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PLRD-83-86 1 (1983-06-16)

handle is hein.gao/gaobabmzv0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE /2I WASHINGTON, ,Z.C. 20548 NAT ONAL. SECURITY AND INTERNA71ONAL AFFAIRS DIVISION JUN 16 1983 B-206570 The Honorable Joseph P. Addabbo Chairman, Subcommittee on Defense Committee on Appropriations House of Representatives The Honorable Ted Stevens Chairman, Subcommittee on Defense Committee on Appropriations United States Senate Subject: i'Analysis of the Department of Defense's Request for Multiyear Contract Authority for the B-IB Weapon System (GAO/PLRD-83-86) This is our first report in response to your requests for our analysis of projects proposed by the Defense Department for multiyear contracting. As requested, this report concentrates on the results of our analysis of Defense's request for multi- year procurement authority for the B-lB weapon system and the impact of economic order quantity buying. Other proposed multi- year projects will be considered during our analysis of Defense's fiscal year 1984 budget request. As you requested, we did not obtain rocinal cofminents from Defense officials on this report. We have, however, discussed the issues raised herein with Air Force program office personnel responsible for the B-lB program. We briefed your staff on sev- eral occasions as our work progressed and assisted them in pre- paring for hearings held by your Subcommittee. OBJECTIVES, SCOPE AND METHODOLOGY Our work was directed at assessing whether Defense's fiscal year 1983 supplemental request and its fiscal year 1984 budget request to initiate multiyear contracts under the B-1B programn met the legislative criteria for benefit to the government (sav- ings), degree of cost confidence (reliable estimates) and stability of design. We discusse e :ch oi the foregoing areas with Air Force program office officials and reviewed underlying supporting documentation that was made available. Information supporting cost savings ana contract costs was limited to budge- tary data and program office estimates. Although the 9-17 Pro- gram Office has received contractor proposals, analysis and negotiations are incomplete. (942256) / P v 7(r