Air Force Procurement Practices, 1964-1966.

An analysis of Air Force procurement practices for fiscal years 1964 through 1966, with emphasis on the impact of efforts to decrease cost-plus-fixed-fee (CPFF) contracts and to increase multiple-source solicitations. Data for FY 1962-FY 1964 have been revised to conform to a new procurement classification system used in this study--a revision that permits the integration of these data in the analysis and an examination of Air Force contracting practices during this period. Once the most common pricing arrangement, CPFF contracts accounted for only 5 percent of Air Force procurement dollars in FY 1966. Firm-fixed-price (FFP) contracts accounted for 80 to 100 percent of the procurement dollars for most types of goods and services; only R&D is still purchased by extensive use of CPFF contracts. Although price competition in Air Force procurement has increased, the results have not been as quantitatively great as those produced by the drive against CPFF contracts. In 1966, only 22 percent of Air Force procurement dollars were obligated by price competition, and only 31 percent involved multiple-source solicitations. Any significant increase in competition in Air Force procurement will likely require changes in present procedures for acquiring weapon systems. 61 pp.