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Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress

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Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Andrew Feickert Specialist in Military Ground Forces September 17, 2010January 3, 2012 Congressional Research Service 7-5700 www.crs.gov RS22942 CRS Report for Congress Prepared for Members and Committees of Congress Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Summary The Joint Light Tactical Vehicle (JLTV) is currently being developed by the Army and the Marine Corps as a successor to the 11 different versions of the High Mobility, Multi-Wheeled Vehicle (HMMWV) that have been in service since 1985. On October 28, 2008, three awards were made for the JLTV Technology Development (TD) Phase, which is scheduled to conclude in the June 2011 timeframe, for a total of $166 million 2011 timeframe to three industry teams. Prototypes from: (1) BAE Systems, (2) the team of Lockheed Martin and General Tactical Vehicle, and (3) AM General and General Dynamics Land Systems are being tested at Aberdeen Test Center in Maryland and the Yuma Proving Ground in Arizona for each of the three JLTV categories. Once testing is . Once testing was completed and technology requirements are established, a full and open competition is expected was expected to be conducted in the late summer, 2011, for the Engineering and Manufacturing Development Development (EMD) Phase. The and the Department of Defense (DOD) plansplanned to award two contracts for the EMD phase, which is scheduled to last 24 months. The Marines have expressed reservations with the JLTV program because, at its current estimated weight of 20,000 pounds, it does not lend itself to Marine Corps expeditionary operations. The Marines do not rule out removing themselves from the program and modifying current vehicles if developers cannot address their specific requirements. The Army is said to be “moving ahead” with the JLTV program, appearing less concerned than the Marines that final JLTV versions might not be CH-47 and CH-53 helicopter and C-130 cargo aircraft transportable. Some describe the Army and Marines as “striking out on a separate path” with the Army more concerned with survivability and the Marines concerned that heavier JLTVs could cause weight problems on the Navy’s amphibious ships. DOD has not publically assigned a definitive cost to the JLTV program, suggesting that it is too early in the development process to determine an accurate cost estimate. Some defense and trade analysts suggest that the JLTV program will cost well over $10 billion and possibly as much as $30 billion to $70 billion, depending on the final cost of the vehicles chosen and the number of vehicles procured. There are also concerns that JLTV program costs will increase as the program moves through the TD phase of development. Congress has recommended fully funding DOD’s FY2011 JLTV Budget Request for $84.7 million for research, development, test, and evaluation (RDT&E) but has directed that the Army and Marines establish separate RDT&E accounts for the JLTV program to enhance oversight and increase program transparency. The Senate Appropriations Defense Subcommittee has reportedly recommended that the funding for the JLTV EMD contract would be more appropriately considered in the FY2012 Budget Request and therefore decreased the Marine Corps FY2011 request by $16.3 million and the Army’s request by $15.2 million. Concerns have been expressed that DOD’s Mine-Resistant, Ambush-Protected (MRAP)All Terrain Vehicle (M-ATV) effort will clash with the JLTV. Some defense officials note a “striking similarity” between the M-ATVs and JLTVs, suggesting potential redundancies between the two vehicles. There are also concerns about overall JLTV program affordability and costs, as well as the Army’s decision to not provide an estimate on future quantities of JLTVs to be procured in the June 2010 Tactical Wheeled Vehicle Acquisition Strategy report to Congress. Some view this lack of an Army procurement objective for JLTVs as an open-ended commitment which could have future cost implications. This report will be updated as events warrant. Congressional Research Service Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Contents Background ................................................................................................................................1 JLTV Program.............................................................................................................................1 What Is the JLTV? ................................................................................................................1 Program Structure .................................................................................................................2 Program History....................................................................................................................2 Technology Development Contracts Awarded........................................................................2 JLTV Contracts Protested......................................................................................................3 JLTV Program Activities .......................................................................................................3 Marines’ Concerns with the JLTV Program ...........................................................................4 United States and Australia Agree on Joint JLTV Development .............................................4 Program Cost and Funding....................................................................................................4 FY2011 JLTV Budget Request ..............................................................................................5 House Armed Services Committee (HASC) Markup of the FY2011 National Defense Authorization Act (H.R. 5136) ...........................................................................................5 Senate Armed Services Committee (SASC) Markup of the FY2011 National Defense Authorization Act (S. 3545) ...............................................................................................5 Senate Appropriations Defense Subcommittee Markup of the FY2011 Department of Defense Appropriations Bill ...............................................................................................6 Current JLTV Topics ...................................................................................................................6 JLTVs Versus MRAPs...........................................................................................................6 International Procurement of JLTVs? ....................................................................................7 Potential Issues for Congress.......................................................................................................7 JLTV Affordability................................................................................................................7 Marine Corps Concerns with JLTV Weight and Transportability............................................8 JLTV and M-ATV Redundancies...........................................................................................8 JLTV and the Army’s Tactical Wheeled Vehicle Acquisition Strategy ....................................8 Contacts Author Contact Information ........................................................................................................9 Congressional Research Service Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Background1 The JLTV is an Army-led, multi-service initiative to develop a family of future light tactical vehicles to replace many of the 160,000 HMMWVs used by the armed services today. HMMWVs, which first entered service in 1985, were developed during the Cold War when improvised explosive devices (IEDs) and other anti-vehicle explosive devices were not a major factor in military planning. The HMMWV’s demonstrated vulnerability to IEDs and the difficulties and costs experienced in “up-armoring” HMMWVs already in the inventory have led to renewed emphasis on vehicle survivability. With more than 50% of the Army’s total tactical wheeled vehicle fleet nearing the end of its useful life, and with the needs of the services to repair equipment and grow their forces, the JLTV, with its scalable armor protection, is intended to replace a large portion of the HMMWV fleet. DOD officials have emphasized that JLTVs are not intended to replace HMMWVs “one for one.”2 The Army plans to divest its older HMMWVs and through means of recapitalization, intends to have approximately 85,000 HMMWVs still in service as of 2025 and will fill other light tactical vehicle requirements with a yet to be determined number of JLTVs.3 JLTV Program4 What Is the JLTV? The JLTV program is a joint Army/Marine Corps effort to develop and produce three categories of vehicles and associated trailers. Category A JLTVs are intended for general purpose mobility and would carry a 3,500 pound payload. Category Bs are intended to serve as infantry carriers, command and control and reconnaissance vehicles, and weapons carriers and would accommodate a 4,000 to 4,500 pound payload. Category Cs are intended to serve as shelter carriers, prime movers, and ambulances and would carry a 5,100 pound payload. JLTVs are to be designed with scalable armor, enhanced suspension, and drive train capability to accommodate future load carrying capacity. As planned, JLTVs would be more mechanically reliable, maintainable (with on-board diagnostics), all-terrain mobile, and equipped to link into current and future tactical data nets. Strategic and operational transportability by ship and aircraft are also key JLTV design requirements. 