Monthly Status and Progress Reports for March 1953 (Partial)

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Discussions with GAO on the Division ' s proposal to eliminate cash reimbursement vouchers from integrated contractors and to substitute an annual accounting for costs accrued, culminated in a letter from the AEC Chairmzn tothe Comptroller General requesting approval of such a change.0 The condensed audit report on procurement and contracting act iv i - .ties of the atomic energy enterprise issued March 25, 1953, shows the general status of AEC procurement activities as revealed by summary r e - ports from the operations offices. We transmitted justifications for the special review of the fiscal The Bureau heldyear 195': budget tothe Bureau of the Budget on March 2. hearings on all programs during the month but we did not receive its Brief analyses i n support of t h e Commission's estimates of expenditure for fiscal years 1953, 1954, and 1955 were prepared and used i n discussions with the President ' s representatives and the National Security Reports t o Congress ion& Committees , On March 27, 1953, i n response to a request of Senator Byrd, Chairman of the Joint Committee o n Reduction of Nonessential Federal Expenditures, we transmitted a report showing a breakdown of unpaid obligations as of December 31, 1952, and June 30, 1953, classified as firm legal contracts,letters of intent, and other. This report was a summary of infor - mtion supplied by the operations offices and Washington divisions. 5-3

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QA letter to the House Appropriations Committee dated March 23, 1953, set forth the cost of making motion pictures and stock film footage. A revision of the instructions on budget administration issued by memorandum of April6greatly simplifies the procedures for preparing the initial financial plans of operations offices. - A revision of Part 111 of the Controller ' s Manual, Budgeting, elim - in a ted Schedule 65a, Estimate of Over - all Employment, and changed the instructions for estimating the costs of within-grade advancements. cancellations and three revisions of GM-ACC bulletins necessitated by the issuance of the Controller ' s Manual were published during the month. The review of the financial reporting program was completed during As apart of the general revision of financial reports,we issued separate cost-budget reports to each program division providing a summary of program costs by operations office and a detailed cost-budget comparison for the specific program administered by the particular division. This new practice of issuing divisional cost-budget reports in addition tothe summary report permits us to tailor the reports to the needs of the various divisions. all reports to the operating divisions will show cost and budget comparisons by the detailed budget and reporting classifications and by major organizations or offices. Beginning with the cost-budget report for March, The budget and reporting classification is undergoing revision to The 5e visions of Programs 1000 andr ef lect significant program changes. 3000 have been issued. The draft of aunit product cost report covering Hanford operations for the six months ending December 31 was reviewed with Commissioner report contained graphic presentations of unit costs for each major Hanford product, showing the feed material cost, conversion cost exclusive of depreciation, and depreciation cost of each major plant. It also showed production trends and contained analytical comments. the report was favorably received and we are putting the valuable suggest ions that we received into effect. all major AEC products for the first half of fiscal year 1953, January, and February, 1953, i s being prepared. On the whole, A similar report including costs of Beginning with the month of January, we are receiving enough data t o permit compilation of total unit costs for weapons. A summary unit

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e cost report for the month of January was prepared from the SFO cost report showing unit cost of weapons currently in production broken down by their major components. A representative of the Public Health Service visited our Insurance Section during the month toget information on our claims for - radia - tion injuries or damage. This visit resulted from the current speculation that private industry may undertake the commercial operation of reactors. Such action would have a bearing on the Public Health Service ' s responsibil it y for the health and safety of the general public. An investigation of a contractor ' s purchase of an equipment item showed the need for action by the responsible operations office to procurea refund o r an adjustment in unit costs and possibly other administr at ive action. Two allegations of irregularities and an allegation of discrimination proved notto be founded in fact.Investigation of a contractor ' s purchase of tires indicated the possible need for administrati ve action.Allegation that a contractor ' s employee received a gift from a vendor was disproved as was the allegation that another contractor ' s former employee submitted a false leave certificate. that a contractor ' s employee requested and received a loan from a potenti al supplier was proved and the need for administrative action was An inspection of the eating facilities provided by one contractor disclosed a good operation and a similar inspection of another contractor ' s operations showed the need for administrative attention. An inspection of the potor vehicle operations of a contractor indicated the need for admin is tre ti ve action. An inquiry was made into certain phases of the procuremept practices of one of our newer contractors for information