An Analysis of the Impact of Multi-Year Procurement on Weapon System Acquisition
Abstract
Increasing concern over the rising costs of weapon systems and the deteriorating efficiency of the Defense industrial base has stimulated initiatives toward reducing costs and improving the capability of the U.S. Defense industry to react in times of crisis. Growing evidence indicates that these cost and efficiency problems have been caused in part, by instabilities in Government procurement programs. Specific Government practices which have contributed to these problems are unpredictable annual funding, quantity changes, and program stretchout. One approach toward reducing costs and restoring the Defense industry's health is expanded use of multi-year procurement (MYP). This research reviews many of the recent initiatives toward expanded use of MYP and analyzes the theoretical impact that multi-year commitments may have on weapon system acquisition. The author presents a comprehensive discussion of the advantages and disadvantages of MYP and produces a set of criteria which can be used to select procurement programs for multi- year contracts. These criteria are organized into a decision model which can be used to analyze a program and determine its appropriateness for MYP. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1981
- Accession Number
- ADA107708
Entities
People
- Jonathan L. Brearey
Organizations
- Air Force Institute of Technology