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Department of Defense INSTRUCTION

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DoDI 5000.02, January 7,

DoDI 5000.02, January 7, 2015 (1) Share data and use the same CARD. (2) Raise and resolve issues in a timely manner and at the lowest possible level. (3) Address differences between the ICE, the DoD Component cost estimate, and the DoD Component cost estimate position. c. The Program Manager will identify issues projected to be brought to the OIPT to the DCAPE in a timely manner. d. For joint programs: (1) The lead DoD Component or executive agent will prepare the DoD Component Cost Estimate. (2) All DoD Components involved must either jointly sign or individually submit a DoD Component Cost Position and Full Funding Certification Memorandum. 6. MULTI-YEAR PROCUREMENT—COST ANALYSIS REQUIREMENTS a. General. In accordance with 10 U.S.C. 2306b (Reference (h)), A a multi-year procurement contract is a contract for the purchase of property for more than 1, but not more than 5, program years. Under 10 U.S.C. 2306b (Reference (g) (h)), for multi-year contracts for defense acquisition programs that have specifically been authorized by law, the Secretary of Defense must certify in writing by March 1 of the year in which he or she requests legislative authority to enter into the multi-year contract that specified requirements will be met and must provide the basis for that determination to the congressional defense committees. A part of those conditions specified in section 2306b are: Multi-year contracts in an amount equal to or greater than $500 million may not be entered into unless the contract is specifically authorized by law in an Act other than an appropriations Act. In accordance with 10 U.S.C. 2306b, when submitting a request for authorization for a multi-year contract, the Secretary of Defense must include in the request a report containing the preliminary findings of the DoD Component head regarding the following: (1) The use of such a contract will result in substantial significant savings of the total anticipated costs of carrying out the program through annual contracts. (2) The minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities. (3) There is a reasonable expectation that throughout the contemplated contract period the head of the agency DoD Component will request funding for the contract at the level required to avoid contract cancellation. Change 2, 02/02/2017 146 ENCLOSURE 10

DoDI 5000.02, January 7, 2015 (4) There is a stable design for the property to be acquired and the technical risks associated with such property are not excessive. (5) The estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multi-year contract are realistic. (6) The use of such a contract will promote the national security of the United States. b. CAPE Role and Requirements. Prior to the Secretary’s determination submission under paragraph 6.a, DCAPE is required to complete a cost analysis and determine such analysis supports the Secretary’s DoD Component head’s findings above in paragraph 6a of this enclosure. In order for DCAPE to complete the cost analysis in a timely manner, the agency DoD Component head must submit a list of multi-year procurement contract candidates and supporting information to DCAPE no later than October 1 of the fiscal year prior to the fiscal year in which the request for legislative authority, with accompanying certification, will be made. c. Additional Requirements. 10 U.S.C. 2306b (Reference (g) (h)) sets forth several other requirements for multi-year contracts. Prior to requesting authority to enter into a multi-year contract, the program manager should consult with his or her agency’s counsel to confirm that the proposed multi-year contract complies with all relevant statutes and regulations. Change 2, 02/02/2017 147 ENCLOSURE 10

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