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B-173873 1 (1971-10-20)

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    B73873               N,                     OCT 2 0 1971




    Dear Senator Proxmire:

         On August 6, 1971, you sent us a letter from Mr. William R. Meyer which
    questioned Hughes Tool Company and Bell Helicopter Company contractual restric-
    tions against Government sale or donation of used helicopters-to State or local
    governments. You requested a preliminary examination of Department of Defense
    disposal procedures.

         We examined 17 contracts awarded between 1950 and 1969 to Bell Helicopter .-/
    Company and Hughes Tool Company for OH-13 and TH-55 helicopters and found no
    contractual restrictions on Government resale.

         On July 31, 1971, about 4,700 inactive aircraft were stored at the Military
    Aircraft Storage and Disposition Center, Davis-Monthan Air Force Base, Tucson,
    Arizona. These aircraft included about 800 helicopters, of which 270 were
    TH-55's.

         The Department of Defense usually reclaims needed parts from excess air-
    craft before disposing of them. Aircraft then are available for transfer to
    other Government agencies and for donation to State or local governments or
    to other authorized donees.

         We discussed the above information with your office and were told that no
    further work was necessary. As requested, we are returning Mr. Meyer's letter.

                                                    Sincr     yours,




                                                    Comptroller General
                                                    of the United States

    Enclosure


{!  The Honorable William Proxmire
    United States Senate






                               50TH ANNIVERSARY 1921-1971

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