Accession Number : ADA194513

Title :   The Lotus Multiyear Funding Model.

Descriptive Note : Memorandum rept.,

Corporate Author : ARMY AVIATION SYSTEMS COMMAND ST LOUIS MO

Personal Author(s) : Lurch, Chic ; Tessereau, Harold ; Peters, Doug

PDF Url : ADA194513

Report Date : Apr 1988

Pagination or Media Count : 41

Abstract : The Lotus Multiyear Funding Model presented in this report was developed to generate Multiyear Funding Exhibits as per DoD Budget Guidance Manual, DoD 7110-1-M, Revision No. 2 to July 1985 Reprint, dated 24 July 1987. All of the exhibits generated by the model address the cost impact upon a PMO Program Plan of awarding a 'Multiyear' contract for a subsystem procurement instead of an 'Annual' award for the same item. The model requires the user to input data for a six year period covering the budget year and five POM years. The data includes 'Multiyear' and 'Annual' contractual funding requirements for the subsystem under analysis, 'Multiyear' funding requirements for the entire PMO procurement program, as well as the latest OSD inflation and outlay rate guidance. With this input the model outputs the yearly budgetary requirement for the subject system by fiscal year. It also calculates the annual savings gained through the use of a 'multiyear' procurement strategy. The model then generates an exhibit which can be used to split-out savings attributable to inflation avoidance from those which are attributable to real constant fiscal year dollar savings.

Descriptors :   *COST MODELS, BUDGETS, COSTS, ECONOMIC IMPACT, GUIDANCE, INPUT, MODELS, OUTPUT, RATES, SAVINGS, STRATEGY, USER NEEDS, ARMY PROCUREMENT, ARMY PLANNING, PLANNING PROGRAMMING BUDGETING, INFLATION(ECONOMICS), END ITEMS

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE