Analysis of the DOD Request for Multiyear Contract Authority for the B-1B Weapon System

Gao ID: PLRD-83-86 June 16, 1983

In response to congressional requests, GAO analyzed the Department of Defense's (DOD) request for multiyear procurement authority for the B-1B weapon system and the impact of economic order quantity buying.

Sufficient data were not available to permit a firm conclusion on multiyear contracting, but GAO presented several observations concerning program costs and savings and the stability of its design. GAO found that: (1) the B-1B program baseline cost of $20.5 billion assumes $800 million in savings through multiyear contracting; (2) the Air Force's justification for multiyear contracting is based on budgetary data rather than on contractor proposals; and (3) although the Air Force maintains that the B-1B weapon system has a stable design, construction has not yet been completed and extensive operations testing remains to be done. GAO concluded that these areas raise questions about the current estimates and potential benefits of multiyear contracting.



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