Table 9.--NET VALUE OF MILITARY PROCUREMENT ACTIONS BY STATES, FISCAL YEARS--1967,

1 Notes on coverage: It is emphasized that data on prime contracts by State do not provide any direct indication as to the State in which the actual production work is done. For the majority of contracts with manufacturers, the data reflect the location of the plant where the product will be finally processed and assembled. If processing or assembly is to be performed in more than 1 plant of a prima contractor, the location shown is the plant where the largest dollar amount of work will take place. Construction contracts are shown for the State where the construction is to be performed. For purchases from wholesale or other distribution firms, the location is the address of the contractor's place of business. For service contracts, the location is generally the place where the service is performed, but for transportation and communications services the home office address is frequently used.

More important is the fact that the reports refer to prime contracts only, and cannot in any way reflect the distribution of the very substantial amount of material and component fabrication and other subcontract work that may be done outside the State where final assembly or delivery takes place.

The report includes definitive contracts, and funded portions of letter contracts and letters of intent, job orders, task orders, and purchase orders on industrial firms, and also includes interdepartmental purchases, made from or through other governmental agencies, such as those made through the General Services Administration. The State data include upward or downward revisions and adjustments of $10,000 or more, such as cancellations, price changes, supplemental agreements, amendments, etc.

The estimated amounts of indefinite delivery, open end, or call-type contracts for petroleum are included in the report Except for petroleum contracts, the report does not include indefinite dalivary, opan end, or call-type contracts as such but does include specific purchase or delivery orders of $10,000 or more which are placed against these contracts. Also excluded from the report are project orders; that is, production orders; issued to Government owned and operated facilities such as Navy shipyards. However, the report includes the contracts placed with industry by the Government operated facility to complete the production order.

Includes all contracts awarded for work performance in the United States. The United States includes the 50 States, the District of Columbia, U.S. possessions, the Canal Zone, the Commonwealth of Puerto Rico, and other areas subject to the complete sovereignty of the United States, but does not include occupied Japanese islands and trust territories.

* Includes contracts of less than $10,000, all contracts awarded for work performance in the Commonwealth of Puerto Rico, U.S. possessions, and other areas subject to the complete sovereignty of the United States, contracts which are in a classified location, and any intragovernmental contracts entered into overseas.

Net value of contracts of $10,000 or more for work in each State and the District of Columbia.

$ Less than 0.05 percent.

TABLE 9-A.-NET VALUE OF MILITARY PROCUREMENT BY STATES, BY PERCENT OF TOTAL, FISCAL YEAR 1969

This table shows the concentration of military procurement in the favored states. California received 19.4% of the total or about the amount of the 35 lowest. California, Texas and New York received 38.1% or more than the lowest 42 states and the highest 6 received 52.2% or more than the lowest 45.

Awards to 100 Largest Military Contractors, Fiscal Year 1969 (July 1968--June 1969)

more

The 100 companies which together with their subsidiaries received
the largest dollar volume of military prime contracts of $10,000 or
in fiscal year 1969 accounted for 68.2 percent of the U. S. total. This
was slightly higher than the 67.4 percent obtained by the top 100 companies
in fiscal year 1968. The table below shows that the first five companies
received 1.7 percent less than in fiscal year 1968; however, the percentage
for the next 20 companies totaled 25.9 percent or almost one percent more
than in fiscal year 1968.

NEGOTIATED AND ADVERTISED PROCUREMENT ACTIONS

Negotiated procurements for fiscal year 1969 were 88 percent of total awards to business firms in the United States; this was about the same as for the previous year.

TABLE 10.-NET VALUE OF MILITARY PROCUREMENT ACTIONS, WITH BUSINESS FIRMS FOR WORK IN THE UNITED STATES, CLASSIFIED BY METHOD OF PROCUREMENT, FISCAL YEARS 1951-69

Source: "Military Prime Contract Awards and Subcontract Payments or Commitments, July 1968June 1969," Office of the Secretary of Defense.

Four types of negotiation authority account for 57 percent of all procurement in fiscal 1969..

The two smallest of these exceptions each approxi-
mates the 11.8% of formally advertised procurement
which Congress intended to be the general rule of
prceedure.

and 1969 follow:

The results for fiscal years 1967, 1968,

Impracticable to secure competition by formal advertising--
Experimental, developmental, test, or research----

Technical or specialized supplies requiring substantial initial
investment or extended period of preparation for manufacture
Purchases to keep facilities available in the interest of National
Defense or Industrial Mobilization------

11.5

11.7

Total-