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receipt, storage, issue, utilization, redistribution and disposal operations of those responsible for the custody and care of Government-owned property.
In no small measure these property examinations have contributed to the strides which
have been made in the control of materials, reduction of inventory investments, increased

turnover ratio, and in more prompt determination and declaration of excess stocks avail-

able for redistribution as well as disposal by sale of surplus property, salvage and scrap
materials. This also contributed to more efficient warehousing operations including a reduction in the requirement for acquiring additional storage facilities.

These examinations, which document contractor deficiencies and outline recommendations, provide a basis for negotiation with contractor management to adopt more adequate
procedures and take desired corrective action. SFO began these examinations over three

years ago, and now such examinations are required to be conducted. throughout the Commis-

sion by GM-S&S-45 effective January 1, 1953. Under the present program property management examinations will be made at least once each year and where significant deficiencies are found, partial surveys will be made at three-month intervals.
Long Supply

Contributing to heavy inventories were many categories of items with quantities on
hand far exceeding current needs and obviously it was not considered economical to dispose
of these items at a loss to the Commission when repurchase within the next 12 months was

probable.

However, if another AEC activity was currently contemplating buying identical

material, in the interest of conserving warehousing space, obtaining materials immediately
which would otherwise involve a long procurement time, and husbanding current appropriated
dollars, it was desirable to provide a vehicle to redistribute such items. In accordance with
AEC policies, contractors were requested to screen their stocks for long supply items and

prepare long supply lists for circularization throughout the Commission. This system was
inaugurated in SFO during the month of August 1952, and from that time to the end of fiscal
year 1953 the dollar value of redistribution of items in long supply was as follows:
Transfers
Transfers
Transfers
Transfers

within SFO Installations
from SFO to other AEC Operations Offices
from other AEC Operations Offices to SFO
from other Government Agencies to SFO

Total Redistribution of Items in Long Supply

$ 67,918.52
27, 973.93
210, 600. 77
183, 875.10
$490, 368. 32

Disposal by Cost-Type Contractors
In the interest of economy and to expedite the disposal of excess and surplus property,

procedures were developed for cost-type contractors to sell surplus personal property including scrap and salvage within the framework of the Commission's property disposal
policies. This provided a method to greatly accelerate disposals at single contractor loca-

tions and relieve the AEC field offices of detailed responsibilities which in part would have

been duplicated by the contractor.

ALG?

Recovery of Strategic Material in Classified Form

“

A segregated "melt'' program was installed to recover aluminum, copper, tungsten,

and steel from obsolete classified items which could not be disposed of through the usual
salvage channels and were being stored, destroyed, or buried. This method recouped valuable storage space as well as cash dollars for the Commission and prevented the loss of

large quantities of such critical materials to the national economy during the Korean War.

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