NET VALUE OF PROCUREMENT ACTIONS BY STATES, FISCAL YEARS 1963-66 (SEE TABLES 9 AND 9A)

The percentage breakdown of military procurement actions by States and the District of Columbia shows for fiscal year 1966:

TABLE 9.-Net value of military procurement actions by States, fiscal years 1964,

1965, and 1966

[Dollar amounts in thousands]

1 See "Notes on Coverage."

* 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.

Civil functions of the Army Corps of Engineers for flood control and rivers and harbors work. Civil functions data are shown separately, and are not included in military functions tabulations. Revised.

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 prime 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 delivery, open-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.

TABLE 9(a).-Net value of military procurement by States, by percent of total, fiscal

year 1966

ONE-HUNDRED COMPANIES AND THEIR SUBSIDIARY CORPORATIONS LISTED ACCORDING TO NET VALUE OF MILITARY PRIME CONTRACT AWARDS

Fiscal year 1966 (July 1965-June 1966)

The 100 companies which together with their subsidiaries received the largest dollar volume of military prime contracts of $10,000 or more in fiscal year 1966 accounted for 63.8 percent of the U.S. total. This was 5.1 percentage points below the 68.9 percent obtained by the top 100 companies in fiscal year 1965, and was the lowest percentage for the 100 top companies since reporting was initiated in fiscal year 1957. The table below shows that the first 25 companies received 5.2 percent less than in fiscal year 1965 with a decrease of 4.4 percent occurring in the first five companies.

Companies

Percent of U.S. total

Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year 1960

1961

1962

1963

1964

1965

1966

In fiscal year 1966, awards to U.S. companies for work at home and overseas increased 38.7 percent to $33,532.6 million and the 100 company total increased 28.4 percent to $21,400.8 million. The value of $40.2 million for the company in 100th position on the list for the current fiscal year is $16 million higher than the 100th company figure in fiscal year 1965.

As indicated above, the rate of increase in fiscal year 1966 for awards to the 100 companies lagged 10 percent behind that for total awards. At the same time small business firms increased their share of the total from 19.6 percent in fiscal year 1965 to 21.4 percent in fiscal year 1966.

The list for fiscal year 1966 contains 23 companies which did not appear on the fiscal year 1965 list. Of the new names, 10 appear between 51st and 75th positions and 12 between 76th and 100th positions. One of the new names, Raymond-Morrison-Brown-Jones, a joint venture with contract awards totaling $547.9 million is in ninth position.

There were two major corporate changes affecting the list during fiscal year 1966. Continental Motors Corp., which appeared on both the fiscal year 1964 and 1965 lists, was acquired by Ryan Aeronautical Co. as a subsidiary. Republic Aviation Corp., also on the list for the previous 2 fiscal years, was acquired and merged into the operations of Fairchild Hiller Corp. In addition, there were two corporate name changes during fiscal year 1966 as follows: Hercules Powder Co. to Hercules, Inc., and Socony Mobil Oil Co. to Mobil Oil Corp. The contract work of many of the companies in fiscal year 1966 involved more than one major procurement category. However, each company is assigned to the procurement category in which it has the largest dollar volume of awards. As the result of large increases in certain types of procurement in fiscal year 1966, the table below shows companies in four new categories as follows: textiles and clothing, construction equipment, weapons and building supplies. The largest increase in number of companies occurred in ammunition, which had 13 more companies in fiscal year 1966 than in fiscal year 1965. The largest decreases were in missiles and petroleum, each having five fewer companies than in the previous fiscal year. Number of companies

The four nonprofit contractors (see Index) listed for fiscal year 1966 represent a decrease of two from the number on the list for the preceding fiscal year. For the most part, these nonprofit contractors provide research, development, and training services in the missile-space and electronics programs.

Four companies received prime contract awards of more than $1 billion each in fiscal year 1966, compared to two companies in fiscal year 1965. These companies and a brief description of their more important work are as follows:

Lockheed Aircraft Corp. leads the list for the fifth consecutive year with $1,531 million, or 4.6 percent of the total. This is a decrease of $184 million in value and 2.5 percentage points from fiscal year 1965. The aircraft contracts of this company include the C-5A heavy logistics jet carrier, C-141A Starlifter jet cargo transport, C-130E Hercules turboprop jet transport, and the P3B Orion patrol bomber. It is the principal prime contractor for the Polaris and Poseidon missiles, is an important contractor for military space vehicles, and performs research in conjunction with the satellite control network. The company and its subsidiaries also receive contracts for shipbuilding and electronics.

General Electric Co., having $1,187 million in awards and 3.5 percent of the total, advanced to second place in fiscal year 1966 from fourth place in fiscal year 1965. It received substantial contracts for the production of aircraft engines. Ordnance contracts were for the production of 7.62-millimeter machineguns, 20-millimeter cannon, and guidance and control systems for missiles. This company also received large contracts for electronics and communications equipment and nuclear propulsion systems for ships.

The following two companies in third and fourth positions have a difference of less than $3 million in their total awards.

United Aircraft Corp., whose contracts totaled $1,138.7 million (3.4 percent), ranks third. This compares with a contract value of $632.1 million and sixth position in fiscal year 1965. The prime contract work of the company is principally for the production of aircraft engines. Contracts for aircraft were for the production of helicopters. In addition to these awards, the company received smaller contracts for ordnance items and for propellers.

General Dynamics Corp. received awards amounting to $1,136 million which represented 3.4 percent of the total and is in fourth place. The value compares to $1,178.6 million in fiscal year 1965. This company received contracts for aircraft, missiles, and ships. The aircraft contracts are largely for the production of F-111 fighters; those for ships include repair and alteration of various types of vessels and new construction of landing craft and submarine tenders; and the missile-space contracts involve the development or production of Atlas, Redeye, Tartar, and Terrier missiles, and boosters for the space program.