of control through introduction of several Assistant Manager positions, a specific program for orienting all key personnel to the significance of these changes will be in order, It is expected that, proceeding from this program, additional AEC programs for appraisal and development of key personnel will be introduced on a developmental basis. Management Review of Contractor Personnel Utilization There is under consideration, contract administration-wise, the appropriate develop- ment of an over-all periodic "management review" approach to evaluation of contractor performance. At present contracts include an auditable appendix which catalogs the classifications of positions required to accomplish the work and the pay rates to be applied, as well as other recurrent items of personnel costs, which represent a translation of the Corporation's personnel policies into specific payments for travel, vacation, pensions, pay increases, and the like. However, there is no basis upon which the specialized attention of the Organization and Personnel division is brought to bear upon any administrative review of the contractor's determination of its budget estimates, nor upon an appropriate interim follow-up review, consistent with the administrative practices of the contractor, of evidences and results of their management control of operational economy in personnelutilization. In short, while the Organization and Personnel division contributes to the management deter- mination as to the reasonableness of the rates to be paid by the contractor for various personnel services, it makes no contribution with respect to the frequency with which payroll or other obligations are made from the standpoint of continued operational economy. In connection with this it appears necessary to examine the method presently utilized by contract representatives in reviewing budget estimates and securing approval of contractor financial plans relating to reimbursable costs for personal services, in order to formulate a recommended management position respecting review of contractor personnel utilization and endeavorto establish a policy. © Atomic Energy Labor-Management Relations Panel Questions have been raised by major prime contracting organizations respecting how realistic the proposed Panel procedures are likely to be under present procedures of the Federal Mediation and Conciliation Service, as contrasted with some of the results re- garded as somewhat undesirable under the original procedures of the "Davis Panel" when it was attached to the Office of the President. AEC Budget Cycle There are current questions relating to the planning of the AEC Budget Cycle. In- creased refinement onthe timely determination of program assumptions and instructions for budget submittals on an AEC-wide basis will contribute further to devoting the greater portion of staff time during budgeting periods to substantive considerations and realistic planning; and at the same time comply with AEC budgeting procedures for physically accumulating and consolidating data to meet deadlines for submittal of budget estimates in the form and quantity required. 00 160 : uae IGS