Estimates indicate that direct Federal procurements of prescription drugs amounted to about $240 million for fiscal year 1971. Most: of these procurements were made by the Defense Supply Agency, through the Defense Personnel Support Center (DPSC), and the Veterans Administration (VA).DPSC manages about 1,100 drug items on a centralized basis and spent about $95.5 million for drugs in fiscal year1971. The VA manages about 450 drug items on a centralized basis and procured for central stock drugs valued at$27.4 million in fiscal year 1971. The VA also administers Federal Supply Schedule contracts under which Federal agencies can satisfy their drug requirements by direct purchases from drug manufacturers. Purchases under these contracts by all Government agencies for fiscal year 1971 amounted to about $64 million, The Public Health Service centrally manages about 600 drug items and spent an estimated $14.2 million for drugs in fiscal year 1971. About 50 percent of this amount was spent under contractual arrangements made by VA.