A Preliminary Analysis if Advance Appropriations as a Budgeting Method fdor Navy Ship Procurements - Kindle edition by Giles Smith, Irv Blickstein. Download it.
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Arena 8th Report [Session ]: House of Commons Papers: House of Commons Naval Manning Agency Drewry Financial management guidebook for commanding officers. The purser and his men: Navy force structure and forward presence overseas: Wording Edition Military administration. LibraryThing's MDS system is based on the classification work of libraries around the world, whose assignments are not copyrightable. MDS "scheduldes" the words that describe the numbers are user-added, and based on public domain editions of the system. Wordings, which are entered by members, can only come from public domain sources.
Therefore, the committee urges the Secretary of the Navy to consider a multiyear procurement strategy for John Lewis-class fleet oilers in future budget requests. San Antonio-class Flight II amphibious transport ship multiyear procurement strategy. The committee believes sufficient design maturity and cost-estimating precision have been achieved to merit consideration of a multiyear procurement contract for San Antonio-class Flight II amphibious transport ships, which will be procured in fiscal years through The committee further believes the Navy should maintain a procurement rate of one Flight II LPD per year to meet Navy requirements faster, as well as increase industrial base efficiency and stability.
The committee also notes recent shipbuilding multiyear procurement contract proposals projected savings in excess of 10 percent, as compared to annual procurements.
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Therefore, the committee urges the Secretary of the Navy to utilize a multiyear procurement strategy for San Antonio-class Flight II amphibious transport ships in the President's Budget request for fiscal year The committee is concerned about the Army's funding strategy for Stryker A1 production. However, the committee is concerned that this does not resource the Stryker program sufficiently given the National Defense Strategy and long-term plans for the Stryker vehicle fleet.
The committee understands that the Army made a decision at a Requirements Oversight Council meeting to upgrade the entire Stryker legacy fleet to the Stryker A1 configuration. This decision was made after the Army submitted the fiscal year budget request. Therefore, as the Army considers funding levels for future budget requests, the committee encourages the Army to provide the necessary resources to support the decision to modernize the Stryker fleet to the A1 configuration, which may include modernizing at least one half of a brigade per year. Finally, the committee urges the Army to evaluate the potential cost savings and schedule acceleration that could be achieved by a multi-year procurement strategy.
In the conference report H. Regarding Section , H. The Senate recedes with an amendment that would require a certification prior to awarding a contract authorized by this provision. The conferees note that the Department of Defense has been able to achieve program efficiencies and cost savings by using multiyear and block buy contracting with many weapons programs, to include shipbuilding.
If the Department of the Navy intends to pursue a two-ship procurement of CVN—80 and CVN—81 outside the title 10, United States Code, parameters for a multiyear contract, the conferees expect that entering into such contract would be based on rigorous analysis with a sound business case and substantial savings. Earlier this year, the Navy issued a request for proposal soliciting information on a potential contract to acquire two Ford-class aircraft carriers CVN—80 and CVN— The conferees are disappointed that no related information was provided to the congressional defense committees to enable fulsome consideration of the associated required legislative authorities during the development of the National Defense Authorization Act for Fiscal Year Nonetheless, the conferees believe a two-ship procurement of CVN—80 and CVN—81 could result in significant cost savings.
Accordingly, this provision would provide the necessary authorities for implementing such an approach, if the Secretary of Defense certifies supporting analysis prepared and provided by the milestone decision authority for the carrier replacement program, which is the Department of the Navy Service Acquisition Executive. It is the conferees' intent that the Secretary of Defense review such analysis and, if the Secretary deems it appropriate, make the certification without performing any separate cost assessments or analyses.
The conferees view such a process as consistent with ongoing efforts to reduce the time associated with acquisition decisions, push acquisition authorities and accountability to the Services, and ensure that the Secretary of Defense retains visibility and ultimate authority over acquisition matters in the Department.
In addition to the above provisions relating to specific acquisition programs, Section of H. The conferees urge the Secretary of the Navy to utilize a multiyear procurement strategy for San Antonio-class amphibious transport ships with a Flight II configuration in the President's budget request for fiscal year Provided further , That funds appropriated or otherwise made available by this Act for production of the common missile compartment of nuclear-powered vessels may be available for multiyear procurement of critical components to support continuous production of such compartments only in accordance with the provisions of subsection i of section a of title 10, United States Code as added by section of the National Defense Authorization Act for Fiscal Year Public Law — Section of H.
None of the funds provided in this Act shall be available to initiate: Provided, That no part of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government's liability: Provided further, That no multiyear procurement contract can be terminated without day prior notification to the congressional defense committees: Provided further, That the execution of multiyear authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement: Provided further, That none of the funds provided in this Act may be used for a multiyear contract executed after the date of the enactment of this Act unless in the case of any such contract—.
Funds appropriated in title III of this Act may be used for a multiyear procurement contract as follows: Funds appropriated in title III of this Act may be used for multiyear procurement contracts for any or all of the following projects:. Provided further, That the multiyear procurement authority for the Standard Missile—6 program provided for by this section shall be subject to the certification requirement in section b i of title 10, United States Code, with the cost analysis in connection with such certification to be current as of the date of such certification and to be submitted to Congress prior to the Secretary exercising the authority in accordance with section b i 3 of title 10, United States Code.
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Text of 10 U. B The Secretary of Homeland Security shall prescribe the regulations applicable to the Coast Guard, except that the regulations prescribed by the Secretary of Defense shall apply to the Coast Guard when it is operating as a service in the Navy. The cancellation provisions may include consideration of both recurring and nonrecurring costs of the contractor associated with the production of the items to be delivered under the contract. The costs of cancellation or termination may be paid from-.
