en,
The Board's review function determines that negotiations are competently conducted,
based on adequate information and documentation, in conformance with established policies
and procedures, and will result in contracts or subcontracts that adequately protect the
Government's interests. It also determines that proposed awards resulting from competitive bidding are based on adequate competition, appear reasonable under all the circumstances, and if to other than low bidder are in the best interests of the Government.

By having such a review provided for, an effective alertness for good and adequate
negotiations has been instilled in all negotiators. It has resulted in definitely improved

justification documentation of contract files; uniformity has been achieved in contract
terminology (clauses) and in negotiated basic contract provisions; more adequate and com-

plete staff review of contracts has resulted, as well as divergent staff views having been

reconciled; and a focal point has been provided for discerning and accumulating contracting
problems for later crystallizationintoSFO contract policy.
Establishment of the Position of Procurement Specialist

In the early part of 1951, the position of Procurement Specialist was established as
a staff function under the Director of Supply. The responsibilities of this position included

the inspection and examination of procurement operations of SFO cost-type-contractors and
procurement functions of direct AEC operations. In addition to providing staff assistance,
the purpose of the reviews is to assure that cost-type-contractors are purchasing under
their established procedures as approved by AEC and to further insure that procurement
accomplished is in the best interest of the Government. It was not until April 1952, that

the position could be filled. The Procurement Specialist has critically reviewed procurement procedures of the then existing contracts as well as the procedures furnished under

new contracts. Procurement inspections have been made on eight cost-type contracts with
15 cost-type contractor inspections scheduled through fiscal year 1954. In addition, inspections are scheduled on direct AEC procurement at three locations. The principal ac-

tivities of the Procurement Specialist are now a part of a Commission-wide policy established by GM-S&S-45.

Property Management
Despite the progress that had been madein the field of Property Managementprior to

June 1, 1950, much remained to be accomplished in the reduction of stores inventories,

establishment of adequate stock levels and controls so as to meet SFO programs and to
maintain realistic inventory turnovers. Although over-all supply managementpolicies
were fairly well developed, detailed procedures and arrangements in the field of redistribution so as to better utilize property and establish procedures for the disposal of property by cost-type contractors, were yet to be developed.
To further add to the responsibility of the SFO Property Management Branch, an
accelerated SFO expansion program was emerging from the planning stage. During the
past three years this increased the number of major AEC and contractor operated supply
facilities from eight to more than 21 locations which now include 18 contractors.

Property Management Examinations
It was evident that if SFO was to accomplish the work indicated as needed in the field
of Property Management, the staff, in order to provide the advice and assistance required,
would have to become more familiar with the contractor's operations and ascertain the effectiveness of its management. To accomplish this, emphasis was placed upon the develop-~
ment of sound and comprehensive procedures and techniques to effectively examine the

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