Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920Crowell, Benedict
History
Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920
Crowell, Benedict
United States. Army. American Expeditionary Forces -- Demobilization; World War, 1914-1918 -- United States
Here again, in considering the war contracts, we stumble once more
across the trail of this faulty organization. The war contracts
were practically as diverse in their provisions and types as the
Government’s contracting agencies were numerous; and here it should be
noted that some of the main procurement bureaus were in turn subdivided
into smaller purchasing agencies, each of which drew its war contracts
according to its own lights. About all the early war contracts had in
common were the legal provisions protecting the Government against
fraud and graft. There was no such thing as a standard contract, and no
uniformity anywhere. The Government was being obligated in contracts
to the tune of billions by contracting officers almost out of touch
with the responsible heads of the administration.
The Government was soon forced to take cognizance of this state of
affairs. In the spring of 1917 the Secretary of Commerce convened
the so-called Interdepartmental Conference to consider the war
contracts--the first attempt to bring harmony into the confused
business situation. To the conference came the representatives of
the various departments, boards, and administrations interested in
contracts, and to the sessions of the conference also the opponents of
the cost-plus contract brought their objections to it. There were those
who held it almost solely responsible for the great increase in costs
of all sorts during 1917.
It was soon evident to the conferees, however, that the cost-plus
contract had come to stay in the war business, regardless of its
obvious dangers and disadvantages. If an evil, it was a necessary one.
True, the Government could still go into fixed-price contracts for the
procurement of many important war supplies. These were such supplies as
food, clothing, and tools--commodities essentially like those produced
and consumed in time of peace. The producers of these commodities were
not perplexed by costs; their facilities and processes were ready to
begin production; and therefore the War Department could, and did
until the end of hostilities (except when shortages made it necessary
to deal with single responsible manufacturers in order to gain early
deliveries), procure such supplies on fixed-price contracts let after
competitive bidding. But such supplies, although they bulked large
in the cash balance, contributed little to the solution of the main
munitions problem. It was in the production of artillery, of airplanes
and airplane engines, of ammunition, of explosives, even of buildings
in which to house the war department enterprises, that the cost-plus
contract had become a necessity.
Public-domain text, read in full here on John Shaqi.
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