1 Alan L. Gropman, “Combat Vehicle Sector Could be Headed for Turbulent Times,” National Defense, April 25, 2008, and James P. Miller, “Race is On to Replace Humvee,” Chicago Tribune, June 21, 2008. 2 Kris Osborn, “DOD’s JLTV Becoming an International Effort,” Defense News, August 4, 2008. 3 Headquarters, Department of the Army, “Army Truck Program (Tactical Wheeled Vehicle Acquisition Strategy) Report to the Congress,” June 2010, p. 5. This report was obtained through InsideDefense.com. 4 Information in this section is taken from the Army Product Manager, Joint Light Tactical Vehicle website, http://peocscss.tacom.army.mil/pmJLTV.html, last visited January 7, 2009, and Marine Corps PEO Land Systems Joint Light Tactical Vehicle website, http://www.marcorsyscom.usmc.mil/peolandssystems/jltv.aspx, last visited January 7, 2009. Congressional Research Service 1 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Program Structure5 The JLTV is an Acquisition Category (ACAT) 1D program.6 The Army bears the overall responsibility for developing the JLTV through its Joint Program Office within the Army’s Tank, Automotive, and Armament Command (TACOM) in Warren, MI. Marine participation is centered was scheduled to last 24 months. In February 2011, it was announced that the award of the EMD contract would be delayed until January or February 2012 because the Army changed requirements for the JLTV. DOD had planned to award two contracts for the EMD phase, which was scheduled to last 24 months, but instead proposed a 48-month-long EMD. There will be two JLTV variants—a Combat Tactical Vehicle (CTV) that can transport four passengers and carry 3,500 pounds and a Combat Support Vehicle (CSV) that can transport two passengers and carry 5,100 pounds. The FY2012 Budget Request for JLTVs is $172.1 million for Army Research, Development, Test and Evaluation (RDT&E) and $71.8 million for Marine Corps RDT&E, for a program total of $243.9 million. The Senate Appropriations Committee Defense Subcommittee recommended terminating the JLTV program, noting “excessive cost growth, constantly changing requirements, and existing alternatives.” In response, Army and Marine leadership seemingly put aside past differences by relaxing transportability requirements and setting a goal for a lower per-unit cost of $225,000 per vehicle. In addition, the EMD phase would be cut by 16 months—now 32 months as opposed to the previous 48 months. The FY2012 National Authorization Act (H.R. 1540) decreased the Army’s JLTV budget request by $64.8 million and the Marine’s request by $24.9 million due to the delay of the awarding for the EMD contract. The FY2012 Department of Defense Appropriations Bill (H.R. 2055, P.L. 11274) provides $87.3 million for Army JLTV RDT&E and $46.7 million for the Marines in recognition that the Services have made changes to the program to simplify the JLTV design, ease requirements, and decrease per-vehicle costs. Potential issues for Congress include affordability of the JLTV in relation to HMMWV and MRAP and in the overall context of an anticipated “challenging economic environment.” Another concern is even though the Army and Marines have dropped some requirements to lower pervehicle costs, that requirements might be added in the future, driving up the program cost. The Army and Marines have both noted that, despite emphasis on recapitalizing HMMWVs and MRAPs in lieu of developing JLTVs, there are limitations concerning the degree to which these vehicles can be upgraded and still be operationally effective. Another possible issue for consideration is the new lower JLTV per-vehicle cost target might be close to that of recapitalized HMMWVs, bringing into question if it is better and more cost effective to procure “new” JLTVs versus “old” recapitalized HMMWVs . Congressional Research Service Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Contents Background...................................................................................................................................... 1 JLTV Program.................................................................................................................................. 1 What Is the JLTV?..................................................................................................................... 1 Program Structure...................................................................................................................... 1 Program History............................................................................................................................... 2 Technology Development Contracts Awarded .......................................................................... 2 JLTV Contracts Protested .......................................................................................................... 2 JLTV Phase of Development ..................................................................................................... 3 Program Developmental Issues ....................................................................................................... 3 Change in Requirements, Program Schedule, and Variants....................................................... 3 Performance Issues During the Technology Development Phase ............................................. 4 Marines’ Concerns with the JLTV Program .............................................................................. 4 Northrop Grumman Added to BAE/NAVISTAR JLTV Team................................................... 4 Army Releases Request for Information (RFI) for JLTV “Off the Shelf” Alternatives ............ 5 Recent Program Activities ............................................................................................................... 5 Senate Appropriations Committee Defense Subcommittee Recommends JLTV Termination ............................................................................................................................ 5 The Army and Marines’ Response to Recommended Program Termination............................. 5 Draft Engineering and Manufacturing Development Request for Proposal........................ 6 Army and Marines Revising Draft EMD RFP .................................................................... 6 Marines Might Defer JLTV Acquisition Until Late 2020s.................................................. 6 Foreign Participants ......................................................................................................................... 7 United States and Australia Agree on Joint JLTV Development ............................................... 7 Ramifications If the JLTV Is Terminated ............................................................................ 7 Additional Foreign Participants................................................................................................. 7 Possible Acquisition Targets ............................................................................................................ 8 Army.......................................................................................................................................... 8 Marines...................................................................................................................................... 8 Navy .......................................................................................................................................... 8 Air Force and Special Operations Command (USSOCOM) ..................................................... 8 Budgetary Issues.............................................................................................................................. 8 Program Cost and Funding........................................................................................................ 8 FY2012 JLTV Budget Request.................................................................................................. 9 Legislative Activity.......................................................................................................................... 9 National Defense Authorization Act for FY2012 (H.R. 1540) Conference Report (H.Rept. 112-329)................................................................................................................... 