- 
ments such as material, etc. 

This is our biggest problem. Sometimes this problem creates a 
financial problem, but if you stay at it long enough everything irons 
itself out. 

Mr. McInarnat. Is this where you attempt to do business directly 
with the Government or in your subcontracts? 

Mr. Jemison. Just in subcontracts, primarily with Engel's. 

Mr. McInarnay. But these requirements are placed upon you not 
by the prime contractor but by the Grovemment; is that correct? 

Mr. Jemison. Yes, sir. In order to sell it to the Government, 
and I speak of a nuclear-powered submarine, for instance, which is 
naturallv for the Government, and the requirements on this thing is 
extremely strict. 

Lots of times material is rejected just for being, say, 1 percent, 
the chemical analysis being 1 percent off, such as too high in one 
particular content, zinc, and what have you. 

This is our biggest problem, and, of course, this creates financial 
problems sometimes. 

Mr. Thevenot. Your feeling is that these specifications are over- 
drawn for their intended use. 



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Mr. Jemison. I wouldn't say that they are overdrawn. I would 
re say that they have multiplied 10 percent, or I would say 10 times since 

dc the Thresher went down. I think this has created a problem. 

Of course, it may be a justified problem. I am sure it is, but, 
sn nevertheless, we are stuck with it. We are not stuck with it. We 

quote on the work and we expect to do the work according to the 
h£ specifications. 

at Mr. Thevenot. Do you find the specifications clearly enough 

"■ drawn so that they are sufficiently easy to understand? 

Mr. Jemison. If you can acquire the specifications they are there. 
Sometimes they are not as easy to get as you might like them to be. 
For instance, we had an ordnance group down here in town. 

Mr. Thevenot. This was prior to your bid? 

Mr. Jemison. At any time. You could caU down there and you 
could call ordnance down here in town and ask for a certain militarv 
specification on any particular item, anything, welding, material, 
packing, shipping, anything that you wanted to know. 

Now, they have cut that out. i ou have to go directly to the Naval 
Depot in Philadelphia, Pa., to get it. 

Mr. Thevenot. Are these security items? 

Mr. Jemison. No, not security items. This is anyone, any contrac- 
tor can get it, provided he has a contract number, Grovemment con- 
tract number. 

Mr. Thevenot. They are slow in coming, or don't come at all? 

Mr. Jemison. Well, they are not, you might — I wouldn't say they 
were slow. You have to go to Philadelphia for it, but it was right here 
on hand, you see, downtown where we could get it the next day through 
the mail or we could go down and pick it up immediately. 

Mr. Thevenot. But the Engel organization moved it to Philadel- 
phia? 

Mr. Jemison. Now you have to go to Philadelphia to get the speci- 
fications. 

Mr. McInarnay. I think for the time being perhaps we will move 
on to Mr. Klein and then come back. 

STATEMENT OF ALVIN KLEIN, STEEL COT CORP., 
BIRMINGHAM, ALA. 

Mr. Klein. All right. Steel Cot Corp. is a metal fabricating and 
assembly organization. We press metal, stamp metal parts, and as- 
semble, weld, et cetera, making either subassemblies or complete 
assemblies. 

We are a small business ranging in the neighborhood of 10 to 25 
people, depending on the volume of work. 

We have some products of our own that I would say are subcon- 
tract work, probably consists of 75 percent of our business. 

We have not been able to obtain any prime contract work for a 
number of reasons. The removal of the Bu'mingham Ordnance Dis- 
trict Ls a hardship on us locally, but generally we don't get a chance 
to bid on too much. 

We probably don't have our application forms into enough agen- 
cies, wliich we will try to take care of by sending them to the local 
office. I didn't realize that they had that phase of their work to 
help us along that line. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 31 

We have no particular problem in our subcontract work at all. I 
think everything is going along smoothly there. 

Mr. McInarnay. I might mention that in addition to working 
with the local Small Business Administration office which we would 
encourage you to do, you can also write directly to Senator Sparkman 
and he will contact the offices and see that you are placed on all of 
the bidder^s lists. 

Mr. Thevenot. We on the committee have very close contact 
with all branches of the armed services, and with all civilian branches. 
We can find out through them very quickly who is buying your type 
item. 

Mr. McInarnay. And have them contact you directly and see 
that 3^ou are put on the bidding list for these items. 

Mr. Klein. We would write to the Senator directly? 

Mr. Thevenot. Write to Senator Sparkman, chairman of the 
Small Business Committee. 

Mr. Klein. Most of oiu- subcontract work has been with HaA-es 
locally and we find that their engineering department and all phases of 
their operation very easy to work with. In other words, we shortcut 
all of these difficulties we would have on a prime contract by working 
through them. 

Mr. McInarnay. They are the ones that have the burden of deal- 
ing directly mth the Government, which is the heavy responsibility 
off your shoulders. 

Mr. Klein. Yes, sir; very true. 

Mr. McInarnay. Mr. McNamee. 

STATEMENT OF V. G. McNAMEE, SGHWACHA MACHINE CO., 

BRIGHTON, ALA. 

Mr. McNamee. Well, Schwacha Machine Co. is primarily a tool 
and die shop and we do a certain amount of subcontract work. 
As Mr. Klein says, we prefer to work with people like Hayas. We 
are so small — we only have seven employees, so we don^t have a staff 
to go through these specifications, packing specifications, material 
specifications, et cetera. Fifty percent of our business is subcontract 
work for variotis prime contractors with governmental agencies, and 
50 percent would be ci\Than work. 

As I say, you know it, we couldn't, when we find out the require- 
ments, and aU that, and then consequently we do business through 
Hayes and they assume all of that burden, and that is about it. 
Of coiu^e, there is one thing. I don't know whether Senator Spark- 
man is on to it or not, but I remember the National Association of 
Independent Businesses. They worked very closely with the Senator 
and I have got one thing there that would be extremely beneficial 
to small busmesses, such as myself, and that is stopping some of 
the paperwork that we have to do in connection with the pavrolls. 

I think that one annual report — well, the W-2 instead of the 
quarterly returns. I mean, you are paying money every month on 
withholding taxes, and every 3 months, and in my case it is me 
making the return for the quarter, and then you have to balance it 
out at the end of the year anvway, so why not do it just once. 

Mr. McInarnay. This is form 941, social security? 



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32 SMALL BUSINESS PROCUREliENT CONFERENCES 

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^^ Mr. McNambe. Social security and withholdiae taxes and quar- 

terly returns, and then the W-2 forms and the find recapitulation at 
^ the end of the year. That would cut out 76 percent of our paper- 

^^ work. 

Mr. Thevenot. Once a year, is this the major 

^" Mr. McNamee. It is sometlung that has been brought up and it is 

in my mind. 
'^^ I don't believe that the census comes once a year. It took an 

^f accountant to help me fill that out. As I say, you balance your taxes 

and you pay the Government your money every month. 

I don't see the need or necessity for a quarterly return. 

Mr. McInarnay. I think the riational Federation of Independent 
Businessmen did a survey. You might have gotten a copy of that 
and the other people recommended that this form 

Mr. McNambe. Actually, I didn't think it up mjself. That is 
where it came from, and I know Mr. Burger in Washmgton and Mr. 
Harder in Calif omia are very doeely working with the Senator on that. 

Mr. McInarnay. Mr. Geoi^e Burger I know very well. 

Mr. Thevenot. There is a great deal of effort ffoing on in the 
Congress and in the executive department now to do whatever can 
be done about eliminating some of these problems and shortcutting 
this papen\ ork requirement. A great deal of progress has been made 
and I hope there will be a great deal more. 

Mr. McNamee. That is one thing I was thinking about. As I say, 
it is something I have to do myself, so I am in favor of stopping it if 
I can. 

Mr. McInarnay. Is there any other particular area that may not 
concern you so much as a Government subcontractor, but just as a 
small busiuessman that you would like to bring up? 

Mr. McNamee. Well, another thing that irks me — to put it that 
way, and I am sure it does everybody else — tlus is not at the national 
level, but this is at the State and municipal level. 

All of these various and sundry sales taxes and where you are doing 
busiaess in one State and according to yom* terms of delivery, while 
you are doing business in, say, an adjacent State here and you wind 
up later on and find out that you are responsible for a sales tax in a 
different State because the product was delivered f.o.b. delivery rather 
than f.o.b. point of manufacture. 

Mr. Thevenot. Mr. Jemison, you mentioned something about 
financing that you would like to discuss. 

Do you have a^ comment on that? 

Mr. Jemison. Well, not really. We have found Engel's to be 
extremely helpful in cases of financing a large contract. 

Mr. Thevenot. Engel's? 

Mr. Jemison. Engel's Shipbuilding in Pascagoula. For instance, 
when we have a job, say, $100,000 job, the material alone runs $25,000 
or $30,000. 

We have foi&id Engel's to be more than helpful in purchasing the 
castings. In other words, we place the order with the company and 
Engel's will send a check payable to us, and this companv for these 
castings which reUeves us considerably on the financial end of buying 
and piu*chasii^ all of this material. 

Most of it is a nonferrous and very expensive material, but like I 
say, they have been very helpful and, of course, Hayes Aircraft 
furnishes their own material. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 33 

Mr. Thbvbnot. Helpful with advance payments on your contract? 

Mr. Jemison. It is possible, but we never have delved into that. 
Advanced payment is possible. Hayes, for instance, they will furnish 
their own material. 

Therefore, you do not have to worry about chemical and physical 
analysis, material, and specifications, and so forth. About tne only 
thijig they require is that you send them a certificate of compUance 
saying the material they sent you is the exact material that you used 
to accomphsh a certain job. 

Mr. Thevbnot. This reUeves you? 

Mr. Jemison. Yes, sir, any material, like I say, is usually a special 
material. When you are dealing with the Government, it is — 95 
percent of it is a special material. 

Mr. Thbvbnot. Do you have diflBculty in securing this type of 
material? 

Mr. Jemison. Sometimes you do, especially in small (quantities. 
Sometimes it is almost impossible to buy a certain material m a small 
quantity. Sometimes you might — sometimes you need 5 pounds of 
a certain material and they want a 500-pound mill nm to produce this 
material. In other words, the mill is set up to make this particular 
material to a certain specification for 500 pounds, but we really don't 
have any problems as long as we are dealing with Hayes on this, 
because they furnish their own material, and Engel's, like I sajr, will 
help you out financially if you need to purchase a large quantity, a 
large amount of material. 

Of coiurse, process payment is possible if it becomes necessary, but 
we have never tried it. 

Mr. Thbvbnot. Have you ever had occasion to go to the Small 
Business Administration for a loan? 

Mr. Jemison. No, sir, I don't think so. 

Mr. McInarnat. Is there any other area that any of you gentlemen 
would like to touch upon? 

Mr. Klein. I would like to ask one question. This is something 
that is a personal business problem. 

We have been trying to get some space in the Childersburg Ord- 
nance Works which is under the Corps of Engineers out of Mobile, 
and we had a negotiation going on on a building which we wanted ana 
need very badly and all of a sudden we find out that whole thing 
was tied up under some sort of a verbal option or something or some- 
body was apparently trying to put a chemical plant together and 
sell it down tnere. 

We were wondering, my company was wondering whether the 
Senator would have any influence in finding out whether or not a 
building can be pulled out of that thine for the use of a small business 
company, such as our own, or would this be out of his realm? 

Mr. McInarnat. I think very definitel5^ he could find out that 
information for you. I will recommend if it isn't too much trouble 
for you if you would drop him a letter. Would you do this? 

Mr. Klein. I would. 

Mr. McInarnay. Write him directly and explain precisely what it 
is you want to know and he will find out for you. 

Mr. Klein. Thank you. I hate to bother him. 

I think a meeting like this is really a help to small businesses, for 
example, not Imowing that the local office had the facilities to help us 



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34 SMALL BUSINESS PROCUREMENT CONFERENCES 



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in obtaining work to bid on. This is something we should have 
known. 

Mr. Thevenot. The Small Business Administration offers a veiy 
j° wide variety of services to the small businessman, and I think their 

services are probably not \videly enough known. For instance, there 
is the loan program, the loan guarantee program, and other financial 
assistance programs. There is help available to small businesses in 
i^ getting on bidding lists and finding markets for their products. There 

IS also technical and managerial assistance. 
- This can be very helpful to the small businessman. The Small 

Business Administration has experts in just about every field, who wiR 
come into your shop and give you an analysis of what they consider to 
be your problem and suggest possible solutions. 

I would suggest that you take any problems you have to the Small 
Business local office and if they don't nave the answer there, they can 
find it for you. They can be a great deal of assistance to you. 

Mr. McInarnay. Do you have that address? 

Mr. Klein. Yes, sir; I have it. 

Mr. McInarnay. Well, we want to thank each of you for coming 
and giving us the benefit of yoiu: views, and if at any time you have 
any problems that arise in connection with your relations with either 
the Government contractor or any other aspect of the Federal Gov- 
ernment and which the Federal Government is involved in, don't 
hesitate to vmte to the Senator. I don't want you to feel that you 
don't want to bother him, because that is what he feels he is there for 
and if we can help you, we certainly wall. 

Thank you so much. 

(Whereupon, Mr. Jemison, Mr. Klein, and Mr. NcNamee were 
excused.) 

Mr. McInarnay. I have a report just handed me from Mr. Oden 
Proctor, director of procurement for Hayes International Corp. of 
Birmingham — a report on the period from January to September of 
1965 — which indicates that the total number of purchase orders made 
dm-ing that period was 46,620, for a total value of $14,774,239. 
. The number of purchase orders, out of the total, that went to small 
businesses was 37,803, or 83.2 percent. 

As to dollar value, the amoimt that went to small businesses was 
$8,910,487, or 60.3 percent of total doUar value of their subcontracts, 
which by tlie way, is a very fine record in anyone's book for small 
business programs. 

I think the record might indicate that Mr. Oden Proctor, the director 
of procurement for Hayes International, is in the conference. 

Mr. Salzmann, would you begin by giving us an indication of the 
type of business you are in, how many people you employ, and who 
you do business with, and then go right into, if you will, any particular 
area you would like to cover. 

STATEMENT OF FRANK L. SALZMANN, JR., MANAGER, 
UTILITY TOOL CO., BIRMINGHAM, ALA. 

Mr. Salzmann. Well, I have a machine shop, fabricating shop, and 
I employ approximately 20 people. I have been doing business ^^-ith 
Haves International, Fontame, Parker, Aircraft, Gulf States Paper, 
and miscellaneous companies aromid town. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 35 

Mr. Thevenot. How many people do you employ, Mr. Salzmann? 

Mr, Salzmann. Twenty; it is actually between 20 and 22. It 
varies in that area. It has just been built up. I started in June and 
I have been building up since then. 

Mr. McInarnay. You started the business in June? 

Mr. Salzmann. Yes, sir. I have been doing a lot of Hayes Inter- 
national bidding and getting some and not getting some, but that is 
normal. 

Mr. McInarnay. Is there any particxdar thing you would like to 
cover, any particular area? 

Mr. Salzmann. No. The only point I have tried to get in with, 
I would sav, is the small business end of Redstone, and I have put 
in about — 1 would say about 12 or 15 bids and I have not heard whether 
I have got any or didn't get any, or anything, so it is a little dis- 
heartening when you do not hear, so that is about aU I could say. My 
business has been very good. 

Mr. Thevenot. Are you being offered an opportunity to bid on the 
Redstone Arsenal projects as often as you think you should. 

Mr. Salzmann. I think about — well, I was trying to get in up 
there, trying to get forms and all for that and get them out right and 
think that is as big a problem as any. When they were down here at 
the fair, I had about 14 items I bid on. 

Mr. Thevenot. This is on prime contracts? 

Mr. Salzmann. I have not heard whether I got them or didn't 
get them, or kiss my foot or what. Maybe they don't answer back. 

Mr. McInarnay. Do you know Jeff Darwin up there? 

Mr. Salzmann. No. 

Mr. McInarnay. Jeff Darwin is in charge of small business in the 
Redstone Arsenal and can be very helpful to you. 

Mr. Salzmann. I went out here at the Small Business Office and 
they gave me some forms and I found out through Redstone that 
they are not the right forms, that I have to get another set. What 
was his name? 

Mr. McInarnay. You should contact Jeff Darwin. He is an 
employee of the U.S. Army. He is a small business specialist in the 
Department of the Army at Redstone Arsenal. 

Mr. Salzmann. OK. 

Mr. McInarnay. He has been active a long time and knows an 
awful lot about it, and I think he could help you. 

Mr. SalzmAnn. Other than that, I have had a very satisfactory 
business. I have been busy. 

Mr. McInarnay. Well, that is good. That is the acid test. 

Mr. Salzmann. Yes, sir. 

Mr. McInarnay. Mr. Taylor? 

STATEMENT OF CARI TAYLOR, VICE PRESIDENT. FOSTER MA- 
CHINE & MANUFACTURING CO., INC., BIRMINGHAM, ALA. 

Mr. Taylor. Are you ready for my r6sum6? 

Mr. McInarnay. Yes, sir. 

Mr. Taylor. Well, we have a machine shop. We do a lot of 

Srecision machine parts. We do fabrication, assemblies, quite a 
iversified coverage of different types of machine work. 



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<i< 36 SMALL BUSINESS PROCUREMENT CONFERENCES 

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We have certified welders. We are very familiar with all of the 

re military specifications on material and the chemical and physical 

dc analyses of materials and we have done work >vith just about every 

type of material that there is. Well, not all. I am just saving what 

sn is usually used in the Government work. 

We do work for Hayes, Chrysler Corp., Brown Engineering, Spaco, 
he Inc., Thiokol Chemical Co., Chemstrand, Speny Rand, IB^l, Nor- 

ar throp, and I think that is about enough to cover it. 

"■ Mr. McInarnay. Did you cover how many employees you have? 

Mr. Taylor. We have approximately 45, and that ranges up to 
around 80, depending on the workload. Actually, we utuize a lot 
of part-time help that work at other companies and we use them either 
during the day or at night. 

Generally, we try to stay away from that for the simple reason 
that it does present a certain amount of problems, a man coming 
in on the job that a full-time man has been working on and he doesn't 
know where to pick up, and so on, so we try to stay away from using 
part time if we possibly can, but we do use them occasionally. 

Other than that, I mean, you will have to ask me questions. I 
don't actually have any problems. We are enjoying a very good busi- 
ness as of right now, and we have been for the last 90 days, and we 
also have some customers at the present time where I would say about 
35 percent of the work we have m our shop is on a price-advise basis; 
and, of course, I would like to have 100 percent if I could, but 

Mr. McInarnay. What is the meaning of that term? 

Mr. Taylor. Well, you do the job for them and you advise them 
of the price after the completion of the iob after the hours you have 
worked on it and the cost of the material, and so forth. 

Mr. Thevenot. Andyou give them a fixed fee? 

Mr. Taylor. No. We have an hourly rate and so many hours 
involved in the job, plus material, and then whatever the total figure 
comes up to is what the job will amount to. 

Mr. Proctor. I would like to make one thought. I woidd like to 
have Carl tell you he doesn't get that kind of work out of Hayes if 
these other fellows expect to get the same kind. 

Mr. Thevenot. Or with the Government. 

Mr. Taylor. No. This is strictly private enterprise, and we get 
this kind of work from 

Mr. McInarnay. What percentage of your work is conmiercial 
rather than Government? 

Mr. Taylor. Well, actually, I w^oidd say that 95 percent of our 
work is Government work and the other 5 percent iLSually is just 
ordinary commercial work for people that are not in Government 
type of work. 

Mr. Thevenot. What part of this is subcontracting and what is 
prime? 

Mr. Taylor. Well, I would say that roughly we do possibly 10 
percent prime contracts with the Government and the balance is all 
strictly subcontracting. 

Mr. McInarnay. What oflBces do you do prime contracting work 
with? 

Mr. Taylor. Well, we have done them with the arsenal, the Army 
in Htmtsville, and we have also done prime contracting work through 
the prime procurement district, and we do occasionally when jobs 
come up. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 37 

Now, like Mr. Salzmann said, we have bid on quite a few jobs and 
we don't get all that w^e bid on. We get our share, so we are not 
complaining. 

Mr. McInarnay. How do you find the relative probleiixs that arise 
as a prime contractor versiLS a subcontractor? 

Mr. Tatlor. Well, the only problems that come up occasionally 
would be on prime contract if the Government issues a certain set of 
specifications that you must follow, and you possibly might nm into 
some problems on certain military specifications on material or weld- 
ing or cleaning or painting that occasionally it might be an obsolete 
specification, and you just have to get with the right people and find 
out what the proper specification is that covers the one that had been 
deleted or onutted. 

But other than that, we don't have any problems other than what 
I have just covered. 

Mr. Thevenot. Is there any great difference in promptness of 
payment? 

Mr. Taylor. You are talking about payment on prime contracts 
with the Grovemment? 

Mr. Thevenot. As opposed to subcontracts. 

Mr. Taylor. No. 1 would say that mostly on the average the 
Government may take a few days longer to pay than a private mdivi- 
dual or a private corporation, but we have not noticed anything that 
was just out of this world, I mean, as far as late in pa3nQaent. 

