The Army’s Ground Combat Vehicle (GCV)
Program: Background and Issues for Congress
Andrew Feickert
Specialist in Military Ground Forces
June 14, 2013
Congressional Research Service
7-5700
www.crs.gov
R41597
CRS Report for Congress
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epared for Members and Committees of Congress
The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
Summary
In April 2009, then-Secretary of Defense Gates announced he intended to significantly restructure
the Army’s Future Combat System (FCS) program. The FCS was a multiyear, multibillion dollar
program that had been underway since 2000 and was at the heart of the Army’s transformation
efforts. In lieu of the cancelled FCS manned ground vehicle (MGV), the Army was directed to
develop a ground combat vehicle (GCV) that would be relevant across the entire spectrum of
Army operations and would incorporate combat lessons from Iraq and Afghanistan.
The Army reissued a request for proposal (RFP) for the GCV on November 30, 2010, and plans
to begin fielding the GCV by 2015-2017. On August 17, 2011, the GCV program was approved
to enter the Technology Development Phase of the acquisition process, and a day later, the Army
awarded two technology development contracts: $439.7 million to the General Dynamics-led
team and a second contract for $449.9 million to the BAE Systems-Northrop Grumman team.
Starting in May and running through June 2012, the Army tested a number of foreign candidates
during a Network Integration Exercise. This test informed the Army’s Analysis of Alternatives
(AoA), which is a requirement before the GCV program can progress to the next developmental
phase. The AoA reportedly found no suitable existing, less expensive combat vehicles that could
meet the Army’s GCV requirements. In addition, the Army is said to be considering including an
active protection system (APS)—perhaps the Israeli Trophy system—for inclusion on the GCV
but past experiences in terms of technical feasibility and cost will likely play a factor in any
decision to initially field the GCV with an APS capability. On January 16, 2013, the Department
of Defense (DOD) initiated a series of major GCV program changes which, while slipping the
program schedule to the right and going to a single competitor during Engineering and
Manufacturing Development, could save over $ 4 billion from FY2014 to FY2019.
The Administration’s January 26, 2012, Major Budget Decision Briefing not only introduced a
new Asia-Pacific strategic focus, but also delayed the GCV program for a year due to the SAIC-
Boeing protest. While some might consider this a setback, it can also be viewed as an
endorsement of the GCV program by the DOD. The FY2013 budget request for the GCV was
$639.874 million for Research, Development, Test and Evaluation (RDT&E), reflecting a one-
year delay in the program and a $1.7 billion program cut. The FY2013 National Defense
Authorization Act fully funds the Administration’s FY2013 GCV Budget Request. The enactment
of sequestration and the adoption of a continuing resolution for FY2013 funded the GCV at the
FY2013 request level but is subject to an unspecified percentage of reduction based on the
sequester. The Administration’s FY2014 GCV Budget Request was $592.2 million in RDT&E
funding.
Potential issues for Congress include the role and need for the GCV in a downsized Army that
will likely have fewer armored brigade combat teams (ABCTs). The Administration’s
announcement of a strategic shift to the Asia-Pacific region presents questions as to the necessity
for ABCTs and, by association, the GCV. DOD’s January 16, 2013 GCV program changes might
also have long -term overall program cost considerations as a result of “stretching out the
program” as well as “less than efficient buy size.” Congress might also consider the possibility
that a Congressional Budget Office (CBO) report on GCV Alternatives might be revised using
more current data provided by the Army. This report will be updated.