9 Department of Defense Appropriations Bill, FY2012 (H.R. 2055, P.L. 112-74), Conference Report (H.Rept. 112-331) ................................................................................... 9 Potential Issues for Congress......................................................................................................... 10 JLTV Affordability .................................................................................................................. 10 Changing Requirements .......................................................................................................... 10 Limitations on Upgrading HMMWVs and MRAPs................................................................ 11 The Cost of a Recapitalized HMMWV vs. a New JLTV ........................................................ 11 Congressional Research Service Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Contacts Author Contact Information........................................................................................................... 12 Congressional Research Service Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Background1 The JLTV is an Army-led, multi-service initiative to develop a family of future light tactical vehicles to replace many of the HMMWVs used by the armed services today. HMMWVs, which first entered service in 1985, were developed during the Cold War when improvised explosive devices (IEDs) and other anti-vehicle explosive devices were not a major factor in military planning. The HMMWV’s demonstrated vulnerability to IEDs and the difficulties and costs experienced in “up-armoring” HMMWVs already in the inventory have led to renewed emphasis on vehicle survivability. DOD officials have emphasized that JLTVs are not intended to replace HMMWVs “one for one.”2 JLTV Program What Is the JLTV?3 The JLTV program is a joint Army/Marine Corps effort to develop and produce both vehicles and associated trailers. Originally, there were three variants, but now there are two planned JLTV variants: a four-passenger Combat Tactical Vehicle (CTV) and a two-passenger Combat Support Vehicle (CSV). As planned, JLTVs would be more mechanically reliable, maintainable (with onboard diagnostics), all-terrain mobile, and equipped to link into current and future tactical data nets. Survivability and strategic and operational transportability by ship and aircraft are also key JLTV design requirements. Program Structure4 The JLTV is an Acquisition Category (ACAT) 1D program.5 The Army bears the overall responsibility for developing the JLTV through its Joint Program Office within the Army’s Tank, Automotive, and Armament Command (TACOM) in Warren, MI. Marine participation is centered 1 Alan L. Gropman, “Combat Vehicle Sector Could be Headed for Turbulent Times,” National Defense, April 25, 2008, and James P. Miller, “Race is On to Replace Humvee,” Chicago Tribune, June 21, 2008. 2 Kris Osborn, “DOD’s JLTV Becoming an International Effort,” Defense News, August 4, 2008. Headquarters, Department of the Army, “Army Truck Program (Tactical Wheeled Vehicle Acquisition Strategy) Report to the Congress,” June 2010, p. 5. 3 Information in this section is taken from the Army Product Manager, Joint Light Tactical Vehicle website, http://peocscss.tacom.army.mil/pmJLTV.html, last visited March 2, 2011, and Marine Corps PEO Land Systems Joint Light Tactical Vehicle website, http://www.marcorsyscom.usmc.mil/peolandssystems/jltv.aspx, last visited March 2, 2011, and Tony Bertuca, “PMs: JLTV Still Too Heavy, Changing Schedule and Losing Six-Man Variant,” InsideDefense.com, February 11, 2011. 4 CRS Report RL34026, Defense Acquisitions: How DOD Acquires Weapon Systems and Recent Efforts to Reform the Process, by Moshe Schwartz, provides an extensive discussion of the defense acquisition process. 5 The 12th Edition of the Defense Acquisition University Glossary, July 2005, defines an ACAT 1D program as “a Major Defense Acquisition Program (MDAP) which is estimated by the Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD (AT&L)) to require the eventual expenditure for Research, Development, Test, and Evaluation (RDT&E) of more than $365 million (FY2000 constant dollars) or the procurement of more than $2.19 billion (FY2000 constant dollars).” Congressional Research Service 1 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress on a program office under the supervision of the Program Executive Officer Land Systems (PEO LS) Marine Corps at Quantico, VA. Program History In November 2006, the Joint Chief of Staff’s Joint Requirement Oversight Council (JROC) approved the JLTV program. On December 22, 2007, the Under Secretary of Defense for Acquisition, Technology, and Logistics USD (AT&L) signed an Acquisition Decision Memorandum (ADM) directing the JLTV Program to move from the Concept Refinement Phase into the Technology Development (TD) Phase of the DOD System Acquisition Process. The Army and Marines had intended to issue a Request for Proposal (RFP) for Technology Development Phase as early as October 2007. Concerned with funding adequacy, technical maturity, and shifting requirements, the Pentagon’s acquisition executive, John Young, disapproved the issuance of the RFP and directed the Army and Marines to “go back to the drawing board and develop a robust technology development phase.”76 On February 5, 2008, an RFP for Technology Development Phase was issued to industry.87 The RFP stated that the government desired to award three contracts for the JLTV Technology Development Phase. The RFP stipulated that proposals would be due April 7, 2008, and the TDP would last 27 months. Contractors would build four test sub-configurations during the first 15 months, followed by 12 months of testing. Technology Development Contracts Awarded9Awarded8 On October 28, 2008, three awards were made for the JLTV TD Phase for a total of $166 million. The three industry teams were (1) BAE Systems Land and Armaments, Ground Systems Division, Santa Clara, CA, and NAVISTAR Defense, Warrenville, IL; (2) General Tactical Vehicles, Sterling Heights, MI—a joint venture between General Dynamics Land Systems and AM General; and (3) Lockheed Martin Systems Integration, Oswego, NY. 5 CRS Report RL34026, Defense Acquisitions: How DOD Acquires Weapon Systems and Recent Efforts to Reform the Process, by Moshe Schwartz, provides an extensive discussion of the defense acquisition process. 6 The 12th Edition of the Defense Acquisition University Glossary, July 2005, defines an ACAT 1D program as “a Major Defense Acquisition Program (MDAP) which is estimated by the Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD (AT&L)) to require the eventual expenditure for Research, Development, Test, and Evaluation (RDT&E) of more than $365 million (FY2000 constant dollars) or the procurement of more than $2.19 billion (FY2000 constant dollars).” 7 Integration, Oswego, NY, BAE Systems, Alcoa Defense, Pittsburgh, PA, and JWF Defense Systems, Johnstown, PA. JLTV Contracts Protested On November 7 and November 12, 2008, protests were filed with the Government Accountability Office (GAO) against the TD contract awards by the Northrop Grumman-Oshkosh team and the Textron-Boeing-SAIC team alleging that there were “unintended discrepancies” in how the government rated bids in terms of the criteria of systems maturity, logistics, and costs.9 As a result 6 Jason Sherman, “Pentagon Halts JLTV Competition, Directs Revised Strategy,” InsideDefense.com, September 24, 2007. 87 JLTV Request for Proposal, W56HZV-08-R-0210, February 5, 2008, and Marjorie Censer, “JLTV Solicitation Calls for Three Contractors: Officials Say More are Possible,” InsideDefense.com, February 5, 2008. 98 Unless otherwise noted, information in this section is taken from TACOM’s JLTV Program website, http://contracting.tacom.army.mil/MAJORSYS/JLTV/jltv.htm, updated on November 13, 2008, accessed January 7, 2009, accessed March 2, 2011, and the Marine Corps PEO Land Systems JLTV website, https://www.marcorsyscom.usmc.mil/peolandsystems/ jltv.aspx, accessed January 7, 2009. Congressional Research Service 2 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress JLTV Contracts Protested On November 7 and November 12, 2008, protests were filed with the Government Accountability Office (GAO) against the TD contract awards by the Northrop Grumman-Oshkosh team and the Textron-Boeing-SAIC team alleging that there were “unintended discrepancies” in how the government rated bids in terms of the criteria of systems maturity, logistics, and costs.10 As a result of this protest, work on the JLTV program by the three winning teams was suspended, and the JLTV program office expected that it will would take GAO 90 to 120 days (February-March 2009 time frame) to complete its investigative report on the protests. On February 17, 2009, GAO rejected the JLTV protests and the stop work orders were lifted. JLTV Program Activities The JLTV Program is currently in the Technology Development (TD) Phase11 of acquisition which is scheduled to conclude in the June 2011 timeframe. 