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Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "9800ad9892ac1e0cf20dd30b33e21cfd4ddc90e7", "filename": "files/20200514_R41909_9800ad9892ac1e0cf20dd30b33e21cfd4ddc90e7.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "1f99858c96d31f8b33005cf423f5fe31f26ee54b", "filename": "files/20200514_R41909_1f99858c96d31f8b33005cf423f5fe31f26ee54b.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 620114, "date": "2020-03-17", "retrieved": "2020-03-18T22:05:32.508436", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "5db94b7175572296f4fa27d045d18313e0fc8bb5", "filename": "files/20200317_R41909_5db94b7175572296f4fa27d045d18313e0fc8bb5.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "36a253c9bda0ef684f68613e0a8ce31d30e475e0", "filename": "files/20200317_R41909_36a253c9bda0ef684f68613e0a8ce31d30e475e0.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 611577, "date": "2019-12-17", "retrieved": "2019-12-20T16:34:54.694336", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "dfacf023fb770c8d6f718ebee89d9a90d5669465", "filename": "files/20191217_R41909_dfacf023fb770c8d6f718ebee89d9a90d5669465.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "54ad025f5db94e7ec9d15e96ec13ee4317c6e7da", "filename": "files/20191217_R41909_54ad025f5db94e7ec9d15e96ec13ee4317c6e7da.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 611135, "date": "2019-12-12", "retrieved": "2019-12-13T14:56:58.678561", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "cadfba149ea9f677c822e0f8cf04f6aafd6c2e0f", "filename": "files/20191212_R41909_cadfba149ea9f677c822e0f8cf04f6aafd6c2e0f.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "acc6bd8043c73fd47ce3a99c8491087587b2e6f0", "filename": "files/20191212_R41909_acc6bd8043c73fd47ce3a99c8491087587b2e6f0.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 605035, "date": "2019-09-16", "retrieved": "2019-09-16T22:02:12.591309", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "eb15bb88196cd4a5cb195f7c8344322c5e02dca7", "filename": "files/20190916_R41909_eb15bb88196cd4a5cb195f7c8344322c5e02dca7.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "de5dc1bc5adde61fb1476a5a192efa9c80e32139", "filename": "files/20190916_R41909_de5dc1bc5adde61fb1476a5a192efa9c80e32139.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 600815, "date": "2019-06-21", "retrieved": "2019-07-02T22:09:44.271729", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "48a084db2efeaeb791bbd23840bce24205ba0838", "filename": "files/20190621_R41909_48a084db2efeaeb791bbd23840bce24205ba0838.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "d0307dc8d4e9a0cb7b2630e1aab38c7d15d35042", "filename": "files/20190621_R41909_d0307dc8d4e9a0cb7b2630e1aab38c7d15d35042.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source_dir": "crsreports.congress.gov", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "retrieved": "2024-07-26T04:03:03.120628", "id": "R41909_82_2019-06-17", "formats": [ { "filename": "files/2019-06-17_R41909_59788ea1792bcc6f87b62c2dd53fee6c0d24bb80.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R41909/82", "sha1": "59788ea1792bcc6f87b62c2dd53fee6c0d24bb80" }, { "format": "HTML", "filename": "files/2019-06-17_R41909_59788ea1792bcc6f87b62c2dd53fee6c0d24bb80.html" } ], "date": "2019-06-17", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R41909", "type": "CRS Report" }, { "source_dir": "crsreports.congress.gov", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "retrieved": "2024-07-26T04:03:03.119031", "id": "R41909_80_2019-06-06", "formats": [ { "filename": "files/2019-06-06_R41909_08fc200e1bcbd95eb44bf5dd310c7e34eaabe963.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R41909/80", "sha1": "08fc200e1bcbd95eb44bf5dd310c7e34eaabe963" }, { "format": "HTML", "filename": "files/2019-06-06_R41909_08fc200e1bcbd95eb44bf5dd310c7e34eaabe963.html" } ], "date": "2019-06-06", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R41909", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 597564, "date": "2019-04-30", "retrieved": "2019-05-03T14:12:19.478137", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41909", "sha1": "3dd4a8ee92b3bcb78309b3e6bbb3e5a0bc4428a3", "filename": "files/20190430_R41909_3dd4a8ee92b3bcb78309b3e6bbb3e5a0bc4428a3.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41909", "sha1": "73dbb70af22c46b9edca1f4e1bc3e9abd9618203", "filename": "files/20190430_R41909_73dbb70af22c46b9edca1f4e1bc3e9abd9618203.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 586452, "date": "2018-10-19", "retrieved": "2018-10-22T22:03:46.648331", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "a009f486d3987fa9d240a0a30f2108b7aa5ebc74", "filename": "files/20181019_R41909_a009f486d3987fa9d240a0a30f2108b7aa5ebc74.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "bcc7818836131e959d2061560feb70d0cb7c3547", "filename": "files/20181019_R41909_bcc7818836131e959d2061560feb70d0cb7c3547.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 584366, "date": "2018-07-31", "retrieved": "2018-10-05T23:01:01.496429", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "4e2116663c9bef78887573c888b6db3a4208eee4", "filename": "files/20180731_R41909_4e2116663c9bef78887573c888b6db3a4208eee4.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "cd8ea65e6d7a88fb526dcaedae25ac6796fdf45f", "filename": "files/20180731_R41909_cd8ea65e6d7a88fb526dcaedae25ac6796fdf45f.