A the cancellation ceiling amounts planned for each program year in the proposed multiyear procurement contract, together with the reasons for the amounts planned;. B the extent to which costs of contract cancellation are not included in the budget for the contract; and. A A report containing preliminary findings of the agency head required in paragraphs 1 through 6 of subsection a , together with the basis for such findings. B Confirmation that the preliminary findings of the agency head under subparagraph A were made after the completion of a cost analysis performed by the Director of Cost Assessment and Program Evaluation for the purpose of section e 1 1 of this title, and that the analysis supports those preliminary findings.
A The Secretary has determined that each of the requirements in paragraphs 1 through 6 of subsection a will be met by such contract and has provided the basis for such determination to the congressional defense committees. B The Secretary's determination under subparagraph A was made after completion of a cost analysis conducted on the basis of section e 2 1 of this title, and the analysis supports the determination.
C The system being acquired pursuant to such contract has not been determined to have experienced cost growth in excess of the critical cost growth threshold pursuant to section d of this title within 5 years prior to the date the Secretary anticipates such contract or a contract for advance procurement entered into consistent with the authorization for such contract will be awarded.
D A sufficient number of end items of the system being acquired under such contract have been delivered at or within the most current estimates of the program acquisition unit cost or procurement unit cost for such system to determine that current estimates of such unit costs are realistic. E During the fiscal year in which such contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program for such fiscal year will include the funding required to execute the program without cancellation.
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G The proposed multiyear contract provides for production at not less than minimum economic rates given the existing tooling and facilities. B The Secretary may obligate funds appropriated for any fiscal year for advance procurement under a contract for the purchase of property only for the procurement of those long-lead items necessary in order to meet a planned delivery schedule for complete major end items that are programmed under the contract to be acquired with funds appropriated for a subsequent fiscal year including an economic order quantity of such long-lead items when authorized by law.
Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and if it does so provide may provide for a cancellation payment to be made to the contractor if such appropriations are not made. A The amount of total obligational authority under the contract or contract extension and the percentage that such amount represents of-.
B The amount of total obligational authority under all multiyear procurements of the agency concerned determined without regard to the amount of the multiyear contract or contract extension under multiyear contracts in effect at the time the report is submitted and the percentage that such amount represents of-. C The amount equal to the sum of the amounts under subparagraphs A and B , and the percentage that such amount represents of-.
D The amount of total obligational authority under all Department of Defense multiyear procurements determined without regard to the amount of the multiyear contract or contract extension , including any multiyear contract or contract extension that has been authorized by the Congress but not yet entered into, and the percentage that such amount represents of the procurement accounts of the Department of Defense treated in the aggregate.
A The term "applicable procurement account" means, with respect to a multiyear procurement contract or contract extension , the appropriation account from which payments to execute the contract will be made. B The term "agency procurement total" means the procurement accounts of the agency entering into a multiyear procurement contract or contract extension treated in the aggregate.
MYP is an established acronym for multiyear procurement. BBC is not an established acronym for block buy contracting, but is used in this CRS report for purposes of convenience. Advance appropriations, which are not to be confused with advance procurement AP funding see footnote 3 , are essentially a legislatively locked-in form of incremental funding.
Unlike incremental funding, advance appropriations qualify under budgeting regulations as a form of full funding. AP funding is provided in one or more years prior to the year of procurement of a weapon system for the procurement of long-leadtime components—components with long construction times.
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Such components must be funded prior to the procurement of the remainder of the weapon system if they are to be ready for installation in the weapon system at the appropriate point in the construction process. AP funding is a permitted exception to the full funding provision. AP funding is not to be confused with advance appropriations see footnote 2. See footnote 2 for citations to these reports. Appropriating funding for a program and placing a program under contract are steps in a larger sequence of budget-related events that includes authorization, appropriation, obligation, and outlays.
Slide 10 from briefing entitled "Multiyear Procurement: Slide 12 from briefing entitled "Multiyear Procurement: Slide 12 also stated that these assessed savings were based on comparing CAPE's estimate of what the programs would cost under annual contracting which the briefing refers to as single-year procurement or SYP to the contractor's MYP proposal. Government Accountability Office, Defense Acquisitions[: The term EOQ is occasionally used in discussions of defense acquisition, somewhat loosely, to refer to any high-quantity or batch order of items, even those that do not take place under MYP or BBC.
A Government Accountability Office GAO report on multiyear contracting lists five areas of savings, most of which are covered in the two general areas of savings outlined above. One of GAO's five areas of savings—limited engineering changes due to design stability—can also occur in programs that use annual contracting. The GAO report states the following:. Multiyear procurement can potentially save money and improve the defense industrial base by permitting the more efficient use of a contractor's resources.
Multiyear contracts are expected to achieve lower unit costs compared to annual contracts through one or more of the following sources: Multiyear procurement also offers opportunities to enhance the industrial base by providing defense contractors a longer and more stable time horizon for planning and investing in production and by attracting subcontractors, vendors, and suppliers.
However, multiyear procurement also entails certain risks that must be balanced against potential benefits, such as the increased costs to the government should the multiyear contract be changed or canceled and decreased annual budget flexibility for the program and across DOD's portfolio of weapon systems. Additionally, multiyear contracts often require greater budgetary authority in the earlier years of the procurement to economically buy parts and materials for multiple years of production than under a series of annual buys. For a discussion of the earlier evolution of the savings requirement under 10 U.
Joint explanatory statement for H.
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There was no new joint explanatory statement for S. For the parts of S. The Anti-Deficiency Act 31 U. A multiple-year commitment may be made when authorized by Congress by entering into a firm commitment for one year and making the government's liability for future years contingent on funds becoming available. Slide 4 from briefing entitled "Multiyear Procurement: Slide 5 from briefing entitled "Multiyear Procurement: Customer reviews There are no customer reviews yet.
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