AMRAAM

The AMRAAM program is a strategic initiative within the Air Force's Missile Procurement budget activity. The specific goal of this program is to implement a Multiyear Procurement (MYP) strategy for AMRAAM, JASSM, LRASM, and Standard Missile-6. This strategy involves the execution of concurrent and overlapping multiyear contracts to generate production synergies across related programs, leading to increased production capacity, accelerated delivery, and reduced unit costs. The program aims to leverage the savings generated through Economic Order Quantities (EOQ) financing to procure additional lots of missiles under a Buy-to-budget concept, ultimately improving efficiencies and yields.

The AMRAAM program's objectives include initiating a Large Lot Procurement (LLP) concept to execute individual MYPs concurrently and overlap multiyear strategies for AMRAAM, JASSM, LRASM, and Standard Missile-6. This approach is designed to capitalize on production synergies across different but related programs to achieve greater production capacity, expedited delivery timelines, and lower unit costs. The program also aims to evolve the existing MYP contracting and financing strategy by leveraging savings generated through EOQ financing to procure additional lots of missiles under a Buy-to-budget concept. This strategy is intended to further enhance efficiencies and yields within missile procurement activities.