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
Contents
Introduction ...................................................................................................................................... 1
GCV Program .................................................................................................................................. 1
Background: Secretary of Defense Gates’s April 2009 FCS Restructuring Decision ............... 1
The GCV Concept ..................................................................................................................... 2
The Initial GCV Request for Proposal (RFP) ............................................................................ 2
Army Ground Combat Vehicle Request for Proposal Released .......................................... 3
Preliminary GCV Criticisms ..................................................................................................... 3
Programmatic ...................................................................................................................... 3
Vehicle Weight .................................................................................................................... 4
Reliance on Immature Technologies ................................................................................... 5
Selected Program Activities ............................................................................................................. 5
Potential GCV Vendors.............................................................................................................. 5
Army Cancels the RFP .............................................................................................................. 5
Why the RFP Was Cancelled ..................................................................................................... 6
Revised GCV RFP Issued .......................................................................................................... 6
Defense Industry Concerns with the Revised RFP .................................................................... 7
Defense Acquisition Board Approves GCV Entrance into Technology
Development Phase .......................................................................................................... 7
Army Awards Technology Development (TD) Contracts ................................................... 8
SAIC-Boeing Team Files Protest Over GCV TD Contract Award ...................................... 8
GAO Denies SAIC-Boeing Team Protest ........................................................................... 8
Reported Reasons Why the SAIC-Boeing Team Was Not Selected ................................... 9
Current Program Activities .............................................................................................................. 9
Analysis of Alternatives (AoA) ................................................................................................. 9
Active Protection System (APS) and the GCV ....................................................................... 10
Potential GCV Budgetary Issues ................................................................................................... 10
DOD Initiates Major GCV Program Changes ............................................................................... 11
FY2013 Legislative Activity .......................................................................................................... 12
January 26, 2012, Administration Major Budget Decision Briefing ....................................... 12
FY2013 GCV Budget Request and Program Changes ............................................................ 12
FY2013 National Defense Authorization Act (NDAA) (H.R. 4310) ...................................... 13
Enactment of Sequestration and a Continuing Resolution for FY2013................................... 13
FY2014 Legislative Activity .......................................................................................................... 13
FY2014 Budget Request .......................................................................................................... 13
FY2014 National Defense Authorization Act (H.R. 1960) ...................................................... 14
Report of the House Armed Services Committee, FY2014 National Defense
Authorization Act, (Rpt.113-102) ......................................................................................... 14
Research, Development, Test, and Evaluation, Army ....................................................... 14
Subtitle B—Program Requirements, Restrictions, and Limitations .................................. 15
Department of Defense Appropriations Bill, 2014 .................................................................. 15
Congressional Budget Office (CBO) Report on GCV Alternatives ............................................... 16
Criticisms of the CBO Study ................................................................................................... 17
Potential Issues for Congress ......................................................................................................... 17
The GCV and a Downsized Army ........................................................................................... 17
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
DOD’s Major Changes to the GCV Program and Overall Program Cost................................ 18
Current GCV Data and CBO’s GCV Alternatives Study ......................................................... 19
Tables
Table 1. Estimated Cost of CBO GCV Alternatives ...................................................................... 16
Contacts
Author Contact Information........................................................................................................... 19
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
Introduction
In April 2009, then Secretary of Defense Robert Gates announced he intended to significantly
restructure the Army’s Future Combat System (FCS) program. The FCS was a multiyear,
multibillion dollar program that had been underway since 2000 and was at the heart of the Army’s
transformation efforts. It was to be the Army’s major research, development, and acquisition
program, consisting of 18 manned and unmanned systems tied together by an extensive
communications and information network.
Among other things, Secretary Gates recommended cancelling the manned ground vehicle
(MGV) component of the FCS program, which was intended to field eight separate tracked
combat vehicle variants built on a common chassis that would eventually replace combat vehicles
such as the M-1 Abrams tank, the M-2 Bradley infantry fighting vehicle, and the M-109 Paladin
self-propelled artillery system. As part of this restructuring, the Army was directed to develop a
ground combat vehicle (GCV) that would be relevant across the entire spectrum of Army
operations and would incorporate combat lessons learned in Iraq and Afghanistan.
Congressional interest in this program has been significant, as the GCV is intended to equip the
Army’s armored brigade combat teams (ABCT).1 The GCV also represents the only “new start”
for a ground weapon systems program and, because of the Army’s history of failed weapon
systems programs, current and future budget constraints, the program has been subject to a great
deal of scrutiny.
GCV Program
Background: Secretary of Defense Gates’s April 2009
FCS Restructuring Decision
On April 6, 2009, then Secretary of Defense Gates announced he intended to significantly
restructure the FCS program.2 The Department of Defense (DOD) planned to accelerate the spin
out of selected FCS technologies to BCTs, but recommended cancelling the MGV component of
the program. Secretary Gates was concerned there were significant unanswered questions in the
FCS vehicle design strategy and, despite some adjustments to the MGVs, it did not adequately
reflect the lessons of counterinsurgency and close quarters combat in Iraq and Afghanistan. After
reevaluating requirements, technology, and approach, DOD would then re-launch the Army’s
vehicle modernization program, including a competitive bidding process. In addition, the
acquisition decision memorandum reaffirmed the establishment of a new ground combat vehicle
acquisition program in 2010.
1 Armored Brigade Combat Teams (ABCTs) were formerly referred to as Heavy Brigade Combat Teams (HBCTs) by
the Army.
