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Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress (Updated April 25, 2024) : Congressional Research Service (CRS) , April 25, , 2024

April 25, 2024

Congressional Research Service (CRS)

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From the report: "Multiyear procurement (MYP) and block buy contracting (BBC) are special contracting mechanisms that Congress permits the Department of Defense (DOD) to use for a limited number of defense acquisition programs. Compared to the standard or default approach of annual contracting, MYP and BBC have the potential for reducing weapon procurement costs by a few or several percent. Under annual contracting, DOD uses one or more contracts for each year’s worth of procurement of a given kind of item.

Under MYP, DOD instead uses a single contract for two to five years’ worth of procurement of a given kind of item without having to exercise a contract option for each year after the first year. DOD needs congressional approval (in both a DOD appropriations act and an act other than a DOD appropriations act) for each use of MYP. There is a permanent statute governing MYP contracting—10 U.S.C. 3501. Under this statute, a program must meet several criteria to qualify for MYP."



Congressional Research Service (CRS)


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