Multi-Year Procurement: Its Impact on the Subcontractor Level
Abstract
The impact of implementation of MYP provisions in major defense acquisitions, at the subcontractor level, was the focus of this thesis. The opinions of subcontractors as to their perceptions of the flowdown of benefits, as a result of this implementation, were investigated. This was accomplished by means of a questionnaire sent to 47 major subcontractors involved in the Air Force's F-16 program and the Navy's C-2 COD program. The results of the survey showed that subcontractors felt that (1) overall multi-year procurement had a favorable impact on their firm; (2) the area of greatest savings was in purchasing EOQ quantities of raw materials, in advance at now year prices; (3) multi-year procurement usually resulted in increased program stability and increased cost reductions; and (4) the surge capacity of industry would be increased and the time required to surge from peacetime to wartime production would decrease; but (5) that more training is needed both in industry and DOD pertaining to the fundamentals required in executing a multi-year contract. Recommendations are made concerning methods for improving the application and implementation of multi-year procurement at the subcontractor level.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1982
- Accession Number
- ADA126699
Entities
People
- James C. Madrid
Organizations
- Naval Postgraduate School