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 582610, "date": "2018-07-05", "retrieved": "2018-07-10T20:07:03.537706", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "08e5ffe72dd85f4c4297c7a761fa20965fa5eedf", "filename": "files/20180705_R41909_08e5ffe72dd85f4c4297c7a761fa20965fa5eedf.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "26e77780ddaf007d9b6594a21c05b4c66acd1252", "filename": "files/20180705_R41909_26e77780ddaf007d9b6594a21c05b4c66acd1252.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 581233, "date": "2018-05-18", "retrieved": "2018-05-22T13:07:33.865892", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "f6310065ae58b29e4989c894c9e12952011b3e5b", "filename": "files/20180518_R41909_f6310065ae58b29e4989c894c9e12952011b3e5b.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "cf01d5eb31bab6621cb125a2f2770ce7e3551c9a", "filename": "files/20180518_R41909_cf01d5eb31bab6621cb125a2f2770ce7e3551c9a.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 580439, "date": "2018-04-23", "retrieved": "2018-04-24T13:03:17.737342", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and whether the Coast Guard should begin making use of MYP and BBC.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "0830889c2484d01780018256ba0b2bd5807e9599", "filename": "files/20180423_R41909_0830889c2484d01780018256ba0b2bd5807e9599.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "f1d9c216aa552091106309d333c2bb76158ee7fd", "filename": "files/20180423_R41909_f1d9c216aa552091106309d333c2bb76158ee7fd.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 576256, "date": "2017-12-05", "retrieved": "2017-12-12T14:20:22.869200", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and a proposal from the Department of the Navy for a new MYP contract for the V-22 tilt-rotor aircraft program that would cover a period of seven years, or two more than the five years to which MYP contracts are normally limited by 10 U.S.C. 2306b.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "d2245a2e2b8e5d837742c67261f0836fc580b35a", "filename": "files/20171205_R41909_d2245a2e2b8e5d837742c67261f0836fc580b35a.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "647cb240a6625b3c96ac82abaf18e5fec4754023", "filename": "files/20171205_R41909_647cb240a6625b3c96ac82abaf18e5fec4754023.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 575884, "date": "2017-11-22", "retrieved": "2017-11-30T14:49:22.081545", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and a proposal from the Department of the Navy for a new MYP contract for the V-22 tilt-rotor aircraft program that would cover a period of seven years, or two more than the five years to which MYP contracts are normally limited by 10 U.S.C. 2306b.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "9865813490fccfca1604fd06ec670f05b269c9da", "filename": "files/20171122_R41909_9865813490fccfca1604fd06ec670f05b269c9da.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "a4feff7535238ee206efe12611df5aa119054ce0", "filename": "files/20171122_R41909_a4feff7535238ee206efe12611df5aa119054ce0.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 574114, "date": "2017-10-12", "retrieved": "2017-10-17T14:18:19.720520", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and a proposal from the Department of the Navy for a new MYP contract for the V-22 tilt-rotor aircraft program that would cover a period of seven years, or two more than the five years to which MYP contracts are normally limited by 10 U.S.C. 2306b.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "7b5aa052edbd9fcdfcc60a57dc59cee2accf1a31", "filename": "files/20171012_R41909_7b5aa052edbd9fcdfcc60a57dc59cee2accf1a31.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "e805ae74d52e350bff98f0b28c45385b7e4912a8", "filename": "files/20171012_R41909_e805ae74d52e350bff98f0b28c45385b7e4912a8.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 463153, "date": "2017-08-08", "retrieved": "2017-08-22T13:31:53.606031", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and a proposal from the Department of the Navy for a new MYP contract for the V-22 tilt-rotor aircraft program that would cover a period of seven years, or two more than the five years to which MYP contracts are normally limited by 10 U.S.C. 2306b.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "d486d541d56810287de4ea49fccd3a365701ffa5", "filename": "files/20170808_R41909_d486d541d56810287de4ea49fccd3a365701ffa5.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "27d8360f33afa19f388816b5cbcc48721cbba129", "filename": "files/20170808_R41909_27d8360f33afa19f388816b5cbcc48721cbba129.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 462054, "date": "2017-06-16", "retrieved": "2017-06-26T15:54:34.722625", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and a proposal from the Department of the Navy for a new MYP contract for the V-22 tilt-rotor aircraft program that would cover a period of seven years, or two more than the five years to which MYP contracts are normally limited by 10 U.S.C. 2306b.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "c9ae054b5c56603bded3ccadde9e9155956d8247", "filename": "files/20170616_R41909_c9ae054b5c56603bded3ccadde9e9155956d8247.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "2c57ea2ef9d63639182eb0bdc7f30eeef6e5bdfe", "filename": "files/20170616_R41909_2c57ea2ef9d63639182eb0bdc7f30eeef6e5bdfe.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 461634, "date": "2017-06-02", "retrieved": "2017-06-07T15:28:50.137999", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and the status of the final year of the current MYP contract for procuring V-22 tilt-rotor aircraft.