[ARC5] Oriignal cos- prices? Re: Nomenclature Taxonomy - AN/ART-13B
gordon white
gewhite at crosslink.net
Sun Jun 26 10:06:10 EDT 2011
I wrote about Command set prices in the past. Purely from memory,
but I think an AN/ARC-5 receiver by A.R.C. Co., went to the government
for $343 each. ($4,480 in 2011 dollars)
And the contracts were subject to renegotiation, which reduced the
actual prices. The salaries of the officers of the company were capped,
too. Actually the process was highly unfair to A.R.C., which had existed
before Pearl Harbor, in contrast to, say, Kaiser Shipbuilding, set up
after we entered WW II and which had no pre-war basis against which to
set prices, wages, etc.
A.R.C. should have accepted the government's offer to expand hugely,
rather than sub-contract SCR-274-N production to Western Electric,
Colonial Radio, etc.
Before WW II the armed forces put contracts for gear out for
competitive bids. During the war there was not time for that. The
government, after Pearl; Harbor in effect told companies what to produce
and negotiated and re-negotiated the prices. There was a lot of
"convenience of the government" and force majeur involved.
Ford, for instance, was told to quit building cars (except a few,
for the government) and told to build B-24 bombers and to build the
Willow Run plant to produce them. Probably forced to take government
funds to build the plant on a cost-plus basis.
The U.S. got a lot done very quickly in 1941-42. Almost incredibly
quickly by 2011 standards. My uncle was put to work developing air bases
down to Brazil and across to Africa to deliver aircraft, etc. to the
Middle East, at $1/year.
- Gordon Eliot White
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