LETTERS OF TRANSMITTAL To the Members of the Joint Economic Committee: JULY 19, 1965. I am transmitting herewith for your use, and for the use of other interested Members of Congress, a report on the "Economic Impact of Federal Procurement," by the Subcommittee on Federal Procurement and Regulation. Sincerely, WRIGHT PATMAN, Chairman, Joint Economic Committee. JULY 16, 1965. Hon. WRIGHT PATMAN, Chairman, Joint Economic Committee, DEAR MR. CHAIRMAN: Transmitted herewith is a report of the Subcommittee on Federal Procurement and Regulation on the "Economic Impact of Federal Procurement." This report is a followup to the recommendations of the subcommittee reports of October 1960, July 1963, and September 1964, and is based upon hearings of April 27, 28, and 29, 1965, staff field investigations and material. The subcommittee calls attention to the splendid cooperation received from the witnesses and staff of the testifying agencies; i.e., Department of Defense, General Accounting Office, General Services Administration, and Bureau of the Budget. Special credit must be accorded to Comptroller General Joseph Campbell and staff, and to a joint Department of Defense-General Services Administration study group for excellent reports prepared at our request on the management of short-shelf-life items by Federal agencies. These confirming studies of a relatively small inventory of $703,493,000 reflect the quality of Federal supply management generally from requirements determination, through procurement, storage, inventorying, utilization, and disposal. Further, they indicate the pressing need for much better supply management including the development of a national supply system as recommended in this report. In the subcommittee's hearings and in this report, emphasis has been placed on the impact of procurement and related activities on the economy, and there has been a careful avoidance of subjects of a military nature. Faithfully yours, PAUL H. DOUGLAS, Chairman, Subcommittee on Federal Procurement and Regulation. III ECONOMIC IMPACT OF FEDERAL PROCUREMENT INTRODUCTION Since 1950 the Subcommittee on Federal Procurement and Regulation has issued three reports, has held five hearings 2 covering 12 days, and its staff has issued four compilations on background materials relating to the subcommittee's interests. 3 It is impossible to portray the scope of Federal procurement. The Department of Defense alone issues some 10 million contract actions annually. The estimated dollar range of Federal procurement obligations is shown by Budget Bureau statistics as follows for the fiscal year 1965:5 1 Report, October 1960: "Economic Aspects of Military Procurement and Supply," report of the Subcommittee on Defense Procurement to the Joint Economic Committee, Congress of the United States, 86th Cong., 2d sess. (Hereinafter called "Report, October 1960.") Report, July 1963: "Impact of Military Supply and Service Activities on the Economy," report of the Subcommittee on Defense Procurement to the Joint Economic Committee, Congress of the United States, 88th Cong., 1st sess., July 1963. (Hereinafter called "Report, July 1963.") Report, September 1964: "Economic Impact of Federal Supply and Service Activities," report of the Subcommittee on Defense Procurement to the Joint Economic Committee, Congress of the United States, 88th Cong., 2d sess. (Hereinafter called "Report, September 1964.") 2 Hearings, 1960: "Impact of Defense Procurement," hearings before the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 86th Cong., 2d sess., Jan. 28, 29, and 30, 1960. (Hereinafter called "Hearings, 1960.") Hearings, 1961: "Progress Made by the Department of Defense in Reducing the Impact of Military Procurement on the Economy," hearing before the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 87th Cong., 1st sess., June 12, 1961. (Hereinafter called "Hearings, 1961.") Hearings, 1963: "Impact of Military Supply and Service Activities on the Economy," hearings before the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 88th Cong., 1st sess., Mar. 28, 29, and Apr. 1, 1963. Hearings, 1964: "Impact of Military and Related Civilian Supply and Service Activities on the Economy," hearings before the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 88th Cong., 2d sess., Apr. 16 and 21, 1964. (Hereinafter called "Hearings, 1964.") Hearings, 1965: "Economic Impact of Federal Procurement," hearings before the Subcommittee on Federal Procurement and Regulation of the Joint Economic Committee, Congress of the United States, 89th Cong., 1st sess., Apr. 27, 28, and 29, 1965. (Hereinafter called "Hearings, 1965.") Staff study, 1960: "Background Material on Economic Aspects of Military Procurement and Supply," materials prepared for the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 86th Cong., 2d sess., February 1960. Staff study, 1963: "Background Material on Economic Aspects of Military Procurement and Supply," materials prepared for the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 88th Cong., 1st sess., March 1963. Staff study, 1964: "Background Material on Economie Aspects of Military Procurement and Supply, 1964," materials prepared for the Subcommittee on Defense Procurement of the Joint Economic Committee, Congress of the United States, 88th Cong., 2d sess., April 1964. (Hereinafter called "Staff Materials, 1964.") Staff study, 1965: "Background Material on Economic Impact of Federal Procurement, 1965," materials prepared for the Subcommittee on Federal Procurement and Regulation of the Joint Economic Com. mittee, Congress of the United States, 89th Cong., 1st sess., April 1965. (Hereinafter called "Staff Materials, 1965.") 4 "Hearings, 1965," p. 2. "Staff Materials, 1965," p. 3. Detail may not add to total because of rounding. 1 |