Reviews the concept of multi-year contracting including when it may be appropriate for Programs to consider using this contracting tool. Specifically, this presentation covers:
•FAR Guiding Principles
•Definitions
•Multi-year Contracting (MYC)
–Description
–Types of Multi-year Contracting (MYC)
•Economic Order Quantity (EOQ)
•Non-Economic Order Quantity (Non-EOQ)
–Requirements for MYC
–Four Interlaced Parallel Processes
–MYC Basic Funding Rules
–Multi-year Cancellations/Sequence of Events
•Building Cancellation Estimates
This presentation provides Program Managers sufficient information to decide if they want to establish a multi-year acquisition strategy. The use of Multi-Year is designed to accomplish a number of objectives including:
– Lower costs.
– Enhancement of standardization.
– Reduction of administrative burden in the placement and administration of contracts.
– Substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses, and phase-out costs.
– Stabilization of contractor work forces.