Mr. McInarnay. Mr. Hall? 

STATEMENT OF F. R. HAIL, SUPEBIOB ENGBAVING CO., BIB- 

HINGHAM, ALA. 

Mr. Hall. We are in the recess engraving business. We do en- 
graving m the aircraft and missile end of it for panels and ID plates 
and placards and such as that. We do a majority of our business that 
is different from his in the fact that the majority of ours comes from 
other sources other than that particular item. 

We also make plastic or laminated signs for offices and desk plates 
and badges, and such as that, and we sell trophies and awards and 
items of that nature. 

Of the type of work in that end, the majority of our business is for, 
I would say, Hayes in Birmingham. Of course, we do it also for the 
Air Force, and in the past we have done some for the Air Force and 
some for the Social Security and the Treasury Department, and we 
have done — we do quite a bit of work for a number of machine shops 
around in the Huntsville and Birmingham area. 

So far as problems, I don't know of any that we have. 

Of course, like Frank, we have been on the bidders' list up at Hunts- 
ville now for a couple of years and I have not gotten a bid yet. Maybe 
they don't have anything in my line. 

Mr. Thevenot. i ou have not gotten an invitation to bid? 

Mr. Hall. Right. 

Mr. Thevenot. Do you know if you are ciurently on their bidding 
list? 

Mr. Hall. I was up a couple of months ago and checked and I was 
still on it at that time. Of course, the problem could be there that 
the type of work I do primarily would be of a subcontract nature for 



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di 38 SMALL BUSINESS PROCUREMENT CONFERENCES 

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Hayes or some of the machine shops around. So far as prime con- 
re tracts in my line, there would be very few, except in signs. 
dc We did a hospital up in Shell An- Force Base not too long ago. 
Other than that, I wouldn't think there would be too many prime 
SD contracts that come out for me. 

Mr. Thevenot. Have you done any business with the General 
he Service Administration? They, as you know, purchase a great deal 

ar of these laminated signs and that type of thing. 

- Mr. Hall. No. 

Mr. Thevenot. Maybe you could see whether it is to your ad- 
vantage to get on their list. 

Mr. McInarnay. They have a catalog. It is almost like Sears, 
Roebuck. It is where they have national buying schedules and terms. 

Mr. Hall. Right, and I have that information, but 

Mr. Thevenot. You may want to check into that and see if your 

Eroducts are put on their catalog list. There may be a source of 
usiness there. 

Mr. McInarnay. I think they have a regional oflSce in Atlanta, if I 
am not mistaken, but if you would like to pursue that, I suggest that 
you write to Senator Sparkman and send him a brochure if you have 
one of the type of work that you do and an indication of what you 
would like to do and he in turn would get in touch with the General 
Service Administration and have them contact you or see that you 
get the proper information, because that may be a very good source. 

Mr. Hall. Yes, sir. 

Mr. Thevenot. And another source would be the Defense Supply 
Agency, which is the common purchaser for all three military services 
of this type item, bnt as Mr. McInarnay says, if you will contact 
our office, Senator Sparkman 's office, we will seek these out for you 
and see that the information is gotten to you on that. 

Mr. Hall. Okay. I will do this. We nave seven people employed 
and we work for contractors, building contractors, such as that quite 
a bit. 

Mr. McInarnay. Mr. Reporter, in each instance do we have the 
address of the businessmen who have been here today, the street 
address? 

The Reporter. Yes, sir. 

Mr. McInarnay. Do you make the directories that appear inside 
of the building? 

Mr. Hall. Yes, sir. 

Mr. McInarnay. I wonder if either of you gentlemen have any- 
thing in particular you would like to comment on as a small business- 
man that may not necessarily be in the area of Government contracts, 
but would just be perhaps something that might arise as a result of 
various requirements that the Federal Government imposes upon 
your business. 

Mr. Thevenot. This is in the way of reports? 

Mr. Taylor. Not unless you can eliminate income taxes. 

Mr. Hall. And tax forms. 

Mr. McInarnay. I don't think we can eliminate them, but per- 
haps we will see them reduced again. I hope so. 

Mr. Hall. I cannot think of anything in that area. 

Mr. Taylor. The only thing I can say is just let business stay as it is 
for another year and I will be all right. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 39 

Mr. McInarnay. We are in a prosperous area. 

Mr. Taylor. It seems to be generally everywhere, and, of course, in 
some areas it may be slow, but there it depends on the individual 
whether they are progressive enough to get up and get out and beat 
the bushes and find out where the work lies. 

You do have to keep on yoiu- toes, there is no question about that. 
Occasionally, somebody might come to your place and ask for a bid, 
but that is not too often. Usually, you have to get out and make 
yoiu^elf known and let the people know what yoiu- capabilities are 
and go from there. 

Mr. McInarnay. And you have to call on them not just once, 
but 

Mr. Taylor. You have to follow it up. You can call one time, and 
that is fine. They remember you then, but a month from now if ^rou 
don't follow it up, they will forget about you unless you had something 
that is pretty unique that they have to have and they cannot get it 
from anybody else, which doesn't exist. 

It is just a matter of keeping with it. I even have to call Mr. Proc- 
tor every now and then. 

Mr. Salzmann. When you once get a job in a spot, then your con- 
tact is pretty well made inside and it starts moving in that direction. 

Mr. Thevenot. This is your particular problem in regards to 
Huntsville? 

Mr. Salzmann. Yes, sir, and knowing who to hit. 

Mr. Thevenot. I would suggest that you might get in touch with 
Jeff Darwin personally about that. 

Mr. Salzmann. I have tried other rounds and it doesn't seem to 
come out. 

Mr. McInarnay. Well, it you don't have anything else, I want to 
thank you on behalf of Senator Sparkman and tne committee, and Mr. 
Thevenot for coming to share your views and helping us to help you 
in any field we can. 

Thank you. 

(Whereupon, Mr. Salzmann, Mr. Taylor, and Mr. Hall were ex- 
cused.) 

Mr. McInarnay. Mr. Mitchell, briefly, Senator Sparkman, as you 
know, is the chairman of the Senate Small Business Committee. 

Mr. Mitchell. Y^, sir. 

Mr. McInarnay. He asked Mr. Thevenot and me to come to the 
southeastern States. We have been to Louisiana and now Alabama 
today, and on Thursday we wiU be in Florida to meet with the small 
businessmen to learn first-hand of them any particular problems that 
they might have, either as a result of doing business witji the Federal 
Government, either on the prime or subcontract level, or as a result 
of requirements imposed by the Federal Government on businessmen, 
so we are very anxious to near your comments. Anything you might 
say is very important to us because it makes up the composite of what 
the small businessman's views are today. 

I would like for you to start, if you would, by identifying the type 
of business you are in and who you do business with and the number 
of employees you have, etc. 



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40 SMALL BUSINESS PROCUREMENT CONFERENCES 

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sa STATEMENT OF HUGH W. MITCHEIL, EXECUTIVE VICE PBESIDEHT, 

SOUTHEBN PBODUCTS CO., INC., BIBHINGHAM. ALA. 
re 

d^ Mr. Mitchell. We are a very small precision machine shop, and 

we do business with Hayes and Hardie-Tynes Manufacturing Co. 
sn The principal part of our Government business comes from Hardie- 

Tynes Manufacturing Co., with quite a bit coming from Hayes. 
^^ We do very little bidding direct. As small as we are, we would 

ft£ much rather have the subcontracting from firms who have the better 

engineering and quality control and all of those things and go ahead 
as a subcontractor. We do bid direct occasionally. 

Mr. McInarnay. How many employees did you say you had? 

Mr. Mitchell. Twenty. 

Mr. Proctor. Mr. Mitchell, I don't know of a stick of work that 
we have out there that isn't Government work. 

Mr. Mitchell. All we get from you would be Government work. 

Mr. McInarnay. Do you do any commercial? 

Mr. Mitchell. It is a little hard to get. Probably 50 percent is 
conmiercial. That comes from people like Central Foundry Co., 
Stewart Machine Co. here in town, and Pulman Standard — ^in fact, 
anybody we can get it from. We are simply a contract shop. We are 
very limited due to the small equipment that we have. 

Mr. McInarnay. Are there any particular areas of the Govern- 
ment contract field that you would like to bring to the committee's 
attention and comment on? 

Mr. Mitchell. I wouldn't have any criticism of any area of the 
Government contracting, for instance, all of the small businesses have 
problems, don't you fellows misunderstand me, but we do not have 
problems of such a nature that you could solve. 

Mr. Thevenot. The reasons you do not bid on prime contracts are 
what? 

Mr. Mitchell. My thinking is we are simply too small. We do 
not have the engineermg, the Quality control, and various other things 
to justify direct bidding with tne Government. 

Now, frankly, I would rather give Mr. Proctor the headaches and 
just go ahead and enjoy myself, you see, subcontracting with him. 
Really, that is the way it is. 

Mr. Thevenot. The prime contractor you feel 

STATEMENT OF ODEN PBOCTOR, DIBECTOR OF PBOCUBEMENT, 
HATES INTERNATIONAL CORP., BIRHINGHAM, ALA. 

Mr. Proctor. For the record, we have a full ground quality assur- 
ance department, and I think a eood one. We have liaison engineera 
and the type of people that wm support Mr. Mitchell and his en- 
deavor. 

We provide source inspection where required, and anything that 
can help him cross the hurdles. Our purchase orders reflect certaiii 
certifications that must be made, and among them which was men- 
tioned earlier, and a very important one, any material that we furnish 
is certified material and we ask them to certify such material as ma- 
terial we are sending back forms in some manner, so there is not a sub- 
contractor in the area that we don't know about, and it isn't neces- 
sarily related to the Birmingham facility. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 41 

We hand work to small businesses throughout the entire United 
States, the west coast, Detroit area, New England States, the Middle 
Atlantic States, and if we were dependent upon small business in 
many cases to do the type of things that we insist be done, we just 
coulan't patronize them. 

We couldn't give them the business, because as Mr. Mitchell indi- 
cates, they don't have a full quaUty assurance division to support 
some of the things that we ask for. 

I would like to make one other statement. I had people s^ to us, 
and it has been quoted by some of my people, that this is a Govern- 
ment contract, I don't want it because it isn't worth the effort. 

I personally say don't worry about it. We are the prime contractor 
on this. We will take care of your paperwork and help you through it, 
because of redtape, and I think it is something we must recognize. 

I know the Small Business Committee is attempting to help the 
small businessmen, and we too are. We think it is real important, 
but some of the impostion on small business is such that a particularly 
small business just cannot cope with it. 

Mr. McInarnay. The small business program principally ^vithin 
the Defense Establishment because that is where the big money is. 

Mr. Proctor. That is right. 

Mr. McInarnay. This is a two-pronged effort, and small business- 
men receive about as much by way of subcontracts as they do by the 
prime contract route. 

Mr. MiTCHELi . Right. 

Mr. McInarnay. And perhaps you would find that the small 
businessmen who get the bulk of prime contract work are rather 
lai^e, but small businessmen by Mr. Mitchell's standards. 

Mr. Mitchell. That is right. Hardie-Tynes Manufacturing Co. 
is a small business. Forty percent of my business comes from them. 
They have the facilities, engineering, financial, accounting, attorneys — 
there are a lot of things I tfink Mr. Proctor's statement was very good 
in, things they can do. 

They can hire the men to do these things and we, naturally, can't 
do it because we don't have the production capacities to produce 
anything to pay for such people. 

It makes a much better relationship for — frankly, I think for any 
firm our size to deal as a subcontractor rather than a direct bidder, 
it is better. 

Mr. McInarnay. WeU, there is another point, too, isn't there, 
that by not having these people on your payroll, your overhead is 
substantially reduced and you can be far more competitive? 

Mr. Mitchell. That is it exactly. We would not be competitive 
in any way without additional equipment if we had to hire the addi- 
tional personnel to do the things that must be done, and I imderstand 
it must be done in any Government contract. There are things that 
have to be done that a small firm just cannot do. 

Mr. Proctor. We feel, and I think it may be one of them, that the 
smaller subcontractors with whom we deal we consider a real valuable 
adjunct to our operation. They are, if vou please, an extension of our 
own shop and we attempt to support tKese people as we support our 
own shop. 

Mr. Mitchell. They do. This is true. They cooperate in every 
way in the world with us. 



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Mr. McInarnay. By the same token, Mr. Proctor, if the small 

J.Q businessmen had the means to hire quaUty control people and various 

^^ experts and specialists, they woidd charge you more and you woidd 

have to charge the Government more and you would be" less com- 

gj3 petitive; isn't that correct? 

Mr. Proctor. Very true. They would price themselves completel}^ 
2^g out of the business. 

g^j. Mr. McInarnay. Very likely you would be doing work in-bouse? 

- Mr. Proctor. That is right, if we could. I wul tell you, it is 

simple where a man has a relatively small organization up to 100 
people, the support personnel for that 100 people where his overhead 
may now be 50 percent could conceivably go to 100 or 125, so the small 
business, in order to maintain all of the pertinences necessary to *do 
prime contracting, and I am sympathetic with them. They simply 
couldn't compete. They couldn't compete mth us. Their overhead 
would be completely higher than ours. 

Mr. McInarnay. Your company has such an outstanding record 
in subcontracting wdth small business. I wonder if you have ever 
been commended by the military? 

Mr. Proctor. Yes, sir. 

Mr. McInarnay. I wonder if they have been 

Mr. Proctor. We have a man by the name of Turbeville assigned 
to the Atlanta oflSce. I have not seen him in months. He comes 
over frequently. He never leaves our operation \\athout he says we 
are doing an outstanding job in supporting small business. 

We had a letter ^\Titten by his colonel commending us for small 
business. We are not big. We have 5,300 people. We are a little 
bit too big to be little, but we are not big enough to be big. 

Mr. McInarnay. You are one of those medium-size businesses? 

Mr. Proctor. Yes; we are constantly fighting the battle on these, 

Mr. Mitchell. There is another angle of this, too, that we have 
not discussed, that is very important. 

Just using Hayes as an example, they bid on large contracts, 
contracts that I would assume have to be let by the Air Force or 
whoever may be doing the job. These contracts have to be let to one 
firm, and if they did not bid on that job, certainly I could not bid on 
it, don't you see. 

All right, there are many items on this job that we can actually 
produce more economically than he can, but I couldn't go to the Air 
Force and bid directly on them because it is an overaU job that has to 
be let in one contract, and an overflow of many items that these small 
businesses such as I can do more economically than he can gives us a 
place in the program without being required to have the high-priced 
personnel that a large firm necessarily has to have. 

Mr. Proctor. Well, not necessarily, Mr. Mitchell, more economi- 
cal. We have schedules to maintain and that is saying that it isn't 
necessary, but it does not necessarily foUow that it is. 

We have schedules to maintain; and, of course, we are out bidding 
on business and sometimes we superimpose business on top of business 
and we find an overload in our own area. 

This, of course, we altogether subcontract due to overload condi- 
tions not necessarily because it is more economical and in many cases 
it could be. 



[ 



SMALL BUSINESS PROCUREMENT CONFERENCES 43 

For example, we will bid by virtue of our overhead we will bid, and 
the fact that we have much Government-owned equipment within our 
plant, which may be a composite machine rate of say $6.20 an hour. 

There have been some times that we have subcontracted heavy 
work and paid $20 an hoiu* on it on fixed-priced contracts in order to 
maintain the schedule, but we also go to Small Business in order to 
get it accomplished, so it isn't necessarily — ^it doesn't necessarily mean 
it is more economical, and these boys bid it competitively, too, every 
one of them. 

There is no favoritism shown, and I think Mr. Mitchell vnH bear 
this out, and anyone you talk with. 

Mr. Mitchell. Yes. 

Mr. Proctor. We get at least three bids and send out the drawings 
and place it on a competitive basis, which we must do. 

Mr. Thevenot. If your subcontractors are bidding and making 
mistakes in their bids, do you have any program of assisting them to 
comply or be responsive in their bids, or do you give them other coun- 
seling? 

Mr. Proctor. Only to this extent. If someone comes in with a 
ridiculously low bid we like to say are you sure you understand the 
task. 

Now, we know that in any given group of three or four subcon- 
tractors we are not completely aware of their shop load. Now, they 
have to maintain their machinists and their capacity or their manage- 
ment capabilities and one time they may bid mordinately high. We 
don't rule them off on this basis. 

The next time we go out and even Mr. Mitchell, we may find that 
he is real competitive. I can only ask this question to myself, and it is 
obWous that ne needs the work in the shop, and he needs something 
to keep these people together. 

If you let it go down and not have people, then he loses his work 
force. 

Mr. Thevenot. It is to your advantage to keep as manj^ people 
going as possible. 

Mr. Proctor. That is right. 

Mr. Thevenot. To gain competition? 

Mr. Proctor. Exactly. When someone comes in with a redicu- 
lously low bid, we will say you are sure you understand this clause and 
if he says he does, we will take it, but we have never forced anyone into 
bankruptcy by forcing it on them, nor do we intend to. 

Mr. Thevenot. There is a great deal of emphasis being put on 
encouraging prime contractors, more specifically in the Department 
of Defense, to institute the type of program that you are saying that 
Hayes has in operation now, a broad-scale subcontracting: or small 
business program to assist as many as possible of the small business 
people to participate in your business. It is an extremely important 
part of the small business program. 

Mr. Proctor. We recognize it as being so. We solicit. I have a 
couple of fellows that will go out and if someone comes and solicits us 
in business in machinists, subcontracting, a couple of things happen. 
They give us an equipment list. 

Now, we can pretty well judge from this type of equipment what 
they are capable of doing and try to tailor it to their capabilities in 
the type of work we allow them to go on. We will send out a quality 

58-119—66 i 



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IJ 

44 SMALL BUSINESS PROCUREMENT CONFERENCES 

sa assurance man to check out their inspection facilities and whether or 

not thev are qualified to do the work that we give them. 
re We alwa^^s get a Dim & Bradstreet report. We don't want to be 

dc in a position, and we don't want to be caught in a position of having 

work out and someone is eminently bankrupt, because this can hurt 
sn our programs, so we get financial backing, a financial report, and it 

would be pretty obvious that if someone had a shakv financiid con- 
he dition we wouldn't give them as large a job as we would someone who 
ar had a sound financial standing. 

" We would rather work with them and build them up so their 

financial standing would be better and we consider them simply, as I 
said before, an extension of our own capabilities. 

Without them we would be in a heck of a mess. 

Mr. McInarnay. Do you receive any consideration in yoiu* bidding 
on Government prime contracts as a result of your outstanding smaO 
business subcontracting program? 

Mr. Proctor. Mr. Mclnamay, I cannot say this has — I would not 
like to say inasmuch as I am not in the contract section. I am sure 
that we talk about it and we probably will do anything in our power 
to point out that we are supporting small business. Whether or not 
this influences the decision as the prime, I cannot say. 

Mr. Thbvenot. Are you famihar with the weighted guidelines 
program in the Department of Defense? 

Mr. Proctor. Yes, sir. 

Mr. Thevenot. I was siu'e that your company was very aware of 
this, because of its superior small business program. 

Mr. Proctor. We think we have. We nave no reason to believe 
that we have not. Certainly, if you weight just that one factor, I 
think we are somewhat eminent in supportmg small business. I 
honestly think that. We think of it as an extension of our own 
capabihties. 

Now, as far as bidding the job is concerned, we have estimators in 
the house and at the time we estimate a job where there is a con- 
siderable amount of machinery, we don't ask people to give us their 
estimate of cost. We estimate an in-house cost factor. Time doesn't 
permit us to go out and do this. 

Now, if we get the job, much of it, and certainly I will be real 
honest to say that that is within our capabilities of meeting the 
schedule, we are going to do. but unfortunately, or fortimately, for 
small business, there is a whole lot of that we cannot do and we must 
rely on small business to support us. 

We don't have a program that is a definite set aside. We don't 
feel that we need to bid the statistics that we have generated. We 
are well over the majority, I would say, but we do not bid with the 
thought of subcontracting. We cannot bid with the thought of 
subcontracting, nor can these people bid with the thought of sub- 
contracting. They bid on what they think the job is worth. 

Mr. McInarnay. Mr. Mitchell, do you have any further conounent 
you would like to make? 

Mr. Mitchell. I don't think so. I think this pretty well covers 
it. I have found the cooperation all around from both governmental 
agencies and the prune contractors, and we have problems from time 
to time, but back to the question Mr. Proctor discussed about our 
doing things that they could not do, I used Hayes as a specific example. 



L 



SMALL BUSINESS PROCUREMENT CONFERENCES 45 

Maybe I should have used Hardie-Tynes Manufacturing Co. as a 
specific example. They bid, for instance, on air compressors and 
there are many parts on those — this is for the U.S. Navy. There 
are many parts that are very, very small and intricate and highly 
precisioned parts and we can actually manufacture them more 
economically than Hardie-Tynes can, and for that reason we get a 
lot of business from them such as that, and to me that is much better 
than having a contract direct with the Government for a firm the size 
and the facilities that we have. 

Mr. McInarnay. Mr. Mitchell, on behalf of Senator Sparkman 
and the Small Business Committee and Mr. Thevenot, I want to 
thank you for coming here today and sharing your views with us. 
We really appreciate it. 

