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REPORT BY THE U S.
General Accounting Office
Analysis Of DOD's Fiscal Year 1985
Multiyear Procurement Candidates
Public Law 97-86 established criteria which
must be met by DOD multiyear contract
candidates. The criteria are that the multi-
year contracts will benefit the government
hysaving money and improving contractors'
productivity, and that the estimated contract
cost and savings be realistic. The criteria
also require that the system being procured
has a stable design, requirement, and fund-
ing. DOD submitted 12 multiyear contract
candidates for congressional approval in its
fiscal year 1985 budget. Five candidates--
the F- 16 simulator, Bradley Fighting Vehicle
turret drive, TOW II missile, shop equipment
contact maintenance vehicle, and Bushmaster
25mrn gun--have not clearly met all the
criteria, or have undergone program budget
changes which warrant the submission of a
revised justification.
Ip addition, one of the anticipated benefits of
rpultiyear contracting is enhancement of
the defense industrial base. It is difficult,
however, to identify in advance the enhance-
rnents which would result from a multiyear
contract and would not occur if an annual
contract was awarded.
125450
t GAO/NSIAD-85-9
,.C)'S 1 OCTOBER 25. 1984
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