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "bb646a2b196a5f97cbff16c132c7620a26c210cb", "filename": "files/20170602_R41909_bb646a2b196a5f97cbff16c132c7620a26c210cb.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "7be6a410e732ebbe5e44dba53a6b20592a9778c2", "filename": "files/20170602_R41909_7be6a410e732ebbe5e44dba53a6b20592a9778c2.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 461100, "date": "2017-05-12", "retrieved": "2017-05-16T14:28:43.310962", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and the status of the final year of the current MYP contract for procuring V-22 tilt-rotor aircraft.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "54269d815765b6ba58fe5b07f54f8d2beb01f07f", "filename": "files/20170512_R41909_54269d815765b6ba58fe5b07f54f8d2beb01f07f.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "9e0ac95112cd8a05f558c85e6642d6a7f336e7fd", "filename": "files/20170512_R41909_9e0ac95112cd8a05f558c85e6642d6a7f336e7fd.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 459739, "date": "2017-03-16", "retrieved": "2017-03-22T18:27:37.782178", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and the status of the final year of the current MYP contract for procuring V-22 tilt-rotor aircraft.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "6d44702eb621d3496b69682bd34111362956646c", "filename": "files/20170316_R41909_6d44702eb621d3496b69682bd34111362956646c.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "7773418ba7b288df4f58a0f6e382710d20d0b16e", "filename": "files/20170316_R41909_7773418ba7b288df4f58a0f6e382710d20d0b16e.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4902, "name": "Air, Land, Sea, & Projection Forces" }, { "source": "IBCList", "id": 4925, "name": "Readiness, Training, Logistics, & Installations" } ] }, { "source": "EveryCRSReport.com", "id": 454518, "date": "2016-07-25", "retrieved": "2016-09-09T19:08:19.257527", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and the status of the final year of the current MYP contract for procuring V-22 tilt-rotor aircraft.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "c89c4f5b379e9c47e021ca9fb97da65ae06f20a7", "filename": "files/20160725_R41909_c89c4f5b379e9c47e021ca9fb97da65ae06f20a7.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "32ab927f001aa0af1d7e6bfc9018743b3b2f6d27", "filename": "files/20160725_R41909_32ab927f001aa0af1d7e6bfc9018743b3b2f6d27.pdf", "images": null } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 453032, "date": "2016-05-27", "retrieved": "2016-06-21T21:12:38.906819", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress concerning MYP and BBC include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used; whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP; and the status of the final year of the current MYP contract for procuring V-22 tilt-rotor aircraft.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41909", "sha1": "a2913fd81a36efc285157661039d34d9165c3047", "filename": "files/20160527_R41909_a2913fd81a36efc285157661039d34d9165c3047.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41909", "sha1": "a090cb71145b73e7476656ed3d341a6624ac2ab3", "filename": "files/20160527_R41909_a090cb71145b73e7476656ed3d341a6624ac2ab3.pdf", "images": null } ], "topics": [] }, { "source": "EveryCRSReport.com", "id": 451119, "date": "2016-03-23", "retrieved": "2016-04-06T16:56:07.349804", "title": "Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress", "summary": "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by several percent.\nUnder annual contracting, DOD uses one or more contracts for each year\u2019s worth of procurement of a given kind of item. Under MYP, DOD instead uses a single contract for two to five years\u2019 worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval for each use of MYP. There is a permanent statute governing MYP contracting\u201410 U.S.C. 2306b. Under this statute, a program must meet several criteria to qualify for MYP.\nCompared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting. \nBBC is similar to MYP in that it permits DOD to use a single contract for more than one year\u2019s worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. BBC is also similar to MYP in that DOD needs congressional approval for each use of BBC. BBC differs from MYP in the following ways:\nThere is no permanent statute governing the use of BBC.\nThere is no requirement that BBC be approved in both a DOD appropriations act and an act other than a DOD appropriations act.\nPrograms being considered for BBC do not need to meet any legal criteria to qualify for BBC, because there is no permanent statute governing the use of BBC that establishes such criteria.\nA BBC contract can cover more than five years of planned procurements.\nEconomic order quantity (EOQ) authority\u2014the authority to bring forward selected key components of the items to be procured under the contract and purchase the components in batch form during the first year or two of the contract\u2014does not come automatically as part of BBC authority because there is no permanent statute governing the use of BBC that includes EOQ authority as an automatic feature.\nBBC contracts are less likely to include cancellation penalties.\nPotential issues for Congress 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