Teams led by General Dynamics [GD] and BAE Systems were selected over a SAIC [SAI] team in winning contracts from the Army for the Technology Development phase of the Ground Combat Vehicle (GCV) Infantry Fighting Vehicle (IFV) program, hours after the top Defense Department acquisition official reviewed and certified the program.
Signed Aug. 17 by Ashton Carter, under Secretary of Defense for Acquisition, Technology and Logistics, the acquisition decision memorandum (ADM) approves Milestone A for the infantry fighting vehicle variant, the Technology Development Strategy, and found a fixed-price incentive fee type contract is appropriate for this program phase.
The General Dynamics team won a $439.7 million contract. The team includes Lockheed Martin [LMT], Raytheon [RTN] and Tognum America Inc.
The BAE team, including Northrop Grumman [NOC], won a $449.9 million contract for the TD phase.
The teams had all submitted proposals to the initial GCV IFV request for proposals in 2010 that was canceled and reworked to incorporate efficiencies aimed at ‘better buying power’ championed by Carter and DoD leaders (Defense Daily, Oct. 6, 2010.
To achieve delivery of a first production vehicle in seven years that is “affordable, effective and suitable,” Carter writes in the ADM, the Army must resource and execute a three pronged effort in the initial technology demonstration phase.
Carter expects the GCV program manager to oversee this trident approach that includes a GCV infantry fighting vehicle Analysis of Alternatives (AoA) Dynamic Update, a separate assessment of selected non-developmental vehicles and the third point, overseeing technology development strategy contractor efforts.
In March the Army delivered an AoA report to the congressional armed services committees that examined a variety of alternative vehicles to the GCV, to include the baseline Bradley M2A3 IFV, an upgraded version of the current Bradley M2A3, Army Tank Automotive Research, Development and Engineering Center (TARDEC) GCV IFV design concepts, modernized Stryker vehicle, Mine Resistant Ambush Protected (MRAP) variants and two unnamed foreign non-developmental systems, referred to as Vehicles X and Y (Defense Daily, April 14).
For further approval from DoD acquisition officials, affordability and schedule targets must be met. One target is an average procurement cost of “less than or equal to $13 million” in fiscal year 2011 constant dollars. That’s an increase from the initial affordability targets of $9 million to $10.5 million per vehicle for the average unit manufacturing cost (Defense Daily, Dec. 1, 2010). The cost differences are also due to differing estimates from the Army and DoD’s Cost Assessment and Program Evaluation (CAPE), and are expected to be worked out over the technology demonstration phase.
Another target is a combined cost of replenishment spares and repair parts less than or equal to $200 per mile in the same FY ’11 constant dollars, the same figure as in the revised RFP.
A third target is to stick to the Army’s initial plan for a program that runs seven years from the technology development contract award to the first production vehicle.
Carter must be notified immediately if the projected cost of the program exceeds the cost estimate from the initial review by at least 10 percent or if there will be a schedule lag of six months. Both metrics are more stringent than the legal review certification requirements.
The ADM, addressed to the Army Secretary as well as the Director of CAPE lists a series of action items, to include assessments of progress and concerns for the three pronged effort in January, July and December 2012.
Additionally, by Sept. 9, D CAPE is to provide the AoA Dynamic Update guidance, and by Oct. 7, the Army must have an approved AoA plan to satisfy the Dynamic Update guidance. CAPE will provide quarterly reports on progress and concerns for analysis.
The Army by Sept 23, must submit for Carter’s approval its written plan for the separate Assessment of Selected Non-developmental Vehicles, including how the service will pay for it.