Examines government efficiency of government auditing, supply and inventory control, and land use programs. Pt.2: Includes "Report on Various Methods of Financing Agency Programs" GAO, May 1967 (p. 319-400).

Reviews overall DOD budget policies, priorities, and mechanisms, and considers impact of military spending on national economy in light of other national needs and priorities.

Reviews methods used by DOD to calculate contractor profit margins and use of competitive bidding procurement techniques. Includes discussion of C5-A cost over-runs.

Examines state of the economy and the adverse effects of rising inflation, and unemployment, and subsequent rise in labor, health, and food costs.