Proposals are being studied of the best means of preparing and distributing standard materials, improving and developing measurement methods, and providing facilities for verification of inventories of Government-owned source and special nuclear materials, in helping the Commission to carry out its responsibilities in retaining the Government's title to and control of such materials. The fifth annual meeting of AEC's accountability representatives was held in Washington on June 22-24. Such annual discussions of mutual problems contribute significantly to improvements in materials accounting and provide a better understanding of overall Commission problems. In conjunction with the June meeting an AEC and contractor meeting was held to discuss problems associated with the application of mathematical statistics to accountability goals. Papers were presented by AEC and contractor personnel describing techniques of mathematical statistics applied to the accountability program. Construction and Supply During the period January 1 through June 30, 1955, costs incurred for new plant and equipment were estimated to be $375 million, raising the total capital investment in atomic energy facilities to about $6.6 billion before depreciation reserves. Except for the Feed Material Expansion program now under way construction of most of the AEC major production plant facilities has been completed or passed its peak, and construction activity is gradually tapering off. Costs incurred for new plant and equipment amounted to approximately $870 million during fiscal year 1955-AEC costs accounting for 2.2 percent of the Nation's total construction dollars. For the first half of 1955 monthly incurred costs averaged about $63 million, a decrease of almost 25 percent from the $83 million per month for the previous 6-month period. A further moderate decline in monthly construction costs is expected during the second half of the calendar year. Review of Real Property An estimated 3,900 acres of land were or will be declared excess as the result of a program for review of AEC real property holdings. Criteria for such action in this review and in future reviews are that real property not essential for minimum operating and program needs, minimum physical requirements, and health and safety standards be disposed of as excess. Emergency Relocation Center Consistent with the Administration's policy of planning for the continuity of essential Government operations during an emergency period resulting from enemy action affecting the Nation's capital, the AEC prepared a plan to provide for carrying out its essential activities during any such emergency period. As part of this plan, an alternative headquarters was established at a location outside the District of Columbia where key members of the Commission's staff can assemble and conduct the most urgent operations. This alternative headquarters (emergency relocation center) is fully operational, with the necessary office supplies, equipment and communications facilities available for immediate use. Test operations were held at this center during the Nation-wide Operation ALERT, June 15-17. Auction Sales The AEC continued to dispose of surplus property by the auction sale method whenever the amount, value, type, and location of the property warranted. Returns from 6 auctions at Paducah, Savannah River, Oak Ridge, Portsmouth and Hanford, during the past 6 months, grossed from 17 to 29 percent of the original cost of the property sold. Small Business The AEC small business program, established in conjunction with the procurement activities of the AEC operations offices and costtype contractors, was explained at a hearing before Subcommittee No. 2 of the House Select Committee on Small Business on March 2, 1955, and the Procurement Subcommittee of the Senate Select Committee on Small Business on May 5, 1955. The testimony described the action taken by the Commission to assure that a fair proportion of total supplies and services are procured from small business concerns. A substantial portion of AEC procurement dollars continued to go to small business. From July 1, 1951, to March 31, 1955, AEC cost-type contractors awarded $2.44 billion in subcontracts. Small business concerns received $941 million or 38.6 percent of the total amount. Direct contract awards to small business during the same period amounted to $172.8 million or 3 percent of the $5.6 billion in contracts awarded during the same period. Military Application Immediately following Operation CASTLE, the test series held at the AEC's Pacific Proving Ground in the spring of 1954, the weapons program was directed toward development of weapons whose design was based on results of those tests. During the first 6 months of 1955, weapons produced in accordance with the President's directive included types incorporating such designs. Operation TEAPOT Another prominent event in the weapons program during the period of this report was Operation TEAPOT, at the Nevada Test Site. This was a series of 14 nuclear tests conducted between February 18 and May 15. It took only 7 more days than the 11-shot, 80-day series conducted at the Nevada site in the spring of 1953 despite the heavier schedule. Operation TEAPOT introduced a concept of "dual capability” permitting two nuclear devices to be ready for firing on several occasions one "sensitive" and the other "nonsensitive" in terms of various test criteria including public safety. Under this concept it was sometimes possible to delay the most "sensitive" tests until conditions were more favorable-using the less ideal periods before or after these for a less sensitive test. On March 29 this dual readiness for testing allowed the firing of a sensitive test at 4:55 