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“Economic Order Quantity” (EOQ) for all 4 fiscal years, including
the 1983, 1984, and 1985 program years. Long-lead items consist
of parts or components required to protect future delivery
schedules, even beyond the year of procurement. EOQ items are
parts and components that a contractor may procure in sufficient
volume to obtain quantity discounts. EOQ is a concept that is
unique to multiyear contracting.
In certain types of Government contracting, after a contract
has been awarded and work commenced, prices may be ultimately
negotiated by a process known as “definitization”.
Definitization of the Air Force's price for the F-16's was to be
accomplished with respect to all 480 aircraft. Contract 2034
identified the items required to be delivered by use of Contract
Line Item Numbers, or “CLIN’s”. CLIN’s, in the broadest of
terms, describe the part or item under contract. For example,
CLIN 0002AC contains the following: “45 EACH - USAF FY83 F-16C
AIRCRAFT”. Other CLIN’s in Contract 2034 required GENDYN, among
other requirements, to: Incorporate engineering changes in the
aircraft, furnish training equipment and incorporate engineering
changes in such equipment, provide support equipment and
incorporate engineering changes in such equipment, furnish
retrofit kits and alternate mission equipment, generate a variety
of test and other data, and provide repair services for certain
Government-furnished equipment.
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