position of the agency. In all contacts represents the Administrator with authority to commit the agency to a course of action within the policy of the agency. SCOPE AND EFFECT OF WORK The very escence of this job is coordinating and correlating the work of this agency with other government agencies. Policy decisions made by the Administrator are often directly dependent upon the accuracy of my interpretá tion of the policies of other agencies. SUPERVISION AND GUIDANCE RECEIVED The incumbent is directly responsible to the Administrator and receives general supervision from him. The supervision received an only be of a general nature; therefore, the actual work is carried on my own initiative and judgment. In many instances a great deal of tact and diplomacy is required. MENTAL DEMANDS This job requires a broad and thorough knowledge of business and industrial practices as acquired through actual experience. Also it requires a thorough knowledge of government procedures and policies. The incumbent must be capable of meeting people and accurately conveying to them the policies and thinking of the Administrator. Hon. PHILIP YOUNG, THE ASSISTANT SECRETARY OF COMMERCE, Chairman, United States Civil Service Commission, Washington, D. C. DEAR MR. YOUNG: As you know, the Department of Commerce has been developing proposed organization and staffing requirements for a new component of the Department, tentatively entitled the Business Services Administration. In connection with the establishment of this new agency, careful consideration has been given to the positions in the new organization which properly should be included in schedule C of the civil-service rules. The following positions are considered to fall within that category, either because of their confidential nature or their identification with the formulation of department or agency policy. The position descriptions are herewith, which with the titles are believed to indicate clearly in which grouping each of the subject positions is located. Administrator Two confidential assistants to the Administrator Deputy Administrator Secretary to the Deputy Administrator Confidential assistant to the Deputy Administrator Secretary to the confidential assistant Three Assistant Administrators One confidential assistant or secretary to each Assistant Administrator Assistant Deputy Administrator Secretary to the Assistant Deputy Administrator Division directors, industry divisions In view of the need for immediate consideration to the staffing of the new organization it is requested that action be taken on this request as soon as reasonably possible. Sincerely yours, JAMES C. WORTHY, Assistant Secretary of Commerce (Administration). (Position descriptions referred to in above letter are on p. 751.) Hon. JAMES C. WORTHY, SEPTEMBER 8, 1953. Assistant Secretary of Commerce, Commerce Department, Washington 25, D. C. DEAR MR. WORTHY: The Commission has very carefully considered your request of July 25, 1953, for the addition to schedule A of a number of positions in the National Production Authority. 1 We understand that the positions of directors of industrial divisions are to be filled without regard to competitive procedures in accordance with the Defense Production Act which authorizes the President to employ persons of outstanding experience and ability without compensation. In view of this and your present authority under schedule A to employ 35 industrial executives in positions in grades GS-14 and GS-15, the Commission does not believe that further extension of excepted authority should be made. Therefore, your request is disapproved. By direction of the Commission. DEAR MR. WORTHY: This has reference to your letter of August 27, 1953, requesting schedule C listing for a number of positions in a new component of the Department of Commerce, which has now been officially designated as the Business and Defense Services Administration. With the exception of the directors of the 25 industry divisions and 1 other position, the Commission has approved schedule C listing for the positions requested in your letter. Although we have not found the positions of director of the industry divisions qualified for schedule C, we are providing for their exception from the competitive service under schedule A. These actions will be effective upon publication in the Federal Register. We have not been able to find that the position of secretary to the Confidential Assistant to the Administrator has the policy determining or confidential characteristics necessary to qualify it for inclusion in schedule C. Accordingly, your request for that position has not been approved. In accordance with your request we are revoking the schedule C authority for the former position of Confidential Assistant to the Administrator of the National Production Authority, section 6.312 (c) (1). By direction of the Commission. PHILIP YOUNG, Chairman. NOVEMBER 12, 1954. UNITED STATES CIVIL SERVICE COMMISSION, Washington 25, D. C. GENTLEMEN: The Business and Defense Services Administration of this Department is charged with responsibility for the conduct of promotional activities in relation to all segments of business and industry, as well as with activities concerned with national defense mobilization and planning. In carrying out its responsibilities for current defense production controls, industrial expansion, stockpile recommendations, development of a mobilization production controls system, and other mobilization readiness programs, as well as service to business activities, the BDSA must deal directly with approximately 85 percent of all manufacturing industries. This includes a wide diversity of industry specialization ranging from the metals and minerals fields to electronics, machine tools, chemicals, and a wide variety of others. Many of these industries, notably electronics, chemicals, machine tools, and metals and minerals, have in recent years undergone sweeping changes in technology. It is important that BDSA have in