Analysis of DOD's Fiscal Year 1985 Multiyear Procurement Candidates

Pursuant to a congressional request, GAO analyzed the 12 multiyear procurement candidates proposed in the Department of Defense's (DOD) fiscal year 1985 budget request to determine if they met criteria established by the Congress for the most desirable contracting method.

GAO found that, although there were no significant procurement deficiencies involving seven of the procurements, five candidates did not clearly meet one or more of the desirability criteria, or had undergone program budget changes that warrant the submission of a revised justification package. Although GAO supports the multiyear procurement concept that DOD has been using to achieve contracting savings, use of this technique must be determined on a case-by-case assessment of potential benefits and added risks that can result from awarding a multiyear contract. GAO also noted that this procurement technique can create a level of business certainty more conducive to enhancement of the industrial base, rather than annual procurements which are more likely to fluctuate.