Thank you, sir. 

(Whereupon, Mr. Mitchell was excused.) 

Mr. McInarnay. Gentlemen, as you no doubt know, Senator 
Sparkman is chairman of the Senate Small Business Committee, and 
he asked Mr. Thevenot and me to come into the Southeast. We 
were in Louisiana yesterday. We are here in Birmingham today, 
and on Thursday we will be in Florida meeting with small business- 
men in conferences set up by the chamber of comimerce, and in some 
instances, in cooperation with the Small Business Administration 
Office. 

Senator Sparkman wanted us— Mr, Thevenot and me, who are staJff 
members of the Senate Small Business Committee — to undertake some- 
what of a pilot project in coming into local communities and sitting 
down with small businessmen across the table and learning directly 
from them any particular problems that they have. 

(1) As arising out of doing business directly with the Government, 
either as a prime contractor of a subcontractor; and 

(2) Problems that may arise as a result of requirements that are 
placed on busmessmen by the Federal Government: rules and regula- 
tions. 

So that is why we are here. We solicit your conmients. We are 
very anxious to know what you have to say. We feel that what you 
have to say would be very important in our study which may be ex- 
tended into other States and other communities around the country, 
so we look forward to having your comments today. 

I think that we will start off with Mr. Self. If you would tell us a 
little bit about your company, the type of business you are in, whom 
you do business with, and the number of employees you have and 
how long you have been in business, this sort of thing, and then go 
into any particular area you might want to cover. 

STATEMENT OF FRANK P. SELF AND FOBEST M. SELF, EXCELLO 
MACHINE CO., BIBMINGHAM, ALA. 

Mr. Frank Self. Well, I have been in business about 26 years. 
Well, I started in 1942. It would be 23 years I have been in business. 

I have found that subcontracting from the prime contractor is 
better for me because it is so much easier for me to do my bookkeeping, 
and everything that way. I don't really have the backing and every- 
thing to take prime contracts. My company is not big enough for 
that. 



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li 

46 SMALL BUSINESS PROCUREMENT CONFERENCES 

^® Mr. McInarnay. How many employees do you have? 

Mr. Frank Self. It varies. I nave had as many as 25, and it 
^ varies from 5 or 6 up to 25. It is according, you know, to what 

"^ amount of work we have to do. 

Mr. Thevenot. What kind of products do you have? 
®^ Mr. Frank Self. We machine products, metal machine products, 

, component parts, you might say, and I have done work with Thiokol. 

^^ Now, I made the Falcon nozzle, the exit cone, you might call it, for 

*£ the Falcon. I made 5,000 of those for Thiokol, and what was that 

other company's name up there in Pittsburgh? 

Mr. Forest Self. Scaife Co. 

Mr. Frank Self. Scaife Co., and I have subcontracted work for 
Hardie-Tynes on air compressor valves, and I guess, well, now, you 
might say that the work that I subcontracted from Thiokol and 
Scaife Co. on the missiles, amounted to around — I would say $900,000. 

Mr. McInarnay. Over what period? 

Mr. Frank Self. Over a period of about 8 years, and from Hardie- 
Tynes, I guess I have done around $750,000 worth for them on sub- 
contracts. That was on air compressor valves and other parts, too. 

I have found that I can do better business with them than I could 
trying to go direct to the Government, and I have one complaint about 
the Small Business Administration. 

Now, I went to Huntsville up there and I figured a job one time 
when I had — it was about 250 shafts to make, and I went up there for 
the opening bid and I found that they had 42 bidders on that one 
job, and the one that bid the lowest price, if he was in an area where 
there was, you know, where they needed help, why, he would get it 
an3rway, and anytime that there were as many as 42 bidders, especially 
where there is a small business, somebody is going to make a mistake 
and bid too low, that wouldn't help the small business. It would 
put them out of business, because they would bid too low, and they 
would lose money, and they would have to finance that part as a loss, 
and I think it is wrong for them to have that many bidders on one 
job. 

Mr. Thevenot. But it is not the Small Business Administration, 
this is one of the procurement offices. Was it a subcontract or prime 
contract? 

Mr. Frank Self. It was a prime contract from the Small Bushi^s 
Administration in Huntsville, there were 42 bidders on one job. 

Mr. McInarnay. I suspect this might have been a contract set 
aside for the small business. 

Mr. Frank Self. It was several years ago. Anyway, the fellow 
was very nice, and he told me, he said, '*I am sure sorry you missed 
this job," but he said, "You just keep on bidding and mayoe you will 
get one." 

I said that I didn't want to keep on bidding because if I was to get 
one it would scare me to death. I knew I was going to lose money on 
it if 42 bidders turned in a price on it, and that is one objection I 
have to the Small Business Administration, but I know that 

Mr. McInarnay. Let me say this. There is often a confusion 
about the difference between the Small Business Committee, which we 
represent, and which is a part of the Congress. It is a committee set 
up by the U.S. Senate to look into the problems of business. 

One of our responsibilities, specific responsibilities is to oversee the 
acti\'ities of the Small Business Administration. 



L 



SMALL BUSINESS PROCUREMENT CONFERENCES 47 

The Small Business Administration is a part of the executive branch 
of the Government. It is one of the agencies of the executive branch 
of the Government, and it is an entu-ely different thing from the 
committee. 

The committee is what Senator Sparkman is chairman of. The 
Small Business Administration does buy some things, but onlv 
housekeeping items, and mostly around Washington where its head- 
quarters are, but it probably wasn't a purchase directly by the Small 
business Administration. 

Now, what it might well have been was a contract that had been 
set aside so that only small businessmen could bid on it. 

Mr. Frank Self. Now, I understand that. I am sure it was. 

Mr. McInarnay. If it was Redstone it probably in those days 
was the Army. I can readily understand that when you have 42 
bidders how it might be that a man might come in with a bid that is 
entirely unreasonable and perhaps he might end up losing money on 
it and certainly he would if he took the job at that price. 

Mr. Frank Self. That is right. 

Mr. McInarnay. This is a very difficult problem for the procm-ing 
agencies, the Army, Navy, and Air Force, whoever it might be, 
because if vou put a bid out on formalized competitive sealed bid 
processes, tLen the principal thing that a businessman does is fill in a 
figure, the price at which he is wHling to do that work for. 

Now, if the XYZ company comes in with $2 and the next lowest 
bidder is $10, there may be a presumption that the XYZ company 
doesn't understand the bid, but the burden is upon that particular 
agency to look into this small business, or whatever size business, 
and to determine whether he is qualified and whether he is responsive 
to the bid, whether he is a responsible contractor, and if he meets 
all of those tests, it is up to them to give him the bid anyhow. 

So it is rather complicated and difficult for the agencies in the 
case like that. 

Mr. Frank Self. We will go back to those prices, and I might say that 
those prices ranged from $39 a piece down to $3.25 a piece, and I 
was in between, and the materid would have cost more than $3.25 
a piece. 

Mr. Thevenot. Then the presumption is that that bidder was 
desperately trying to buy into a market or else he misunderstood 
very badly the specifications. 

Mr. Frank Self. Anvway, he got the bid. That was one small 
businessman gone out of business. 

Mr. Thevenot. This is not to the advantage of the U.S. Gov- 
ernment. 

Mr. Frank Self. It is not any help to the Small Business to put 
out that many bids for him to bid against. Limit the number of 
bids that go out. 

Mr. Thevenot. Or break the procurement down to several parts 
and allow several bidders on each of the parts. 

Mr. Frank Self. I think so. I don't think it is a fair bid when 
there is that many people bidding on one job. Somebody is bound 
to be wrong. When there are two or three bids on it, you can still 
bid low, but you are not as apt to bid that low. 

Mr. Thevenot. But it goes back to what Mr. McInarnay said, 
it is the responsibility of the contractor also to ascertain whether 
this bidder was a responsible and responsive bidder. 



1! 

di 48 SMALL BUSINESS PROCUREMENT CONFEREXCES 

sa 

Mr. Frank Self. Well, now, the one that got that contract, he 
re had been checked and he was responsible, but somewhere there was 

dc a misunderstanding. There had to be one because the material cost 

more than what he was actually charging for the job. 
SD Mr. McInarnay. Have there been any recent problems of this 

nature? 
he Mr. Frank Self. No, I have not made any more bids on them, 

ar Mr. McInarnay. Your business is exclusively that of subcon- 

- tractor? 

Mr. Frank Self. Yes, sir. 

Mr. McInarnay. And that is what you prefer? 

Mr. Frank Self. Well, I believe I would. I think I would prefer 
to do subcontracting, unless they cut those bids dow^n. 

Mr. Thevenot. This is your principal complaint about bidding? 

Mr. Frank Self. Yes, sir. There are too many bidders. 

Mr. Thevenot. Are there other problems that you run into in 
bidding? 

Mr. Frank Self. No, nothing except that — I think there are too 
many bids that go out on a job. If tnere were 5 or 6 or 7, I would 
still think that would be fair, but when we get up to 40 and 45 bids, 
why, I think I am putting in too much time in estimating a job, then 
if I get one, I am afraid I am going to lose money when I get it 
because there are too many bidding there. 

Mr. McInarnay. You don't have all of these complications at the 
subcontract level? 

Mr. Frank Self. No, I don't. Usually, there will hardly ever be 
more than six or seven bidders on a job where you are subcontracting, 
because they just don't send out that many bias, and where the prime 
contractor can naturally get more for it than a subcontractor can, 
they take the complete job, where I couldn't take the complete job. 

I couldn't build a battleship, but I coidd build a hydrant or some- 
thing to go on it. 

Mr. McInarnay. Are there any other problem areas that you are 
aware of that you would like to mention? 

Mr. Frank Self. No. 

Mr. McInarnay. Are there any problems that you are finding in 
just doing business as a small businessman as a result of any par- 
ticular requirements that the Federal Government imposes? 

Mr. Frank Self. Well, it might be a lot of paperwork that I 
wouldn't like to go through. I wouldn't have an office staff big 
enough to take care of a prime contract on most of the work that they 
have. 

Mr. McInarnay. I wonder if Mr. Forest Self has anything. 

Mr. Forest Self. No, I don't have anything to say. I think he 
has said about all of it. 

Mr. McInarnay. Mr. Sykes, would you tell us a little bit about 
your company and whom you do business with and the number of 
employees, and that sort of thing, and discuss anything you would 
like to discuss? 



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SMALL BUSINESS PROCUREMENT CONFERENCES 49 

JAMES B. SYKES, SOUTHEASTERN PBODUCTS CORP., 
PELHAM, ALA. 

Mr. Sykbs. We manufacture mechanical packing. Primarily, that 
is our line of manufacturing. Now, we also are in the fabricating 
business and related line of gaskets, and we handle molded extruded 
rubber items, and principally, our business is with the large industry, 
and OEM. 

Mr. McInarnay. Who is that? 

Mr. Sykes. Original Equipment Manufacturers, such as — ^well, peo- 
ple who manufacture valves. We supply one component part of the 
valve. That would be the ceiling or the valve seat, probably, for one 
instance. 

Our dealings with the different Government agencies are primarily 
limited to relatively small requirements. We may get through the 
mail a list of the reauirements, and we would just take the list and 
pick out the items that we feel we can furnish and will bid a price 
that we feel that we can handle profitably, and pretty much that is 
our dealing with the Government agencies. 

They are thinking primarily now about an installation such as 
Brookley or the different alrbases in the area. 

We do a lot of business with TVA. We have just received a con- 
tract for next jear's soft packing requirements, and the Authority 
has their packmg requirements broken into five schedules. 

We are approved to all five of TVA's packing reqmrement sched- 
ules, and this is something that we are proud of. We had to work 
for it, and you have to qualify. 

You have to submit samples of your products for approval, and 
once you are approved, then your name is on the bid list, and we 
bid and along with the other major packing manufacturers within 
our industry, and we were just successful this year. We had not 
had it before. 

Mr. Thbvbnot. Are your competitors primarily other small 
businesses? 

Mr. Sykbs. No. In fact, our principal competitors in this area 
and in the TVA area would be large business. In fact, I would 
imi^ne of the competitors that we have we are the only one that 
womd qualify as a small business. It would be Garlock, Johns 
Manville, and Raybestos, Manhatten, John Crane, and I mention 
these because I know they are some who are approved to the various 
schedules, but I think I am correct that we are the only sole-source 
for all five schedules. 

I don't think any of the others have been approved and they may 
not have submitted samples for approval in all areas, but we have 
and are approved and we enjoy a good business with TVA. 

Mr. Thbvbnot. Are these procurements very often set aside for 
small business? Do you know? 

Mr. Sykbs. No, I don't think so. 

Mr. McInarnay. How many employees do you have? Did you 
cover that? 

Mr. Sykbs. We have about 60. Now, this is pretty stable. We 
do not fluctuate very much. Sixty would be including our sales 
force and our manufacturing and management and clerical level; 
60 total. 



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11 

^^ 50 SMALL BUSINESS PROCUREMENT CONFERENCES 

Sfl 

Mr. McInarnay. Are there any particular problem areas that you 
PQ would like to brine up? 

j^ Mr. Sykes. I don't know of any particular problem that we are 

having involving Government agencies or the Small Business Admin- 
gp istration. 

Mr. Thevenot. Are there a good many other small businesses 
j^^ engaged in this type of work aside from yourself? 

Mr. Sykes. There are no manufacturers that I know of. There 
are some fabricators; yes, sir. 

Mr. Thevenot. This explains perhaps the reason that there have 
been no set-asides, because probably there was not enough competition 
among the small businesses. 

Mr. Sykes. Right. Now, in the Arsenal area, there are several 
fabricators that I am familiar with, and — I think I am correct — there 
is a 30-mile range. I am not sure. I don't even know what type of 
contract would be involved, but I understand there is some geographi- 
cal range that you have to be \\ithin in order to participate in some of 
the smaller contracts that are awarded through Redstone Arsenal, 

We cannot participate in this because we are not within the geo- 
graphical location. I cannot give you any more information, and I 
get this information through one fabricator that we furnished some 
raw materials to in the area, and he qualifies us of his locations to 
participate in some of the business, and we are not given an oppor- 
tunity to do this. 

This is no particular problem to us, but it is a small thing really, 
but we do participate secondhand, so to speak, through this fabricator 
in furnishing his raw material requirements. 

Mr. McInarnay. Is there anything that you might like to bring 
up in any particular problem area as a result of the requirements 
placed upon yoiu* business by the Federal Government that do not 
necessarily relate to Government contracting. 

Mr. Sykes. No, I don't know of any at all. Now, there may be 
some that I am not aware of. Now, I am sales manager and I am 
here because the president of the company had to be out of town 
this week, and he may have something or some comment that I 
would not cover or wouldn't really be aware of, but I don't know of 
any. 

We have not had any problems, particularly in the sales end of it, 
or in manufacturing, to my knowledge, or any other area. 

Mr. McInarnay. Mr. Self, do you have any further comments? 

Mr. Frank Self. No; I think John Sparkman will be mad at me, 
though, because that was his pet project when he had that Small 
Business Administration up there. 

Mr. McInarnay. Do you mean John Home? 

Mr. Frank Self. I said "Sparkman will probably be mad at 
me because that was his pet project," that Small Business Adminis- 
tration, and I criticized that the way they were doing it up there, 
putting out so many bids, it was really hurting the small businessmen. 

Mr. McInarnay. I am sure Senator Sparkman will not be mad at 
you. He wants to know what small businessmen are thinking. As 
chairman of the committee, he wants to do anything he can to help 
you, and if there is any area or any problem that you have, he is 
interested in it. 



L 



SMALL BUSESTESS PROCUREMENT CONFERENCES 51 

Mr. Thevenot. If you face this problem, chances are others face 
the same problem, and it gives us an idea in which areas future effort 
ought to be placed. 

Mr. Frank Self. Well, that was the only complaint I had, was 
just so many bids being put out on one shop to the small business, 
and I think that was hurting them instead of helping them. 

Mr. Bartlett. I would l3ce to get a little something in the record. 
This is the first time I have had the pleasure of meeting Mr. Sykes. 
We are familiar with the president of his company. The regional 
oflSce here in Birmingham has participated with the Exchange Security 
Bank and made a couple of loans to this company, so it made us feel 
good that this is about the only small business of its type in a competi- 
tive structure, and, of course, we can take some pride in what little 
contribution we have made, because this new building that they are 
in in Pelham, with the Exchange Security Bank as a participant, we 
about a year ago, I think, approved a $250,000 loan to this company 
so it could expand its operations and get in the present position it is in. 

Mr. McInarnay. I think when we find in small businesses the only 
one in its field or at least the only one that is, like you say, qualified 
in such a broad area, it is really a great honor and it indicates that 
that is a business really on its toes. 

Mr. Sykes. Maybe I should say to qualify this a little further that 
we are not the only one in the business. We are the only one in our 
area. We are the only one qualified to all five TVA schedules, to my 
knowledge, but we are not the only manufacturer of mechanical 
packings that would qualify as small business. 

Now, of the ones that we were talking about we are the only small 
business, but there are some others in the Mechanical Packing Asso- 
ciation which is an industry association in the Middle West and in 
the Northeast that are old companies. 

They are as small, some of them, as we, and some may be even 
smaller. Their range is considerably smaller, their capabilities are 
considerably smaller, and they are pretty well specialized in a much, 
much narrower field than we, but in this area, I don't know of any 
other manufacturer of branded mechanical packings. 

Mr. Proctor. I could add one thing here, perhaps. Southeastern 
Products and I had never met Mr. Sykes before this afternoon, al- 
though I know we have some business through them, and they have 
been real fine in supporting requirements for certain types of extruded 
material and gasket material, and that sort of thing, and they have 
suDDorted this real well. 

Now, we asked them to come today, because they were another 
small business somewhat disassociated from the normal — the majority 
of the people that we had — in that they are manufacturers in the 
small business. 

I don't know what the dollar volume is that we do with Southeastern 
Products, except that I hear some nice things about them. 

Mr. McInarnay. WeU, gentlemen, Mr. Self, and Mr. Self, and 
Mr. Sykes, on behalf of Senator Sparkman and the Small Business 
Committee and Mr. Thevenot, I want to thank you very much for 
coming here and taking the time away from your business, which I 
know is a sacrifice, in making yourself available to the committee 
and giving us the benefit of your views, which I can assure you will be 
helpful to us. 

(Whereupon, at 4:05 p.m. the conference in the above-entitled 
matter was concluded.) 



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SMALL BUSINESS PROCUREMENT CONFERENCES 



THITBSDAY, NOVEMBER 18, 1965 

U.S. Senate, 
Select Committee on Small Business, 

Jacksonville, Fla. 

The staff conference met, pursuant to notice, at lpni-> ^^ board 
room, Chamber of Commerce Building, Jacksonville, Ma., William T. 
Mclnamay, counsel; E. Wayne Thevenot, professional staff member, 
Senate Small Business Committee (presiding); Kennon Turner, 
regional manager. Small Business Administration, Jacksonville, Fla.; 
and Joseph D. Kelly, director, trade development, Jacksonville Area 
Chamber of Commerce, Jacksonville, Fla. 

Also present: Wilbur H. Mason; Henderson Boree, Charles P. 
Greeg, Koger M. Painter, Edward A. Koester, Jr., Walter Hohen- 
hausen, Jr., George M. Goodloe, Dan Hufnagel, and Eldon Dickson, 
all of Jacksonville. 

Mr. McInarnay. Gentlemen, I think we should begin. I want to 
thank each of you for coming here today and I want to thank also 
Mr. Kelly and the Jacksonville Chamber of Commerce, as well as 
Mr. Turner, regional manager of the Small Business Adininistration, 
who together sponsored this meeting and gave us this opportunity to 
come down ana listen to the small businessmen of Jacksonville. 

I am Bill Mclnamay, counsel for the Senate Small Business Com- 
mittee. I have been with them since 1958. 

This is Mr. Wayne Thevenot, who is a professional staff member of 
the same committee. 

I would like to have Mr. Thevenot, if he would, explain a little bit 
to you about the Senate Small Business Committee's function. 

Mr. Thevenot. Well, by the committee's charter, we are to look 
into the problems facing small business and do whatever is necessary 
to give small businesses a fair break in getting their share of the 
economy of this country. In doing so, a part of our job is to hold 
hearings in Washington and throughout the country. This particular 
session is sort of a pilot program, as far as the committee is concerned. 
Generally, the hearings are held in Washington, and, while some of 
them are held out of Washington, they are formal hearings where 
businessmen are brought in to present their formal statements and 
officials from the Federal Government are present. 

This meeting is intended to be quite informal as you see and Senator 
John Sparkman, who is chairman of the committee, and Senator 
Smathers were interested in seeing that the staff gets as closely as 
possible into the small business community to hear about the problems 
that face you day to day and to get us more acquainted with them, to 
give us some basis for further action by the committee in the months 
to come. 

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54 SMALL BUSINESS PROCUREMENT CONFERENCES 

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sa And, this is why Mr. Mclnarnay and I are now going through the 

South— we have been in Shreveport, La., Birmingham, Ala., and now 
re to Jacksonville. We hope that from these meetings we will get a 

d€ better view of what problems the business community is encountering 

and hopefully to give us some direction to be of whatever assistance 
sn we can be to the small business community. 

Mr. McInarnay. There are two areas on which we would like to 
h£ hear from you. 

ar One is any problem that might arise as a result of doing business 

"■ with the Government, either as a prime contractor or a subcontractor. 

The other is more general — one that affects every small business — 
and that is the various problems, any problem, that might arise as 
the result of reqiiirements imposed upon you as a small businessman 
by the Federal Government. 

As Mr. Thevenot said, this is somewhat of a pilot project. We have 
been in three States. While we don't have any further conferences 
scheduled, it may be that we will in the future go into other areas of 
the country. You represent to us a cross section of the small business 
community, not only in Jacksonville, but the Nation, because of the 
problems that you face. They are the problems that men face all 
over the country. 

So, what you have to say is very important to us and we would like 
for you to be very frank in discussing your views about various things 
that affect you as a small businessman, because whatever j^ou say 
will be most helpful to the committee in discharging it« responsibility 
to investigate trie problems of American small business and make 
recommendations to the Senate for legislative changes or to the 
various executive agencies for administrative changes that will help 
you. 

I might differentiate here for a moment — ^a point that is rather 
confusing to a lot of people, not only outside of Washmgton, but 
inside Washington also. We represent a committee of the U.S. 
Senate. We are charged by the Senate with looking into the prob- 
lems of small business. Under the Small Business Act of 1958, one 
of the duties of this committee is to act as a surveillance group 
over the activities of the Small Business Administration, which Mr. 
Turner represents. He is the regional manager here in Jacksonville. 

The Small Business Administration is an agency of the executive 
branch of Government. We, however, are in the legislative branch. 
It is the SBA, the Small Business Administration, which has the 
various loan programs, financial assistance, management assistance, 
and assistance in Government contracts and subcontracts. 

Now, as the format today, what we would like to do is start with 
Mr. Painter, and, first, I will ask vou, going around the room, to 
identify yourselves, if you would. Please tell us what type of business 
you are in and a little bit about your business — the number of em- 

f^loyees, size of the business, and the nature of the business, and so 
orth. So, I wonder if we could do that, and then we will come back 
and begin and g[ive each of you an opportunity to express your views 
about small business today. 
Mr. Painter? 



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SMALL BUSINESS PROCtJREMENT CONFERENCES 55 

ROGER H. PAINTEB, PAINTER'S POULTRT CO., INC., JACKSON- 

VILLE, FLA. 

Mr. Painter. Well, I am Roger M. Painter and I represent 
Painter's Poultry Co., Inc., and its aMiated companies. We have 
been in the poultry business — m^ brother has, primarily, some close 
to 60 years in the same community. 

We have grown during that period of time today to where we 
really don't qualify as small business as such, but we put ourselves up 
against some rather big businesses and we still consider oiu^elves 
small business. But we do have now about 225 employees and we 
have sales up close to $10 million a year. 

We are a fully integrated poultry operation, all the way from 
having our own breeders in the field to supply our hatching ^gs, to 
supply our hatchery, to supply our broiler farms with baby chicks. 
We have our own feed mill where we mix our feed to supply these 
same farms and bring those finished birds in into our processing plant, 
which we process and we sell strictly wholesale. We also have 
branches throughout the State, and so we go into the distribution 
end as an additional step toward integration. 

That is about the story, as far as our company is concerned. 

Mr. McInaknay. Thank you, Mr. Painter. 

Mr. Koester? 

EDWARD A. KOESTER, JR., DOUGLAS PRINTING CO., INC., JACE- 

SONVILIE, FLA. 

Mr. Koester. My name is Ed Koester, Jr., and I represent Douglas 
Printing Co. 

Our firm is one of the older printing companies in the area, being 
established in 1898. Oiu" family has had the business since 1926, 
and in the early thirties we were the first printing house in town — 
in fact, in this area, we were the pioneer in the photo-oflfset process. 
We employ, at present, between 40 and 50 people in our plant. We 
were the first company in town — printing company — to install 
commercial two-color equipment. Our volume, at present, is scraping 
close to $750,000 a year, which for iis seems phenomenal. We never 
thought we would get this far. 

At the present time, we have plans under way for expansion of our 
facilities, due to the fact that we have been able to enter several new 
markets, and in order to meet this demand, we are going to have to 
expand one way or another, so we are taking things in hand and some- 
how or another we are going to expand. 

Our market is primarily in this region; however, we sell in many 
States, and we have had substantial inquiries from the North, and at 
least in oiu- business, the future looks fairly good. 

Mr. McInarnay. Did you say how many employees you had, 
Mr. Koester? 

Mr. Koester. Yes, sir; between 40 and 50. It fluctuates according 
to the demand of work in process. 

Mr. McInarnay. Do you do any business with the Federal 
Government? 

I suppose we want to get into that a little later? 

Mr. Koester. Yes. 



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d< 56 SMALL BUSINESS PROCUREMENT CONFERENCES 

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Mr. McInabnay. And I think the record should reflect that Mr. 
re Kennon Turner, regional manager of the Small Business Administra- 

dc tion, is present, and Mr. Joe Kelly, the assistant general manager of 

the Jaclffionville Area Chamber of Commerce. Is that correct? 
SB Mr. Kelly. Yes; among a few other things. 

Mr. McInarnay. By the way, Mr. Turner and Mr. Kelly, I skipped 
he you. Is there anything you would like to say at this time? 

ar Mr. Turner. No, sir. 

"" Mr. Kelly. No, thank you. 

Mr. McInarnay. If, at any time, you do have anything to say, 
either now or during the discussion period, I vnsh you would feel 
free to speak up. 

Mr. Turner. AU right. Thank yon. 

Mr. Kelly. Yes, sir. 

Mr. McInarnay. Mr. Mason? 

WILBUR H. MASON, OPESATIONS MANAGER, FLORIDA TRACTOR 
EQUIPMENT CO., JACKSONVILLE, FLA. 

Mr. Mason. Yes. I am Will Mason, operations manager and 
secretary of the Florida Tractor Equipment Co., in Jackson vme. 

I am nere today in the absence of Gert Schmidt, our president, who 
could not be here. We are the only distributors of tractors and 
implements — farm equipment — in the State of Florida. We were 
formerly the Florida Ford Tractor Co., which was in business since 
1947, and, of course, Ford elected to distribute under their own 
distribution pattern last year, and we elected to stay in the business 
and we are continuing on. 

However, we dropped from having 78 employees to 7 last March and 
we are back up to 36 now, so we are growing rapidly. We at Florida 
Ford did set a pace of aroimd $10 million a year. We are at a pace 
now of $3 million — $3 million-plus, this year — our first full year. 

We don't do any business with the Federal Government, or we 
haven't done any business directly with the Federal Government 
agencies. We have had some bids in and we do some with the State 
government, but we are not too successful right now with that. 

As far as Florida Tractor Equipment Co., we cover an area of 
Florida and southeast Georgia, and we have another company in 
Decatur, Ga., the Southeast Tractor Corp., which handles the same 
David Brown tractor and the lines that we have, out of that area, 
covering towns in Geor^a, Alabama, 14 counties in Tennessee and 5 
counties in South Carolma. 

Mr. Thbvenot. What is your major line of farm equipment? 

Mr. Mason. Our major Ime is David Brown tractors, along with 
farm equipment to go with it — not David Brown equipment, but lines 
from supjwiiers throughout the country, parts and service, and related 
items. 

We also distribute, along with farm equipment, Bolens power equip- 
ment; the lawnmowers, riding mowers, and compact tractors in Flor- 
ida, Georgia, and Alabama. Another line we distribute is the Lawn 
Boy Mowers in two-thirds of the State of Florida. Bolens, all of 
Florida; Bolens, all of Georgia and Alabama. 

Bolens is a subsidiary of Food Machines Corp. 

Mr. McInarnay. Thank you, Mr. Mason. 

Mr. Hohenhausen? 



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SMALL BUSINESS FROCUBBMENT CONFERENCES 57 

WALTER HOHBNHAUSEIir, JR., GENERAL MANAGER, PENINSULA 
PEST CONTROL SERVICE, INC., JACKSONVILLE, FLA. 

Mr. HoHENHAUSEN. My name is Walter Hohenhausen, Jr., and I 
am representing Earl Dixon, who is out of town, and he is the president 
of Peninsular Pest Control Service, Inc. 

We are a fairly new concern with respect to pest control in this 
area, having been in business about 10 years. However, we are en- 
joying very rapid growth, and at the present time, we probabljr are 
second in the mdustry in the area to the national concern, which is 
Orkin. 

We employ, according to the seasons, between 20 to 30 people, and 
our main business is pest control in the homes, in industry, and we also 
have a division devoted to lawn pest control, as well as termite work, 
and tent fumigation. 

Most of our work with respect to the Federal Government is con- 
cerned with subcontracting to general contractors on Federal projects, 
requiring soil poisoning for new construction. 

Air. McInaRnay. Thank you, sir. 

Mr. Goodloe? 

GEORGE M. GOODLOE, SECRETABT, PARKHILL-GOODLOE CO., INC., 
JACKSONVILLE, FLA. 

Mr. Goodloe. I am George Goodloe, with Parkhill-Goodloe Co. 
I am pinchhitting for my brother who is out of town. He is more 
familiar with the problems we have. 

We are in the dredging business and the parent company was 
formed approximately 76 years ago. The bulk of our work — perhaps 
90 percent of it — ^is with the Government through the Corps of 
Engneers. 

We operate 3 dredges and have from 50 to 100 employees, de- 
pending on our workload. We now do in excess of a million dollars 
worth of business a year. 

Mr. McInarnay. Thank you, sir. 

Mr. Hufnagel? 

DAN HUFNAGEL, OF THE JACK R. WINTERBUBN CERTIHED PUBUC 
ACCOUNTANTS FIRH, JACKSONVILLE, FLA. 

Mr. Hufnagel. Well, I represent the CPA firm, Jack R. Winter- 
bum. I am a senior accountant associated with Mr. Winterbum, 
and I am more or less substituting for him here today. We didn't 
know exactly what we were invited for, but we are here and pleased 
to be here, so as to have a better picture of what some of our local 
business people have to do. We nave at times furnished financial 
information used in connection with some formalities of the SBA, 
and Jack and I have both been in public accounting for 20 years or 
more, and we wanted to listen to tne proceedings and participate if 
we can. 

Mr. McInarnay. We are very glad to have you, Mr. Hufnagel. 

It just so happens that in the meeting in Shreveport, one of the 
gentlemen spoke up and said that, '^What you fellows really need to 



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do is have our accouatants in, because they run into these problems 
^® daily, and they could really discuss them." 

d^ So we are particularly happy to have you here. 

Mr. HuFNAGBL. Thank you. 
sn Mr. McInarnay. Mr. Boree, we are glad to have you here. 

We have been discussing a little bit about our mission here. We 

*^^ are here to listen to the small businessmen about any particular prob- 

*£ lem that aflfects them, that the Federal Government has anything to 

do with, and we have been around the room identifying ourselves and 

our companies, the types of business we are in, numbers of employees 

and with whom we do business, and that sort of thing. 

I wonder if you would do that for us? 

HENDERSON BOREE, BOREE CONCRETE BLOCK CO., INC., JACK- 
SONVILLE, FLA. 

Mr. BoREE. Well, I am Henderson Boree of the Boree Concrete 
Block Manufacturing Co. 

The number of men, I don't know exactly right now. I would say 
around 24 employees, and you want to know who we sell? 

Mr. McInarnay. Yes. 

Mr. Boree. We sell anybody — one, or as many as they want, of 
concrete blocks. 

Mr. McInarnay. Are you still located around Stockton and 
Edison — out in there? 

Mr. Boree. Dennis Street— 2036 Dennis. 

What else did you want to know? 

Mr. McInarnay. Who you do business with — ^you said everybody. 

Do you do any business wdth the Federal Government? 

Mr. Boree. Directly with the Federal Government? 

Mr. McInarnay. As a subcontractor? 

Mr. Boree. As a subcontractor, yes, commercial jobs — ^lar^e — well, 
we have a lot of commercial work right at present that is gomg on at 
Cecil Field and Mayport, and school jobs, and individuals also — home- 
builders or anybody. It doesn't matter who it is. 

Mr. McInarnay. Well, we are very glad to have you here today. 

Mr. Boree. We also have the only autoclave block in Jackson\Tlle. 
That is a high-pressure cuie, so the Government accepts that as — on 
their jobs — a 3-day hold period on their jobs is all that is required, 
but on air dried block, it is a 28-day holding period on the job, so there- 
fore, it is an advantage for an autoclave, and that is an advantage for 
the contractor. 

Mr. McInarnay. What do you sell, other than concrete blocks? 
Did you say you had other products? 

Mr. Boree. Well, we don't specialize in any. We seU mortar and 
steel rods. 

Those are about the leading ones that we have. I don't know of 
anything else to add, unless somebody wants to buy some blocks. 

Mr. McInarnay. Now, what we have been doing — we went around 
the room and identified ourselves, and then we are going to go back 
around and ask for various viewpoints. I hope that we will trv to 
expedite this as much as possible and I hope that most of you wall be 
able to stajr and contribute to the dialog as we go along. 

I know that some of you are under particular pressure, on time. 
Mr. Mason mentioned that he had something to get to. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 59 

Now, I wonder if there is anyone else who is fighting the clock? 
I know you are all doing that, but 

Mr. BoREE. I am pushed for time. 

Mr. McInarnay. Thank you. If you don't mind, then, we will 
call on Mr. Mason first and solicit his views on any particular thing 
he would like to bring up at this time. 

We will then go from there. 

Mr. Mason? 

Mr. Mason. Well, fine. Thank you. 

I woidd Uke to say that in previous remarks I should have included 
our active participation with some of the Federal agencies, 4-H Clubs, 
FFA organizations, Soil Conservation — ^we do work actively with those 
people and their projects throughout the State, the projects we can 
participate in. 

Mr. McInarnay. Mr. Mason, would you mind speaking up a little 
bit? 

Mr. Mason. All right. 

I don't have any particidar thing, I guess, that I coidd bring before 
this group. My own personal views on where help coidd be given to 
to the small businessman — there have been clinics and so on in manage- 
ment for the small businessman. These programs are going on — 
stiU going on. The biggest need, having worked closely with dealers 
of farm equipment for the last 15 years — and is the major problem — 
is management, and assistance in training them. There is a real, 
real big need. The associations are into this quite actively and by 
having their schools — management schools, the major manufact.irers 
are more getting into this management training, but outside of those 
major lines, there are a number of small farm eauipment dealers 
whose real problem is the lack of management knowledge. 

Mr. Thevbnot. Are they getting assistance from the Department 
of Agriculture on this? 

Mr. Mason. Not that I know of, from the Department of Agri- 
culture. The Small Business Administration had clinics for the small 
business, for management, but not specifically in the field of farm 
equipment. 

Mr. Thevenot. Have your people participated in these? 

Mr. Mason. Our people have participatea. 

Mr. McInarnay. Do you have any recommendations as to the 
way that these management assistance programs might be improved? 

Mr. Mason. It is real hard to get people to attend these types of 
clinics. 

Your mention here of assistance from the Department of Agricul- 
ture — ^here to me, is a place where this could very well be worked in 
for these people, and I am speaking primarily of those who are not 
handUng a major line of tractors — there are quite a number that are 
not. 

As a personal experience, nob too long ago, we got hold of a young 
fellow do^vn in Dade City who was in this type of business and didn't 
have a tractor business, but he had a tractor repair business — ;some 
small implements, but didn't know much about running the business, 
so we took him under our wing and developed him into a David Brown 
tractor dealer and set up his accounting for him and trained his girls — 
his wife, in fact, on accoimting and we follow through ^vith him every 
month or two. And he has come along real well. 

58-119— e« 5 



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^^ Now, some kind of training such as this on these small independent 

farm equipment dealers certainly would be real helpful because this 
1 is their oiggest problem. 

They might be able to sell merchandise but they can't make money. 

Mr. Thevenot. This is primarily the dealers of small equipment 
®" manufacturers? The larger ones have their programs, of course? 

, Mr. Mason. Yes; the larger ones have mcoming programs that 

^ cover this area of training, yes. 

Mr. Thevenot. What are some of these companies that handle — 
that produce this type of equipment, besides the one you represent? 

Mr. Mason. You mean the smaller companies? 

Mr. Thevenot. Smaller farm equipment manufacturers. 

Mr. Mason. I don't quite follow you. 

You have a number of major lines of tractors — Massey-Ferguson, 
Case, John Deere, Oliver, Ford, Minneapolis-Moline, John Deere — 
there are so many of them. All of these have a training program for 
their dealers — some sort of management training, and this has de- 
veloped in the last few years — tlie last 4 or 5 years that they have 
gone into this. 

The need, I think, is for those dealers who do not have a tractor 
line where they do not have this backup training. This is the part 
that I can't spell out — who they are individually, or where they are, 
but there are quite a number of them in the State of Florida, and 
Georgia. 

Mr. Thevenot. The other major lines is what I was getting at — 
the other types of tractors. 

Mr. Mason. Most of those have — I think all of them have some 
management training programs. 

Mr. McInarnay. 1 think your company testified before our com- 
mittee a year or two ago when the decision was made by the large 
companies to change their way of distribution, did you not? 

Mr. Mason. You are right. 

Mr. Gert Schmidt, our president, testified. We have not been 
involved in this very much. We did file — I guess it goes to the Atlanta 
regional office — a form to ^et put up on the bid list for all the products 
we handle. We get very little information, very few bids sent to us. 
We did get one just recently, which I have here in front of me, from 
the Housing and Home Finance Agency, Public Housing Adminis- 
tration of Atlanta, which is an open-end kind of contract. I ran into 
a little diflic\dty with this because of the fact that they don't — ^in 
the bid itself, they don't refer to the specifications — and, this is on 
lawnmowers, incidentally — and in the bid, there are no specific specs, 
but it does refer to interim Federal specifications, 00MOO681B, and 
different numbers throughout the bid. 

Then, in another place, it says the specs can be gotten from the 
regional oflBce, and of coiu^e, we wrote for those, and we haven't 
received them yet, although we submitted a bid we hope is within 
the specs. We think we are, and we hope we are. 

Mr. Thevenot. How long ago have you written for these? 

Mr. Mabon. Well, we received this — diet's see if I have the date. 

It has been 3 or 4 weeks ago. This was issued on October 28. 
We received it a few days thereafter and November 9 was the deadline 
for getting it in, and from the date we received this we wrote for the 
specifications and we haven't received them yet. We had to get it in 



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SMALL BUSINiESS PBQCURBMENT CONFERENCES 61 

November 9, so we sent it in without receipt of the specifications. 
We are just hoping we are all right. 

This is probably an oversight somewhere along the line, but my 
point on this is, if there are specifications on the bid, then they ought 
to be with the bid. This is my point — ^not to say, just send for the 
si>ecifications, particularly when they give you just 10 days to get 
your bid in. 

Mr. Thevenot. This was inadequate information for a responsive 
proposal on your part, sir? 

Mr. Mason. You are so right. 

So, there is not enough tune involved — not enough time within 
the bid time and the let time, or the opening time, to really get what 
you need to bid the job. 

Mr. McInarnay. This does not appear to be an emergency 
procurement, by any means? 

Mr. Mason. It is not. 

Mr. McInarnay. I believe, under the regulations generally, the^ 
are supposed to give you at least 30 days, and it seems to me that this 
is something that should be called to the agency's attention — well, 
this was issued October 28, ending November 9, 2 p.m., eastern 
standard time. 

Mr. Thevenot. Ten days for your bid? 

Mr. Mason. Yes. 

Mr. McInarnay. Often, it is much less than that, and also without 
any good reason. 

Mr. Mason. It is not an emergency for the period of January 1, 
1966, through December 31, 1966 — so, it is not a real emergency. 

Mr. McInarnay. Have you ever done any business with the Gen- 
eral Services Administration? 

Mr. Mason. No. 

Mr. McInarnay. Have you ever made any effort to do so? 

Mr. Mason. No, we haven't tried to. We have just in the last year 
gotten into this lawnmower part of the business, and we want to get 
in — get all the iuformation we can where we can get into submitting 
bids — get on the list to be able to submit bids. 

Mr. McInarnay. You drop Senator Smathers a line and we will see 
that you get on the bidders list — ^whatever bidders lists are available 
for your type of product in the General Services Administration, and 
possibly in the Defense Supply Agency, which purchases thousands of 
miscellaneous type items for the three military services. 

Mr. Mason. Fine. 

Mr. McInarnay. Are there any other major problem areas you 
would like to cover? 

Mr. Mason. No, I don't think I have anything that I could be of 
any help on. 

Mr. Thevenot, Mr. Mason, had the specifications been included 
in this bid, would the 10 days then have been an excessively short 
period for you to be responsive? 

Mr. Mason. There would have been sufficient time. 

Mr. Thevenot. So, you are not manufacturing. This is a line 
that you could just supply immediately? 

Mr. Mason. That is right. 

Mr. McInarnay. Have you done business with any agencies other 
than the pubUc housing? I think this was public housing; was it, 
Mr. Mason? 



