HUNTSVILLE, Ala. – The Army’s aim for potentially using multi-year deals to procure GMLRS rockets and Patriot Advanced Capability (PAC)-3 missiles is to get a cost savings percentage in the “high single digits,” according to the service’s top acquisition official.
Doug Bush, the assistant secretary of the Army for acquisition, logistics and technology, told reporters on Tuesday at the Association of the United States Army’s Global Force Symposium here that the cost savings goal is compared to annual purchases for those munitions.
Army Secretary Christine Wormuth confirmed earlier this month the service plans to seek congressional approval to award multi-year deals for the Lockheed Martin [LMT]-built GMLRS and PAC-3s in fiscal year 2024, citing cost savings and industrial base stability as key factors in the pitch to lawmakers (Defense Daily, March 16).
“We are looking in FY ‘24 to work with Congress to be able to get multi-year procurement authority for things like PAC-3 missiles, for example, and GMLRS. So you know we’ve got some work to do there before that comes to fruition but we’re going to work hard on that with Congress. And, again, I think that is a win-win for us in the Army as well as those of you in industry,” Wormuth told attendees at the McAleese Conference in Washington, D.C.
While Congress included a provision allowing multi-year deals for certain critical munitions in the latest defense policy bill, Army officials have noted the service will require specific approval language from the appropriations committees to enter into such deals above $500 million.
“The Hill and members have shown interest and we provide data for them to consider. But that’s for them to consider for now,” Bush said on Tuesday.