Flex-Lease: An Acquisition Strategy for the 1990s

Abstract

In this essay the author presents a concept which he terms 'flex- lease,' as an alternative acquisition strategy for the next decade. An ideal acquisition strategy in periods of restricted cash flow should absorb defense budget reductions without loss of force structure, weapon system cancellations, decreased readiness, restrictive organization changes, or production line stretch-outs. The author's thesis is that it is cheaper to buy and lease what you can afford, rather than buy and later stretch-out that buy. He also provides guidelines for flex-lease success in selection of applicable systems, determination of economic rate of production and life cycle costs and selection of leasing agent. Keywords: Stretch-out buying; Grace commission; Open-end leasing; Option to purchase; Economic rate of production; Modernization threshold; Industrial base. (edc)

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Document Details

Document Type
Technical Report
Publication Date
Sep 10, 1989
Accession Number
ADA215376

Entities

People

  • David E. Shaver

Organizations

  • United States Army War College

Tags

Communities of Interest

  • Air Platforms
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Budgets
  • Cancellation
  • Contracts
  • Cost Analysis
  • Costs
  • Department Of Defense
  • Force Structure
  • Governments
  • Helicopters
  • Military Budgets
  • Procurement
  • Production Rate
  • Transport Aircraft
  • War Colleges
  • Weapon Systems
  • Weapons

Readers

  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis