Upfront Funding of Multiyear Contract Cancellation Liability: Non-Optimum Funding Strategy Today

Abstract

The current funding strategy for multiyear cancellation liability is not an optimum one, especially in light of today's declining budgets for the Air Force. Air Force decision makers have not received adequate information on multiyear funding to fully appreciate the opportunities of a different funding strategy for multiyear contracts. Additionally, the financial communities within the Air Force, Office of the Secretary of Defense as well as the Congressional subcommittees have not updated their funding policies to coincide with the current decreasing budgets for defense. The end result is needless upfront funding for multiyear contracts and loss of much needed funds for ongoing defense production programs. The financial communities should review and revise their policies. Subsequently, Air Force, as well as Defense Department services, should submit their budgets without full upfront funding of termination liability for multiyear contracts.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 1988
Accession Number
ADA202041

Entities

People

  • Fredrick T. Mcguire

Organizations

  • Air War College

Tags

Communities of Interest

  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Air Force Facilities
  • California
  • Congress
  • Contracts
  • Department Of Defense
  • Directives
  • Governments
  • Law
  • Military Budgets
  • Procurement
  • Production
  • Rotary Wing Aircraft
  • United States
  • United States Government
  • Universities
  • War Colleges

Readers

  • Economics
  • Government and Public Administration Law.
  • Public Financial Management and Budgeting