Multi-Year Procurement: Its Impact on the Subcontractor Level
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The impact of implementation of MYP provisions in major defense acquisitions, at the subcontractor level, was the focus of this thesis. The opinions of subcontractors as to their perceptions of the flowdown of benefits, as a result of this implementation, were investigated. This was accomplished by means of a questionnaire sent to 47 major subcontractors involved in the Air Forces F-16 program and the Navys C-2 COD program. The results of the survey showed that subcontractors felt that 1 overall multi-year procurement had a favorable impact on their firm 2 the area of greatest savings was in purchasing EOQ quantities of raw materials, in advance at now year prices 3 multi-year procurement usually resulted in increased program stability and increased cost reductions and 4 the surge capacity of industry would be increased and the time required to surge from peacetime to wartime production would decrease but 5 that more training is needed both in industry and DOD pertaining to the fundamentals required in executing a multi-year contract. Recommendations are made concerning methods for improving the application and implementation of multi-year procurement at the subcontractor level.
- Government and Political Science
- Logistics, Military Facilities and Supplies