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62 SMALL BUSINESS PROCDBBMBNT CONTBRENCES 



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Mr. Mason. Yes; Housing and Home Finance. 

Mr. McInarnay. Housing and Home Finance. 
\° Mr. Mason. No, not since we have been the Florida Tractor Equip- 

ment Co. 

Mr. Thbvenot. Do you have any comments on the requirements 
that the Federal Government places on you as a small busmess firm? 
V I am referring generally to the reporting requirements. 

Mr. Mason. Well, just like exeiyone else, the more reports there 
are the higher the cost of operation is, and of course, the Federal Gov- 
ernment reporting — they have so many different agencies— Social 
Security, your withholding tax — all these increase costs, but I am sure 
they are all necessary. 

Mr. McInarnay. Do you have any specific recommendations on 
the manner in which the Federal Government asks you for various 
reports? Any ideas you might have for simplifying these? 

Mr. Thevenot. Are they sufficiently clear in their requests? 

Mr. Mason. All those that I have been in contact with, I would 
say are sufficiently clear for our purposes. 

If I run into any problem, I can call my CPA. 

Mr. McInarnay. Well, thank you very much, Mr. Mason, for 
giving us the benefit of your views. 

We would like for you to stay as long as you can; but, any time you 
have to leave, just feel free to do so. 

Mr. Mason. Thank you, sir. 

Mr. McInarnay. Before we go back to Mr. Boree, Mr. Gregg has 
joined us. 

The first thing that we did was to go around the room and identify 
ourselves, our business, the type of business it is, whom we do business 
with, the size of the business and that sort of thing. I wonder if you 
will do that for us, Mr. Gregg? 

CHARLES P. 6RE00, UBERTT IRON WORKS, JACKSONVILLE, FLA, 

Mr. Gregg. My name is Charles P. Gr^g, with Liberty Iron 
Works, and ours is primarily with central and southern Florida 
flood control, which of course Is Government, but second-hand 
Government, because we don't go straight through the Government. 
Oius goes through a prime, and sometimes we are the second or third 
down the line. 

Mr. McInarnay. What kind of products? 

Mr. Gregg. Flood control downstate, gates and so on. 

Mr. McInarnay. I am famiUar with the central and southern 
Florida flood control district. 

What type of products do you manufacture for them? 

Mr. Gregg. Miscellaneous metals and the gates that go in there - 
you know, there is a scad of anchor bolts and all kinds of sleeves and 
guardrails and handrails, side seals, bottom seals, top seals. 

Mr. Thevenot. Valves and so on? 

Mr. Gregg. Valves, stilling wells. 

Mr. McInarnay. How many employees do you have? 

Mr. Gregg. Fifteen in the plant and about six helpers. 

Mr. McInarnay. How long have you been in business? 

Mr. Gregg. Since 1959- Januarv^ 1, 1959. 

Mr. McInarnay. Do you sell to any other Government agencies, 
either as a prime contractor or a subcontractor? 



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SMALL BUSINESS PROCUREMEi:^ CONFERENCES 63 

Mr. Gregg. No; do other Government agencies. Ours have all 
been through the U.S. Engineers, other than one set of gates that we 
shipped to Pittsburgh. 

We bid it out of a Government agency pamphlet, the Commerce 
Daily, and we bought the steel in Pittsburgh. It was shipped down 
here. We put it in the gates and shipped it back. 

Mr. MoInarnay. I see. 

Mr. Gregg. That was in the paper, and I might add we lost $4,000 
on it. 

Mr. McInarnay. You were low bidder? 

Mr. Gregg. Only by $300. 

Mr. McInarnay. Is that right? 

Mr. Gregg. But what caused that — ^we bid it, taking it by barge, 
and the particular barge company in town that gave us the estimate 
flubbed the dub. We found out we couldn't even take it by barge. 
I made a trip to Tampa and tried to find out about it, but the barge 
cost would have been absolutely prohibitive. The only way possible 
that that thing could have been taken by barge and we could have 
c(»0e out on it, would have been that the man was going to make the 
trip absolutely — ^if he had a little spot in back that ne could put it at 
no cost to him— practically no cost. That was the only way, so we 
had to ship it by rail. 

That ineans we had to break it down and go to Pittsburgh and put 
it back together again.. 

Mr. McInarnay. Thank you, Mr. Gregg. We will come back to 
you and solicit vour general views on smau business. 

Mr. Dickson nasi joined U3. 

The first order oi business we had, Mr. Dickson, was to go around 
asking each person to identify himself as to his type of business, with 
whom he does business, the. number of-einploj^eed and that sort of 
thing. We will then go. around again aod solicit general views from 
«adi one of you. 

I wonder if you' would be good eoough noi^ to identify yourself 
and tell us a little bit about your company? 

ZLBOK mCEBOir, DICKSON TIKE CO., JACKSONyiLLE, FLA. 

Mr. Dickson. Well, my name is Eldon Dickson, and mybusiaess 
is Dickson Tire Co., and we are located at Edison and College Streets 
here in Jacksonville. 

I have been in business 35 years totally, in business for myself 21 
years. Would you like for me to give you a little bit about our 
operations? 

Mr. McInarnay. Yes, sir. 

Mr. Dickson. Well, we are distributors for two of the major rubber 
companies, B. F. Goodrich and Mohawk Rubber Co.. and we also 
have our own recapping plant. We do tire recapping lor both truck 
and passenger cars — the small compacts and all. and we do repairing, 
such' as vulcanising, section repauing to truck tires, tractor tires, 
grader tires, and then we have a front-end department — ^wheel aline- 
ment and balancing, brake service, shock service. 

We einploy 11 — ^we have 11 in our employ. 

Anything further you would like to discuss at this time — I mean, 
going into detail? 

68-119—66 — -« 



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(i< 64 SMALL BUSINESS PBOCUREMENT CONTfiRENCES 

sa 

Mr. Thbvenot. Do you do any business with the Government 
re directW? 

d€ Mr. Dickson. Yes; we do recapping for the Government, the U.S. 

Post Office Department, Cecil Field, Mainside, Naval Air Station, 
SB and some at M!ayport — ^recappin^ and vulcanizing. 

Mr. McInarnay. This is all with local Government offices? 
h£ Mr. Dickson. Right. 

ar Mr. McInarnay. All right, sir. 

"• We are glad to have you here today, Mr. Dickson, and we will come 

back to you in just a few minutes. 

Mr. Boree, I wonder if you would give us the benefit of your views 
about the small businessman as you see him, and anything in particular 
that relates to doing business with the Federal Government, either as 
a prime contractor or a subcontractor — any particular im>blem that 
may arise as a result of requirements imposed upon your business by 
the Federal Government. 

Mr. BoREE. Well, I haven't had any problem in that respect. My 
problem is mostly coUecting from contractors and individuals. 

SO) I mean, as far as the €k>vemment, with my loan with tiiem, I 
have no complaint. 

Mr. McInarnay. You say you have a loan. Is that with the Small 
Business Administration? 

Mr. BoRBE. Yes; nobody bothers me and I pay^ my bills when 
thev are made, and I have never been late yet. I might have been a 
Uttie pushed sometimes, but I have got by; so^ as far as any problem 
with the Government, I haven't any. 

Mr. Thbvenot. Your big problem, though, is receiving prompt 
payment from the prime contractors you do business wiUi. is that 
rirfit? 

Mr. BoRBB. Right; individnab, too. 

Most of your laif^er contractors pay you. You have no problem 
there, but you take so many individuals, you know, the time runs 
out and they don't have it, out 1 don't know of any problems that 
I have. 

Mr. McInarnat. What was your experience with the SBA loan? 

Mr. BoRBB. Well, I have enjoyed doing business with them. 
There is only one problem. They want it back with interest^ though, 
you see. 

Mr. Thbvenot. M^be there ouffht to be an SBA grant program? 

Mr. BoREE. Yes. I have paid back what I borrowed, out then 
that interest — I would like to get it cut in half instead of carrying these 
boys that go bankrupt. 

Mr. McInarnay. Your loan was on what term? 

Mr. BoREB. Ten years. 

Mr. McInarnay. Ten years? 

Mr. BoREE. Yes. 

Mr. McInarnay. I think that is the maximum on these 7(a) loans. 

I think for working capital you usually restrict that to 6 years, 
don't you, Mr. Tiu-ner? 

Mr. Turner. Yes. 

Mr. McInarnay. It makes a lot of diflFerence in that term of loan, I 
guess for a businessman — between 3-year mone^r and 10-year money. 

Mr. Turner. When a man is gtovnn^ fast, it is-^it isn^t how much 
money he is making. He plows it all back into his business. Even 
though he could pay it back, he could continue to use it. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 65 

Mr. McInarnat. I supi)ose some of you gentlemen may know that 
the Small Business Administration is having some — I would suppose 
you AvoiJd call it growing pains of its own. It is out of money, and 
they didn't ask Congress for enough last time. I suppose the^ wanted 
it, out the Bureau of the Budget wouldn't let them ask for it, and of 
course the Bureau of the Budget sort of runs things in Washington and 
the agency has to go through them, no matter what they want, to get a 
clearance. They are a very powerful group. 

But, as of now, the 7(a) — 7(a) is the section in the Small Business 
Act that covers ordinary business loans and as of now they are not 
accepting any applications. I think Mr. Turner could tell you that 
the loan guarantee program, where the banks make the loans— SBA 
guarantees 90 percent of it — as well as a few of the other programs; 
5ie local development company and small business investment com- 
panies nrograms are active at the present time, and I think by Decem- 
ber 1, Mr. Turner, they are hoping to lift that flat restriction. It 
may be that they won't be able to loan $350,000, but they are hoping 
at feast to accept some business loans by that time. 

That is what they told us just before we came down here. 

Mr. Turner. That is good. 

Mr. McInarnat. Well, Mr. Boree? 

Mr. Boree. Why do they have different interest in different places? 

You can get a lower rate out of some areas than you can another. 
Why do we have to be penalized and pay a much nigher rate than 
some other area, or is that just a law? I guess that is the law. 

Mr. McInarnat. It is the law, Mr. Boree — the so-called ARA 
areas — the area redevelopment areas — I am not sure of all the figures* 
I think they are all 

Mr. Turner. They have just done away with all of that. 

Mr. McInarnat. It is now the EDA, isn't it? 

Mr. Turner. Well, the ones who get the benefit of the loans are 
the EDA. 

Here until just recently, up until 2 weeks ago, any business located 
in an ARA county did have the benefit of the 4-percent interest rate, 
but now that no longer is available. They have done away with it. 
'They pay the usual rate of 5^ percent now. 

That is recently — ^just 2 weeks ago. 

Mr. McInarnat. Now, disaster loans are, of course, 3 percent; 
right? That is by special act of Congress. 

Mr. Mason. Any time you need money it is a disaster. 

Mr. Boree. That is what mine was. 

Mr. HoHENHousBN. It still is. 

Mr. McInarnat. The SBA has to get this money from the Treas- 
ury, and I don't know exactly what they have to pay for it, but it is 
more than 3 percent. 

Mr. Turner. It is the average rate that the Government pays 
each year. It is adjusted. 

Mr. McInarnat. So, on 3-percent loans, the SBA, interestwise, is 
losing. 

Mr. Turner. We pajr about 3% percent, and let it out at 3. 

Mr. Boree. But, I think they should lower the rate if a man needs 
the money and is going to pay — they should give him a different rate. 

Mr. McInarnat. Well, at the very least, I would hope that SBA 
in the future has adequate money, and I'm sure that Mr. Kennon- 



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66 SMALL BUSINESS PROCUREMENT CONFERENCES 



dc 

SD 

h£ 
ar 



Turner will echo this, so that he can accept and approve good applica- 
tions, and not be in the predicament he is in right now, where ne has 
^® no money to loan out. That is even worse. 

Mr. BoREE. Well, if they would save that money they are sending 
overseas and bring it back where they need it at home they would get 
along better with the family, you know. 
, Mr. Turner. Well, Mr. feoree, we can't compete with the banks, 

vou know. We can't lend money to folks when you can eo to the 
bank and get it at five — and it wouldn't be fair. We would put the 
banks out of business. 

Mr. McInarnay. Do you have any other comments, Mr. Boree? 

Mr. Bores:. No. No more gripes. 

Mr. McInarnay. Well, we welcome them. 

Mr. Thevenot. That is what we are here for. 

Mr. McInarnay. We like to hear your sentiments completely on 
anything. 

Mr. Boree. That is all. 

Mr. McInarnay. Thank you so much, and we hope you can stay 
as long as possible. 

Mr. Boree. To hear some other complaints? 

Mr. McInarnay. Yes, sir; and feel free to chime in with anything 
you have to say as the discussion moves along. 

Mr. Boree. Thank you. 

Mr. McInarnay. Mr. Gregg, I wonder if you would give us the 
benefit of your views on small business — any particular point you 
would like to cover, any problem areas that you see, either as a result 
of doing business with the Government or any particular require- 
ments that the Federal Government places upon you that are unduly 
harsh. 

We would like to hear from you. 

Mr. Gregg. Well, jrou can immediately eliminate the SBA, 
because if all the dealmgs we have had to have with people were as 
pleasant as they have been with the SBA on three loans, we 
wotildn't have a problem. We would be in paradise. So that takes 
tjbem out of the picture. 

Now, we do strike anothw thing, though, in invitations for bids that 
come out that say this is a small business set-aside — ^in other words, 
there are certain stipulations that constitute a small business-;-so 
many employees, so much. money, so much business done within a 
period of time. We have lost several because of that, and not because 
of the fact that a small business didn't get it, even though it was 
marked a small business set-aside. A larger company doesn't do a 
thing in the world except form an outside corporation — and, it is no 
longer small. 

Now, I understand that that is not supposed to be, but it is done, 
because we are doing a contract now that, all told, the company 
must have 5,000 employees on the pajn'oU and maybe do $20 or 
$30 million a year — ^maybe more. 

Mr. McInarnay. The Small Business Act provides that a company, 
to be small, must be independently owned and operated and not 
dominant in its field. 

Mr. Gregg. That is right. 

Mr. McInarnay. And there are very strict rules that apply 
there. 



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SMALL BUSINESS PROCUREMENT CONFERENCES 67 

Of course, the Administrator of the Small Business Administra- 
tion has the authority to classify businesses in more specific categories, 
as to whether they are large or small. However, anytime ^ou en- 
counter a thing of this sort, where you feel that a business is large, 
and yet, is competing on a small business set-aside, you have the 
right to protest that to the Small Business Administration, and they 
will make a determination. They have the authority to make a 
determination as to whether one of the competitors is in fact small 
business. 

I don't know whether you were aware of your authority to do that. 

Mr. Gregg. I was aware of that. I didn't think it was worth it, 
really, from the standpoint of the time it would take to do it and all 
that, and then, if we were successful, we would be so far behind that 
we would come out at the little end of the horn anyway. 

Mr. McInarnay. Well, I don't know what the particular circum- 
stances are in that case. 

Mr. Gregg. Well, I have reference to a particular flood control 
project on which we are just about 60 percent through now. We bid 
this, and when we bid it we knew that the man was a little branch off 
a big one. We knew that, but he got the job, and so did we. 

But, that is not true every time, because sometimes the big con- 
tractoi^ — you know, he takes it where he wants it to go. 

Mr. McInarnay. I am sure there are a lot of'factors that enter into 
a decision as to whether you would want to protest, but I would 
suggest that if all other things are equal, and that comes up 
again 

Mr. Gregg. Well, when that came up, the company out of Ala- 
bama — thev bid it out of Alabama and they were low^ on it — ^no, I am 
wrong. They set uj) an ojBBce in Tampa immediately beforehand 
with the home office in Alabama, and this is a branch, but they got 
the small business set-aside and have had several of them. But, our 
correspondence goes back to Alabama, not Tampa. Our checks come 
out of Alabama, so that should be proof within itself that it is not a 
smaU business; if it were entirely separate, we certainly wouldn't 
be getting our checks out of Alabama. We should be getting them 
from Tampa. 

Mr. McInarnay. Sometimes — ^I don't know what this company 
is in size, but sometimes a company can have some affiliates and stifl 
in sum total be classified as a small business. 

Mr. Gregg. Well, I guess you are right. 

However, you cannot do the canal work that is necessary on this, 
when they are $8 or $10 million jobs, and build superhighways and 
dams in other States and all that, and be classified as small business. 
You can't do it. 

Mr. McInarnay. I would recommend that if this comes up again 
it would be very simple to get in touch with Mr. Turner here, who is 
in charge of the local 8BA office, and I am sure that he could be of 
some rapid assistance to you in coming to the bottom of it. 

You mentioned the Commerce Business Daily a few moments ago. 
Have you found that to be a useful publication? 

Mr. Gregg. We take it. 

Mr. McInarnay. Do you subscribe to it? 

Mr. Gregg. Yes. We read it reUgiously. 



IJ 

d( 68 BMAJjh BUSINESS PROCUREMENT CONFERENCES 

sa 

Mr. McInarnay. Does it help you? I see you obtianed a con- 
re tract, but lost money, 
dc Mr. Gregg. Well, we have had two or three out of it, 

Mr. McInarnay. Have you? 
SD Mr. Oregg. Yes. 

Mr. McInarnay. Do you find that the bid notices in there give 
h£ you sufficient time to get m your bid? 

ar Mr. Oregg. Hardly, and it takes a Philadelphia attorney to under- 

" stand it. It would take you 6 weeks to begin to know what you are 

reading, but one time you do learn what you are looking for and 
where to find it, there is some good information in it. 

But, at the beginning, no. 

Mr. McInarnay. Do you have any specific ideas on how that 
pubUcation might be improved? 

Mr. Oregg. Yes, but don't ask me right now. If you would ^ve 
me a httle bit of time to think it over, I could tell you. Something 
that might help, and I don't know whether it woidd or not, because 
we are only interested in one thin^. That is the only thing we are 
looking for, and there is too much in it. 

We have to look two or three places to find what we are hunting. 

Mr. McInarnay. If you think of some other factors you would 
like to bring up later on, we would be glad to receive a letter from you, 
and include it in the record of this proceeding. 

Mr. Gregg. OK. 

Mr. McInarnay. You also mentioned earlier the impossibility of 
barging your product to Pittsburgh. 

Now, I wonder if that was in the specifications, or did you just 
assume you could bar^e it up there? 

Mr. Gregg. No, the deUvery was Pittsburgh. They didn't care 
if we took it by helicopter. Our estimator received a barging quotar 
tion which we used in our estimate. The estimate of the cost of 
moving this to Pittsburgh by barge. Actually, the cost seemed to 
be in line. It was comparable to what we had figured, but when 
he went out of business — or died — and we tried it from other sources, 
the figures that he had submitted were just a small fraction of the 
actual cost. 

I went to the port authority in Tampa to try to find out about the 
barge charges from there, assuming that if we could ^et it to Tampa 
we could put it on a barge there, but that w^as prohibitive. 

We had planned to build it in one piece, wnich would have been 
the two leaves, but we had to build it in three pieces each — due to the 
size, which of course, was an additional cost. We had to set it up 
for Government inspection, then take it down, transport it to the 
rail yard, into a car, and the height of it caused a commotion with the 
railroad. We thought at one tune that we wouldn't get it there at 
all, as there was 1 inch clearance on a bridge in Pittsburgh. 

Mr. McInarnay. I wonder, Mr. Gregg, if there is any partic- 
ular 

Mr. Gregg. Oh, another thing I might add to that — they wouldn't 
take it in hot weather, and that delayed it. We had $1,400 in Uqui- 
dated damages waiting for the cold weather, for the steel to shnnk 
so they could take it through that 1 inch. If it had been hot, it 
wouldn't have gone through. 

Mr. BoREE. What do these gates weigh? 



[ 



SMALL BUSINESS PROCUREMENT CONFERENCES 69 

Mr. Grsgo. Well, from 15 to 38 to 40 tons. 

Mr. McInarnay. I wonder if there is any particular legislation 
that you would like to see Congress enact, or not enact, that would 
affect your business? 

Mr. Oregg. Yes; take this darned Census report that is about so 
thick — if any of you gentlemen have ever had one 

Mr. KoESTER. I had that down on my list. 

Mr. Gregg. That is enough to drive anyone out of his mind, and 
I never have been able to understand what they set out of it, because 
they call for things — ^the last one I got out there, tney wanted to know 
how much aluminum we had bought, where we bought it, how we 
used it, so many tons, and so forth — how it was bought, what we use it 
for, what grade it as, what classification aluminum. 

They wanted the same thing out of carbon steel. They wanted it 
out of stainless steel. 

On top of that, they wanted to know how many man-hours was ap- 

Elied to this particular part, and to the other part — ^how many man- 
ours were lost due to accidents, I think, in this one particular cate- 
foiy, how many man-hours we had in an entire year, how much we 
aa lost — oh, I could go on and on. I never did even send it in, be- 
cause I figured if I sent it in I would make a bigger fool out of myself 
than if I didn't. 

Mr. BoREE. Well, what would they do to you if you don't send it 
in? 

Mr. Gregg. Well, they threatened a lawsuit, but they haven't been 
down yet. 

