ing our image with the industry throughout the United States by improving the payments processing time. Our Government agency customers appreciate the faster procurement, and better quality control that can be exercised by the regional offices. Last year you authorized $2 million to cover phase two of the project for electrical and air-conditioning requirements. In the present budget we are requesting an appropriation of an additional $3.5 million to complete this project. In addition to the financing of the Congressional printing and binding requirements, our plans for the future in our mission to produce or procure the printing and binding needs of the Federal Government include the use of new equipment, faster payments to our contractors, better procurement methods, and faster turn around in our procurement. After many years of buying newsprint manufactured outside the United States, we have this year placed our annual contract with a firm whose price met the criteria of the Buy American Act enabling us to purchase American-made newsprint produced in a labor surplus area. A corollary benefit is that the drayage is by U.S. railroads rather than in foreign bottoms. In an effort to keep abreast of the vast technological improvements being made in the private sectors of the printing industry and to establish close working relationships with leaders in the industry. we have found it highly beneficial to invite representatives of the industry to the Government Printing Office. While these representatives provide us the benefit of their counsel without charge, I have found it desirable, as a matter of courtesy, to occasionaly provide luncheons and dinners for these visitors. These out-of-pocket costs have been substantial. To defray the cost of these expenses, which I feel should be appropriately paid by the Government, I am asking for authority to use the Revolving Fund on my personal certification for not more than $3,500 per annum. To keep up with new technology and to aid our depository libraries in their use and storage of Government publications and to reduce the increasing costs of the depository program, we are now studying the possibility of providing publications to them in microform. I have already had representatives of Government departments and staff members of professional associations representing the microform industry meet to discuss such a program and, particularly, I asked for their views pertaining to setting standards for microforms. I have now scheduled a second meeting (Apr. 28, 1971) to which industry members are invited. With the help of an advisory committee composed of top Government experts in the field, we will solicit and evaluate the views of all interested groups. The Joint Committee on Printing has authorized these actions and, hopefully, I will be able to furnish them a recommendation for implementing this program in the near future. At this time, I would like to submit for the record our justifications for the various classification of "congressional printing and binding" for fiscal year 1972. Mr. ANDREWS. Thank you, Mr. Spence. Mr. SPENCE. Thank you, sir. JOINT GOVERNMENT-INDUSTRY GROUP Mr. ANDREWs. Who are some of the members of the Joint Government Industry Group, Mr. Spence? Mr. SPENCE. We have, sir, the president and immediate past chairman of the Board of the Printing Industry of America, Mr. Joseph Hennage, the president of the Hennage Creative Printers in Washington, D.C.; Mr. Walter McArdle, a president and past chairman of the Board of PIA, McArdle Printing Co., in Maryland; Mr. Nicholas Mueller, the president of Modern Linotype Co., in Baltimore; the vice-president of Western Printing and Lithograph, Mr. Paul Lyle, who is known as the outstanding specialist in the field of web offset; the president of the Stein Printing Co., in Atlanta, Ga., Mr. Mendel Segal. Mr. ANDREWS. You can put the rest of them in the record. (The information follows:) Earl J. Gilbert, Chief, Publications Division, Defense Supply Agency. James C. Jones, George W. King Printing Co., Baltimore, Md. James E. Monahan, Director, Navy Publications and Printing Service. Paul Ziemer, Deputy Director, Office of Publications, Commerce Department. Reed J. LaFerriere, Acting Director, Printing and Publications Division, General Services Administration. EXPANSION AT PRESENT SITE Mr. ANDREWS. I assume from your comments that your plans to relocate the Government Printing Office have been scrapped? Mr. SPENCE. Their recommendation to me is that we can best serve the Congress by being four blocks away rather than some 14 miles, that our physical buildings are good, sound structures, but that they should be expanded so that we can better aline our equipment and put in more modern equipment. Mr. ANDREWS. Do you mean additional buildings over in that area? Mr. SPENCE. To extend the buildings. Mr. ANDREWs. Up? Mr. SPENCE. To extend those which are already there toward First Street, which will be in a westerly direction. Mr. ANDREWS. Do you have space there? Mr. SPENCE. Yes, sir. This property is already owned by the Government. I have been assured that they will transfer it to the Government Printing Office. Mr. ANDREWS. Would you acquire additional land adjacent to the existing plant? Mr. SPENCE. Yes, sir. Mr. ANDREWS. Is it possible to acquire land through urban renewal or Redevelopment Land Agency Channels? Mr. SPENCE. Yes, sir. They have already offered me the land, all that I would need. Mr. ANDREWS. If you did that, if you expanded your present plant, do you think you would be in a position to meet the needs of the Government Printing Office? Mr. SPENCE. Yes, sir. Mr. ANDREWS. If that be true, could you do what you planned to do much cheaper than moving out? Mr. SPENCE. Right, sir. FUNDS FOR EXPANSION Mr. ANDREWS. When do you anticipate that your request for $2,250,000 will be