The Procurement Department for this contract, with full purchasing responsibility, was established under the Operations Division in Feb- ruary 1949. Figure 13.1-1 shows the funstional organization of the de- partment in its ultimate form. The Purchasing Section, which included sub-sections for traffic, expediting, and material control, functioned within this department, and supervision of stateside warehousing facili- ties was later added as a unit of material control. The purchasing of office supplies and equipment, plant protection services, engineering and surveying supplies, medical examinations, and advertising for recruitment of personnel was begum, and the work involved in formulating the necessary procedures for the procurement of equipment and materials, from the time of original engineering requirement to final delivery at the construction site, was also begun. In preparing procurement methods and procedures for the Project, the policy was to adhere as closely as practicable to the established procedures of the AEC and normal Federal Government procurement practice, using as criteria current government purchasing manuals and codes. At the same time,these procedures were designed to be of sufficient breadth and flexibility to cover the contingencies that could be expected to develop in a project of the nature of that under consideration. There pro- cedures, submitted to AEC in July of 1949 and subsequently approved, are reproduced as Exhibit B at the end of this section. In the early stages of the Project, in order to expedite procurement of long-term delivery items, the responsibility for requisitioning all construction materials resided in the Engineering Division. This practice permitted the preparation of purchase order specifications, and the processing of requisitions for certain items of equipment and materials, long before completion of detail design and approval of drawings for construction, On items such as diesel generator units, which were normally offered on six to nine-month delivery schedules, the saving in time was important. Likewise this system of initiating requisitions prevented the build-up of abnormally high warehouse stocks on standard items of construction materials such as cement, reinforcing steel, lumber and the like. The need for standard stocks of these items was, of course, recognized and, as will be seen later, this type of procurement was begun as soon as conditions permitted. Warehousing space and stevedoring at the Jobsite were initially limited, necessitating care in scheduling shipments of bulk materials and supplies in order to prevent overtaxing these facilities and services and to prevent material deterioration and loss. Procurement of materials and equipment required by beachhead, and later by construction, forces was initiated by field requisitions on those items not normally requisitioned by the Engineering Division under its material take-off responsibility. It is apparent from an examination of the established procurement procedure that the procedures for processing both engineering and field requisitions were established with a view to keeping all interested groups of the Holmes & Narver organization informed on procurement status of all items under requisition and in maintaining material control. Actual procurement of materials, equipment, and supplies, and accomplishment of delivery to the Jobsite, was regulated by the established 13-3