(1) By using the guidance provided in this chapter, you can estimate validated multi-year savings. You can then compare the validated savings to the savings estimate in your MJP to determine which of the following relationships exists:

Category	Relationship
Category I	Validated savings greater than or equal to initial savings estimate in both dollars and percent and Positive Present Value
Category II	Validated savings less than initial savings estimate in dollars and/or percent and Positive Present Value
Category III	Negative Present Value

(2) The relationship between the two savings estimates not only determines the level at which your validation findings should be approved and whether Congress will have to be notified about the validated multi-year savings prior to award, but also whether it makes business sense to award the multi-year contract at all. If award is still warranted, Chapter 16 explains how to obtain the needed approval and how to satisfy any notification requirement.