Mr. KoESTER. Ours came marked with all sorts of beautiful penal- 
ties. We had 10 days to do it in. 

Mr. McInarnay. How often do you get this? 

Mr. Gregg. Once a year. 

Mr. BoREE. I thought it was once every 5 years — or, is it the same 
one I am thinking about? 

Mr. Gregg. I don't know. It is on big, yellow paper. 

Mr. Painter. It is annual. 

Mr. McInarnay. That is the one that won't fit in a typewriter? 

Mr. Gregg. It won't fit in anything. It won't fit in anyone's head. 

Mr. Painter. It takes a rail car to send it back. 

Mr. Thevenot. Is that the kind of information you could fill out in- 
house, or would you have to get some outside help to get it? 

Mr. Gregg. It would take a bevy of CPA's I don't know how long 
to go through our books to fill that thing out, and fill it out correctly. 
It would take a complete audit. 

Mr. BoREB. Well, you couldn't fill mine in correctly, and mv CPA — 
I ^ve it to him. He kept it a week, sent it back and said. You are 

foing to have to help me with it or we will have to throw it away." 
said, "Well, throw it away." I was too busy, and so he laid it on the 
desk and it stayed there. I eot three or four threats, and I finally 
sent in what he filled out and let it go. 

I couldn't answer it correctly — and he couldn't either. 
Mr. Gregg. If Mr. Turner had to fill out one of those he would quit. 
Mr. McInarnay. Are there any other reports that the Govern- 
ment requires of you that fall in this category? 
Mr. Gregg. No. 



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, 70 SMALL BUSINESS PROCUREMENT CONFERENCES 

No, sir; they are all right. That is the only one. The rest of them 
all make sense. 
J. Mr. BoREE. Who cooked this up, anyway? 

Mr. McInarnay. I would assume the Census Bureau. 

Mr. KoESTER. Wasn't it the Commerce Department? 

Mr. Thevenot. Which is a part of — the Census Bureau, of course^ 
j^ is a part of the Commerce Department. 

Mr. Painter. Well, we got one on a water survey there. I looked 
. at that, and I figured in the first place if I had kept that kind of 

record in our place on the use of water, I would have been a world 
wonder, because they asked so many different questions — how much 
water, how many gallons you bought for the year from outside 
sources, how many gallons came out of the artesian w;ells, and what 
percentage of your water was treated, where it went out, and what 
percentage went some other place. 

I mean, the average company, I don't think, keeps records like 
that. So, I got busy and did a little mental arithmetic and I WT^te 
some figures down and sent it in. Now, as far as them wanting 
accurate information — of course, they do say to make it as approxi- 
mate as you can, but J just gave them a brief outline there on the 
questions they asked. Even going into the kilowatt-hours of power. 
They come up with a lot of stuff luce that. 

Now, just merelv estimating pointblank how many kilowatts per 
vear do you use — that is fairly simple. I mean, you could look it up 
but they diverge so much from that and try to break it down into all 
different kinds of uses and things, and this leaves you just completely 
bewildered. 

The rest of our forms that we get — as I say, I have just reached 
the point where I turn them over to our CPA's and let them bother 
with them. We have a lot of forms from the Labor Department, and 
things like that — statistical, and we can fill those out. I let the 
CPA's do it, because I couldn't take — it would take too much of our 
time in the office to do that. 

Mr. Gregg. Well, we had to do this to each figure that they asked 
for in the census — and, incidentally, the census we are talking about 
contains water information, too— ^it has got that in there. It would 
take four full-time employees, and I don't know how many pounds 
of paper to have it available where you could turn to it and say at 
this date it was so-and-so. 

And, it would take the same amount of man-hours at the end of 
the year if you didn't have it like that. 

Mr. McInarnay. I wonder if the Census Bureau makes any effort 
to explain the importance to them of this information when they send 
you a questionnaire of this sort? Do they explain why they want the 
information and why it is important to them, and so forth? 

Mr. Gregg. I don't recall seeing that. The only thing I recall 
seeing is that they tell you what to do, what they want, and what 
they will do if you don't. 

That is about the gist of it. They don't say that the first time — 
that is the second or third time they ask you for it. Then they begin 
to get nasty. 

Mr. McInarnay. Are there any other areas, other than the report — 
we have heard a lot of this in these various cities. It seems to be 
the general consensus of the small businessman that this is an undue 



L 



SMALL BXTSINESS PROCUREMENT CONT^EENCES 71 

burden placed upon them, and particularly the census report you 
mentioned. 

Mr. Gregg. I am glad. 

Mr. BoREE. This must just have been opening up a job for people. 

Mr. Gregg. Didn't they have one man in Washington who got lost 
down in the bottom somewhere? He had been there clipping paper 
for a long time, ever since World War I, and they had forgotten about 
him. Well, it must have been someone like that who dug this up. 

Mr. Thbvenot. You might say there has been a great effort going 
on in the Congress and in the executive department of the Govern- 
ment to do a complete survey of all of the reporting requirements 
on any report that requires more than 10 respondents to it, and they 
have been successful, in the brief period that they have been doing 
this, in eliminating a good many forms and simplifying a good many 
others. 

There is a committee of the House of Representatives, a subcom- 
mittee of the Committee on Government Operations, that has gone 
into extensive study and continued to study this, and hopefully, out 
of this will come some kind of shortening and cutting back on the 
reporting requirements on businessmen. 

Mr. Gregg. To simplify it? 

Mr. Thevenot. To simplify it. 

I know that any new form that is — that a Government agency 
wishes to put out now must go through a lengthy and rather arduous 
coiH^e and set of reviewing ooards. One of the boards is made up 
of representatives from pnvate industry. It must eo through this 
gantlet before it is ever put out for information, and there is hope- 
fully going to be a great deal of progress made in this. 

Mr. Gregg. That would be fine, if they just don't get the industry 
too high, to where the man that is sitting on it will look at it and say, 
well, my CPA will take care of that, and so forth. When it gets 
down small, that will be good. 

Mr. McInarnay. They have had legislation on the books since 
1942 — the so-called Federal Reports Act, which attempts to limit and 
restrict tbe inquiries made of citizens and businessmen, and so forth, 
but only since 1960 has there been a concerted effort, and I think that 
the time was coincident with the time when Congress began its com- 
prehensive inquiry into just what the executive agencies were asking 
businessmen and citizens, that they began putting some extra effort 
into this, and they have cut down a considerable number of these 
reports. 

Unfortunately, it has not eliminated all of the onerous ones yet. 

By the way, the report put out by the subcommittee — ^its title gives 
you some indication of the feeling of Congress on what the executive 
agencies ask for — it is called the Federal paperwork jungle, and it is 
available to anyone who wants to have a copy of it. 

Mr. Gregg, did you have any further comments on any area you 
would like to cover? 

Mr. Gregg. No. 

I've got lots of areas, but I don't think this will cover them. 

Mr. McInarnat. Well, it may be that if you woidd bring up 
some of these, some of the others participating here would have ideas 
to add, and it would build a good record of recommendations, and 
critiques for the committee to consider. 



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72 SMALL BUSINESS PBOCUREMENT CONFERENCES 



Mr. Obego. ok. When the U.S. En^neers ^ve a contract for 

digging a canal, putting structures in — which pertains to gates and so 

^ forth — that job is 100 percent bonded. The prime contractor that 

^^ takes that contract must produce, or the bonding company, one or 

the other. The Government is not going to lose any money. 

®° Now, the prime contractor again may require a bond from a sub. 

, In this instance, we had to produce a $200,000 bond. The job was 

$5 million. Our part of it, building these two gates, was $202,000. 

^i The contractor went broke. I'm not sure he actually went broke. 

Anyway, the bonding company had to take it over. We sweated 
it out for 19 months — for a httle over $20,000. Of course, now, this 
is no problem of the Government, but as Mr. Turner well knows, it 
nearly put us imder. There is no way under God's earth to get 
money, except by the bonding conipany. Our material is incorporated 
into the job — accepted by the Government, and the Government 
paid the contractor. The Government didn't owe anything on it. 
They had paid the contractor for it. He had used the funds otherwise. 

And, his bonding company had to take the job over and complete it, 
but nevertheless, our materials were installed and opeiable, out we 
waited 19 months for the money, and only coUected it last month. 

Mr. McInarnay. Now, you say this was the fault of the bonding 
company not making more prompt payment? 

Mr. Gregg. Well, it is no fault of the Government. The Govern- 
ment had paid it, but a Uttle businessman — that could ruin him. 

Mr. Thevenot. Did you have to go to the courts? 

!Mr. Gregg. No. Oh, it was suggested we take it to court and try 
to collect it, but I couldn't see it, I knew eventually we would get our 
money. 

The only question was when we would get it. There was no reason 
why we shoiudn't, because there it was—physical evidence. 

Mi . McInarnay. Is there any action that the Federal Government 
could take — any requirements that it could place on bonding com- 
panies that would assure some expeditious treatment on payment of 
claims in cases like this? 

Mr. Gregg. You boys work it out. I wish you could. That 
would be good, if you could just do that. That would be well worth 
while. 

Mr. McInarnay. Do you have any ideas about that? 

Mr. Gregg. Well, it would seem — the prime contractor sent in his 
estimate to the Government, stating — it is on his forms — our material 
is on the jobsite, inspected before it left our plant, inspected ag^ 
when it reached the jobsite, installed in the lock, and operable. The 
Government paid the man. 

All right. Their skirts are clear. They can't go anv further. 
They could have required from this man, I think, evidence tnat he had 
paid what he asked for, what he had on his estimate sheet when he 
made it up, which included moneys due Liberty Iron Works. 

Mr. BoREE. An affidavit? 

Mr. Gregg. Now, had that been done, then — I don't know how it 
could be worked out, but it looks to me like there ought to be some wav 
to work it out where we wouldn't have to wait like that, and I thiok 
we've got another contract that might be the same way. 

Mr. McInarnay. This is not an unreasonable request, is it, in the 
sense that in an ordinary commercial business if you pay a prime 



L 



SMALL BUSINESS PROCUREMENT CONFERENCES 73 

contractor and don't have the assurances of subcontractor paymenti 
then the subcontractor can file a lien against your building for his 
payment. 

Mr. Oregg. No, you can't. That would be 

Mr. McInarnay. But, you can't do that with the Federal 
Government. 

Mr. Gregg. No; you can't do it. 

Mr. McInarnay. You are suggesting that some system like this 
be set up for the protection of small subcontractors? 

Mr. Gregg. That is right, because had that been an individual, 
we could do that, but not with the Government. 

If we tried to institute a suit against the Government for payment 
of that, they would say, heck, we paid for it. If he didn't pay you, 
that is your problem — ^which is true. 

Mr. Soree. You know, I think they should get an aflSdavit just 
like other people require when they have somethmg built. 

Mr. Gregg. I have primary reference to one estimate on which 
this company Usted Liberty Iron Works, $35,906. He asked the 
Government for that and by so doing he made a statement that he 
owed Liberty Iron Works $36,906, he didn't say so, but you would be 
led to beUeve since he was asking the Government for that amount 
of money that he in turn was going to turn around and pay it out to 
Liberty Iron Works — ^less 10 percent, of course, for retainage. 

But, we didn't get it. We didn't get any of it, and by constant 
pounding, and driving back and forth every week or so. If you 
called, it wouldn't do any good because he was alwavs out — so I left 
several times at 2 o'clock in the morning and would be hidden on the 
highway near his office, and when I would see him go in I would follow 
him in quick before he could ^et out. 

Mr. McInarnay. I think it is very unfortunate that the small 
subcontractor is placed in the position of mercy, really. 

Mr. Gregg. It is mercy, begging. 

Mr. McInarnay. And, it shouldn't be. There should be some 
system worked out so that the small sub is protected if he does the 
work and the work is accepted, and as you say, installed. He 
shouldn't be placed at the mercy, in the case like tms, as you were. 
It is something that we will look into a little further- 
Mr. Gregg. And remember, on top of that, you can't talk about 
material shortages or discrepancies, because it is inspected and ap- 
proved before it leaves our plant. 

Mr. McInarnay. And afeo inspected at the site? 

Mr. Gregg. Yes, again. 

Mr. GooDLOB. Did you go to the Government after you found 
out that he had been paid? 

Did you go to the contracting office? 

Mr. Gregg. I sure did. 

Mr. McInarnay. Were they of any help to you at all? 

Mr. Gregg. They can't. I went straight over to head of construc- 
tion, U.S. Engineers. 

Mr. McInarnay. In Jacksonville? 

Mr. Gregg. Yes; they advised me that it had been paid. 

Mr. McInarnay. Well, the subcontractor has for a long time been 
in a bad position because of the so-called privity-of-contract rule. 
The Government's position — that of the General Accounting OflSce, 



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sa which audits many Government contracts — ^is that the Federal 

Government has no privity of contract with anyone other than the 
re prime contractor. 

d€ Mr. Gregg. That is right. 

Mr. McInarnay. ISo therefore, the subcontractor is left out in the 
sn weather. It is unfortunate. 

Mr. Gregg. Yes, it is true to the extent that it is hilarious, 
he We have a job building a gate — St. Johns lock, Florida Cross Barge 

wc Canal. The prime contractors are at 360 Lexin^on Avenue in New 

York City. We have to make up drawings. Now, at our expense, 
we ship those drawings all the way to New York City. They put 
another label on it — sometimes they don't even open it; ship it back 
to the Corps of Engineers here at Jacksonville. The Jacksonville 
Engineers go over it and send it back to New York City. They slap 
another label on it — ^it is true in many instances they haven't even 
opened it; and it comes back to us. 

We would be happy to carry it over to the Corps of Engineers, 
because it would save 2 weeks. 

Mr. McInarnay. Also, you woidd be in a position to deal directly 
with those responsible for overseeing it? 

Mr. Gregg. That is right, since the Engineers are the ones who 
have the say-so as to whether they want this angle changed or they 
want something else changed. The Engineers are the ones who do it, 
but we are the ones who are going to do the actual changing, not the 
prime contractor. 

Mr. 3^HEVEN0T. The Engineers are doing all the inspection? 

Mr. Gregg. All of it. 

You see, the prime contractor doesn't care anything about the 
dia wings; not a thing. The only thing he require is when it get to the 
jobsite it must fit. 

It is not so much the money involved, but the time. 

Mr. McInarnay. Do you have any further comments that you 
woidd like to make, Mr. Gregg, any other areas? 

Mr. Gregg. Well, I could expound on that a little bit, because it 
puts us behind the eight ball. To make drawings to cover this 
contract may require 50 or 60 sheets. We are afraid to order the 
materials and supplies necessary for fabrication until after final 
dra^rine: approval. 

We ao not carry an inventory of steel. It is too varied, so we order 
steel for each job. Now, if we go ahead and assume nothing can be 
wrong, which we have done in the past, and assumed they can't or 
won't change this, and we go ahead and order the material, darned if 
they won't come in and change it. That is the one drawing they will 
change every time. 

We buy it when it is approved, and some drawings take three trips, 
which consumes valuable time. That is their prerogative. Example: 
Let's say we have four items equally spaced on the drawing and tney 
decide they don't want them equally spaced. They want this one 
here, this one here, this one a little bit doser, and this one a little bit 
closer. That changes no material, but the time involved going to 
New York City, back again, back to New York, back again. 

So, we don't buy material before prior approval. 

In the meantime, though, we do need to start work on it, and at the 
final end of it then, they are hollering, and if we don't get it out on 
time — ^Uquidated damages of so much a day. 



SMALL BUSINESS PRCMTOREMENT CJ0NFERENCE8 75 

But, that is not as important as thei money part of it. 

Mr. McInarnay. Well, thank you so much, Mr. Gregg. 

Mr. Painter, I wonder if you would give us vour views? 

Mr. Painter. Well, I really have very little to talk about, as it 
relates to yoiu* main purpose here, doing business with the Governments 

We as such do very little business with the Federal Government. 
We sell a few small isolated agencies here and there, like the veterans' 
hospital down at Clearwater or something Uke that. We find no 

Eroblem in that type of business. It isn't big business, of courstif, 
ut in our case, if we want to bid on Army requirements — they asked 
us to, out of Colmnbia, S.G. — and have called us long distance several 
times, and they have put us on their list. I mean, they have ap-* 
proached us, rather than we trying to go through a lot of redtape on 
getting on such a list, but we are not in a position to consider that 
type of business, primarily due to lack of sufficient supphes. 

We stay, basically, with the ice-packed chicken or the fresh-cut-up 
chicken which we sell on the Florida market. We do no business 
-with the Federal Government which would upset us or come up with 
a lot of petty problems. I could take the libertv — I don't uke to 
bring up somebody else's problems, as I don't imderstand enough of 
them, but when Mr. Kelly called me and I got Mr. Turner's letter, I 
did make inquiry among a couple of my business associates that I 
know do come probably within the scope of your inquiries — they 
should be up here, and I tried to get them to come up, but it was so 
late in the week and they had other plans. They are in the fabrication 
business, you know and bid on various jobs, or what have you. 

As I say, I know nothijD^ about their businesses sufficiently to sit 
here and be a qualified expert talking about it, but they did mention 
a couple of things about — ^is it permissible to bring this up, or would 
you rather I not? 

Mr. McInarnay. By all means. 

Mr. Painter. One of them, and I can mention this again, because 
they asked me to — David Hess of Hescom Roofing Co. — they not 
only build roofs, they do a lot of work pertinent in that respect — 
metalwork and stuff like that. He had wanted to get more into 
Government business, but he has found that most of the jobs are too 
big, that they are really geared to big business — the lot, quantity 
lot — and if they could be broken down in any way, where the smaller 
manufacturer could get a share of them, why, he woidd be in a position, 
but since that door is closed he just has to forget it now. That is 
one thing he brought up. 

Mr. McInarnay. I wonder if he has made any effort to act as a 
subcontractor on the jobs that his company is qualified for? 

Mr. Painter. Well, as I said, I am not that well acquainted with 
his business to answer the problems. 

Mr. McInarnay. I would make two recommendations to him. 
I don't know whether this particular problem can be solved. It is 
always a question of the economy and so-called efficiency of the agency, 
the procuring agency, to buy in large lots, rather than breaking pur- 
chases down in the quantities that a small businessman can bid on. 
It is a constant battle, but it may be that if he would write directly 
to Senator Smathers, we could look into this with the agency and see 
if something couldn't be done. 



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Also, he might contact Mr. Tamer here in the local SBA office, and 
^ maybe there is something that his procurement specialist could look 

^^ into for him, and it might just possibly be of some nelp to him. 

Mr. Painter. I have one more. Time is running on here and I 
®" don't want to take too much of it. 

, I talked to Mr. Willie Mick, of Parker & Mick Co., which is another 

^^ rapidly expanding Florida organisation. I believe they now have 

^f three plants in Morida and they have come along real fast, and I had 

hoped that Mr. Mick could benere today. 

He said they would like to feel thev could get a little share of 
Government business. Maybe they didn't have it — they said one 

Sroblem they had, and again I can't go into detail on it — ^was that they 
ad made some inquiry on bidding on certain equipment they manu- 
facture — machinery and stuflf like that. They nave a big tool works 
and things of that sort to manufacture machinery. You know, kmd 
of heavy work. 

But, they had asked to bid on certain materials, and they found 
that in order to be eligible to bid, their plant had to have the fabrica- 
tion equipment in the plant to bid on this particular job, and he said 
he knew there wasn't any banker who was going to lend him money 
to put in special tjrpes of equipment to bid on a job on business that 
he didn't even know whether he was going to get or not. 

And, he said he would be a foolish businessman to even do it even 
if the banker would give it to him. I don't know whether thwe is 
any area there, but I will pass those two on. 

With that, I do, in closing, though, want to corroborate Mr. Gregg's 
feelings about the Small Business Administration, Mr. Turner in 
particular. 

We have had a very wonderful relationship with them, now going 
on to about 7 years, and we are reaching a point where, in another 
2 or 3 years, we hope we will liquidate it, but during all that time 
they have been most hdpful to us, meeting our situations as they 
have come up, and relieving us of certain restrictions under our 
mortgage. We have reached that point where it is as it should be, 
and not before. I don't think they have given us anything they felt 
they should not have given us, but I wiU say that they have been 
fine people to do business with, and I just hope that that is one agency 
of the Government that will be here a long, long time. 

Mr. McInarnay. Well, thank you so much, Mr. Painter. We 
like to hear that. 

I deal with Mr. Turner ciuite a bit, as well as with Tom Butler who 
is in charge of the Miami office of SBA, and Mr. Turner and Mr. 
Butler have always been most cooperative. When a company 
doesn't meet SBA's minimum requirements for financial assistance, 
and other types of assistance, then: hands are tied. 

But, they have always been most cooperative in bending over to 
help a company many times, so I am really very glad to hear you 
echo those sentiments of Mr. Gregg. 

Mr. Koester? 

Mr. KoBSTBR. Thank you very much. 