2 Information in this section is taken from a transcript of Secretary of Defense Robert M. Gates Budget Press Briefing,
Arlington, VA, April 6, 2009.
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
The GCV Concept3
The Army’s 2009 Modernization Strategy focused on quickly developing a new GCV in a
technologically versatile approach. This approach, termed the Incremental Development
Approach, features a modular design intended to accommodate vehicle growth in size, weight,
power, and cooling requirements so that as technologies matured, they could be incorporated into
new versions of the GCV with little or no modification to the basic vehicle.
The original GCV concept, in short, was to
• field the GCV by 2015-2017;
• design the platform with sufficient margin for future capabilities;
• incorporate only mature technologies for vehicle integration;
• maintain a continuous armor development; and
• design the vehicle to accept current and future network capabilities (for example,
radios, sensors, and jammers).4
Army leadership had indicated the GCV could be either a tracked or wheeled vehicle. The Army
had also suggested it saw “a lot of value in common chassis in terms of logistics support,” and
that it might pursue a common chassis for GCV variants.5 Other possible GCV features discussed
by the Army included a V-shaped hull and side armor to protect against improvised explosive
devices (IEDs).6 The Army also suggested the GCV would be fuel efficient.7 The air
transportability of the GCV has been discussed as a key design consideration, and the Army had
said the GCV must be able to fit on C-17 transports.8 In order for the GCV to be a “full spectrum”
combat vehicle, the Army reportedly had required non-lethal weapon systems be incorporated
into vehicle design. While the GCV is to have some military equipment directed by the Army,
such as radios and chemical protection systems, Army officials are leaving most of the specific
solutions to industry recommendations.9
The Initial GCV Request for Proposal (RFP)10
On February 25, 2010, the Army released the RFP for the GCV as described in the following
DOD press release:
3 Information in this section is from the Army Capabilities Integration Center, The Ground Combat Vehicle Strategy:
Optimizing for the Future, October 2009, available at http://www.g8.army.mil.
4 Department of the Army, 2009 Army Modernization White Paper, p. 5.
5 Emelie Rutherford, “Army Casting Wide Net for Post-FCS Vehicles Coming in Five to Seven Years,” Defense Daily,
May 13, 2009.
6 Ibid.
7 John T. Bennett, “Carter: FCS Successor Effort Could Have Many Primes,” Defense News, May 18, 2009.
8 Marjorie Censer and Kate Brannen, “Army Assessing Brigade Combat Modernization in Plan Due to OSD,”
InsideDefense.com, May 18, 2009.
9 Daniel Wasserbly, “Testing Pushed Back to Next Summer: Army to Reprogram Funding in FY 08, FY 09 for FCS
Spin Out 1 Changes,” InsideDefense.com, June 30, 2008.
10DOD defines Request for Proposal (RFP) as a solicitation used in negotiated acquisition to communicate government
requirements to prospective contractor and to solicit proposals.
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
Army Ground Combat Vehicle Request for Proposal Released11
The Army released last Thursday a RFP for the technology development phase12 of the
Infantry Fighting Vehicle being developed under the GCV effort. The Army has worked
extensively with the Office of the Under Secretary of Defense for Acquisition, Technology
and Logistics to develop this program. The GCV acquisition program will follow DOD best
acquisition practices and be a competitive program with up to three contract awards. The
GCV development effort will consist of three phases: technology development, engineering
and manufacturing design and low rate initial production. The Army anticipates awarding the
first contracts for the technology development phase in the fourth-quarter of fiscal 2010.
The technology development phase involves risk reduction, identification of technology
demonstrations, competitive prototyping activities, and planned technical reviews. Industry
will have 60 days to submit proposals to the Army for this development effort.
The Ground Combat Vehicle effort is part of a holistic Army plan to modernize its combat
vehicle fleet. This includes incorporating Mine-Resistant Ambush Protected (MRAP)
vehicles into the fleet while modernizing current vehicle fleets including Stryker. The first
GCV will be an Infantry Fighting Vehicle offering a highly-survivable platform for
delivering a nine-man infantry squad to the battlefield. The GCV is the first vehicle that will
be designed from the ground up to operate in an IED environment. It is envisioned to have
greater lethality and ballistic protection than a Bradley, greater IED and mine protection than
an MRAP, and the cross country mobility of an Abrams tank. The GCV will be highly
survivable, mobile and versatile, but the Army has not set specific requirements such as
weight, instead allowing industry to propose the best solution to meet the requirements.