made? Mr. SPENCE. Sir, we would hopefully have had an approval by the Joint Committee on Printing already but, as you know, even though the two Houses have named their members to the committee, the unfortunate illness of the acting chairman, Senator Jordan, has prevented the committee from organizing. So we have had a delay now of over a month. PRINTING VOLUME-COMMERCIAL VERSUS IN-HOUSE WORK Mr. ANDREWS. What was your total volume of business for fiscal year 1970? What percentage of that volume was contracted out? Mr. SPENCE. Sir, in 1970, $236 million was produced and contracted. Of that, $126 million was contracted out. Mr. ANDREWs. $226 million total? Mr. SPENCE. $236 million total. Mr. ANDREWs. And $126 million was contracted out? Mr. SPENCE. And $110 million was in-house. Mr. ANDREWS. You contracted out nearly half of the total volume? Mr. SPENCE. Over half, sir. Mr. ANDREWS. Please update the table that appeared on page 554 of last year's hearing. Mr. SPENCE. Yes, sir; I will furnish that for the record. (The information follows:) Mr. ANDREWS. We know you established 12 regional procurement offices. I believe last year there were five. How many offices in total are there and in which cities? 60-468 0-71——7 Mr. SPENCE. Actually, sir, the five were printing plants rather than procurement offices. What I did was convert those to also be procurement offices. So we have today a total of 12. In addition, we have not yet looked at the third region, which is this region in which we are located, which includes Maryland, Virginia, and West Virginia. We feel that there will probably be a requirement for an office in the Norfolk-Newport News area to take care of that terrific workload that arises as a result of the carrier construction down there and also the Air Force base in Langley. We will probably require an office in Baltimore to take care of the Army and Air Force distribution centers which are located right outside the city. Mr. ANDREWS. These are only procurement offices? Mr. SPENCE. Yes, sir. Mr. ANDREWS. You don't do any printing there? Mr. SPENCE. We are reducing those printing operations as fast as we can set up contracts to buy the services. FIELD PRINTING OFFICES Mr. ANDREWS. How many printing offices do you have outside Washington, D.C.? Mr. SPENCE. Five. Mr. ANDREWS. Are they equipped to do the same type of work that you do at GPO? Mr. SPENCE. No. They are smaller. They average about 75 employees each. Mr. ANDREWS. What do they do? What do they produce? Mr. SPENCE. They do shortrun work, small work, for the agencies which are located right in the city, quite often in the same Federal building. Mr. ANDREWS. You only have five? Mr. SPENCE. Yes. Mr. ANDREWS. Are you going to phase them out? Mr. SPENCE. Possibly. Mr. ANDREWS. So you won't have anything in the field doing printing work? Mr. SPENCE. That is what we may arrive at. That is the desire of the Joint Committee on Printing. ELECTRICAL AND AIR-CONDITIONING PROJECT Mr. ANDREWS. What is the status of the project of improving the electrical and air-conditioning equipment? Mr. SPENCE. Sir, we have an invitation out on the street for the electrical and an invitation out on the street for the architectural requirements for the electrical and air-conditioning plans and specifications. So we are well on target. Mr. ANDREWS. Have you actually started work on it? Mr. SPENCE. No, sir; we have not. Mr. ANDREWS. Are you just looking for bids? Mr. SPENCE. Unfortunately, a bidder took exception to our invitation and our subsequent turndown and referred it to the General Accounting Office. They upheld our position, but this delayed us about a month. Another question was raised by one of the contractors which required submission to the GAO. We are awaiting a decision. Mr. ANDREWS. Have you finished your plans and specifications? Mr. SPENCE. Partly. Mr. ANDREWs. Who did that work? Mr. DEVAUGHN. The actual specifications on the electrical work were drawn up by our own engineering division, and we are now in the process of contracting for the A. & E. on the air-conditioning project. Mr. ANDREWS. Do you plan to have a central system? Mr. SPENCE. Yes, sir; we do. Hopefully we can use Jackson Alley, which is the space between the two buildings, to run the duct work, which will keep the cost down considerably. COST OF PROJECT Mr. ANDREWS. How much have we given you so far-$2 million? Mr. HUMPHREY. Yes, sir, and in addition your committee authorized us to use $1 million from the revolving fund. Mr. ANDREWs. So that is $3 million. Mr. HUMPHREY. Yes, sir. Mr. ANDREWS. How much are you requesting in this budget? Mr. HUMPHREY. $3.5 million. Mr. ANDREWS. So it's $6.5 million in total? Will that get the job done? Mr. HUMPHREY. We hope so. Mr. ANDREWS. In other words, you will air condition all your facilities over there with $6.5 million? Mr. SPENCE. It's more than air conditioning, sir. It's also humidity control. As we go more into offset, which is a higher speed method of printing, the need for humidity control is much greater than it is for letterpress. Mr. ANDREWS. And you hope to get all that work done-humidity control and air conditioning-for $6.5 million? Mr. SPENCE. We do, indeed, sir. I do not want to have to come back here and say that I erred and please give me some more money, Mr. ANDREWS. Will these improvements tie in with proposed renovations under the new concept of expanding the existing plant in lieu of a new plant? Mr. SPENCE. Absolutely, sir. (Note. See p. 153 for additional testimony on the above.) PRINTING SERVICES TO CONGRESS Mr. ANDREWS. What plans do you have to improve the printing services to the Congress? Mr. SPENCE. These people that I have in the Government industry group have recommended the procurement of new high-speed web offset presses to replace existing letterpress equipment, some of which is over 40 years old. |