NDAA for Fiscal Year 2024

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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS Subtitle B--Amendments to General Contracting Authorities, Procedures, and Limitations
P. L. 118-31	Conference Report
SEC. 820. AMENDMENTS TO MULTIYEAR PROCUREMENT AUTHORITY. Section 3501(a)(1) of title 10, United States Code, is amended-- (1) by striking ``will result in significant savings'' and inserting the following: ``will result in-- ``(A) significant savings''; and (2) by striking ``annual contracts.'' and inserting the following: ``annual contracts; or ``(B) necessary defense industrial base stability not otherwise achievable through annual contracts.''.	Sec. 820--Amendments to multiyear procurement authority The Senate amendment contained a provision (sec. 801) that would amend section 3501(a)(1) of title 10, United States Code, to modify the justification for the use of multiyear contracting authority to include industrial base stability, not just projected cost savings. The House bill contained no similar provision. The House recedes with an amendment that would strike the change in funding threshold for multiyear procurements. S. Rept. 118-58 Amendments to multiyear procurement authority (sec. 801) The committee recommends a provision that would amend section 3501(a)(1) of title 10, United States Code, to modify the justification for the use of multiyear contracting authority to include industrial base stability, not just projected cost savings. In section 1244 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263), the committee authorized the use of multiyear procurements for a number of munitions related to refilling stocks used in the Ukraine conflict and to strengthen the readiness of U.S. forces. The committee notes with concern that this authority has not been fully utilized for a number of munitions on the list due to limited projected cost savings achieved through a multiyear contract versus single year contracts. The committee believes the use of multiyear contracts offer more advantages than only cost savings. These contracts can also provide a clear demand signal to industry, which helps industry plan labor and material needs more effectively, and can better position it to meet the demands of U.S. requirements. Therefore, the committee believes the Department of Defense should factor in industrial base concerns as well as projected cost savings when considering the use of multiyear contracts.