12 Prototypes from BAE Systems, and the teams of Lockheed Martin and General Tactical Vehicle, and AM General and General Dynamics Land Systems for each of the three JLTV categories are being tested at Aberdeen Test Center in Maryland and the Yuma Proving Ground in Arizona. Once testing is completed and technology requirements are established, a full and open competition is expected to be conducted in the late summer of 2011 for the Engineering and Manufacturing Development (EMD) Phase.13 DOD plans to award two contracts for the EMD phase, which is scheduled to last 24 months.14 The EMD period is planned to be broken into18 months of design and fabrication and 12 months of test, with a six month overlap between the two activities. DOD will reportedly make a final decision on the EMD acquisition approach in the fall of 2010 and anticipates awarding EMD contracts in December 2011.15 10 Marjorie Censer, “Following Northrop’s Lead, Boeing-Textron Team Files JLTV Protest,” InsideDefense.com, November 12, 2008 and Ann Roosevelt, “Textron-Team Protests Army JLTV Awards,” Defense Daily, November 13, 2008; and Daniel Wasserbly, “U.S. GAO Rejects JLTV Protests,” Jane’s Defence Weekly, February 25, 2009, p. 12 . 11 jltv.aspx, accessed March 2, 2011. 9 Marjorie Censer, “Following Northrop’s Lead, Boeing-Textron Team Files JLTV Protest,” InsideDefense.com, November 12, 2008 and Ann Roosevelt, “Textron-Team Protests Army JLTV Awards,” Defense Daily, November 13, 2008; and Daniel Wasserbly, “U.S. GAO Rejects JLTV Protests,” Jane’s Defence Weekly, February 25, 2009, p. 12 . Congressional Research Service 2 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress of this protest, work on the JLTV program by the three winning teams was suspended. On February 17, 2009, GAO rejected the JLTV protests and the stop work orders were lifted. JLTV Phase of Development The JLTV Program is currently in the Technology Development (TD) Phase10 of acquisition which was originally scheduled to conclude in the June 2011 timeframe.11 Prototypes from BAE Systems, and the teams of Lockheed Martin and General Tactical Vehicle, and AM General and General Dynamics Land Systems for each of the three JLTV categories are being tested at Aberdeen Test Center in Maryland and the Yuma Proving Ground in Arizona. Once testing was completed and technology requirements established, a full and open competition was expected to be conducted in the late summer of 2011 for the Engineering and Manufacturing Development (EMD) Phase.12 Changing requirements, as detailed in the next section, resulted in the delay of concluding the TD phase until January 2012. Program Developmental Issues Change in Requirements, Program Schedule, and Variants13 In February 2011, the JLTV Program Office announced that the award of the EMD contract would be delayed until January or February 2012 because the Army changed requirements for the JLTV to have the same level of under body protection as the Mine-Resistant, Ambush-Protected All-Terrain Vehicle (M-ATV). DOD had planned to award two contracts for the EMD phase, which was scheduled to last 24 months14 but instead opted for a 48 month-long EMD phase before awarding Production and Deployment contracts in the second quarter of FY2016. In addition, the Category B variant was eliminated because it proved to be too heavy to meet the required weight of approximately 15,639 pounds to make it transportable by Army CH-47F and Marine Corps CH-53K helicopters. Now there will be two variants—a Combat Tactical Vehicle (CTV) that can transport four passengers and carry 3,500 pounds and a Combat Support Vehicle (CSV) that can transport two passengers and carry 5,100 pounds. 10 From the November 2009 Defense Acquisition University Glossary of Defense Acquisition Acronyms & Terms, the Technology Development (TD) Phase is the second phase of the Defense Acquisition Management System and the purpose of this phase is to reduce technology risk and to determine the appropriate set of technologies to be integrated into the full system. 1211 Matthew Cox, “Prototypes for JLTV to Undergo Testing Over Next 12 Months,” Marine Corps Times, June 21, 2010, p. 32 and Ann Roosevelt, “JLTV TD Phase Deliveries Continue, Army Fleshing Out JLTV EMD,” Defense Daily, July 23, 2010. 1312 The EMD phase for the JLTV program will focus on reducing program risk, ensuring operational supportability, designing for producibility, maximizing affordability, ensuring critical program information protection, and demonstrating system integration, interoperability, transportability, fuel efficiency, reliability, and utility. 14 DOD Briefing: “JLTV EMD Industry Day,” April 26, 2010. 15 Christopher J. Castelli, “ DOD Blesses JLTV Plans, Delays Decision on EMD Acquisition Approach,” InsideDefense.com, August 2413 Information in this section, unless otherwise noted is taken from a briefing from the Project Manager Joint Combat Support Systems on the Joint Light Tactical Vehicle given on February 7 and 8, 2011 and Tony Bertuca, “PMs: JLTV Still Too Heavy, Changing Schedule and Losing Six-Man Variant,” InsideDefense.com, February 11, 2011. 14 DOD Briefing: “JLTV EMD Industry Day,” April 26, 2010. Congressional Research Service 3 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Performance Issues During the Technology Development Phase15 According to the JLTV Program Office, the testing of the three manufacturers technology demonstrators was described as “generally meeting requirements with exceptions” and “current force protection requirements appear achievable.” The Program Office further noted the technology demonstrator vehicles were “several hundred to a thousand pounds overweight, that even though the technology demonstrator vehicles had not been tested; they appeared to be very close to the maximum envelopes for aircraft transportability; and there were problems meeting both reliability and mobility requirements. The technology demonstrator vehicles also exhibited limited space to accommodate both mission essential equipment and payloads. Marines’ Concerns with the JLTV Program16 The Marines have expressed reservations with the JLTV program because, at its current estimated weight of 20,000 pounds, it does it did not lend itself to Marine Corps expeditionary operations. Marine Corps leadership is concerned that the prototypes shown so far by industry arewas concerned industry prototypes were too heavy to be transported by helicopters and faultsfaulted industry for failing to stay “apace of the vision” for the JLTV. The Marines dodid not rule out removing themselves from the program and modifying current vehiclesHMMWVs if developers cannotcould not address their specific requirements. The Army is said to be “moving ahead” with the JLTV program, appearing appeared less concerned than the Marines that final JLTV versions might not be CH-47 and CH-53CH53 helicopter and C-130 cargo aircraft transportable. Some describe described the Army and Marines as “striking out on a separate path” with the Army more concerned with survivability and the Marines concerned that heavier JLTVs could cause weight problems on the Navy’s amphibious ships.17 Concerned about weight, the Marines are reportedly testing Textron’s Small Combat Tactical Vehicle Capsule (SCTVC), a bolt-on capsule that fits onto the chassis of existing HMMWVs, as an alternative to the JLTV.18 United States and Australia Agree on Joint JLTV Development19 In February 2009, the Pentagon and the Australian Department of Defence signed an agreement to coordinate the technology development for the JLTV. Under this agreement, 30 JLTV prototypes will now be developed, with the United States funding the development of 21 prototypes and Australia funding nine. Australia reportedly has a need for about 1,300 to 1,400 vehicles with requirements similar to the JLTV, although Australian defense officials note that Australia’s participation in JLTV technology development does not automatically mean that they will eventually procure JLTVs. DOD is said to be pursuing similar arrangements with other countries, and negotiations are ongoing with Israel, Canada, and the United Kingdom. Test vehicles from all three teams were reported to have been delivered to Australia for testing but it is not known to what extent Australia will participate in both testing and the overall EMD phase. 