The Army is planning to stretch its procurement of Armored Multi-Purpose Vehicles (AMPV) per its effort to reduce buys for certain programs to fully fund future weapon system development, with plans to drop fiscal year 2021 procurement by 30 percent from 204 to 143 vehicles.
The service’s budget justification books, released Monday, show officials are preparing for a $485.7 million third low-rate initial production for 131 vehicles in FY ’20 with plans to push the program’s largest buy to FY ’24 from FY ’21 as a result of a shift in funds.
For FY ’21, the Army’s budget request shows the projected AMPV buy decreasing from $823 million to $617 million.
AMPV, built by BAE Systems and intended to replace Armored Brigade Combat Teams’ M113 armored personnel carriers, was one of 186 programs the Army either eliminated or downgraded in its plan to shift $33 billion for lower-tier priorities toward funding development of modernization priorities over the next five years.
Major programs that also received cuts or reductions include the Joint Light Tactical Vehicle, upgraded Bradley fighting vehicles, CH-47 Chinooks and Black Hawk helicopters.
Under Secretary Ryan McCarthy told reporters last week that AMPV will not see a reduction in total procurement numbers with the total buy remaining at over 2,900 vehicles. However, he pointed out that the buy would delayed to save funds.
“In fiscal year ‘20, as this process rolls out over the next several weeks, you’re going to see a dramatic shift over this five-year program. We had to look at how could finance this ambition in flat or declining fiscal environments,” McCarthy said during a keynote at the McAleese conference.
The Army’s plan for FY ’20 remains on schedule from the FY ’19 request, with the LRIP Lot 3 set for $485.7 million and 131 AMPVs.
The request is split between $264 million and 65 vehicles in the base budget and $221.6 million and 66 vehicles in Overseas Contingency Operations, specifically to support the European Defense Initiative.
AMPV procurement for FY ’22 and FY ’23 is set at 143 vehicles each year, before making the delayed increase in FY ’24 to $738 million for 192 vehicles.
Earlier this year, the Army awarded BAE Systems $575 million in contract modifications to move AMPV in the LRIP phase, bringing the total program to $873 million to date (Defense Daily, Feb. 19).
A BAE Systems spokesperson told Defense Daily in February the latest deals cover 300 vehicles with the deliveries of the first LRIP units set to begin in spring 2020
LRIP is expected to cover 551 units of the total 2,907 vehicles under the AMPV program.
McCarthy confirmed last week JLTV will face a cut with plans to buy 1,900 fewer vehicles and reduce the program by $800 million (Defense Daily, March 14).