Prior to the release of the RFP, the Army engaged with industry through a series of industry
days to inform them of the government’s intent for GCV development and gain their
feedback from potential contractors about GCV requirements and emerging performance
specifications. In response to these initiatives the Army received significant feedback and
insights on requirements, growth, training, test and the program at large thereby informing
the requirements process and indicating the potential for a competitive contracting
environment.
Preliminary GCV Criticisms
After the release of the RFP and subsequent program-related briefings and discussions, a number
of criticisms emerged as analysts began to examine the GCV RFP and program in greater detail.
These criticisms are categorized as follows:
Programmatic
In order to avoid past criticisms of events outpacing relevancy and decades-long acquisition
programs, Army leadership stipulated the first GCVs would be delivered seven years after the
program was initiated. While this decision was relatively well-received, in order to achieve this
11 DOD News Release, “Army Ground Combat Vehicle Request for Proposal Released,” No. 161-10, March, 2, 2010.
12 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.
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
ambitious timeline, modifications to the traditional acquisition process were required. One
criticism was the Army chose to issue the RFP prior to the completion of the Analysis of
Alternatives13 phase of the defense acquisition process.14 In response to this criticism, DOD and
Army officials maintained running the Analysis of Alternatives phase during the RFP phase
would give the Army more time to consider industry’s proposals and evaluate alternatives to a
new vehicle. Traditionally, the Analysis of Alternatives occurs before an RFP is initiated. Another
concern was the Army chose to use a cost-plus and not a fixed price contract during the
Technology Development phase of the program. The Administration is said to have favored fixed
price contracts, as critics of cost-plus contracts say that they “invite abuse because they allow
companies to charge the government costs plus a fixed profit, no matter how poor their
performance.”15 The Army, on the other hand, defended its use of cost-plus contracts during the
technology phase, as it allowed for more innovation and risk-taking.16 The use of cost-plus
contracts as well as constantly changing requirements were both points of contention in the FCS
program.
Vehicle Weight
The Army has made soldier survivability the most important performance requirement for the
GCV. Because the Army has also left it up to industry to determine the GCV design, there are no
specific vehicle weight constraints. In May 2010, senior Army leaders reportedly stated estimates
projected the GCV could weigh up to 70 tons, making it the world’s heaviest infantry fighting
vehicle.17 The then-Chief of Staff of the Army, General George Casey, remarked he believed the
GCV must be much lighter, noting that “soldiers who have served in Iraq and Afghanistan have
told him that big, heavy vehicles just aren’t practical in urban combat” and that the Army
“stopped using tanks and Bradleys on the streets of Baghdad just because of the size.”18 One
expert suggests “given what transports, supply lines, and bridges in developing countries can
bear, an optimal weight for a vehicle in an irregular warfare environment is 40 to 45 tons.”19 A
counterargument contends the irregular warfare environment has become so lethal only 70 ton
vehicles can survive.20 In addition to operational considerations, a 70 ton GCV weight would also
have an impact on how the vehicle is transported by air and, therefore, how quickly it could be
deployed in the event of a conflict.
13 From the November 2009 Defense Acquisition University Glossary of Defense Acquisition Acronyms & Terms, The
Analysis of Alternatives (AoA) is defined as follows: “The AoA assesses potential materiel solutions to satisfy the
capability need documented in the approved Initial Capabilities Document (ICD). It focuses on identification and
analysis of alternatives, measures of effectiveness (MOEs), cost, schedule, concepts of operations, and overall risk,
including the sensitivity of each alternative to possible changes in key assumptions or variables. The AoA is normally
conducted during the Materiel Solution Analysis (MSA) phase of the Defense Acquisition Management System
(DAMS), is a key input to the Capability Development Document (CDD), and supports the materiel solution decision
at Milestone A.”
14 Unless otherwise noted, information in this section is taken from Kate Brannen, “Army Launches Ground Combat
Vehicle Contest,” Army Times, February 26, 2010. For additional information on the defense acquisition process see
CRS Report RL34026, Defense Acquisitions: How DOD Acquires Weapon Systems and Recent Efforts to Reform the
Process, by Moshe Schwartz.
