AUTHORIZED MULTIYEAR CONTRACTS

SEC. 107. AUTHORIZED MULTIYEAR CONTRACTS (a) Army.—Subject to subsections (d) and (e), the Secretary of the Army may enter into multiyear contracts in accordance with section 2306(h) of title 10, United States Code, for procurement of the following: (1) CH–47D helicopter modification. (2) Multiple Launch Rocket System (MLRS). (3) T–700 helicopter engine. (4) AH–64 Apache helicopters. (5) M1 Abrams tanks for 3,000 tanks. (b) Navy and Marine Corps.—Subject to subsections (d) and (e), the Secretary of the Navy may enter into multiyear contracts in accordance with section 2306(h) of title 10, United States Code, for procurement of the following: (1) AV–8B aircraft. (2) UHF Follow-On Satellite System. (c) Air Force.—Subject to subsections (d) and (e), the Secretary of the Air Force may enter into multiyear contracts in accordance with section 2306(h) of title 10, United States Code, for procurement of the following: (1) F–16 aircraft. (2) Defense Meteorological Satellite Program (DMSP). 102 STAT. 1929 (d) Conditions.—A multiyear contract authorized by this section may not be entered into unless each of the following conditions is satisfied: (1) The Secretary of Defense certifies to Congress that the current five-year defense program fully funds the support costs associated with the multiyear program. (2) The proposed multiyear contract provides for production at not less than minimum economic rates given the existing tooling and facilities. (3) The proposed multiyear contract— (A) achieves a 10 percent savings as compared to the cost of current negotiated contracts, adjusted for changes in quantity and for inflation; or (B) achieves a 12 percent savings as compared to annual contracts if no recent contract experience exists. (e) Negotiated Priced Options.—The Secretary of Defense may instruct the Secretary of the military department concerned to incorporate into a proposed multiyear contract under this section negotiated priced options for varying the quantities of end items to be procured over the period of the contract.