266 OCEANOGRAPHY 1961 — PHASE 3 



Mr. Bauer. In other words, you feel that the contracting with these 

 institutions gives you the additional control that the Navy requires 

 over the granting process ? Is that right ? 



Admiral Coates. Yes, sir. I think, from our point of view, and 

 speaking only for the Navy, there are many advantages to the con- 

 tract, and very few to the grant. 



Mr, Bauer. Now, these contracts: Are they of the task type, 

 usually? They run for a term, and then you give additional tasks 

 as you get funding ? 



Admiral Coates. Yes, sir. Most of our contracts, nearly all of our 

 contracts with universities run for more than a year. This guaran- 

 tees them stability of employment. They can take on people to do a 

 research job in the Imowledge that they will not be suddenly cut off 

 on the 1st of July and then have the problem of reassigning their 

 people. 



Mr. Bauer. Well, your E.D.T. & E. money is no-year money. Is 

 that not correct ? 



Admiral Coates. Yes, sir ; that is correct. 



Mr. Bauer. So it would be possible to finance these contracts with 

 various universities for more than 1 year, would it not, as long as 

 you have the assets to pay for them ? 



Admiral Coates. That is true. And when we begin, if I may ex- 

 plain this so-called longevity funding, when we issue the initial con- 

 tract, it is for more than a year's operation by some amount, some 

 number of months. Then each year, as we renew that contract, we 

 put in additional money for 1 year's operation. They always have 

 that forward- funded period, though, extending beyond the nominal 

 end of the contract. 



Mr. Bauer. Well, in your internal work, do you commit the funds 

 for more than a year ? 



Admiral Coates. No, sir; for a year. Once the contract is estab- 

 lished, for a year's renewal. 



Mr. Bauer. Now, in this TENOC program, of which you have 

 a copy there, table 3 on page 43, there is a survey program of TENOG 

 funding. 



Now, up until you get tO' the areas of the research laboratories — 



No, the suri^ey program is all funded by O. & M. money, is it not? 



Admiral Coates. That is Hydrographic Office, on table 3. 



Mr. Bauer. Are you entering the survey program at all? 



Admiral Coates. No, sir. 



Mr. Bauer, Is the Indian Ocean survey being funded by you? 



Admiral Coates. Maybe you had better say. Dr. Maxwell, the extent 

 of our participation in that. 



Dr. Maxwell, Yes, the Navy's participation in the Indian Ocean 

 expedition, at least a part of it, is being supported by the Office of 

 Naval Research on a research basis. We consider that the Indian 

 Ocean expedition is not all survey. There is a research aspect to it. 



Mr. Bauer. Who funds the survey aspect of the Indian Ocean? 



Dr. Maxwell. I think it is anticipated that the HydrogTaphic 

 Office may have one of their ships in the area of the Indian Ocean 

 sometime during this period, and they would certainly fund their own 

 program. 



