fabricators, which required that adjustments be made for the work previously performed. In some cases, a change in plans called for the outright cancellation of work that was in progress, and time was spent in arriving at an equitable settlement with the fabricator in each case. Some of the fabricated material requirements were of such nature that few fabricators in the United States had the facilities to meet the requirements. One case that may be cited as an example called for some cast steel units weighing nine tons each, which, when cured, were to be machined to close tolerances. The design was completed on these units on November 6, 1950. The castings were purchased from the Baldwin Loco- motive Works in Philadelphia, Penna., and the machining was subcontracted to the Patterson Foundry and Machine Company, East Liverpool, Ohio, and to The National Roll & Foundry Company, Avonmore, Penna., in the same area. Bids also had been received from the National Foundry Company (with Allen Machine Company to perform the machining), which was the only com- pany in Southern California with facilities to handle castings of this size. However, by awarding the contract to the Baldwin Locomotive Works, savings of approximately $70,000.00 were realized, and this company, by making two sets of patterns, was able to deliver the castings in time to meet the deadline delivery date of January 28, 1951. ‘The transportation of these units was arranged in advance, and they were expressed through to the Pacific Coast on a non-stop basis, arriving at the Naval Supply Center just in time to meet the scheduled sailing. Many of the fabricated items were in this category, and in some instances the work was of such urgency that procurement could not wait upon completion of the design drawings. It was sometimes necessary, therefore, to negotiate a contract with a reliable firm which had all the essential requirements of fabricating skill and experience, together with adequate plant facilities and sufficient materials on hand to start work immediately. It is gratifying to state that most of the fabricators willingly set aside their normal production schedules and made men and materials available for the desired work when they were informed that this was work of high priority required for the Atomic Energy Commission. The lack of shipping facilities for the two-month period following the outbreak of hostilities in Korea had resulted in a large backlog of material requirements, some of which were on order and others on requisition. This backlog, together with daily new material needs, presented a problem that strained the facilities of the Procurement Department to the utmost. The Department had barely succeeded in reducing the accumulation of procurement requests to a point where normal procurement procedures were in prospect when a new complication born of the war situation arose. It developed that the Korean War had made new and greater demands on industry for materials and supplies, and with the advent of the National Production Authority under the U. S. Department of Commerce, all outstanding orders for materials and equipment had to be immediately converted to the applicable Defense Order Priority Ratings. The impact of this requirement was the greater because of the order backlog yet remaining. Procurement activity in all its phases reached a high point during the latter part of 1950 and the early months of 1951. As construction 13-19