Which of the following is NOT a requirement to entering into a MYP?

• A. Flexible funding
• B. Substantial savings over a traditional contract
• C. Must be based on realistic cost estimates
• D. Stable and available funding

Answer: (D)

Multiyear procurement decisions are driven by the expectation of savings and credible cost estimates, with funding arranged to cover the term through the budget process. The key factors that justify entering into a MYP are the potential substantial savings versus a traditional contract and costs that are based on realistic estimates. Flexible funding is often needed to accommodate the multi-year structure, but having stable and available funds up front is not the formal prerequisite for entering a MYP. In practice, funding is managed to cover each year of the contract, but the eligibility criteria focus on savings and cost realism, not a steadfast guarantee of funding at the outset.