20 Program Cost and Funding21 DOD has not publically assigned a definitive cost to the JLTV program, suggesting that it is too early in the development process to determine an accurate cost estimate. Some defense and trade analysts suggest that the JLTV program will cost well over $10 billion and possibly as much as 16 ships.17 After the release of the FY2012 Budget Request, Marine leadership reportedly suggested the future of the JLTV was “up in the air” largely due to continuing concerns about cost and weight, as well as the delay in the EMD contract.18 Marine leadership maintained unless the price of the JLTV came down from around $300,000 the Marines would focus on upgrading their 22,000 HMMWVs. Another possibility discussed to bring down the JLTV price was to eliminate some of the vehicle’s requirements such as the number of vehicles needing classified communications systems or those that could generate external power. Northrop Grumman Added to BAE/NAVISTAR JLTV Team19 Northrop Grumman has reportedly been added to the BAE/NAVISTAR JLTV team competing for one of two EMD contracts expected to be awarded in January or February 2012. Northrop 15 Information in this section is from a briefing from the Project Manager Joint Combat Support Systems on the Joint Light Tactical Vehicle given on February 7 and 8, 2011. 16 Marjorie Censer, “Citing Weight, Commandant Says Marines May Have to Depart JLTV Program,” InsideDense.com, April 29, 2009 and Dan Lamothe, “Weight Issues Aside, Army Sticks With JLTV,” Army Times, May 18, 2009. 17 Unless otherwise noted, information in this section is taken from Kate Brannen, “Mobility Vs. Survivability: JLTV Could Suffer as U.S. Army, Marines Diverge,” Defense News, June 7, 2010. 18 Ibid. 19 Daniel Wasserbly, “U.S. and Australia to Join Forces on JLTV Programme,” Jane’s Defence Weekly, March 4, 2009, p. 12 and Marjorie Censer, “DOD Inks Formal JLTV Agreement with Australia; More Partnerships Planned,” InsideDefnse.com, February 26, 2009. 20 Tony Bertuca, “ JLTV Moves Forward with Testing as Vehicles Arrive in Australia,” InsideDefense.com, August 24, 2010. 21 Jason Sherman and Daniel G. Dupont, “JLTV Price Tag Drives New Three Step Tactical Vehicle Plan for the Army,” InsideDefense.com, August 8, 2008. Congressional Research Service 4 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress $30 billion to $70 billion, depending on the final cost of the vehicles chosen and the number of vehicles procured. 22 The Army estimates that each JLTV will cost $418,000, almost 70% higher than the target cost of $250,000 per vehicle that would have enabled the Army to replace all of its HMMWV’s with JLTVs. One estimate by the Center for Army Analysis suggests that it would require about $6.7 billion per year to outfit all Army brigades over 15 years with JLTVs. FY2011 JLTV Budget Request23 The FY2011 Budget Request for JLTVs is $52.9 million for Army Research, Development, Test and Evaluation (RDT&E) and $31.8 million for Marine Corps RDT&E, for a program total of $84.7 million. House Armed Services Committee (HASC) Markup of the FY2011 National Defense Authorization Act (H.R. 5136) The HASC recommended fully funding DOD’s FY2011 JLTV Budget Request. The HASC, however, was concerned that the JLTV would fall victim to cost growth and unnecessary schedule delays that often occur in major DOD acquisition programs. Noting that the JLTV investment to date is approximately $298.5 million and that the projected JLTV investment for FY2011-2015 is at least $9.7 billion, the HASC directed that separate RDT&E program elements be established for the Army and Marines beginning FY2012.24 The HASC believes that this measure will provide congressional defense committees with increased transparency and lead to more effective oversight.25 Senate Armed Services Committee (SASC) Markup of the FY2011 National Defense Authorization Act (S. 3545) The SASC recommended fully funding DOD’s FY2011 JLTV Budget Request.26 22 Andrea Shalal-Esa, “Companies Jockey for Huge U.S. Military Truck Program,” Reuters, November 12, 2007. United States Department of Defense Fiscal Year 2011 Budget Request Program Acquisition Costs by Weapon System, February 2010, p. 3-2. 24 National Defense Authorization Act for Fiscal Year 2011, Report to the Committee on Armed Services House of Representatives, Report 111-491, May 21, 2010, pp.215-216. 25 Ibid. 26 National Defense Authorization Act for Fiscal Year 2011, Report to the Committee on Armed Services United States Senate, Report 111-201, June 4, 2010. 23 Congressional Research Service 5 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Senate Appropriations Defense Subcommittee Markup of the FY2011 Department of Defense Appropriations Bill27 The Senate Appropriations Defense Subcommittee has reportedly recommended that the funding for the JLTV EMD contract would be more appropriately considered in the FY2012 Budget Request and therefore decreased the Marine Corps FY2011 request by $16.3 million and the Army’s request by $15.2 million. The Subcommittee noted that these funds would be sufficient to continue ongoing technology development activities. The Subcommittee has expressed concern about the slow rate at which the JLTV program has expended funds and while there has been some improvement, concerns remain. It is not known if the House Appropriations Defense Subcommittee has made similar recommendations as committee markup deliberations have not been made public. Current JLTV Topics JLTVs Versus MRAPs28 In late 2007, the Department of Defense (DOD) launched a major procurement initiative to replace most uparmored High Mobility, Multi-Wheeled Vehicles (HMMWVs) in Iraq with MineResistant, Ambush-Protected (MRAP) vehicles by FY2009. MRAPs have been described as providing significantly more protection against IEDs than uparmored HMMWVs. DOD approved the acquisition of 15,858 MRAPs of all categories.29 When the JLTV program first started in late 2006, the 15,858 MRAP requirement did not exist. The unforecasted procurement of significant numbers of the costly MRAPs has had an impact on the JLTV program. The Army has stated that MRAPs “fill a near-term, urgent joint service requirement for enhanced crew protection” for both the Army and Marines and that JLTVs are the long term solution for the services. 30 While the services do not view the JLTV and MRAP as an “either/or” proposition, some might question the affordability and necessity of maintaining both programs given their overlapping missions and requirements. DOD’s 2008 decision to acquire a new, lightweight MRAP—the MRAP All-Terrain Vehicle, or M-ATV (in addition to the almost 16,000 MRAPs to be procured by the end of 2009) adds another dimension to the JLTV versus MRAP debate.31 With anywhere from 2,000 to 10,000 of these new vehicles to be procured, some analysts suggest that the number of JLTVs to be acquired could be offset by these M-ATVs. Senior Army officials suggest that the M-ATV effort will not 27 Information in this section is taken from Cid Standifer, “Senate Appropriators Add Funds to Terminate EFV,” InsideDefense.com, September 16, 2010, and a draft copy of S.Rept. 111-0, Department of Defense Appropriations Bill, 2011, dated September 00, 2010, which was obtained from InsideDefense.com on September 17, 2010. 28 For additional information on MRAPs, see CRS Report RS22707, Mine-Resistant, Ambush-Protected (MRAP) Vehicles: Background and Issues for Congress, by Andrew Feickert. 29 Marjorie Censer, “DOD Reports More Than 11,000 MRAP Vehicles Already in Theater,” InsideDefense.com, August 11, 2008. 30 Statement of Lieutenant General Stephen M. Speakes before the House Air and Land Forces Subcommittee on the Army Force Protection Program, January 18, 2007, pp. 1-2. 31 Kris Osborn, “DOD Doubles Potential Buy of Lighter MRAPs,” Defense News, November 17, 2008. Congressional Research Service 6 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress “clash with JLTV,”32 but other defense officials note a “striking similarity” between the M-ATVs and JLTVs, suggesting potential redundancies between the two vehicles.33 Other analysts also suggest that a large M-ATV purchase (closer to 10,000 than 2,000) could affect the number of JLTVs that the Army eventually purchases.34 International Procurement of JLTVs? U.S. defense officials have expressed an interest in international involvement in the JLTV program, and to date, Australia, Britain, and possibly Israel and Canada have indicated that they may participate in and fund prototypes during the Technology Development phase. 35 The Pentagon’s planned initial purchase of 60,000 JLTVs for the services could be increased if there is international participation in the program. There are concerns, however, that because of some of the advanced technologies that may be incorporated into the JLTV, it may prove to be difficult to obtain export licenses from the State Department.36 Some believe that Congress, too, could play a role by expressly barring the sale of advance technology JLTVs to foreign governments, as it did in the recent case of the F-22 Raptor aircraft.37 Others suggest that export problems are not likely to arise in a light vehicle such as the JLTV, noting that HMMWVs have been sold to numerous Asian and Middle Eastern countries.38 If JLTV export is permitted and countries order significant numbers of JLTVs, the per-vehicle cost could possibly decrease, thereby addressing some of the JLTV affordability concerns raised by U.S. officials. Potential Issues for Congress JLTV Affordability In testimony on DOD weapons programs, the Government Accountability Office (GAO) asserted that total acquisition costs for the FY2007 portfolio of major defense acquisition programs still in the System Development and Demonstration (SDD) phase increased 26% and development costs increased by 40% from first estimates.39 As previously noted, while still in the Technology Development (TD) phase, the Army estimates that each JLTV will cost $418,000—almost 70% higher than the target cost of $250,000 per vehicle. In comparison with GAO’s data, JLTV costs appear to be significantly higher than FY2007 program averages and could possibly increase even 32 Emelie Rutherford, “Speakes: Potential MRAP Lite Effort Won’t Clash With JLTV,” Defense Daily, October 9, 2008. 