TABLE 6 DEPARTMENT OF DEFENSE-ESTIMATED PAYROLLS FOR MILITARY AND CIVILIAN PERSONNEL, FISCAL YEAR 1968 TABLE 6 DEPARTMENT OF DEFENSE-ESTIMATED PAYROLLS FOR MILITARY AND CIVILIAN PERSONNEL, FISCAL YEAR 1968 ECONOMY IN GOVERNMENT 10 198 SUPPLY SYSTEMS INVENTORIES steadily As stated in table 1 above, the total of "supply systems" inventories was reduced from the 1957 high of $54 billion to $37 billion in 1965; since then they have been increased to $47 billion, reflecting the build-up in support of Southeast Asia. The stratification, or breakdown of such stocks into purposes for which held reflects a distinct change during fiscal years 1964, 1965, and 1966. In prior years, the strata were peacetime operating stocks, mobilization reserve stock, economic and contingency retention stocks, and excess stock. These are shown in table 7 and are explained in footnotes 2 through 7. Stratification of supply systems inventories as of June 30, 1964, and June 30, 1965, was in accordance with improved logistics guidance which called for application of assets first against requirements to support (1) approved forces; that is, Active and high-priority Reserve Forces of the 5-year force structure and financial prograni; and (2) general forces. The guidance was again changed in 1966 so that assets are applied to approved forces, either as authorized for acquisition or for retention, and some minor adjustments in guidance were made in 1969. As a result, the data for these strata are not comparable with those in prior years, except in a very general way, and, therefore, have not been shown separately in the table (see footnotes) but are included in subtotal and totul. The criteria for the establishment of economic retention and contingency retention strata have not been drastically revised, although the exigencies of world situations may result in somewhat different levels being established under them. The excess strata now represents those stocks that are beyond limits of a particular service and for which screening for utilization by other elements of the Department of Defense is underway but for which final DOD disposal action has not been initiated. They are significantly less in value than those reported in prior years, even though they have risen some at in the last two. TABLE 7.-DOD SUPPLY SYSTEMS INVENTORIES BY INVENTORY STRATAS AS OF JUNE 30, fiscal years 1958-69 Total inventories in this table do not include value of Navy shipboard supplies included in table 1. Peacetime operating stock is that portion of the total quantity of an item on hand which is required to equip and train the planned peacetime forces and support the scheduled establishment through the normal appropriation and leadtime periods. 3 These strata are not available since 1963 because of change, 63, 60510s denera logistics In 1965, their sum was $24, 4,893,000,000, divided into approved force stocks general force stocks ($1,228,000,000). The guidance was again revised in 1966 and in 1969, In 1969 the sum was $32,277,000,000 allocated to approved force stocks as levels of acquisition ($31,280,000,000) and retention ($997,000,000). Mobilization reserve materiel requirement: the quantity of an item required to be in the military supply system on M-day, in addition to quantities for peacetime needs, to support planned mobilization to expand the materiel pipeline and to sustain in training, combat, or noncombat operations prescribed forces until production by industry equals consumption. Economic retention stock is that portion of the quantity in long supply which it has been determined will be retained for future peacetime issue of consumption as being more economical than future replenishment by procurement. Contingency retention stock is that portion of the quantity in long supply of an obsolete or nonstandard item for which no programed requirements exist and which normally would be considered as excess stock, but which has been determined will be retained for possible military or defense contingencies for U.S. or allied forces. * Excess stock as reported herein is stock which is indicated to be above the sum of footnotes 2, 3, 4, and 5 above and for which specific determination as being within the needs of the Department of Defense has not been made or disposal action initiated. SCOPE OF PROCUREMENT ACTIVITIES The net value of military procurement actions amounted to $39.3 billion in fiscal year 1969-- a decrease of $1.9 billion from fiscal year 1968. TABLE 8.-Net value of military procurement actions in the United States and possessions, fiscal years 1951-69 Source: "Military Prime Contract Awards and Subcontract Payments or Commitments, July 1968- |