- 61 - question that relatively substantial savings were experienced through the multiyear feature of Contract 2034. The cost savings constituted the Air Force’s principal motive for seeking a multiyear contract. Petitioner believed it could achieve substantially higher profit rates under a multiyear contract than it could otherwise achieve under four annual contracts. Petitioner also believed it could achieve substantially higher sales volume of the aircraft under the multiyear approach of Contract 2034. Petitioner’s agreement to a multiyear contract instead of continuing annual contract procurement was also dependent upon expectations that it would obtain increases in the sales volume of aircraft to customers other than the U.S. Government. Finally, petitioner viewed the multiyear form of procurement as providing stability to its F-16 production and operations over the term of a 4-year contract. 6. The Customary Business Practices of the Air Force and Petitioner Respondent argues that, in negotiating Contract 2034, the Air Force and GENDYN (hereinafter the parties) made a concerted effort to adjust the rates of periodic progress payments and liquidations so as to provide petitioner with the same economic results as it would have realized had Contract 2034 been four separate procurement contracts.Page: Previous 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Next
Last modified: May 25, 2011