Methods of analyzing the impact of program stretchouts

The increased use of incentive contracts has not eliminated, and may even have increased, the number of changes involved in the procurement of a major aerospace system. One kind of change is the program stretchout that extends the duration of an ongoing program by means of a formal contract change. The principal causes of program stretchouts and the potential benefits and costs resulting from stretchouts are discussed in this paper. Methods of equitably determining the responsibility and dividing of costs for stretchouts between government and contractor are explored. Current methods used to analyze the impact of stretchouts are evaluated and, finally, recommendations for establishing explicit guidelines in fixing responsibility for stretchout costs are set forth.