15 Ross Colvin, “Obama Takes Aim at Costly U.S. Defense Contracts,” Reuters, March 4, 2009.
16 Kate Brannen, “Army Launches Ground Combat Vehicle Contest,” Army Times, February 26, 2010.
17 Matthew Cox, “U.S. Army Chief Casey: Make GCV Lighter,” DefenseNews, June 14, 2010, p. 16.
18 Sydney J. Freedberg, Jr., “Army Tries Again for a New Tank,” National Journal, August 7, 2010.
19 Ibid.
20 Ibid.
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The Army’s Ground Combat Vehicle (GCV) Program: Background and Issues for Congress
Reliance on Immature Technologies
Some critics noted the initial GCV RFP contained provisions that the GCV would have
requirements for a hit-avoidance system21 as well as an active protection system22 that were
problematic developmental sub-systems of the cancelled FCS MGV program.23 Critics of these
programs maintained by employing these systems on armored fighting vehicles, the Army was
sacrificing armored crew protection for an over-reliance on technologically questionable systems.
The Army noted if these systems could be developed, it would result in lighter, more fuel-
efficient vehicles. Another criticism of these systems was they would drive up the per-vehicle
cost—an important factor in determining the overall affordability of the program.
Selected Program Activities
Potential GCV Vendors24
In response to the Army’s February 2010 RFP, three industry teams submitted technology
development proposals to the Army. The first team included BAE Systems and Northrop
Grumman; the second consisted of General Dynamics, Lockheed Martin, Raytheon, and MTU
Detroit Diesel; and the third team, SAIC, Boeing, and the German firms of Krauss-Maffei
Wegmann (KMW), and Rheinmetall Defence. All three teams also had a number of other firms as
part of their teams. The BAE Systems-led team design was an original design, with the team
claiming that its design would exceed the survivability of the MRAP and would have enhanced
mobility capabilities to allow it to operate in both urban and cross country environments. The
General Dynamics team provided no details on its technical approach but stated its chosen design
focused on soldier survivability and operational effectiveness and would incorporate mature
technologies. The SAIC-led team stated its design would be based on the German tracked Puma
IFV that was developed based on lessons learned from Iraq and Afghanistan. SAIC also
emphasized all work, including production, would take place in the United States.
Army Cancels the RFP
When the Army released the RFP for the GCV Technology Development (TD) phase in February
2010, it anticipated awarding the first TD phase contracts in the fourth quarter of FY2010.25 On
August 25, 2010, while the Army was reportedly in the process of selecting the winners of the TD
RFP, the Army’s new Assistant Secretary of the Army for Acquisition, Logistics and Technology
[ASA(ALT)], Malcolm O’Neil, cancelled the RFP in order to provide more time for technology
integration as well to insure the Army would use mature technologies in order to develop the
21 A hit avoidance system is intended to use a variety of sensors and information technology to detect the presence of
mines, IEDs, and enemy forces so that these threats can be avoided.
22 An active protection system is a vehicle-mounted system which is intended to first detect incoming enemy anti-tank
or anti-vehicle missiles and/or grenades and then engage and destroy these threats by means of a kinetic device.
23 Sebastian Sprenger and Tony Bertuca, “Some Officials See FCS’s Long Shadow in Army’s Move to Revisit GCV,”
InsideDefense.com, August 31, 2010.
24 Information in this section is taken from Defense Professionals, “Three Competing Teams to Submit Proposal for
Technology Development Phase,” Defpro.com, May 26, 2010.
25 DOD Press Release, “Army Ground Combat Vehicle Request for Proposal Released,” March 2, 2010.
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GCV within the established seven year time frame.26 The Army reportedly planned to reissue the
RFP within 60 days of the cancellation.27 It was expected the original industry teams would
submit new proposals and other companies might also submit proposals.
Why the RFP Was Cancelled
The Army, in conjunction with the Pentagon’s acquisition office, conducted a Red Team28 review
of the GCV program in order to “review GCV core elements including acquisition strategy,
vehicle capabilities, operational needs, program schedule, cost performance, and technological
specifications.”29 This review found the GCV had too many performance requirements and too
many capabilities to make it affordable30 and relied on too many immature technologies. In
response, the Army pledged the new GCV RFP would “dial back the number of capabilities the
new system must have—as well as significantly reworking the acquisition strategy by focusing on
early technology maturity and setting firm cost targets.”31 In particular the Army reportedly
planned to set a $10 million per vehicle cost limit in response to reports that initial estimates
projected that the GCV would cost more than $20 million per vehicle.
Revised GCV RFP Issued
On November 30, 2010, the Army issued a revised GCV RFP.32 Under this proposal, industry had
until January 21, 2011, to submit proposals and the proposed vehicle could be tracked or wheeled.