You know, I was amazed that so many people would bring up this 
Commerce Department census form. Washington must be a truly 
wonderful place, because it seems like they have a battery of people 
plus IBM computers, waiting until just the point when we are the 



SMALL BUSINESS PROCUREMENT CONFERENCES 77 

busiest^ and then here comes the form to be filled out in 10 days. 
This means that our bookkeeper has to drop everything he is doing. 
The payroll ^oes to smash, all records go to smash, it is a crash 

Erogram gettmg this stuflF out. We don't really know whether we 
ave the information precisely the way they want it or not. We 
always hope for the best. 

I have a suggestion on getting away from this mess. I am sure 
aU of us belong to various trade associations — associated in our fields. 
For instance, in the printing field, there is the Printing Industry of 
America — the PIA, which has offices in Washington. Most of your 
printing plants belong to this association. Our books are set up in 
the manner that the rIA has their books set up. Every year we fill 
this information out and send it off to PIA, and then back comes the 
ratio to us, some study that shows exactly where we place among all 
the printers in the country in our particular category, all broken 
down in fractional percentages. 

The Government could go to these trade associations without 
having to bother the individual. That is only a suggestion. There 
is the Graphic Arts Technical Foundation in Pittsburgh; there is the 
Printing Industry of Florida in Miami. It is a wonderful thing, be- 
cause it allows us to see exactly where our cost structure is in relation 
to printing plants all over the Nation in our size areas. 

Afl this information goes into Washington, but we don't see any- 
thing come back except more forms. I think that if the Government 
needs this information, that would be a more logical place to go in- 
stead of bothering all of us poor little taxpayers. 

Mr. McInarnay. I think that recommendation is particularly 
appropriate for one reason, and, that is — I don't know how it could 
be implemented, but the Department of Commerce, under which 
the Census Bureau rises, also nas an Office of Trade Associations, so 
that they know pretty well all of the trade associations in the country, 
and it mav just possibly be that some effort could be worked out with 
them, rather than contacting the individual businessman. 

And. if they could standardize what the Government wants with 
what tne trade associations need, and work something out 

Mr. KoESTBR. There could be an interchange. 

Mr. McInarnay. Right. 

Mr. KoESTBR. But we found it better to set our books up accord- 
ing to the way PIA has theirs set up, because then we can get the 
information to them quicker. We can interpret the information that 
comes back to us quicker. It works out better all the way around, 
and I am sure there are adequate trade associations for every field of 
endeavor in the country. 

Mr. Greoo. Might I add, Ed, though, that there is no industry 
comparable — I mean, another industry that has the setup that PIA 
has. 

Mr. KoESTBR. Well, it is a beautiful setup. It is very thorough. 

Mr. Gregg. I know there is none in our line. In fabrication, there 
is nothing — I have never seen a setup of a trade association that ^^-ould 
equal PIA. 

Mr. KoESTER. Maybe it could be taken off of the printers' backs — 
maybe that could be a good starting point. 

Mr. Gregg. Yes. 



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78 SHMJj BUSINfiSS PROCUREMENT CONFERENCES 

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sa Mr. KoESTER. But, it works a hardship on us. We have one book- 

keeper — we have one girl that works a oookkeeping machine to run 

re the figures for the company, and when you have got to pull them oflF 

dc of everything and work on these fool studies, it throws us into a book- 

keeping tailspin. It just isn't fair, I don't believe. 

SD So, if they can't do it that way, then they ought to put it on a basis 

where it is not compulsory. Then those industries that have the 

h£ work force to put on it can do so and those that don't, they can get 

ar it out when they jojly well please, if they want to at all. 

" But, we take a sort of bad outlook on it, because we don't see 

anything come back. It looks like a gigantic hopper where you put 
all this information in. It comes from all over the country and 
nothing comes out, so what worth is it? But, if it is needed to be 
gotten up, I suggest they try the PIA for printors. 

I am really not too well versed on the Small Business Administra- 
tion's role. We have never taken out an SBA loan, or apphed for 
one. 1 know some of our competition has, but in line — in the light 
of our prospective enlargement, I do take heart in the fact that the 
local newspaper says oiu* factory is located in a poverty pocket. 
Maybe we can qualify for some poverty aid; I don't know. 

One other thing that I was thinking of — ^in doing business with the 
Government back in World War II, we did a few things for the air 
station, mainside, out here, and then they put in their own printing 
plant, and for years and years and years we coiddn't ever get to 
first base in doing any work for the Government. The closest thing 
we ever did was a whole bunch of these class books from the training 
schools, that they put out during the war, and then about 1960 or 
1961, somewhere around there, in came a whole bunch of people from 
General Electric, Daytona, and they were on an inspection tour. 
General Electric was going to put in a facility in Daytona and they 
had to get somebody who could turn out their printing requirements, 
and they wanted to inspect all of the places in town, m the Jackson- 
ville area, so they could line up a source of supply. 

Well, they finally decided we had an adequate plant and they said, 
"Well, now, we will have to have your place cleared for security." 
So, we said, "Well, be our guest and go ahead." 
What we were in for. 

Comes all sorts of forms, all sorts of paperwork, very accommodating 
people in security from Atlanta. We were working on the thing for 
years. We spent hundreds and hundreds of dollars getting the tning 
up. We published a standard practice and procedur^ manual. 
I make a chance remark that I have got an opportunity to go to 
Europe. Whoops, wait a minute, you've got to have permission to 

fo, so I finally get permission from the Government so I can go to 
!urope, and 1 come back and I have to give them a report of where 
I have been, what I was doing, all this, that, and the other. 

So finally they said, "Now, you ace clear. You are classified as 
secret," which is next to top secret. That is the ultimate; the next 
I guess is "Bum before reading." 

But, we were secret classification, so I told them, "Fine. How 
about notifying General Electric? We are ready to go. We are 
ready to do business." 

So, they said, "Well, we have already notified General Electric. 
That is part of it. They requested this security. They have got the 
answer. You are cleared. Go out and get the business." 



SMALL BUSINESS PROCUREMENT CONFERENCES 79 

So, I go down to General Electric: ''Well, we don't need you. We 
have got our own plant now/' 

So, I told the security officer the next time I saw hun, "Well, 
General Electric is out. Where do I go from here?" 

''Well, you might try the air stations, naval installations in Jackson- 
ville." 

So, I try all of them. 

"We don't need you. We have our oa\ti printing plant." 

Why should I bust my brains against a brick w^l going through all 
of this security garbage when I can't do anything with it? It is silly. 
Here I am out hundreds of dollars in cash put out. I am out count- 
less man-hours assembling all this mess. I nave got a security cabinet 
I bought. I have got security garbage cans I Tbought. I have got 
security incinerators I bought. I have got a ridiculous situation plus 
a sheaf of records I am told I've got to keep for the next 10 years. 

I don't really know why, we haven't had a sniff of our first classified 
work yet. My point is this: We are wilhng to go through all this 
rigmarole if there is something to be gainwi, but if everybody is 
going to put in their own printing plant, what is the point? 

So, we nave about adopted the point that we are going to send the 
security stuff back to them, tell them they can take their clearance 
back, that we have no need of it, and just concentrate on work that 
we can get, because we find far less trouble in deaUng with commercial 
enterprises than what could ever be gained in going through all this 
Government redtape. 

Mr. McInabnay. Is it your contention, from your own experience^ 
that the Government is competing with private enterprise? 

Mr. KoESTER. Definitely. 

Mr. McInarnay. Unreasonably, in this area? 

Mr. KoESTER. Definitely. 

There is a need for the Bureau of Printing in Washington. They've 
got to print up the money, print up the bonds, the postage stamps and 
things like that, but, for instance, in the shore installations in the I^avy, 
if there is any possibility of having the work done on the outside, on a 
secure level, at fair rates, I see no reason for the Government to be in 
competition. 

Mr. McInarnay. The fact that the Federal Government is in com- 
petition with you is something that is not iust in this area? Have 
you heard of it in other parts of the country r 

Mr. KoESTER. No; not just in this area. 

Though I don't know it to be a conclusive fact, and I am not a 
gambling man, I would be willing to bet you a steak that you show me 
the Government installation and I will show you a printing plant in it. 

Mr. Thbvenot. Is this one of the problems that yoiu* association is 
contending with? Are they making an effort to do something about 
this? 

Mr. Eoester. I don't know just how you could get at the problem. 
It is deep seated. I am glad that Eldon Dickson here can recap tires 
for the Navy. They haven't put in a recapping plant yet. I am glad 
that Mr. Painter can sell the Navy chickens. They haven't got a 
hatchery out at the air station yet. 

I iust think it is unfair competition. 

Mr. McInarnay. This is one of the areas in which our committee 
has been interested for a long time. I don't know that we have ever 
6a-ii»— 60 — 7 



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looked into specifically this area. T know we have in laundry opera- 
Ye tions. 

^jj At Orlando Air Force Base, for example, they put in a million- 

dollar laundry and fought to take away its work with the private 
sn contractors in that part of Florida, and we were successfid in getting 

them to reconsider, 
l^g Refrigerated warehouses was another activity where the Federal 

^i Government in areas of the east coast were competing with private 

- enterprise. 

Mr. Thevenot. Liquid oxygen. 

Mr. McInarnat. Liquid oxygen manufacture was another one, 
so we would be happy to look into this to just see what could be done. 

Mr. KoEsTER. Tnere is a need, I concede, for instantaneous 
printing, such as letter forms. 

Mr. Thbvbnot. Orders and this type of thing? 

Mr. KoESTER. Yes. Which is usually produced on Multilith 
equipment, but that also proves to be a steppingstone. Some office 
in procurement says, "Well, that is great. Your MultiUth is working 
fine." 

Then, here comes another one. 

"Now, if we just had this other model, you could turn out this 
size, and then ii you had this press, you coidd turn out this size. 
If you had this press, you could turn out this size." 

The next thing you "know, they have got a whole battery of equip- 
ment there which is in direct competition. 

Now, for instance, our two-color press back in 1950 — I believe it 
was — ^we paid almost $50,000 less trade-in for the thing. The press 
that we are contemplating now will cost us $90,000. Now, Mister, it 
takes a lot of impressions to pay for that. It takes a lot of letterheads. 
It takes a lot of business forms. It takes a lot of brochures to make 
expenditures like that worth while to little fellows hke us, but we are 
willing to do it if we have a market. 

Now, I don't say take the printing department out of the U.S. Navy 
establishment in Jacksonville and give it to Douglas Printing. 

Of course not — give it to printers of the area. The^ can leave 
Douglas Printing out of it entirely, but give it to the prmters of the 
area; if they can do it, and if they are qualified to do it. 

Mr. Thevenot. Is this equipment that the Government owns 
rather sophisticated printing equipment — color? 

Mr. Koester. I have not been able to see the department. I 
talked with the procurement officer out at Mainside — or, the printing 
supervisor at Mainside, and I was auestioning him about the various 
articles that we coiJd turn out, sucn as maps. 

He said, "No, we have our own equipment for that." Well, now, 
that takes the sort of size equipment that we have, that Miller Press 
has, that Paramoimt Press has, that Ambrose has. 

Mr. McInarnay. Now, you are a printer by profession. 

In this business, would you say that the Government could purchase 
their printing needs on the outside more economically than than can 
support their own printing establishments? 

Mr. Koester. That is not only rny contention, that has been the 
contention of the trade associations in our field for years. 

There has been many an instance such as — ^I beheve RCA decided 
they were in the electronics business and not the printing business, 



SMALL BUSINESS PROCUREMENT CONFERENCES 81 

and they sold their printing plant. There have been other companies, 
such as SearS; Roebuck & Co. I can get the information and I can 

get the names of companies who have sold their printing plants 
ecause they have suddenly awakened to the fact that it costs them 
a lot more than just the cost of the equipment to run it.* 

Mr. McInarnay. Let me suggest, if you will, that you document a 
case pretty thoroughly to support your contrition and send it to 
Senator Geoi^e Smathers, Senate Office Building, Washington, D.C. 
He is a member of the Senate Small Business Committee — as a matter 
of fact, he is chairman of the Subcommittee on Government Pro-; 
curement, and it is an area that we would like to look into very 
thoroughly. 

We can never promise the kind of response that perhaps you would 
like to see, but you never can tell unless you make the effort; if you 
are willing to put the case together, we are willing to take it to the 
appropriate people in Washington to just see if something can't be 
-done. 

Mr. KoESTER. I wish something could be done about simplifying 
the security data. It is such a complicated bunch of stuff, even tiie 
security officer from Atlanta was in the office one time trying his best 
to figure out what the regulation said, and he couldnH do it. It is 
terribly topheavy. 

Mr. McInarnay. We will be glad to look into that, too. As I 
recall— and it has been a long time since I was cleared — ^when you are 
working for the Government, what they require is not so compre^ 
hensive; so I just don't know whjr they require so much of you. 

Mr. KoBSTBR. I don't know either, but there are five copies of four- 
page forms, the history form, and so on. 

Mr. Thbvbnot. Tms is on everyone in your plant? 

Mr. KoBSTER. Yes. You have two fingerprint cards, you've got 
•one more form there somewhere — several copies of that. 

And that all goes up — ^now, it goes to DlSCO in Columbus, Ohio, 
and it takes weeks or longer to process anvthing, and it is wild. They 
send me these security booklets with a whole bunch of information in 
there, exhorting you to use the security posters they send you. 

I haven't seen the first one yet. I would be willing to put them up, 
but they have never sent them to us. 

There is a whole list of friendly foreign countries. If you want to 
go outside the United States, you don't decide ri^t now, I've got to 
go on a business trip to West Germany or to England or to France. 
No — each country has its own niunber of waitij^ days as to how much 
leadtime you've got to advise the security office before you can be 
given permission to go. And, to me, this kmd of rankles me. 

Mr. McInarnay. Well, obviously, there are some requirements 
that they need to impose. It appears from what jon have said that 
very possibly they eo overboard m what they require of the ordinary 
busmessman in fulmling their various regulations. 

So, this is something we would be very glad to take up with 

Mr. KoESTER. Especially with nothing to be gained at the end« 

We are still a secure plant, but we have never had the first bit of 
work to do. 



I The information referred to was not received at time of going to press. 



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Mr, Gregg. Ed, wouldn't you think that the business itself is one 

thing that would call for tighter security regulations, so to speak, 

^^ rather than ours, where we are putting together nothing except steel? 

I mean, the printing industry itself — I don't know why it should be, 
but I just would 

Mr. KoBSTER. Well, in our industry you have a collection of in- 
j^g telligence, I guess you could put it, whereas in your industry you 

have a hunk of iron. 

Unless you know the application, it wouldn't mean a lot. 

Mr. Thbvenot. How expensive is it to maintain this security, once 
you have established the security at your plant and for its personnel? 
There is a continuing security program that must be maintained; is 
that right? 

Mr. KoESTER. Perhaps I led you to the Avrong idea. It doesn't 
cost me anything to maintain it, because there is nothing for me to 
do, except for the fact that every new employee I get in I am supposed 
to have him cleared. 

The way our security is set up, if I should get a secured job in, all 
those employees who have not been cleared woidd be banned from 
the plant until that job was out and deliv^*ed, and the necessary 
steps taken all along the route. So, rather than go through all that 
monumental effort again, I just haven't bothered applying for any 
further security clearance on employees. 

Mr. McInarnay. Are there any other areas you would like to- 
bring up? 

Mr. KoESTER. Wdl, our social security and income tax will be^ 
with us until the millenium. There is nothing that can be done 
about that anyway. 

So, I doubt if the paperwork will be reduced materially in that line. 
It looks like it is a necessary evil. Taxes in the excise region have 
been reduced. I don't know what is going to happen when the full- 
impact of the civil rights business hits us. 

I attended a seminar on what the equal opportunity section is going 
to mean when it finally filters. down to our particular level of employ- 
ment, and it does sound bizarre, but there again, that is on the bool^^ 
and I don't think that is liable to be changed. So, like the income 
tax, we wiU have to live with that. 

So, I am afraid. I have no other comments. 

Mr. McInarnay. Thank you very much, Mr. Koester. 

Mr. HoHBNHAUSEN. As I mentioned earlier, we really don't do- 
much direct business with the Federal agencies — mostly in the capacity 
of a subcontractor, and usually of a very minor natiu*e, and probably 
the only remark that would be fitting here is the fact that as a sub- 
contractor on these Government projects, even thoi^ we are a minor 
subcontractor in most cases where the project being built involves, 
millions of dollars, our contract is usually only for several hundreds of 
dollars. 

Yet, we apparently are burdened with the same amount of paper- 
work that the general contractor has to put up with, and in many 
cases, even though as I say our contract might only be for several 
hundred dollars over a period of several months, and we continually 
have to fill out these elongated forms for the Government — affidavits, 
and so forth. In many instances, where we have only spent 1 or 2 
man-hours in a whole month on a project, whereas another subcon- 



SMALL BUSINESS PROCUREMENT CONFERENCES 83 

tractor or the general contractor might be compiling thousands or 
hundreds of thousands of man-hours in a period of time — ^we have to 
fill out the exact same forms for maybe 1 or 2 man-hours, and it takes 
up an awful lot of office worktime doing it. 

Mr. McInarnay. You are referring to which forms? 

Mr. HoHENHAUSEN. Oh, I can't remember them all now, but 
every month they come in. We are doing a couple of projects out at 
Cecil Field now — soil poisoning for some new hangars, and so forth, 
and it is forms reportmg the number of man-hours, and aflSdavits 
attesting that we are complying with the wage and hour laws, and 
so forth and so on. 

It would seem to me that a simplified form for a small subcontractor 
on a large project could be considered that could cover the length of 
the project in reflection to the amount of money involved, as far as 
the contractor is concerned. As I say, we have to make these fomas 
out week after week, and in most cases on these projects we would 
spend at the maximiun 5 or 6 man-hours a month on them, but at the 
same time, we still have all these different papers which we have to 
fill out for the Government, and, in turn, resubmit them to the general 
contractor who, I suppose, turns them in to the Government agencies 
at the end of each month. 

I think that there should be some set of short forms for a small 
subcontractor to fill out either at the termination of his subcontract 
or at intermediate periods of his contract, rather than fill out these 
voluminous reports every week. 

There isn't that much money involved in this thing for potential 
violations of the law. 

Mr. McInarnay. And, th^e are principally in wage and hour 
ureas? 

Mr. HoHENHAUSEN. That is right. Contractors weekly payroll 
statement, form No. 879, plus copies of payroll. 

Mr. McInarnay. Now, these are forms you do not have to fill out 
if you are not performing a contract? 

Mr. HoHENHAUSEN. No, even if we have a month where we don't 
perform any man-hours, we still have to fill out the forms and say 
we didn't perform any man-hours that month, and so forth. 

Mr. McInarnay. On a Government contract? 

Mr. HoHENHAUSEN. On Government contracts — and, I say, ours 
is probably the smallest subcontract in most cases of any subcontract 
on the job, but we are still burdened with the same amount of paper- 
work as a large subcontractor, and it takes a lot of our man-hours — 
office man-hours, which we normally don't even compute when we are 
pricing the job. 

Mr. McInarnay. Are there other areas you would like to cover? 

Mr. HoHENHAUSEN. No, sir. That is — as far as I say, we don't do 
much business with the Federal Government. 

As far as pest control is concerned, the naval air stations seem to 
have some of their own pest control operators trained by the Navy, 
•evidently doing some of this work. 

Mr. KoESTER. You, too? 

Mr. HoHENHAUSEN. Ycs. It has bothered us, particularly as far 
as potential pest control work and termite treating is concerned. 

Kecently, I think, was the first time — a housekeeping contract they 
let for the Capehart housing project out at Mayport — they included 



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pest control work in with the housekeeping contract, which the sue- 
cessful contractor for that, of course, sublet the pest control to some 
^^^ other company. We worked with a janitorial service company which 

was not the successful bidder. The State of Florida now is enforcing 
some very strict regulations with respect to pest control operators, but 
it normally doesn't affect the Federal property. 
)^£ So, there is some competition from the Government of a small 

^j. nature. We actually go on the Government premises in some cases, 

- as in this Capehart bousing project, officers, families want some pro- 

fessional insect control job done on these houses, and they will pay 
for it out of their own pockets, even though tbere are some facihties 
available at the station for that. 

Mr. McInarnay. Thank you so much, Mr. Hohenhausen. 

Mr. Goodloe? 

Mr. GooDLOE. We are very much interested in this smaU business 
set-aside program. It has affected our business, helped us out im- 
measurablv, and we have eotten contracts that we would not have 
gotten had, it not been for the set-aside program, so we are very much 
mterested in the problems and some of the loopholes that are in the 
setup itself. 

Mainly, in regard to the way big business is getting around the 
intent of the set-aside program — jobs that are set up for small business 
organizations are being performed by big business and their equip- 
ment. All of oiur work is in the dredging business, dred^g work, and 
most of it — or the bulk of it — is for the Government through the 
Coros of Engineers. 

Mr. McInarnay. Mr. Goodloe, how do the large business firms 
manage to make themselves qualified to compete on a small business 
set-aside? 

Mr. GooDLOE. They do it either through the method of leasmg 
equipment to a small company and the big business equipment per- 
forms the work, or by havmg a small business concern hid the work; 
on most of the bids you are required to list the equipment that the 
job will be performed with. Dredges are described as to the size, the 
name of the dredge, and so forth, and then we have nimierous listings 
in records where small businesses have put in bids and Usted equipment 
beloneine to big business. 

