**GAO-08-298**                      Published: Feb 07, 2008. Publicly Released: Feb 07, 2008.                  

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## Highlights

DOD spends $10 billion annually on multiyear procurement (MYP) contracts for weapons systems. MYPs may save money through more efficient relationships with suppliers and producers, but may also suffer losses if cancelled and can limit future budget flexibility. Recently, Congress has been concerned about DOD's management of the process and savings realized by MYPs. GAO was asked to evaluate DOD's review process for MYP candidates; examine MYP program outcomes; identify the impact of changes to MYP savings threshold guidance, and determine how much DOD validates MYP performance. To do this, GAO reviewed statutes and other guidance, held discussions with relevant officials, examined DOD budget justifications and contracts, and conducted limited case studies.

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## Topics

National Defense

Contract costsCost analysisCost effectiveness analysisDefense appropriationsDefense budgetsDefense cost controlDefense procurementDepartment of Defense contractorsFinancial managementLessons learnedMultiyear contractsProcurement planningProgram managementStrategic planningWeapons systemsCost estimates