Young: Multiyear contracts at DoD can save money

Tuesday - 9/21/2010, 6:09pm EDT

John Young

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Discussions about reforming acquisition at the Defense Department overlook an important cost-cutting measure -- multi-year procurement (MYP) contracts, according to a former Defense employee.

John Young, former undersecretary of defense for acquisition, technology and logistics, spoke with In Depth about the current under-use of MYP contracts at DoD.

The main reason: DoD must request MYP contracts on a program-by-program basis, a slow process that requires review by four committees.

"Congress has made MYP even harder by insisting on savings of 10 percent or more on such contracts. The result of these policies is fewer MYP contracts and wasted tax dollars," Young wrote in Federal Times.

In the past, opposition to MYP contracts has stemmed from concerns that budgets would be tied down to these long-term contracts.

However, Young pointed out, DoD procurement has moved toward buying in lesser quantities.

"(MYP) should be a buying tool more available to the department on a regular basis so they can do more for the taxpayer and the war fighter," Young said.

The interview was part of the "Pentagon Solutions" series on the first and third Tuesday of every month at 1 p.m.