Accession Number : ADA141424
Title : Analysis of Benefits Realized from Multiyear Contracting for the Black Hawk Helicopter.
Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV
PDF Url : ADA141424
Report Date : 09 May 1984
Pagination or Media Count : 17
Abstract : In 1982, the Congress authorized a $950 million 3-year multiyear contract for 294 Black Hawk helicopters. The Army estimated that such an arrangement would save about $8.1 million, or 7.9 percent, compared with three successive annual contracts for the same number of helicopters. GAO's analysis indicated an estimated budgetary savings to the Army of $73.9 million, with a net discounted savings to the government of about $36.6 million, or about 4.6 percent. GAO's estimate of net savings takes into account the cost of providing funds earlier under the multiyear contract. In addition, revenue to the U.S. Treasury may be reduced because of the tax implications of a multiyear contract. Neither the Army nor the contractor had evidence that the Black Hawk multiyear contract significantly enhanced the defense industrial base, another anticipated benefit of multiyear contracting.
Descriptors : *Helicopters, Army procurement, Contracts, Costs, Army aircraft, Savings
Subject Categories : Chemical, Biological and Radiological Warfare
Distribution Statement : APPROVED FOR PUBLIC RELEASE