An Assessment of the Army's Multiple Launch Rocket System Multiyear Contract
NSIAD-86-5
Published: Oct 28, 1985. Publicly Released: Oct 28, 1985.
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Highlights
Pursuant to a congressional request, GAO reviewed the Army's Multiple Launch Rocket System's (MLRS) multiyear contract and the validation of the claimed savings and other benefits to the government.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should separately identify and justify savings associated with multiyear contract options when seeking multiyear contract approval from Congress. |
The Department of Defense (DOD) agreed with this recommendation and plans to include this type of analysis in the future along with submission of data to Congress for approval of the multiyear program for any candidates that elect to use similar options.
|
| Department of the Army | The Secretary of the Army should determine whether the judgmental factors will offset the decreased savings sufficiently, or in total, to justify proceeding further with the contract options under the MLRS even if legislation is enacted to allow the Army to legally exercise the options. |
DOD agreed that judgmental factors must be considered. However, the Army believes that the cost and risk avoidance is of such magnitude that proceeding with the option is in the best interest of the government.
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Topics
Army procurementContract costsContract optionsCost analysisDefense cost controlIrregular procurementMultiyear contractsWeapons systemsMilitary forcesSubcontractors