THE ECONOMICS of NATIONAL SECURITY PROCUREMENT Harold J. Margulis Harry B. Yoshpe INDUSTRIAL COLLEGE OF THE ARMED FORCES WASHINGTON, D.C. ис 263 4546 INDUSTRIAL COLLEGE OF THE ARMED FORCES AUGUST SCHOMBURG, Lt. Gen., USA WILLIAM S. STEELE, Major Gen., USAF T. H. ERB, Colonel, USAF This material is furnished for instructional purposes only. The views or opinions expressed or implied are not to be construed as representing the official policies of the Department of Defense. STACKS DEPOSITED BY THỂ UNITED STATES OF AMERICA 6-15-65 FOREWORD This volume is a complete recasting and updating of a textbook published in 1957. In this new edition the authors have restructured the presentation of the subject matter and have sought to reflect the major developments in the field in the intervening years. Mid-1964 was our cut-off point for research and writing; and until such time as another edition is published, the student must read this text with due regard for the never-ending innovations and changes in this field. We are concerned here with "procurement" which, as we indicate at the outset of our discussion, is but one link in the logistics chain. Since our approach to logistics is by its major functional elements, the interacting relationship of these elements will become more evident as the student works through the several pertinent texts-on Defense organization, research and developement, requirements, procurement, production, and supply management. In the final analysis, all are but parts of one basic effort to provide responsive supply support to the military forces. Even within the narrower confines of the procurement area, our approach is general and selective. The text is designed for the layman, not for the procurement specialist. Our intent here is to provide only a "feel" for the subject with a general, and hopefully a balanced, presentation of the major organizational arrangements, policies and procedures for the placement and administration of Defense contracts. For definitive information on the policies and procedures discussed, and on subject matter omitted or only barely mentioned here, the student is referred to the Armed Services Procurement Regulation (ASPR) and its periodic revisions. In the preparation of this text, the authors have had the benefit of advice and assistance from Colonel C. M. Prosser, U.S. Army, who, as an ICAF resident student in the 1960-61 class, prepared a thesis on the subject of this text; from Mr. Sol Elson, Director, Office of Production Facilities, Small Business Administration, who reviewed the chapter on "Small Business in Defense Procurement"; from Mr. Lewis L. Marshall, of the Defense Supply Agency, for his review of the chapter on "Contract Administration"; and from Dr. Thomas B. Worsley, of the College faculty, and Colonel Albert Fregosi, U.S. Army (Retired), who reviewed the entire manuscript. Their help is gratefully acknowledged. The authors alone, however, must bear the full responsibility for the organization and presentation of the subject and for any errors of detail or judgment. Industrial College of the Armed Forces 16 November 1964 HAROLD J. MARGULIS HARRY B. YOSHPE |