The Relative Costs and Benefits of Multi-year Procurement Strategies

June, 2013
IDA document: D-4893
FFRDC: Systems and Analyses Center
Type: Documents
Division: Cost Analysis and Research Division
Authors:
Authors
Scot A. Arnold, Bruce R. Harmon See more authors
Multi-year procurement (MYP) allows the Department of Defense to enter into up to a five-year contract to procure items that would otherwise be purchased through annual lot buys. By reducing the government’s flexibility to change the quantities it buys each year, the contractor must commit to a significant price reduction over annual purchases of the same quantity.