Multiple Award, Multiple Order Contracts the Future of Navy Surface Maintenance Procurement

Abstract

Prior to 2004, all Chief of Naval Operations maintenance availabilities used a firm-fixed price contract structure. These contracts resulted in significant cost overruns and schedule delays, and did not create the collaborative environment the Navy desired. In an effort to improve outcomes, Naval Sea Systems Command (NAVSEA) created the Multi-ship, Multi-option contract, a long-term, cost-reimbursement contracting vehicle that was competitively awarded. In 2013, NAVSEA determined that although collaboration and ownership had improved, the Navy's ability to manage growth had been underestimated. Commander, Navy Regional Maintenance Centers and NAVSEA 21 set out to create a contracting vehicle with firm-fixed price or fixed price award fee competitions via multiple award contracts and created the Multiple Award Contract-Multiple Order (MAC-MO) contract strategy. The purpose of this MBA project is to analyze MAC-MO contracts and compare/contrast them with previous strategies in order to determine the efficiency and effectiveness of this method.