a. m. (Pacific Standard Time) and another less sensitive one at 10 a. m. (Pacific Standard Time), the first time that 2 nuclear tests were carried out in one day. The firing of 2 more nuclear devices than originally planned for the series again demonstrated the unique advantages of a continental testing facility. Data developed in the weapons laboratories and from the tests themselves, indicated the need for two additional tests and it was possible to plan and fire them during Operation TEAPOT. This accomplishment would have been impossible without the special advantages offered by the Nevada site. In conducting Operation TEAPOT the Commission again worked jointly with the Department of Defense, the Federal Civil Defense Administration, and other Government agencies. Private enterprises participated under Government contracts. The Commission, through its contractors, was responsible for the test devices and diagnostic measurements, while the associated military and civil tests were performed by the Department of Defense, FCDA, and other interested agencies. The Department of Defense also used several of the scheduled detonations for indoctrination of military personnel. The Federal Civil Defense Administration conducted its "Operation Cue" in connection with the thirteenth nuclear test of the series on May 5. This was the most comprehensive FCDA exercise held in Nevada to date, and consisted of emergency feeding, radiological safety monitoring, and other disaster-related training exercises before and after the detonation. One nuclear shot in the series and one non-nuclear test were specifically designed to determine effects of high altitude atomic detonations required in connection with development of nuclear warheads to be used against attacking enemy aircraft. Operation WIGWAM In addition to Operation TEAPOT, a joint AEC-Department of Defense test (Operation WIGWAM) was conducted in the Eastern Pacific ocean in mid-May. The principal purpose of the test was to study effects of a deep underwater detonation. The Commission participated in the test by furnishing the device, assisting in its final assembly and placement, and conducting diagnostic measurements. As forecast, indications are that the test involved no health hazard to mainland or island inhabitants or consumers of fish. Contract with ACF A definitive contract with ACF Industries, Inc., replaced the letter contract under which certain engineering, design, fabrication, testing, and operating work have been carried on by ACF at Buffalo, N. Y., for more than a year. The new contract extends from February 1954 to June 1959. Community Operations Community Disposal Revised proposed legislation to facilitate the establishment of local self-government, and to provide for disposal of Federally owned properties at Oak Ridge, Tenn. and Richland, Wash. was introduced on April 26, 1955, by members of the Joint Committee on Atomic Energy. In the House of Representatives, Representative Carl T. Durham introduced H. R. 5845 and an identical bill, S. 1824, was introduced in the Senate by Senator Clinton P. Anderson. Hearings were held on these bills at Oak Ridge on June 10, 1955, by a Subcommittee of the Joint Committee on Atomic Energy. The principal change in the present bill as compared with the bill submitted last year, concerns the basis for Federal contributions to the municipalities, schools and hospitals at the communities. Under last year's proposal, such contributions would have been paid on the basis of a formula under which any entity to which municipal facilities were transferred would receive the difference between the Commission's cost of operating such facilities for fiscal year 1955, and the revenue which that entity actually received. These payments would have been subject to review after 5 years and would have terminated after 10 years. The revised legislation proposes the payment of fixed dollar amounts for schools at Oak Ridge, and for the municipality, schools and hospital at Richland-which payments after transfer of facilities, would decline annually on a straight line basis and terminate at the end of 5 years at Richland, and at the end of 15 years at Oak Ridge. The revisions in the bill were made in the light of the Richland hearings last June, of numerous helpful comments and suggestions received from various interested groups at both Oak Ridge and Richland, and of further study by the Commission. Later hearings were held by the Subcommittee of the Joint Committee on Atomic Energy at Hanford on July 5. Oak Ridge HOUSING AND COMMUNITY FACILITIES Construction of the new commercial center, to be known as the "downtown" area, was started January 19, 1955, when Oak Ridge Properties, Inc. held a groundbreaking ceremony. It is anticipated that the first segment of 287,500 square feet of commercial space will be available for occupancy by October 1, 1955. In preparation for general disposal, a boundary survey of the minimum geographic area for the municipality of Oak Ridge was completed. In addition, all lot lines were surveyed. As of June 30 the program of leasing lots for private residential construction progressed to the point where 126 individual lots were leased, 28 houses were completed, and 10 houses were under construction. North Richland North Richland, used principally as a construction camp, was transferred from custody of the AEC to the Department of the Army on July 1, 1955. Prior to transfer the AEC had curtailed its construction activities to the extent that remaining construction employees could be housed satisfactorily in privately owned housing in the surrounding area. Los Alamos The program to replace substandard housing at Los Alamos, N. Mex. continued. The first phase of this program, 120 replacement |