General Dynamics Corporation and Subsidiaries - Page 14

                                       - 14 -                                         

          multiyear contracting for the procurement of large, complex                 
          weapons systems.                                                            
               GENDYN and the Air Force moved quickly to modify Contract              
          2034 to accommodate the multiyear procedure, which, in                      
          particular, would encompass the increased cancellation ceiling.             
          This modification was embodied in Modification P00002 (POO 2),              
          which was executed on January 26, 1982.  POO 2 provided:                    
                    The USAF FY83 thru FY85 Economic Order Quantity                   
               effort from 6 Nov 81 through 31 Jan 82 is hereby                       
               amended to become the USAF FY82 thru FY85 program on a                 
               multiyear basis thru 31 Oct 82.  This modification                     
               P00002 supersedes the USAF FY82 long lead effort                       
               authorized on contract FY33657-78-C-0669 in its                        
               entirety.  * * *                                                       
               In addition to memorializing Congress' approval of the                 
          multiyear procurement of F-16's, POO 2 also transferred to                  
          Contract 2034 $292 million that had been obligated for the long-            
          lead effort on the 120 aircraft identified for the 1982 program             
          year and obligated an additional $188.5 million for long-lead and           
          EOQ items for all 4 program years.   These amounts, however, were           
          insufficient to fully fund the production of 480 aircraft but               
          were intended for EOQ and long-lead items.                                  
               POO 2 also contained the following language:                           
                    The Contractor is authorized, consistent with                     
               Special Provision H-77 entitled "Material Commitment",                 
               to incur labor, material and other associated and                      
               allowable costs for any Program Year hereunder.                        
               POO 2 also added a “Cancellation of Items” provision, unique           
          to multiyear contracts, which defines the rights and obligations            

Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011