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Contract 2034, in CLIN 0001, also provides that the
deliverables identified in the other CLIN’s “are neither priced
nor funded nor is the Government under any obligation to
subsequently acquire said items.” Contract 2034, in addition to
the CLIN’s, contains about 200 pages of clauses that define the
terms and conditions under which GENDYN would manufacture and
deliver the 480 aircraft. Included in the subject matter of
these clauses, among other items, are requirements and terms for
EOQ contracts, change proposals, rights in data, definitization,
etc.
In essence, therefore, Contract 2034 was a basic multiyear
agreement between the Air Force and GENDYN, under which GENDYN
was expressly authorized to begin work on the delivery of 480
aircraft, including the ability for EOQ and long-lead items. In
response to the agreements reached with the Air Force, GENDYN's
Fort Worth Division began planning for the production of all 480
aircraft, including the exercise of options obtained from vendors
to convert their annual subcontracts into multiyear subcontracts.
On December 29, 1981, Congress passed the fiscal year 1982
Department of Defense Authorization Act, 10 U.S.C. sec. 2301
(Supp. V 1981), which increased the cancellation ceiling
applicable to multiyear contracts from $5 million to $100 million
and expressly authorized the Air Force's multiyear procurement of
F-16's. This legislation significantly expanded the use of
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