By Ann Roosevelt

Secretary of Defense Robert Gates recommends canceling the potentially more than $87 billion manned ground vehicle (MGV) portion of the Army’s top modernization program, the Future Combat System (FCS), accelerate spin out technologies to all combat brigades, and restructure the contract.

“I will recommend that we cancel the vehicle component of the current FCS program, re-evaluate the requirements, technology and approach–and then re-launch the Army’s vehicle modernization program, including a competitive bidding process,” Gates said unveiling a sseries of recommendations for a change in defense priorities sure to unleash a firestorm among some members of Congress and defense contractors.

In addition to unanswered questions about vehicle design strategy, Gates said, “I am also concerned that, despite some adjustments, the FCS vehicles–here lower weight, higher fuel efficiency, and greater informational awareness are expected to compensate for less armor–do not adequately reflect the lessons of counterinsurgency and close quarters combat in Iraq and Afghanistan.”

Additionally, Gates said the current program does not include a role for the recent $25 billion Defense Department investment in the Mine Resistant Ambush Protected (MRAP) vehicles used today.

The Army had been able to present its case for FCS over the past months during program reviews.

“The Army will determine the impacts and consider our way ahead relative to the guidance we received,” the service said in a statement. “It is important that public discussion not get out in front of the important work that still has to be done at the service level. As we develop a definitive Army way forward, it will be incorporated into the overall budget that the president is expected to submit to Congress in early May. At that point, the Army will be able to more broadly discuss the specific aspects of our resourcing decisions.”

The FCS Manned Ground Vehicles are managed by General Dynamics [GD] and BAE Systems, under the overall management of FCS for the Army by Lead System Integrator Boeing [BA] and SAIC [SAI].

Boeing, which would be affected by other decisions made by the Defense Secretary, said in a statement: “We appreciate the work of Secretary Gates and his team to initiate a process that will examine the defense priorities for this nation. We will be studying Secretary Gates’ announcement for potential impact to Boeing. Meanwhile, the men and women of The Boeing Company will continue to perform at the highest possible level to deliver the best value to the warfighter and the taxpayer.”

The FCS program has not had an easy time since its inception, repeatedly contending with skeptical members of Congress and refuting areas of the Government Accountability Office reports–most recently last month (Defense Daily, March 13,17,27).

Since 2003, GD and BAE have worked to design the family of eight MGV, which includes the BAE’s Non-Line-of Sight-Cannon (NLOS-C) being developed under the FCS umbrella (Defense Daily, Jan. 23, 2003).

NLOS-C is expected to be the first MGV to be fielded, and in fiscal year 2009 the Army for the first time requested $110 million for NLOS-C production vehicles. The Army budget request provided for manufacturing and assembly of the initial six NLOS-C platforms to be fielded in FY ’10. It also procures long-lead hardware for the second increment of platforms. Another $90 million was requested for NLOS-C research development test and evaluation.

Congress, which has long supported the NLOS-C program, in FY ’07 made an effort to insulate it from larger issues of FCS funding and schedule to ensure fielding (Defense Daily, Oct. 13, 2000, June 12).

The 155mm cannon was displayed on the National Mall in the summer of 2008, where Army Chief of Staff Gen. George Casey told a crowd, “FCS is real and relevant.”

Sen. James Inhofe (R-Okla.) is likely to fight for the cannon, which is to be built in his home state, which is also home to the Army’s Field Artillery.

After the Gates briefing, the Oklahoma delegation united against the defense cuts. Inhofe said, “It’s unimaginable that we could let our Army continue to use the Paladin Howitzer, a combat vehicle in service for 50 years. Sadly, the modernization of our Army is a ‘can that was kicked down the road’ today, yet again.”

Gates also said he was “troubled” by the terms of the current FCS contract, “particularly in its very unattractive fee structure” that does not offer the government much leverage to promote cost efficiency.

“We must have more confidence in the program strategy, requirements and maturity of the technologies before proceeding further,” Gates said.

The FCS restructure would also “retain and accelerate” the initial increment of the program to spin out technology enhancements to all combat brigades.

Last summer, the Army switched emphasis from fielding initially to heavy brigades to the infantry brigade combat teams, which need the new technology the most for current contingencies (Defense Daily, June 26).

Gates also recommends stropping the growth of Army Brigade Combat Teams at 45 instead of the currently planned 48, while protecting and funding an increase in soldiers to 547,000. This would allow the service end the routine use of stop loss and “lower the risk of hollowing the force.”

Additionally, Gates recommends another $500 million in the budget to increase the ability to field and sustain more helicopters, urgently needed in Afghanistan. However, he said, it’s not airframes that are needed, but aircrews, and a shortage of maintenance personnel. “So our focus will be on recruiting and training more Army helicopter crews,” he said.

Specifics for Gates’ recommendations will not be available until the president’s budget moves to Congress next month.