And, tney are getting around that all the time. 

Mr. McInarnay. Do they take the job as a prime contractor and 
then subcontract most of it out to the large busmesses? 

Mr. GooDLOE. No; a big contractor can locate a small firm that 
is willing to bid the work for — say, a certain fee. They will put in 
the bid and then actually all the work is performed by the big business. 

Mr. Thevenot. Performed by the oig business machmery, not 
their employees? 

Mr. GooDLOB. Machinery, employees, and everything. 

Now, a lot of these Government contracts with the Corps of Engi- 
neers, for instance, a certain percentage is set up for the prime con- 
tractor — percentage of work is set up for him that he has to perform — 
20 percent of the work in some cases. That is what it is now. 

In some districts — in the Savannah district, the contracts we per- 
formed the first of this year, completed the first of this year, were set 
up as 50 percent. The prime contractor had to perform 50 percent 
of the work. Now, that is good. That cuts out some of the con- 



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SMALL BUSINESS PROCnaREMENT CONFERENCES 85 

tractine to big business, but not unless there is some control over the 
lease, the lease type of performanoe. 

Mr. Thbvenot. Is this a small business set-aside or a labor surplus 
area set-aside? 

Mr. QooDLOE. No; it is a small business set-aside contract. 

We belong to an association, the Southeastern Dredge Owners 
Association, and we were requested to attend the hearing by the 
Select Committee on Small Business of the House of Representatives 
last — ^I believe it was in August of this year. My brother attended 
that, and in that session they did bring out some of these problems 
that we are having directly, and the other members of this association. 
There are approxunately 10 or 12 firms belonging to the association, 
all businesses on the southeast coast, and they are all well-established 
firms — have been in business for quite a few years. Primarily, most 
of their business is with the Government. 

I don't know whether this would be in place, but we have a letter 
that was written by Representative Midter, who is chairman of the 
Subcommittee on Small jBusiness. He was at this hearing, and it is 
addressed to Ross D. Davis, the Executive Administrator of the Small 
Business Administration, which brought out some of the things that 
were brought up there. I don't know whether you would want that 
written into the record here or not. 

Mr. McInarnay. I think it would be a good idea to include that in 
the record at this point, if you could, Mr. Reporter. 

Mr. GooDLOE. But, we are trying to get something done along 
these lines. 

One thing is to increase the percentage of the work required of the 
prime contractor, and in this type of work, it is not imreasonable to 
reauire 

Mr. McInarnay. Would you be good enough to make that copv 
available to the reporter, so that he can include that in the record, 
or is that yoiu* only copy? 

Mr. GooDLOB. This is our only copy. 

Mr. HoHENHAUSEN. Can you make a copy of that, Joe? 

Mr. Kelly. Is it an original or a copy? We can make copies of 
originals, but we will know in a few minutes. 

(The letter referred to follows:) 

Select Committee on Small Business, 
House of Repbesentatxyes of the United States, 

Washinglonf D,C., October 8, 1966. 
Hon. Ross D. Davis, 
Executive AdministrcUor, 
Small Bu9ines8 Administrationf 
Washington, B.C. 

Dear Mr. Davis: This is in reference to the protest of Southeastern Dredge 
Owners Association against procurement regulations and practices of the milita^ 
departments in awarding construction-dredging contracts set aside for small 
business. 

This matter is being studied by our Subcommittee on Small Business and 
Grovernment procurement in connection with our review of small business sub- 
contracting and set-aside programs. Witnesses testified in our recent hearings 
that Defense Department's regulations permit the subcontracting of 80 percent 
and, in certain instances, 100 percent, of the set-aside contract to large business. 
They state that existing regulations encourage collusive bidding by brokers and 
small firms who are not equipped to perform themselves but who act for the 
benefit of large concerns. Tnis practice tends to defeat the purpose of the 
set-aside program. 



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The witnesses also complain that current Defense Department practices and 
re regulations allow a contracting officer to make an award while a siae determina- 

J tion app^l to Small Business Administration is pending. It is pointed out that 

^* this deprives the small business of its remedy against collusive bidders in set- 

aside procurements and renders SBA appeal procedures meaningless. Industry 
sn recommends remedial action through administrative changes in procurement 

regulations and procedures, 
i^ We enclose copies of the witnesses* statements for your attention. Your 

^* comments will be helpful to our subcommittee in its study of this problem and in 

&r reaching appropriate conclusions and recommendations.* 

"■ We will appreciate your response in six copies for our hearing record by October 

18. 

Sincerely yours, 

Abraham J. Multer, 
Chairman, Subcommittee N^o. 2 on 
Small BruineBB and Government Procurement. 

Mr. GooDLOB. Another thing — another pomt I would like to bring 
out is that the contracting officer can award a job to a big business 
firm — I mean, to a firm, I shouldn't say big business firm — even though 
this is lip for protest to the Small Business Administration, the Size 
Appeal Board. 

Kecently a contract was awarded to a firm while a determination 
was underway by the Size Appeal Board. If it is emergency work, 
of course, they should be allowed to waive that. I mean the con- 
tracting officer should, of course, have the right to go ahead and 
award that contract, but we have protested the award of the contract 
to a firm which was low bidder on a job. We were second low, and 
we had reason to believe that they were bi^ business under the rules, 
and we protested and it was successful. We were awarded the con- 
tract, but in some cases it doesn't work that way. 

In some cases, the award is already made before the determination 
is made. 

Mr. Gregg. Wouldn't an affidavit of some kind, when it was a 
small business set-aside, if it was a requirement hj the contracting 
officer that it be submitted at the same time as his bid came in— 
wouldn't that put an end to this? 

Mr. GooDLOB. One of the difficulties now is that there is no 
penalty for violations of this. 

Mr. Gregg. Yes, I know that. 

Mr. GooDLOE. A bidder can submit a bid whether he is big busi- 
ness or small business, and even knowing that he is big business, 
and there is no penalty for that. If no one protests the aw^ard of 
that work to that firm, the award is made. There is no — there are 
no teeth in the setup now to prevent this sort of thing. 

Mr. Gregg. But, if he had to declare his status right along with his 
bid, then he could be — that would be perjury there. 

Mr. McInarnay. Well, thev do — they do have to certify themselves 
as being small business, and that stands unless one of the other 
bidders protests. 

Mr. Thevenot. Unless the contracting officer makes a determina- 
tion that he is large business. 

Mr. Gregg. In other words, then, a big business — he does certify 
to that and^ he perjures himself whenever he does it, and there is 
no penalty involved? In other words, it doesn't matter how big 

* Enclosares referred to not included In the exhibit submitted by the witness. 



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SMAUi BUSINESS PROCUREMENT CONFERENCES 87 

be is, if he wants to do so, then he can sign this affidavit and send 
it right along saying, *'Yes, I am small." 

Mr. McInarnay. Well, I was assuming that any of these cases — 
that is an honest mistake on their part. They might not know what 
the particular rules are in their inaustry. I don^t know. 

Because certainly, the other companies in that industry in that area 
know, and they would be awake to their ability to make a protest. 

Mr. GooDLOE. Well, we have records pertaining to bid opemngs we 
have attended, and members of our organization, too, have attended, 
and have obtained the information as far as the bidder and the equip- 
ment that he proposes to use in performing the work, and we would 
be glad to make available to you some of that information, if you would 
like specific information. 

Mr. McInarnay. We would like to have it, and you could include 
that in a letter to Senator Smathers, and we would look further into it 
for you to see what assurances can be given a truly small businessman 
on a small business set-aside, that they are in fact, competing only 
with small business firms. 

Mr. GooDLOE. All right. 

If some pressure coula be put on the Government agency, such as 
the Corps of Engineers, to increase this percentage of required work 
by the prime contractor, that would help the situation, too. It varies 
in different districts. 

Mr. McInarnay. How has it been in the Jacksonville district? 

Mr. GooDLOE. Twenty percent now, some up to — it depends on the 
size of the contract. 

Twenty percent on the ones we bid. 

Mr. McInarnay. In Savannah it is 60 percent? 

Mr. GooDLOB. The last contract we bid on and performed in 
Savannah was 50 percent. 

Mr. McInarnay. Do you have any other areas you would like 
to cover? 

Mr. GooDLOE. Well, we do have some competition from the 
Government in the dredging field, which we contend that we can 
perform or work at less expense than it is being performed, and they 
are in direct competition with the dredging business. 
. Mr. McInarnay. Is this the Corps of Engineers? 

Mr. GooDLOB. Yes. 

Mr. McInarnay. Jacksonville district? 

Mr. GooDLOE. No, not primarily Jacksonville district. The 
Savannah district and in the Mississippi area, it is quite prevalent 
there. 

Private industry equipment is available to do the work and there 
are many dredges idle at this time, but the Government dredges are 
working. 

Mr. McInarnay. Do you have anything further, Mr. Goodloe? 

Mr. GooDLOE. I believe that about covers it. 

Mr. McInarnay. All right, sir. 

Well, thank you very much. 

Mr. McInarnay. Mr. Hufnagel? 

Mr. Hufnagel. Well, our function, of course, is strictly a service, 
and I think the accounting profession in recent years is gradually 
becoming more and more of a peacemaking organization — I mean, 



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between the taxpayer or the businessman and the Federal Govern- 

j.^ ment. 

j^ Of course, most of our work is with the Internal Revenue Service, 

and we along with those people in that department are constantly 
fighting their ADP machine up there in Chamblee, Ga., which seems 
to send out more mail than any other agency that I know of. I 

^^ would like to comment on this matter of the census and I say more or 

less being in between our client and the Federal Government, 9 times 
out of 10, if a client receives somethii^ from some Government 
agency. State included, they don't bother to look at it any more. 
Tney just put it in an envelope and send it to us, you know, and we 
make a decision one way or the other. 

And, being independent, a lot of times our judgment is a little bit 
more reserv^, but we go ahead and handle it and get rid of it the 
best way we can. So, in my opinion, the accounting profession is 
performing a real function in these days of automation that we are 

fetting into here now. We are trying to keep everybody happy. We 
now that the people in the Internal Revenue Service over here are 
fighting their macUne just as much as the accountants are. 

As to the Small Business Administration, our relationship there has 
always been very pleasant. We haven't had too much of it, but 
sitting here aud listening to the various problems of operations as 
these gentlemen face them from day to day, it appears that it is an 
agency that is doing something good, and I would naturally Uke to 
see it continued and expanded, and checked out, such as you are 
doing right at this moment. 

I thiii if something like that was done, a lot of other agencies — for 
example, the Census Bureau — we might find out where all this stuflF 
finally winds up, vou know. 

Mr. Gregg. That is a bad word. 

Mr. HuPNAGBL. It is to you, Mr. Gregg, but we have made out 
lots of them, and it seems that sometimes they do get carried away. 
We have one client, a very small business, and, since this thing started 
8 or 10 years ago, I know that she gets this regular attack once a year, 
just as regular as the years go around, and that, to me, seems unfair, 
as this is a very small business, and what good could her little figures 
contribute to the entire community, imless they just pick out one. 

Mr. McInarnay. Are you now referring to the census report? 

Mr. HuPNAGEL. Yes; but I mean we have never discouraged anyone 
to not fiU them out. We fill them out as best we can, based on the 
information tiiat comes off the client's books or, if we have the books 
in our office, we give it to them as straight as we can, and we haven't 
had too much trouble, but it does seem that certain individuab get a 
pretty steady dose of it, you know. They mi^ht try the guy next 
door the next time. 

Mr. Gregg. You know, come to think of it, I don't remember 
getting one of those last year or the year before either. 

Prior to that, though, for 5 years they were regular and the last 
one was an improved one, and it was much thicker than the others. 
That was the one they called for all this breakdown of aluminum, 
steel, ingots, on castings, and so forth, and I was crazy by the time I 
read through it. I think I wrote across it in red that it was impossible 
to supply it, but if they wanted to go across the books and bear the 



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SMALL BUSINESS PROCTTREMENT C0NFEREKCE8 89 

Expense, I would be happy to open the doors to them — something 
like that — and sent it bacK. 

Mr. HuPNAGBL. Well, we have handled quite a number of them 
for many of our clients, and in some cases, their accoimting depart- 
ment or their comptroller, or someone, makes it out and we will review 
it before it goes in. 

We have even had them down to the 11th hour where some people 
have gotten a telegram — ^you know, it has got to be filed today. 

Mr. Gregg. Yes; that is right. 

Mr. HuPNAGBL. That sort of thing, you know. 

Mr. Gregg. I got it. 

Mr. Hupnagel. Well, tnaybe we didn't know about it until that 
-day. 

Mr. McInarnay. Do you have any particular recommendations 
on how these Government forms might be improved, these reports 
that are required? 

Mr. HuFNAGBL. Well, I find it more and more difficult to read 
taxbooks every day. We had a problem come up yesterday, and when 
you get through reading all the information that is given by the tax 
services, you are generally hesitant about whether you are right or 
wrong about the matter. 

It seems they try to put too many words in them. In many 
situations, a lot of words could be left out, could be condensed in some 
manner to make it simple for people to understand. 

Mr. Thevenot. And, you say that as an accountant, an 
expert in the field? 

Mr. HuFNAGBL. I would say that. 

Mr, Thevenot. To the layman, it would be much more difficult, 
of course? 

Mr. Hupnagel. Yes, of course, it is just difficult to read some of 
these things. 

The new code in 1954 did make some good changes. But, I think 
there is an awful lot of paperwork that most businesses have to face, 
not only from the Federal Government, but from the State as well, 
and we naturally in our business try to keep everybody out of trouble 
if we can. 

Mr. McInarnay. Do you have any ideas on the way the various 
Small Business Administration programs of assistance to small busi- 
ness might be improved? 

Mr. Hupnagel. No, I am not familiar enough with it. I mean, we 
haven't had enough contact in our clientele for me to pass judgment 
in that matter. 

But, I can see that with the gentlemen present, that they must have 
had their accountants work it out or help them work out their problems 
at the time they were going through an application for loan or some- 
thing of that nature, whatever the circumstance was. 

I think that is about all I have to add here. I enjoyed being here, 
and listening to the proceedings. 

Mr. McInarnay. Thank you, Mr. Hufnagel. 

Mr. KoESTER. If I may interject a thought here, Mr. McInarnay? 

Mr. McInarnay. Yes, sir. 

Mr. KoESTER. I have just been sitting here and thinking this is 

1'ust absolutely wonderful. It is nothing ususual for Congressman 
Bennett to come here during his oiBF times in Congress, you know, and 



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^^ 90 SMALL BUSINESS PROCUREMENT CONFERENCES 

see you and shake hands and say, "How are you doing?" Or, "What 
pg can I do for you in Washington?" 

^^ But this is the first time I have ever seen something such as this, 

where Senators Smathers and Long have taken the trouble to sendyott 

gjj and Mr. Thevenot down here, to bring this thing here and say, "What 

can we do to help you?" 
jjj It 13 wonderful. I think it is very nice of you gentlemen to do this,- 

and I certainly deeply appreciate it. 

Mr. Thevenot. It has been a great deal of help to us. As staff 
members, we are responsible for carrying out the intent of the Congress 
and our committee in getting very close to you people and hearing 
first-hand what is actuidly bothering you it gives us a good indication 
as to where the thrust of our efforts should be. 

Mr. KoESTER. This is something that can't possibly do anything 
but improve Government, as I see it. 

Mr. McInarnay. Well, we hope so, and we thank you very much 
for those comments, Mr. Koester. 

As Mr. Thevenot has said, we just hope that sr.me of the thii^ we 
have been apprised of as a result of these meetings throughout the 
Southeast will assist us to assist you, and that is our purpose in 
being here. 

Now we want to hear from Mr. Dickson. 

Mr. Dickson. I would like to concur with what Ed Koester just 
said. That was one of the things that I wanted to mention, because 
certainly this is the first time in the many years I have been in business 
that I have been given an opportunity to sit down and just discuss 
things in our small business. We are one of the smallest of the small. 

First of all, I would like to say this, that in our business with the 
various governmental agencies or divisions, such as the U.S. Post 
Office Department and Naval Air Station, Cecil Field and all, in 
recapping and repairing tires, our relations have been very satis- 
factory. We have not done a great deal of this; however, I think we 
have had oin: fair share, and that is about all anybody in business 
could ask. 

We have not secured any loans through the Small Business Adminirr- 
tration, but probablv will have to one of these days. I have been up 
and talked to Mr. 'f urner, and have had very pleasant relations and 
all, and so it may be that we will need to seek help there in the not too 
distant futiu^e. 

Aside from some of the things that we have discussed, here is, I 
think, the main problem of the independent tire distributor, not only 
in Jacksonville, but across the coimtry. Our biggest problem is this. 
The manufacturers are our greatest competitors. 

I have been in the tire business 35 years. I worked for another 
concern 14, and I have been in business for myself 21, and the inde- 
pendents across the country have been fighting this thing through 
their National Independent Tire Dealers Association for 7 years. So 
far, we have not been able to come up with any help. 

Actually, it has grown worse. For example, the tire manufacturer 
will go out to these large concerns, such as the trucklines — now, the 
railroads have the piggyback operations and big fleets, in other 
words— and give them the same price that they sell us for. In other 
words, we are the distributors. Where we used to be able to sell 



BMAUi BXmiNESS FBOGUBBMENT CQN1*BBBN0B8 91 

those people and make a very small profit^ today if we sell them we 
will have to sell them at the same price the manufacturer sells to us. 

I think it is a very unfair practice, and certainly the small inde- 
pendent cannot exist if this thing continues to prevail. 

Now, in the retail market, it is the same way, of course ; '' the manu- 
facturer" is opening more and more company-owned stores every day. 
Now, we have to be competitive, of course, and we are competitive, 
and I think any independent-r-I tmow this is true in Jacksonville — 
if you called any independent tire company for a price on the same 
•duality product, the same type tire, you would receive within pennies 
tne sameprice, because we nave to keep abreast of what they are 
doing, mien I say ''they," I mean the manufacturer^ the store, the 
<x>mpany-owned store* 

And, we have to be and we are competitive, and we can fairly well 
live with that. It is a very, very low percent profit, but by volume, 
we cotdd live with it, but the large user, as I mentioned earlier, we 
cannot sell at the same price we buy at, and stiQ stay in business. 
It can't be done. 

Mr. Thevenot. This, I might say, sir, is a problem that Senator 
Bussell Long, of Louisiana, who is the ranking majority member of 
the committee, and with whom I work very closely — this is a problem 
that he has been very much interested in, and has proposed!^ several 
bills in the Senate to curb this whole dual distribution problem. We 
have on the Small Business Committee a very competent lawyer, Mr. 
Ray Watts, who is working almost exclusively on this problem, and 
it not only covers the tire industry, but also a great many other 
industries where the company-owned outlet is in competition yriih 
the independent businessman, and hopefully some of tne legislation 
that has been leaned from all of Uiis research will get on the books 
and will be of a great deal of benefit to vou and other small businesses. 

Mr. Dickson. I might add this in closing. 

A few years ago, iVanklin D. Roosevelt, Jr., was in Jacksonville, 
and at that time had a hearing with some small businessmen, with 
reference to the thing that I just mentioned, company-owned opera- 
tions, manufacturers selling direct, and I know that he was trying to 
bring this to light and trying to help the small businessman. 

However, we haven't gotten any relief from it as far as the tire 
industry, and I understand that neither have many other lines, as 
you have mentioned. 

Mr. McInarnat. Are there any other areas that you would like 
to cover, Mr. Dickson? 

Mr. Dickson. Well, I could expand on this considerably, but I 
think that in light of the time and all, I thiok that I have covered the 
main points. 

I would like to say in closing again that I appreciate the opportunity 
of being here, and expressing my views, because certainly what I have 
said with regard to our business, the independent tire distributors — 
something is going to have to happen in the not too distant future, 
or you are going to have a lot oi small independent businesses, not 
only tires, but others, that can't survive. 

Mr. McInarnat. Well, thank you so much for coming and sharing 
with us your views. 

I just want to say on behalf of Senator Smathers, with whom I work 
directly, and certainly, I am sure, Senator Long, for whom Mr. 



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92 BMALL BUSINESS FROCUBBMENT COJSTEREJiCBS 



Thevenot woiics, and for both of ub, and on behalf of Senator Sparlaiian, 
and the Small Businees Committee of which he is chairman, I want 

^^ to thank the Jacksonville Area Chamber of Conmierce and Mr. Joe 

KeUy, in particular, and the Small Business Administration office here 
in Jacksonville, Mr. Kennon Turner, r^onal manager, for setting up 
this meeting and making it possible for us to come here and meet 

i^j with you. 

g^j. And, we certainly want to thank each and every one of you for 

- coming here and sharing your views, and taking time out of your 

work, which I am certain has been a sacrifice on the. part of each of 

Jou — to come here, and I just want to say again that what you have 
ad to say has been extremely important to us, and I hope that as a 
result of what we have heard toaay we will be aUe to do a better 
job for you. 
So, thank you very much for comine. 

(Whereupon, at 4:15 p.m., Thursday, November 18, 1965, the 
conference adjourned.) 

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