Which of the following exceptions to the full funding policy would allow the Government to budget for buying three years' worth of engines under one contract in order to save money?

• A. Incremental Funding
• B. Multiyear Procurement
• C. Earmarking
• D. Advance Acquisition

Answer: (B)

Multiyear procurement lets the government obligate funds across multiple fiscal years under a single contract, so a long-term commitment can be funded and executed without reopening the award each year. This approach enables price savings and more efficient contracting by buying in bulk, locking in terms, and reducing administrative overhead, provided there is statutory authority and funds available for all years. In the scenario, budgeting for three years of engines under one contract leverages those savings and streamlines delivery, rather than negotiating anew every year.

Incremental funding would only cover the contract in yearly portions, so it wouldn’t maximize the economies of scale of a single three-year decision. Earmarking designates funds for a specific purpose but doesn’t by itself authorize a multi-year contract. Advance acquisition allows procurement before funds are available in the near term, which isn’t the same as a legally authorized multi-year funding arrangement.