Army Missile, Truck Program Costs Jump $14 Billion While Network Drops $8 Billion

Three Army acquisition programs increased more than $1 billion each in 2017 while a canceled program drew attention for a dramatic decrease in program cost because it has been effectively canceled, according to the Selected Acquisition Report for the year.

Because of increased purchase quantities, the Guided Multiple Launch Rocket System (GMLRS), Joint Light Tactical Vehicle (JLTV) and Patriot missile programs jumped a total $14 billion while the Warfighter Information Network-Tactical Increment 2 (WIN-T Inc 2) fell nearly $8 billion, according to the 2017 SAR.

GMLRS Alternative Warhead Firing Photo: Lockheed Martin

GMLRS Alternative Warhead Firing
Photo: Lockheed Martin

The GMLRS program costs increased $9 billion, or 121 percent, from $7,568.1 million to $16,760.1 million, because of an increased purchase of rockets from 43,936 to 96,606 and associated schedule, engineering, and estimating allocations.

There were also increases due to a revised estimate based on total rockets required and extension in the procurement buy profile from fiscal year 2024 to 2033 and an adjustment for current and prior escalation indices. These increases were partially offset by an acceleration of the procurement buy profile due to an increased production capacity in fiscal 2019, revised escalation indices and a revised estimate to support Extended Range GMLRS development, all of which resulted in a $150 million cost reduction.

Again because of increased quantities, the Joint Light Tactical Vehicle (JLTV) program increased 11 percent from $25 billion to $28 billion, due primarily to an increase in Marine Corps quantities of 1,850 vehicles from 7,241 to 9,091, updates in vehicle configuration and kit mix for Army units, updates in vehicles and kits based on vehicle configuration mix for Marine Corps units, a stretch-out of the procurement buy profile from fiscal 2015 to fiscal 2036 for the Army and from fiscal 2019 to fiscal 2023 for the Marine Corps and an increase in support and initial spares for both services, according to the SAR. These cost increases were offset $210 million by revised escalation indices.

Because the Army plans to buy 538 more Patriot Advanced Capability-3 Missile Segment Enhancements (PAC-3 MSE), that program jumped 28 percent from $7 billion to $9 billion. The increase was due primarily to an increased buy from 1,185 to 1,723 missiles. There were also increases due to a revised estimate of weapon system support costs to reflect the missile quantity increase and an adjustment for current and prior escalation, according to the SAR. These increases were offset a total $724 million by a revised estimate for program increases in fiscal 2017 to fiscal 2023 and missile production realignment, a schedule variance due to missile procurement realignment from fiscal 2018 to fiscal 2025, and revised escalation indices.

The only noted program with a decrease greater than $1 billion is the Warfighter Information Network-Tactical Increment 2 (WIN-T Inc 2). Program cost dropped 63 percent from $12 billion to $4.5 billion because the Army dramatically cut the number of communications nodes it plans to buy from 3,674 to just 1,567. The decrease is a symptom of the Army’s revised network modernization strategy, which effectively cancels WIN-T Inc 2 beyond what is already on order.

These decreases were offset by a $273.5 million increase in additional quantity variance to account for non-node configuration items and a revised estimate to reflect the procurement of Tactical Communications Node-Lite (TCN-L) and Network Operations Support Centers-Lite (NOSC-L) configuration items for modernizing previously procured Infantry Brigade Combat Teams.





More Stories You Might Like