Author: Obaid Younossi
Publisher: Rand Corporation
Published: 2007
Total Pages: 139
ISBN-13: 0833041967
DOWNLOAD EBOOKBuying defense weapon systems under multiyear contracts rather than a series of single-year contracts can save costs because contractors can buy materials in more economic quantities, schedule workers and facilities more efficiently, and reduce the burden of preparing multiple proposals. The U.S. Air Force is in the process of awarding multiyear contracts for 60 F-22A aircraft over three years. Congress wants to assure itself that the proposed contract will yield the promised savings and asked RAND for an independent review of the estimated savings. Researchers found that a multiyear procurement of three lots of F-22A fighters would save an estimated $411 million-about 4.5 percent of the total contract value. They were able to trace 70 percent of the $411 million to substantiated savings estimates identified by the contractors. Examining the issue of multiyear savings using several approaches produces a consistent range of results, indicating that the savings attributed to the multiyear contract by the contractors appear to be reasonable.
Book Synopsis F-22A Multiyear Procurement Program by : Obaid Younossi
Download or read book F-22A Multiyear Procurement Program written by Obaid Younossi and published by Rand Corporation. This book was released on 2007 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt: Buying defense weapon systems under multiyear contracts rather than a series of single-year contracts can save costs because contractors can buy materials in more economic quantities, schedule workers and facilities more efficiently, and reduce the burden of preparing multiple proposals. The U.S. Air Force is in the process of awarding multiyear contracts for 60 F-22A aircraft over three years. Congress wants to assure itself that the proposed contract will yield the promised savings and asked RAND for an independent review of the estimated savings. Researchers found that a multiyear procurement of three lots of F-22A fighters would save an estimated $411 million-about 4.5 percent of the total contract value. They were able to trace 70 percent of the $411 million to substantiated savings estimates identified by the contractors. Examining the issue of multiyear savings using several approaches produces a consistent range of results, indicating that the savings attributed to the multiyear contract by the contractors appear to be reasonable.