Multiyear Contracting for the Production of Defense Systems

A Primer

by Edmund Dews, Michael D. Rich

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This Note describes the concept of multiyear contracting in defense procurement, summarizes recent proposals and new legislation intended to widen its use and increase its utility, and outlines the criteria to be used in choosing the types of acquisitions best adapted to this mode of contracting. Its purpose is to describe and explain rather than to assess or advocate, and it emphasizes contracting for production--that is, for the procurement of end items not available off the shelf. The Note discusses basic funding-contracting modes, changes in multiyear contracting and advanced procurement, and issues of choice in applying the opportunities for multiyear procurement provided by the Department of Defense authorization act, 1982.

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