The Defense Department is terminating the Joint Tactical radio System (JTRS) Ground Mobile Radio (GMR), “based on growth in the unit procurement costs, ”according to a letter from the acting under secretary of defense for acquisition, technology and logistics (ALT).

Boeing [BA] is the prime contractor on the JRTS GMR radio, leading a team consisting of Northrop Grumman [NOC], Rockwell Collins [COL] and BAE Systems, with support from Harris Corp. [HRS],

Frank Kendall, acting USD ALT, wrote in the Oct. 13 letter that the cost breaches came immediately from the reduction in quantity from 86,209 radios to 10,293 radios, due to a new Operational Network Architecture and the cancellation of the Future Combat Systems. The other main contributor to cost growth was a series of “contractor and program execution issues as well as additional information assurance requirements.”

“Our assessment is that it is unlikely that products resulting from the JTRS GMR development program will affordably meet service requirements and may not meet some requirements at all,” Kendall wrote.

For an orderly closeout of the contract and program, DoD will submit a reprogramming of funds to increase the JTRS GMR budget by $14 million to $32 million in Fiscal Year 2012.

In a statement, Boeing said it was disappointed by the decision to end the development program.

“Our contract was scheduled to end in March, 2012,” Matthew Billingsley, a Boeing spokesman, said.  The acquisition decision confirms that.

DoD remains committed to delivering that capability to the warfighter and is setting up a new program that “manages the evaluation, test and delivery of an affordable low cost,” reduced size, weight and power product to go to operational units in FY 2014. Additionally, the department will work the acquisition strategy with Congress.

DoD also will submit a funding reprogram to move $74 million in FY ’12 funds into a new budget line to support program management and testing that is required to execute the new non-developmental item acquisition strategy.

Billingsley said: “Throughout the development effort, Boeing has been focused on delivering this secure, mobile communications system to meet the urgent needs of soldiers for improved communications and collaboration tools while on the move. We look forward to applying our experience and knowledge in future competitions.”

The JTRS GMR system, as one segment of the JTRS family of software-defined radios, would have been installed in Army vehicles such as Abrams, Bradley, High Mobility Multipurpose Wheeled Vehicles (HMMWVs) and future vehicles.