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NUMBER AND NET VALUE OF FORMALLY ADVERTISED AND OTHER MILITARY PRIME CONTRACT FROCUREMENT ACTIONS

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For modifications, statutory negotiation authority was not required nor used. to the existing contracts which they modify.

Modifications are classified according to the statutory authority applicable

b No disaster areas vere designated by the President for procurement purposes during Fiscal Year 1959.

Public Law 85-800 (August 1958) provided that such purchases could be negotiated under Exception 9, which previously had been limited to perishable subsistence. Public Law 85-800 (August 1958) provided that such purchases could be negotiated under Exception 3, which previously had been limited to actions of not more than $1,000.

TABLE 6

Net value of military procurement actions, by program-fiscal year

1959

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With business firms for work in the United States. 22, 744, 229

For work outside the United States__

Educational and nonprofit institutions_.
Intragovernmental_.

Total net value of military procurement
actions.

1 Less than 0.05 percent.

1, 410, 051

399, 438

758, 347

25, 312, 065

2 Data by program not available for actions of less than $10,000.

TABLE 7

Number and net value of military procurement actions, by method of procurement—fiscal year

1959

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Negotiated competitively.

47, 780

8

the United States 1.

Negotiated small purchases of $2,500 or less within

Negotiated for procurement and use outside the

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$3, 446, 672 2, 371, 173

21. 2

14. 6

4,830, 311

82.9

769, 325

4. 7

United States -

491, 062

8.4

923, 955

5.7

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Modifications pursuant to terms of existing contracts (negotiation authority not required or used).

All other procurements_

847, 430

758, 347

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Total..

6, 698, 897

25, 312, 065

1 Small purchase procedures require that a reasonable number of quotations must be obtained on purchases which exceed $100.

2 Most of this amount was, in fact, awarded by contracts which resulted from competitive designs or proposals.

3 Data on competitive aspects of procurements between $2,500 and $10,000 not available.

TABLE 81

Extent of competitive procurement

[Amounts in thousands]

Amount

Percent

Purchases from contractors in the United States:
Purchases made on the basis of price after
competition among 2 or more prospective
contractors:

(a) Formally advertised___
(b) Negotiated..

Total___.

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Estimated purchases or modifications of con-
tracts made following technical or design
competition (based on use of sampling de-
scribed on p. 2 of statement, by spreading
sample results over total applicable new
procurement and contract modifications) __| 13, 635, 429

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59.3

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1 The percentage figures on table 8 differ from those on table 7 because, in table 8, the modifications pursuant to the terms of existing contracts were included in the totals. In table 7, these modifications, which amounted to $8,306,455,000, were not included in the percentage figures shown since they did not involve any new procurement.

55096 0-60- -10

Mr. VINSON. This is off the record.
(Further statement off the record.)
Mr. BATES. Make it Wednesday.
Mr. VINSON. Well-

(Mr. Bates further aside.)

Mr. VINSON. All right, let us take 1 minute.

Well, let's set it down for Wednesday morning. And you all study this, now, because this is off the record.

(Further statement off the record.)

Mr. MORRIS. Mr. Chairman, do I understand we will not meet tomorrow?

Mr. VINSON. Let's meet Wednesday morning.

You have everything, Mr. Smart?

Mr. BECKER. Mr. Chairman, I have a question. And I will take the statement with me and read it.

In going through your statement this morning, it leaves me with the question of what we are going to develop with the witnesses.

Mr. VINSON. All right.

I am going to ask these witnesses, after they make their general statement: "Now, tell us all about the firm fixed-price contracts." And here is what they are. That is 32 percent of the dollars and 72 percent of the number.

"And give us that information."

And then follow each one of these types of contracts.

And then also develop, as to the authority in here under basic law"Is that sound? Or is there any modification on that, of the 17 exceptions?" Or whether we should get away from exceptions and see what we can do by following the pattern of competitive bidding. And all those kind of things.

That is the way I am going to do it.

Mr. BECKER. Now

Mr. VINSON. Then when we go to renegotiation, why, that is an entirely different thing. We will just have the man point out what the law is today and what amendments he thinks, and all that.

Mr. BECKER. Mr. Chairman, you are talking about the Departments now. What about the manufacturers-the builders of planes and missiles, and whatnot? Are they coming in under this, on the question of their profitmaking on the incentive contracts?

Mr. BATES. We had all that.

Mr. BECKER. I know we had all that.

Mr. VINSON. They are not coming in.

Mr. BECKER. You are not going into that phase of it?

Mr. VINSON. This committee must know something about this whole field.

Mr. BATES. Mr. Chairman, I asked something about renegotiation. That is a ways and means proposition. How did we get into it? Mr. VINSON. Well, we get it under the broad language here. Mr. BATES. What can we do about it?

Mr. VINSON. We can make recommendations.

Mr. KILDAY. We are charged with making a report to the joint committee.

Mr. BATES. All we are going to do is make the report?

Mr. COURTNEY. To the joint committee.

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