33 Kris Osborn, “What’s Next for JLTV,” Defense News, November 10, 2008. 34 Kris Osborn, “DOD Double Potential Buy of Lighter MRAPs,” Defense News, November 17, 2008. 35 Edmond Lococo and Tony Capaccio, “U.S. Humvee-Replacement Effort May Get Funding from Four Allies,” Bloomberg.com, October 1, 2008. 36 Kris Osborn, “DOD’s JLTV Becoming International Effort,” Defense News, August 4, 2008. 37 In CRS Report RS22684, Potential F-22 Raptor Export to Japan, by Christopher Bolkcom and Emma ChanlettAvery, CRS notes that export of the F-22 has been denied by Congress in FY1998, FY2001, and FY2005. This provision, known has the “Obey Amendment,” was debated in the 109th Congress, and a move to repeal this amendment in the FY2007 Defense Appropriations bill was blocked by the Senate. 38 Kris Osborn, “DOD’s JLTV Becoming International Effort,” Defense News, August 4, 2008. 39 United States Government Accountability Office (GAO) Testimony, Defense Acquisitions: Results of Annual Assessment of DOD Weapon Programs, GAO-08-674T, April 29, 2008, p. 2. Congressional Research Service 7 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress more as JLTV progresses through the SDD phase. JLTV’s early above-average cost growth may merit greater congressional oversight. With possible foreign involvement in JLTV development and acquisition, there might be potential cost savings that could drive down the per unit cost of JLTVs destined for the U.S. military. Marine Corps Concerns with JLTV Weight and Transportability Based on reports, there appears to be concern that JLTV prototypes under development may exceed air transportability requirements and that they might also pose a weight and size problem on amphibious ships. Such concerns are not unfounded, given experiences in developing MRAPs and with the Army’s cancelled Future Combat System (FCS) Manned Ground Vehicles, which were originally intended to be C-130 transportable but during design became too large and too heavy to fit on C-130s. Given the Marines’ stated concerns about industry losing sight of JLTV’s expeditionary requirements, Congress might opt to review the current state of JLTV development with DOD and industry to insure that JLTVs remain both “light” and expeditionary. A further issue for review might also be the Army’s and Marines’ overall approach to the JLTV program, as some have described their approaches as divergent, which could cause programmatic difficulties in the future. JLTV and M-ATV Redundancies As previously noted, concerns have been raised that the JLTV and the M-ATV share many common characteristics and that there might be significant program redundancies. In August 2009 briefings to the House Armed Services Committee Air and Land Forces, and Seapower and Expeditionary Forces Subcommittees, the Government Accountability Office (GAO) noted that “the introduction of MRAP, M-ATV and eventually the JLTV creates a potential risk of unplanned overlap in capabilities; a risk that needs to be managed.”40 Defense officials have been asked if there is a need for the MRAP/M-ATV and JLTV programs as these programs share as many as 250 requirements. 41 While DOD leadership notes that there are 450 additional requirements that the MRAPs and M-ATVs can not meet, thereby justifying the JLTV program,42 the Army’s intent to develop a fourth type of vehicle—the Ultra-Lite MRAP—calls into question the need for all four programs. Despite calls from Congress for DOD and the Services to develop comprehensive tactical wheeled vehicle strategies it appears that there are a significant number of redundancies that will be examined in greater detail before the JLTV program enters production and procurement. JLTV and the Army’s Tactical Wheeled Vehicle Acquisition Strategy In accordance with the provisions of the FY2010 Department of Defense Appropriations Act (P.L. 111-118) the Army provided a report to the congressional defense committees detailing the 40 GAO Briefing to the House Armed Services Committee Air and Land Forces, and Seapower and Expeditionary Forces Subcommittees, “Status of DOD Tactical Wheeled Vehicle Strategy,” August 13, 2009, p. 3. 41 Cid Standifer, “ Taylor: JLTV Absolutely Needed, Regardless of MRAP and M-ATV,” Inside the Navy, November 9, 2009. 42 Ibid. Congressional Research Service 8 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Army’s acquisition strategy for future truck procurement in August 2010.43 While the report provides future (2025) acquisition quantities for light tactical vehicles such as HMMWVs, as well as medium and heavy tactical wheeled vehicles, the report notes that JLTV quantities are “to be determined (TBD).” The Army maintains that because several key studies that will influence JLTV procurement are not yet complete and that future force size is still in question, an estimate on the number of JLTVs is not possible.44 While the Army’s report does not provide JLTV procurement quantities, service officials reportedly have said that the Army plans to procure 60,000 JLTVs and the Marines, 5,500 by 2025.45 The Army’s unwillingness to include even a possible range of JLTV procurement quantities in its report to Congress raises a number of issues. If the estimate of 60,000 JLTVs is valid as reports suggest, why did the Army not include it as an upper limit in the report to Congress? In addition, if the Army is that unsure of JLTV procurement totals, should the program continue or should it be modified until the Army can produce definitive requirements? If these requirements are, to a large extent, based on future force structure some observers maintain that a more prudent plan would be to delay the program until the Army agrees on that future force structure. Program costs, as well as costs per vehicle, would likely vary significantly based on total JLTV quantities to be procured and, as it stands now, with final quantities “TBD,” the JLTV program represents an open-ended commitment which carries with it considerable future cost implications. Author Contact Information Andrew Feickert Specialist in Military Ground Forces afeickert@crs.loc.gov, 7-7673 43 Information in this section, unless otherwise noted is from a Headquarters, Department of the Army Report to Congress, Army Truck Program (Tactical Wheeled Vehicle Acquisition Strategy) June 2010, obtained from InsideDefense.com, September 2, 2010. 44 Kate Brannen, “Decisions on Trucks Still Incomplete,” Defense News, August 20, 2010 and Tony Bertuca. “JLTV Procurement TBD: Army Tactical Wheeled Vehicle Strategy Advocates Buy Less, More Often,” InsideDefense.com, August 23, 2010. 45 Ibid. Congressional Research Service 9 June 7, 2010. 18 Cid Standifer, “Marines: JLTV Faces Uncertain Future,” InsideDefense.com, February 16, 2011 and “JLTV Requirements Could Be Trimmed to Bring Down Price Tag,” InsideDefense.com, November 29, 2010. 19 Tony Bertuca, “BAE, Navistar Add Northrop Grumman to Joint Light Tactical Vehicle Team,” InsideDefense.com, April 29, 2011. Congressional Research Service 4 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Grumman has been designated as the team’s command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) lead, responsible for integrating command and control systems and software, computers, and sensors to gather intelligence and protect the vehicle occupants. Army Releases Request for Information (RFI) for JLTV “Off the Shelf” Alternatives20 On May 4, 2011, the Army issued a request for information (RFI) for “off the shelf” commercially available vehicles that could compete with JLTV prototypes already being developed by three industry teams. The Army characterized this as a part of market research that will support a potential Milestone B decision and will permit the Army to “see if there are any other ‘off-the-shelf’ vehicle solution(s) that we may not have already explored to ensure that we understand the ‘art of the possible’ that industry has to offer.”21 Recent Program Activities Senate Appropriations Committee Defense Subcommittee Recommends JLTV Termination22 On September 13, 2011, the Senate Appropriations Defense Subcommittee recommended the termination of JLTV program, noting “excessive cost growth and constantly changing requirements” suggesting that “alternatives exist today to meet the Army and Marine Corps’ requirements to recapitalize and competitively upgrade the HMMWV fleet.” The subcommittee expressed concern that early program cost growth and projected acquisition costs will make the program unaffordable in a challenging economic environment. The Army and Marines’ Response to Recommended Program Termination23 In what has been characterized as a response to the Senate Appropriation’s Committee recommendation to terminate the JLTV, the Army and Marines apparently put aside past differences and developed a new acquisition strategy that relaxes transportability requirements and sets a goal for a lower per-unit cost of $225,000. The Army notes this lower price tag is a result of requirement trade-offs but crew survivability remains of paramount importance. 