December 15, 1966

A Message from the Publisher

War and Peace

Special Report: Vietnam Procurement

DOD Stressing Procurement Competition

Special Report: Vietnam Procurement

Defense Spending Trends

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A Message from the Publisher

War and Peace

The war in Vietnam is spawning a number of significant changes in the philosophy of military procurement. Some of these changes are of a short-term nature and are stimulated by the war itself, but others are establishing the framework in which the Defense Dept, will buy its goods and services for many decades to come.

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Special Report: Vietnam Procurement

DOD Stressing Procurement Competition

Washington—Defense Dept, is attempting to procure urgently-needed hardware for the war in Vietnam within the cloak of a peacetime environment, competing with airlines and color-television customers for space on the aerospace industry’s production schedules.

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Special Report: Vietnam Procurement

Defense Spending Trends

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Special Report: Vietnam Procurement

Military Contract Types

FISCAL YEAR Type of Pricing Provision Amounts in Millions 1958 1959 1960 1961 1962 1963 1964 1965 1966 TOTAL $22,162 $22,873 $21,182 $22,857 $25,780 $26,225 $25,328 $24,331 $33,515 FIXED PRICE TYPE (SUB-TOTAL) 13,389 13,520 12,160 13,243 15,667 17,013 18,029 18,619 26,551
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Special Report: Vietnam Procurement

Vietnam Research Efforts Accelerated

Washington—Defense Dept. is making an accelerated effort to bring the research and development community into the Vietnam procurement cycle. Over 200 items either within or fringing upon the research and development category have been identified as items to be pushed into the production phase because of their potential and need in Southeast Asia.
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Special Report: Vietnam Procurement

Research Expenditures

Millions of dollars % of all awards in each category Major Program FY 1962 FY 1963 FY 1964 FY 1965 FY 1966 FY’62 FY’63 FY’64 FY’65 FY’66 TOTAL $6,125 $6,245 $5,832 $4,791 $5,356 20.9% 21.3% 20.3% 17.1% 14.0% INTRAGOVERNMENTAL FOR WORK OUTSIDE U. S.
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Special Report: Vietnam Procurement

Controversial Total Package Plan Tested

Washington—Defense Dept.’s controversial total package procurement concept, pioneered by the Air Force with the C-5A heavy logistics transport and the short range attack missile (SRAM), will be adopted for a widening range of programs despite some severe inter and intraservice disputes over its merit.
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Special Report: Vietnam Procurement

C-5A Yields Insights to Procedure

Washington—Air Force award of a contract to Lockheed-Georgia Co. for both the development and production of the C-5A heavy logistics transport was the testbed case for Air Force’s total package procurement concept (TPPC), which is now spreading to the other services under Defense Dept. urging.
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Air Force

Air Force Moves to Streamline Contracts

Washington—Need for fast reaction in meeting the mounting requirements from Vietnam is accelerating the Air Force trend towards incorporating fixed-priced options for potential follow-on buys in the initial production contracts for military hardware, including subsystems.
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NASA, Industry Finds Screened for Combat Use

Washington—Buy-and-try philosophy is being used within the Air Force to test new techniques from industry and the National Aeronautics and Space Administration for both quick-fix and new limited war applications. Air Force Systems Command’s Project 1559 is a task force-type group for rapid test and evaluation of the kind of new concepts developed for aerospace but potentially applicable to war.
December 121966 December 191966