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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
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