the Industry Divisions specialists in specific industries who not only have a sound background of technical training but also have a recency of experience and have established the confidence of the industry concerned, which enables them to deal effectively with industry in connection with the latest developments in technology, production methods, and distribution. To some extent this knowledge and experience is supplied by WOC personnel on loan from industry to fill certain key positions. It is not possible, however, to obtain more than a limited representation of industries through this method. It is not necessary always that the industrial specialists gain this type of experience through industry employment. Many of the specialists now employed in BDSA obtained the experience in the NPA and other agencies of the Government responsible for allocation of materials and control of production during an emergency. It is also possible to obtain experience in technology, production methods, and distribution and the confidence of a particular industry through working in certain jobs in military procurement. Since the requirements of the industrial specialist and industry analyst registers do not specifically require this type of knowledge and experience, it is frequently difficult or impossible to find specialists of this type in the regular Government service or on civil service registers. In addition, although we have been given recruiting authority in cases where the current registers could not provide the type person to fill our requirements, the employee thus hired has little protection against the DCE or RPL programs, which are based on minimum requirements as prescribed by civil service registers. Consequently, it is believed that a schedule A authority of indefinite tenure is desirable, to be applied in such cases as it becomes necessary to secure personnel having these qualifications. In order to meet the degree of specialized background requirements essential for adequate staffing of the Business and Defense Services Administration, it is believed that authority should be provided for employment on a continuing basis of not to exceed 25 positions of industrial specialists. These positions would be of operating nature in some instances, as well as those of consulting and advisory categories, and would be limited to grade GS-13 and higher grades. Accordingly, it is requested that a paragraph be added to the provisions of schedule A of the Civil Service Rules as follows: "Department of Commerce-Business and Defense Services Administration: Not to exceed 25 positions of industrial specialist, at grades GS-13 and higher, requiring specialized current practical knowledge of the production of individual commodities or products, industrial operations, and related problems." If additional information is needed, the Administrator of the Business and Defense Services Administration has requested the opportunity to participate in a conference with representatives of the Civil Service Commission to discuss this problem. Please advise me if such a conference is necessary, and I will be glad to arrange it promptly. Sincerely yours, CARLTON HAYWARD, Director of Personnel. JANUARY 14, 1955. UNITED STATES CIVIL SERVICE COMMISSION, Washington 25, D. C. (Attention: Mr. John Steele.) GENTLEMEN: This letter is submitted in accordance with discussion of January 14, between Mr. Steele and Mr. Maslow of the Civil Service Commission staff, and Mr. Honeywell, Mr. Hayward, and Mr. Delohery of the Department of Commerce. By letter of November 12, 1954, this Department requested authorization to employ 25 industrial specialists in the Business and Defense Services Administration under the provisions of schedule A of the civil-service rules. These 25 positions were to be in addition to the 25 positions of Directors of Industry Divisions of the Business and Defense Services Administration authorized under schedule A, section 6.112 (j) (1). As a result of today's discussion, the Department wishes to amend its request of November 12 by relinquishing the schedule A authority for 25 Division Directors and requesting authorization for 30 industrial specialists to be employed in accordance with the language suggested below: "Department of Commerce-Business and Defense Service Administration: Not to exceed 30 positions, at grades GS-13 and higher, to be filled by appointment of persons, qualified as industrial specialists, who possess specialized knowledge and experience in the field of industrial production, industrial operations, and related problems, applicable to one or more of the current segments of industry served by the Business and Defense Services Administration. Appointments under this authority shall be limited to a period of 2 years. No extension beyond that period shall be made, except upon prior approval of the Civil Service Commission." In prior correspondence we have outlined in considerable detail the program and functional responsibilities of the Business and Defense Services Adminis tration. In addition, as was brought out by Mr. Honeywell in the meeting of January 14, there should be particularly stressed the responsibilities of the agency for mobilization planning and for the implementation of Office of Defense Mobilization directives. The goal of constant readiness must be met at all times, and flexibility of staff assignments is imperative in order to keep abreast of rapid changes in program objectives. When the Business and Defense Services Administration was established, it was intended that the Directors of the Industry Divisions would, in every case, be drawn directly from private industry, on loan, to serve without compensation, and the Deputy Directors would, in all cases, be career men. Experience has proved that the concept of a rigid organizational pattern for staffing the Industry Divisions in this manner is not feasible in all instances. Three of the Directors are career men, and in several instances the Deputy is an industry man