Flex-Lease: An Acquisition Strategy for the 1990s.

摘要

In this essay the author presents a concept which he terms 'flex-lease,' as an alternative acquisition strategy for the next decade. An ideal acquisition strategy in periods of restricted cash flow should absorb defense budget reductions without loss of force structure, weapon system cancellations, decreased readiness, restrictive organization changes, or production line stretch-outs. The author's thesis is that it is cheaper to buy and lease what you can afford, rather than buy and later stretch-out that buy. He also provides guidelines for flex-lease success in selection of applicable systems, determination of economic rate of production and life cycle costs and selection of leasing agent. Keywords: Stretch-out buying; Grace commission; Open-end leasing; Option to purchase; Economic rate of production; Modernization threshold; Industrial base. (edc)