20 Tony Bertuca, “Army Releases RFI for Joint Light Tactical Vehicle “Off The-Shelf” Solutions,” InsideDefense.com, May 6, 2011. 21 Ibid. 22 Report 112-77, Department of Defense Appropriations Bill, 2012 (H.R. 2219), September 15, 2011, p. 162 and Michael Hoffman, “JLTV Loses More Support on Capitol Hill,” Defense News, September 19, 2011. 23 Information in this section is taken from Tony Bertuca, “Army Digs in on JLTV, Touts New Acquisition Strategy and Price Tag,” InsideDefense.com, September 23, 2011 and “Army and Marines Agree on Requirement Changes for Embattled JLTV,” InsideDefense.com, September 30, 2011 and Michael Hoffman, “U.S.: JLTV to Beat Cost Prediction,” Defense News, October 3, 2011. Congressional Research Service 5 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Draft Engineering and Manufacturing Development Request for Proposal24 On October 3, 2011, the Army issued a draft Request for Proposal (RFP) for the Engineering and Manufacturing Development (EMD) phase. Key provisions include • a $230,000 to $270,000 per vehicle cost target; • an additional add-on armor kit (called a B kit) can cost no more than $50,000; • EMD phase cut by 16 months—will now be 32 versus 48 months; and • Army intends to procure at least 20,000 JLTVs with options to procure more. Army and Marines Revising Draft EMD RFP25 Reportedly based on input from a number of potential industry bidders, the Army and Marines will likely delay release on the EMD RFP until January-February 2012. These meetings with industry, in addition to soliciting interest for the RFP bid, were intended to determine cost drivers during production and what actions could be taken to speed up production and drive down cost. Ford Motor company, the second largest automaker who left the military tactical vehicle business in the early 1980s, is said to be interested in competing to build the JLTV. The possible entry of Ford, along with other industry teams, could serve to further reduce vehicle costs. The high pervehicle cost has been a point of contention with DOD, Congress, and program critics. The draft RFP states that a production phase contract solicitation is envisioned for FY2015 and would be awarded as a single fixed-price contract for three years for low-rate initial production. Marines Might Defer JLTV Acquisition Until Late 2020s26 Marine leaders reportedly testified to the House Armed Services Subcommittee on Tactical Air and Land Forces on November 16, 2011, that if significant budget cuts are enacted due to sequestration of the defense budget under the provisions of the Budget Control Act of 2011, P.L. 112-25, the Marines would defer acquisition of the JLTV until the late 2020s. The Marines would instead develop and procure the Amphibious Combat Vehicle (ACV) before acquiring any JLTVs. Experts suggest that if the Marines defer until the late 2020s that the per vehicle cost for the Army’s JLTVs—that it hopes to begin procuring in 2015—would increase and possibly endanger the overall program. 24 Draft JLTV EMD Request for Proposal, October 3, 2011 and Michael Hoffman, “U.S.: JLTV to Beat Cost Prediction,” Defense News, October 3, 2011. 25 Information in this section is taken from Tony Bertuca and Jason Sherman, “ Army, Marine Corps Reworking JLTV Plans Based on Industry Input,” InsideDefense.com, December 2, 2011, and “Ford Eying Entry into JLTV Competition, Influenced DOD Move to Lower Cost Target,” InsideDefense.com, December 9, 2011. 26 Information in this section is taken from Roxana Tiron and Brendan McGarry, “Marines May Delay Light Combat Vehicles Program to Late 2020s,” Bloomberg.com, November 6, 2011, and Michael Hoffman, “Cuts Could Delay U.S. Marines’ JLTV,” Defense News, November 21, 2011. Congressional Research Service 6 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Foreign Participants United States and Australia Agree on Joint JLTV Development27 In February 2009, the Pentagon and the Australian Department of Defense signed an agreement to coordinate the technology development for the JLTV. Under this agreement, 30 JLTV prototypes will be developed, with the United States funding the development of 21 prototypes and Australia funding nine. Australia reportedly has a need for about 1,300 to 1,400 vehicles with requirements similar to the JLTV, although Australian defense officials note that Australia’s participation in JLTV technology development does not automatically mean that they will eventually procure JLTVs. At February 2011 conference, Australian defense officials noted that their current planned procurement quantity for right-hand drive JLTVs was 1,300 with about 900 for general purposes and 400 for utility missions.28 Ramifications If the JLTV Is Terminated29 The Australian press reports that if the JLTV program is terminated, Australia will lose $40 million that it has contributed to the JLTV program. Australian defense officials suggested that even if the JLTV program is terminated, they would benefit from knowledge gained through research and testing conducted to date. Additional Foreign Participants30 According to the JLTV Program Office, in addition to Australia, Israel, Great Britain, and Canada are participating in various extents in the TD phase. The Program Office has established working groups with Israel, Great Britain, and Canada, although the extent of the participation as well as the number of JLTVs that they might consider procuring was not made public. 27 Daniel Wasserbly, “U.S. and Australia to Join Forces on JLTV Programme,” Jane’s Defence Weekly, March 4, 2009, p. 12 and Marjorie Censer, “DOD Inks Formal JLTV Agreement with Australia; More Partnerships Planned,” InsideDefense.com, February 26, 2009. 28 Information is from a briefing from the Project Manager Joint Combat Support Systems on the Joint Light Tactical Vehicle given on February 7 and 8, 2011. 29 Brendan Nicholson, “Canberra Loses $40 M on U.S. Army Project, “ The Australian, September 16, 2011. 30 Ibid. Congressional Research Service 7 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Possible Acquisition Targets31 Army The new draft EMD RFP calls for at least 20,000 JLTVs for the Army with the option to procure additional vehicles. Marines The Marines’ procurement quantity is planned for 5,500 vehicles, with 4,650 being CTVs and 850 CSVs. This procurement quantity is likely dependent upon reducing vehicle cost and weight. Navy The Navy has recently expressed a desire to participate in the JLTV program. If the Navy does participate, it would require from 400 to 500 CTVs and from 150 to 200 CSVs. Air Force and Special Operations Command (USSOCOM) The Air Force and USSOCOM might also participate in the JLTV program, but USSOCOM’s participation might be limited as it has its own Family of Special Operations Vehicles Program to develop a wide range of special operations-unique vehicles, including light tactical vehicles. Budgetary Issues Program Cost and Funding32 DOD has not publically assigned a definitive cost to the JLTV program, suggesting that it is too early in the development process to determine an accurate cost estimate. Some defense and trade analysts suggest that the JLTV program will cost well over $10 billion and possibly as much as $30 billion to $70 billion, depending on the final cost of the vehicles chosen and the number of vehicles procured.33 The Army originally estimated that each fully equipped JLTV will cost $418,000, almost 70% higher than the target cost of $250,000 per vehicle that would have enabled the Army to replace all of its HMMWV’s with JLTVs. The Army’s current draft EMD RFP calls for a per-vehicle cost between $230,000 to $270,000. 31 Information in this section is from a briefing from the Project Manager Joint Combat Support Systems on the Joint Light Tactical Vehicle given on February 7 and 8, 2011 and the Army Tactical Wheeled Vehicle Strategy, undated but obtained from the Army in September 2010 and Michael Hoffman, “U.S.: JLTV to Beat Cost Prediction,” Defense News, October 3, 2011. 32 Jason Sherman and Daniel G. Dupont, “JLTV Price Tag Drives New Three Step Tactical Vehicle Plan for the Army,” InsideDefense.com, August 8, 2008 and Michael Hoffman, “U.S.: JLTV to Beat Cost Prediction,” Defense News, October 3, 2011. 