AUTHORIZED MULTIYEAR CONTRACTS

SEC. 108. AUTHORIZED MULTIYEAR CONTRACTS (a) Army.—Subject to subsection (d)(1), 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) High-Mobility Multipurpose Wheeled Vehicle program. (2) AN/ALQ-136 jammer. (3) TOW 2 Missile (for the Army and Marine Corps). (b) Navy.—(1) Subject to subsection (d)(2), the Secretary of the Navy may enter into a multiyear contract under section 2306(h) of title 10, United States Code, for the Hawk Missile System. (2) If by January 1, 1988, legislation described in section 3(c) has not been enacted, the Secretary of the Navy shall enter into a five-year multiyear contract under section 2306(h) of title 10, United States Code, for procurement of 420 FA-18 aircraft. (c) Air Force.—Subject to subsection (d)(1), the Secretary of the Air Force may enter into a multiyear contract under section 2306(h) of title 10, United States Code, for the Defense Meteorological Satellite Program. 101 STAT. 1036 (d) Conditions.—(1) A multiyear contract authorized by subsection (a), (b)(2), or (c) may not be entered into unless the anticipated cost over the period of the contract is no more than 88 percent of the anticipated cost of carrying out the same program through annual contracts. (2) A multiyear contract authorized by subsection (b)(1) may not be entered into unless the anticipated cost over the period of the contract is no more than 88 percent of the average cost incurred for the same system procured with funds appropriated for fiscal year 1986 and fiscal year 1987. For purposes of this paragraph, the average cost for the system in those fiscal years may be increased by the average percentage inflation increase for missile procurement during those fiscal years.