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NSIAD-84-74 1 (1984-05-09)

handle is hein.gao/gaobabenz0001 and id is 1 raw text is: pA BY THE U.S. GENERAL ACCOUNTING OFFICE Report To The Chairman, Subcommittee On Defense, Committee On Appropriations, House Of Representatives Analysis Of Benefits Realized From Multiyear Contracting ForJfe Black Hawk Helicopter In 1982, the Congress authorized a $950 million 3-year multiyear contract for 294 Black Hawk helicopters. The Army estimated that such an arrangement would save about $81.1 million, or 7.9 percent, compared with three successive annual contracts for the same number of helicopters. GAO's analysis indicated an estimated budgetary savings to the Army of $73.9 million, with a net discounted savings to the government of about $36.6 million, or about 4.6 percent. GAO's estimate of net savings takes into account the cost of providing funds earlier under the multiyear contract. In addition, revenue to the U.S. Treasury may be reduced because of the tax implications of a mul- tiyear contract. Neither the Army nor the contractor had evidence that the Black Hawk multiyear contract significantly enhanced the defense industrial base, another anticipated benefit of multiyear contracting. 0co 124127 U GAO/NSIAD-84-74 MAY 9, 1984 tfD S7,*qrA .3 UjW1.5

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