33 Andrea Shalal-Esa, “Companies Jockey for Huge U.S. Military Truck Program,” Reuters, November 12, 2007. Congressional Research Service 8 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress FY2012 JLTV Budget Request34 The FY2012 Budget Request for JLTVs is $172.1 million for Army Research, Development, Test and Evaluation (RDT&E) and $71.8 million for Marine Corps RDT&E, for a program total of $243.9 million. The significant increase from the FY2011 Budget Request of $84.7 million reflects the anticipated award of the EMD contracts in January or February 2012. Legislative Activity National Defense Authorization Act for FY2012 (H.R. 1540) Conference Report (H.Rept. 112-329)35 The conference recommended reducing the Army’s $172.1 million budget request by $64.8 million due to “schedule slip” (delay of awarding the EMD contract) and reducing the Marines’ $71.8 million request by $24.9 million for the same reason. Department of Defense Appropriations Bill, FY2012 (H.R. 2055, P.L. 112-74), Conference Report (H.Rept. 112-331)36 The budget request includes $243,940,000 within Army and Marine Corps accounts for the development of the Joint Light Tactical Vehicle (JLTV). The JLTV program has undergone significant changes since its inception and the submission of the fiscal year 2012 budget request. The principal reason for the changes is the discovery that the plan to acquire multiple variants of a limited number of vehicles with demanding performance specifications would result in an unaffordable program for both the Army and Marine Corps. As a result, the program will now pursue a competitively-selected single vehicle with a less complex design on a significantly accelerated timeline. The conferees are encouraged to see the Army and Marine Corps taking definitive action to change their approach in evaluating requirements, technology, key performance parameters, and costs as they apply to this acquisition program. Continuing on the nine year path of studies, development, and testing to field a lightweight tactical vehicle that will carry four passengers and 3,500 pounds of cargo onto the battlefield was unacceptable. Recognizing the renewed focus and approach, the conference agreement provides $87,300,000 in Research, Development, Test and Evaluation, Army and $46,700,000 in Research, Development, Test and Evaluation, Navy for continued JLTV development, in accordance with revised estimates for the program. The conferees strongly encourage the Army and Marine Corps, in conjunction with the Under Secretary of Defense (Acquisition, Technology and Logistics), to examine the feasibility of accelerating a competition for 34 United States Department of Defense Fiscal Year 2012 Budget Request Program Acquisition Costs by Weapon System, February 2011, p. 3-2. 35 National Defense Authorization Act for FY2012 (H.R. 1540) Conference Report, H.Rept. 112-329, December 12, 2011, p. 4 and p. 8. 36 Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2012, Conference Report to Accompany H.R. 2055, December 15, 2011, pp. 688-689. Congressional Research Service 9 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress production through more efficient testing and acquisition practices and by embracing off-theshelf technology demonstrated by industry so that improved vehicles are delivered to the warfighter as soon as possible. Accordingly, the Army and Marine Corps are encouraged to acquire, test, and evaluate, as necessary, available of the-shelf systems that meet the essential program requirements. Potential Issues for Congress JLTV Affordability It can be argued that the Army’s per unit cost target of between $230,000 to $270,000 under the provisions of the draft EMD RFP are a “step in the right direction” in terms of addressing the issue of JLTV affordability, but there are other factors that must also be considered. HMMWVs and MRAPs—primarily M-ATVs—constitute competing programs that arguably have a degree of political support for their continuation. Both House and Senate appropriators have acknowledged the roles that MRAPs and recapitalized HMMWVs will be expected to play in the future and have expressed doubts that the JLTV can meet affordability targets. Aside from congressional concern is the notion of a “challenging economic environment” that will confront not only the JLTV program, but also other current and future DOD weapon systems programs. A number of think tanks and commissions—including the presidentially-appointed BowlesSimpson Fiscal Commission37—who are proposing ways to decrease DOD spending have recommended the JLTV program be cancelled or deferred. Given this wide-ranging opposition to the JLTV program on the basis of affordability, even a $230,000 per copy JLTV variant might prove to be difficult to justify. Changing Requirements As previously discussed, the Army’s decision to change requirements for the JLTV to have the same level of under body protection as M-ATVs resulted in delaying the award of the EMD contract until January or February 2012 and will undoubtedly add to the program’s overall duration and cost. Changing requirements during a system’s development cycle has often been cited as one of the major reasons why defense programs take many more years than planned as well as why they exceed their budgets. Even though the Army and Marines have reportedly reduced a number of vehicle requirements to reach a $230,000 to $270,000 per vehicle target cost, there is no guarantee that if funding is provided for FY2012 that requirements might be added on in the future, thereby driving up the per vehicle cost. Given this possibility, Congress might choose to closely monitor the Army and Marines during the rest of the TD phase and EMD phase—if the program makes it to that phase—to ensure that the Services do not make significant requirements changes/additions that could adversely affect the JLTV development timeline and program cost. 37 The National Commission on Fiscal Responsibility and Reform: $200 Billion in Illustrative Savings, November 12, 2010 (Draft Document), p. 24. Congressional Research Service 10 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Limitations on Upgrading HMMWVs and MRAPs The Army has countered the argument that upgrading HMMWVs and MRAPs is a viable substitute for JLTVs by suggesting that these vehicles have reached the point where additional upgrades (primarily additional armor) are no longer technically feasible and might negate mobility benefits. In the case of HMMWVs, the Army contends that adding additional armor puts significant stress on engine, suspension and transmission equipment, requiring extensive and costly modification to these vehicles. While M-ATVs initially enjoyed success in Afghanistan, reports suggest that insurgents have increased the size of IEDs, thereby negating much of the protective value of M-ATVs resulting in increased U.S. casualties.38 In response to the enhanced IED threat, two additional layers of Israeli-made armor plates are being installed to the M-ATV’s underside and new padding and crew harnesses inside the vehicle which reportedly will enable the M-ATVs to withstand explosions twice as large as their current classified capability.39 While additional armor and interior improvements could improve M-ATV survivability up to a point, there are concerns that additional armor might have an adverse impact on vehicle mobility, which was the prime consideration for the development of the M-ATV. As Congress works with DOD to find both an effective and affordable strategy to modernize and recapitalize the tactical wheeled vehicle fleet, these considerations might merit additional examination. The Cost of a Recapitalized HMMWV vs. a New JLTV40 With the proposed target cost for the JLTV in the $230,000-$270,000 range, some defense officials suggest that the JLTV could reach cost parity with recapitalized HMMWVs. The Marine Corps is reportedly not releasing a Request for Proposal (RFP) for HMMWV recapitalization (recap) noting that: When you start trying to bring those capabilities back into the [HMMWV] recap, your price goes up to the $240,000 to $250,000 range, and now you’re at [the price of] a JLTV vehicle, which has so much more payload and so much more capability.41 Army program officials contend that some recapitalized HMMWV versions could cost as much as $500,000 per vehicle. Analysts also suggest that a new JLTV will have a much greater operational life than a “used” recapitalized HMMWV. Given these considerations, Congress might decide to further examine how the new proposed target cost for the JLTV in the $230,000$270,000 range affects current and future HMMWV recapitalization efforts. 38 Yochi J. Dreazen, “Desperate Measures,” National Journal, July 9, 2011. Ibid. 40 Lee Hudson, “Marine Corps Will Not Release Humvee Recap Request for Proposal,” InsideDefense.com, October 14, 2011. 41 Ibid. 39 Congressional Research Service 11 Joint Light Tactical Vehicle (JLTV): Background and Issues for Congress Author Contact Information Andrew Feickert Specialist in Military Ground Forces afeickert@crs.loc.gov, 7-7673 Congressional Research Service 12