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Multiple Award, Multiple Order Contracts - The Future of Navy Surface Maintenance Procurement

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Technical Report

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Naval Postgraduate School Monterey United States

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Prior to 2004, all Chief of Naval Operations maintenance availabilities used afirm-fixed price contract structure. These contracts resulted in significant cost overruns and schedule delays, and did not create the collaborative environment the Navy desired. In an effort to improve outcomes, Naval Sea Systems Command NAVSEA created the Multi-ship, Multi-option contract, a long-term, cost reimbursement contracting vehicle that was competitively awarded. In 2013, NAVSEA determined that although collaboration and ownership had improved, the Navys ability to manage growth had been underestimated. Commander, Navy Regional Maintenance Centers and NAVSEA 21 set out to create a contracting vehicle with firm-fixed price or fixed price award fee competitions via multiple award contracts and created the Multiple Award ContractMultiple Order MAC-MO contract strategy. The purpose of this MBA project is to analyze MACMO contracts and comparecontrast them with previous strategies in order to determine the efficiency and effectiveness of this method.

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