serving without compensation. There is demonstrated need for some flexibility in the assignment of personnel to such positions, as well as to positions of branch chiefs and technical specialists. The existing authority for schedule A appointments in the Business and Defense Services Administration covers 60 positions. This includes, in addition to the 25 Industry Division Directors, a total of 35 industrial executives under the authority which expires January 31, 1955. Our present request thus entails a reduction of 30 in the total number of positions excepted under schedule A for the agency. In view of the fact that our present schedule A authority expires on January 31, 1955, your prompt attention to this matter is requested. Sincerely yours, CARLTON HAYWARD, Director of Personnel. JANUARY 27, 1955. Mr. CARLTON HAYWARD, Director of Personnel, Department of Commerce, Office of Personnel Administration, Washington, D. C. DEAR MR. HAYWARD: In reply to your letter of January 14, 1955, I am pleased to advise you that the Commission has approved your request to revoke the existing schedule A authority, section 6.112 (j) (1) and (2) and to add the following authority: Department of Commerce-Business and Defense Services Administration: Not to exceed 30 positions, at grades GS-13 and higher, to be filled by appointment of persons, qualified as industrial specialists, who possess specialized knowledge and experience in the field of industrial production, industrial operations, and related problems, applicable to one or more of the current segments of industry served by the Business and Defense Services Administration. Appointments under this authority may be made for a period not to exceed 2 years, and may, with prior approval of the Commission, be extended for an additional period of 2 years." This action will be effective upon publication in the Federal Register. Sincerely yours, The CHAIRMAN. Proceed, Mr. Young. PHILIP YOUNG, Chairman. Mr. YOUNG. The new Defense Production Act, just passed, includes a specific exemption from the conflict-of-interest statues for WOC employees appointed under the act. It also reiterates the responsibility of heads of agencies to take steps to minimize the effect of conflicts of interest. Congress has also added new safeguards for the public by providing that private interests of WOC employees appointed under the act must be published in the Federal Register. Evidently, the Congress in considering this legislation, established a position as to what is needed in this area by the passage of the new act. A preliminary review of the new provisions of the Defense Production Act would indicate that a new Executive order may have to be drafted for consideration by the President. In any event, the Commission will review our inspection and reporting procedures. Mr. WALDEN. Do you remember the incident of the reduction in force in the National Production Authority during the middle part of 1953? Mr. YOUNG. That was quite an initiation into the Government and into this administration, inasmuch as I had just assumed office about a month before that. Mr. WALDEN. Would you describe your initiation to this subcommittee? Mr. YOUNG. I could not describe it in any detail. I did not know that you were going to talk about that this afternoon. I will be glad either to appear again or to submit you any kind of documentation that you would like to have. Certainly it was a very difficult and a very tough operation from the point of view of the Civil Service Commission. I designated a member of our staff to do nothing but to work on this, a person in whom I had confidence, who knew the business inside out. And by action of the Commission we reconstructed all of the retention registers for NPA and did a considerable amount of straightening out as a result of it, even to the extent of calling back people who had been dismissed and putting them back on the payroll, where the reduction in force had not been run according to the rules and regulations. Mr. WALDEN. May I read a press release of the Civil Service Commission dated July 17, 1953, and ask you if this is an accurate description of your initiation. Mr. YOUNG. You know more about it than I remember. Mr. WALDEN. I beg your pardon? Mr. YOUNG. Go ahead. Mr. WALDEN (reading): The Civil Service Commission has completed its review of positions in the National Production Authority and directed the Commerce Department to displace an additional 104 of 129 employees in the grade levels of GS-6 and below. The positions will be filled by employees with higher retention rights who were improperly released during NPA's recent reduction in force. In a previous order the Commission directed the Commerce Department to displace 102 of 263 employees holding jobs in the GS-7 and above grade levels. This last action brings the number of employees being displaced by persons with higher retention rights to 206 of 392 or 52 percent. Now, did the investigation of the Civil Service Commission indicate that 52 percent of the employees who had been dismissed in the NPA in that period of time had not been dismissed in accordance with the rules and regulations of the Civil Service Commission? Mr. YOUNG. That is what we tried to say there in our release, that that was the case. Mr. WALDEN. I will repeat the release so that you can hear it again. In a previous order the Commission directed the Commerce Department to displace 102 of 263 employees holding jobs in the GS-7 and above grade levels. This last action brings the number of employees being displaced by persons with higher retention rights to 206 of 392 or 52 percent. The question is, were 52 percent of the employees dismissed improperly according to the civil-service regulations in this reduction in force? Mr. YOUNG. Well, I am sorry I am still not clear as to just what your question is based on that release. If it says so in that release, certainly it is correct. I can assure you of that, so far as the Civil Service Commission records are concerned. |