Analysis of Multiyear Procurement Candidates Included in Defense's FY 1984 Budget Request

NSIAD-83-70: Published: Sep 30, 1983. Publicly Released: Sep 30, 1983.

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In response to a congressional request, GAO analyzed fiscal year (FY) 1983 and 1984 multiyear procurement candidates included in the Department of Defense FY 1984 budget request.

GAO believes that DOD estimated savings for its proposed multiyear candidates are disappointing when compared with its 10 to 20 percent savings projections when P.L. 97-86 was under consideration. The estimates may also be insufficient to offset the added risks associated with multiyear procurement. GAO found many instances of inadequate and tentative cost estimates, instability in requirements and equipment design, and insufficient assurance that funding would be stable. Further, DOD did not rank the candidate programs against all other programs in terms of military need. GAO concluded that many candidates were submitted prematurely and that Congress should continue its cautious approach in approving the multiyear contracts for weapons systems.

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