The Army included affordability targets of per unit cost for the vehicle between $9 million and
$10.5 million and an operational sustainment cost of $200 per operational mile, with both
affordability targets being in FY2010 dollars. In addition, the Army will require the GCV fit on a
C-17 transport but not on a C-130. The Army was expected to award technology development
contracts to three contractors by April 2011, and the Technology Development (TD) Phase is
planned to last 24 months. An early prototype vehicle is expected by the middle of FY2014 and
the first full-up prototype is expected by the beginning of FY2016. The Army planned for 1,874
GCVs initially, with the first production vehicle rolling off the assembly line in early April 2018
and the first unit should be equipped with GCVs in 2019.
26 Kate Brannen, “Interview: Malcolm O’Neil, Acquisition Executive, U.S. Army,” Defense News, September 6, 2010,
p. 22; and Daniel Wasserbly, “U.S. Army Amends Approach to GCV Programme,” Jane’s Defence Weekly, September
1, 2010, p. 9.
27 Daniel Wasserbly, “U.S. Army Amends Approach to GCV Programme,” Jane’s Defence Weekly, September 1, 2010,
p. 9.
28The Army defines Red Teaming as a “structured, iterative process executed by trained, educated and practiced team
members that provides commanders an independent capability to continuously challenge plans, operations, concepts,
organizations and capabilities in the context of the operational environment and from our partners’ and adversaries’
perspectives.” Taken from Office of the Chief of Public Affairs, U.S. Army Training and Doctrine Command, “Army
Approves Plan to Create School for Red Teaming,” July 13, 2005.
29 Roxana Trion, “Army to Re-Start Bidding Process for New $40B Ground Combat Vehicle Program,” The Hill,
August 25, 2010.
30 Kate Brannen, “Ground Combat Vehicle Delayed; Effort Called Too Ambitious,” Army Times, September 6, 2010.
31 Jason Sherman, “Army to Mandate Technology Maturity Levels, $10 Million Price Target for GCV,”
InsideDefense.com, September 16, 2010.
32 Unless otherwise noted, information in this section is taken from C. Todd Lopez, “Army Issues RFP for Ground
Combat Vehicle,” Army News Service, December 2, 2010.
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The new RFP is a fixed price incentive fee contract versus the cost-plus fixed fee contract of the
previous RFP.33 The new contract has a ceiling of $450 million per contractor for the TD Phase.
An incentive fee would split 80% to the government if the cost comes in under the negotiated
$450 million ceiling cap, with 20% going to the contractor. If the cost comes in over the cap, the
contractor assumes 100% of the additional cost.
Defense Industry Concerns with the Revised RFP34
Reports suggest defense industry had a number of concerns with the revised RFP. According to
one report “industry still doesn’t get what the Army is looking for,”35 suggesting many of the
technical specifications the contractors expected the Army to spell out were left open-ended and
industry would have to propose many of the vehicle’s technologies and features. Another concern
was industry was not clear on how many vehicles the Army intended to build and questioned
whether the Army could afford the production in the long run. According to the Army, the GCV is
intended to replace infantry fighting vehicles in ABCTs, which would be 50% of the Bradleys in
the ABCT. Some analysts suggest the GCV’s price tag per vehicle could make it vulnerable to
future budget cuts, with one analyst noting the cost was so high “the program is sure to be
politically controversial and therefore suffer much the same fate the Marine Corps Expeditionary
Fighting Vehicle (EFV) has.”36
Because of concerns the GCV program would not make it to production, issues regarding
sustaining the industrial base have been raised. Analysts contend there are very few new combat
vehicles currently in production, noting that Bradley A3 production ends in 2012; the last Stryker
armored personnel carrier in 2013; and the M-1 Abrams tank remanufacturing program was slated
to an end after 2014, leaving the improved Paladin self-propelled howitzer in production until the
GCV starts production in 2017. Even though congressional action will keep the Abrams
production line open, some defense industry analysts are concerned that with so few opportunities
to develop and manufacture armored fighting vehicles, some long-standing U.S. defense firms
might drop out of the business, thereby limiting bidding on any future armored fighting vehicle
programs to foreign manufacturers.
Defense Acquisition Board Approves GCV Entrance into Technology
Development Phase37
On August 17, 2011, then Pentagon acquisition chief Ashton Carter signed an acquisition decision
memorandum authorizing the Army to award technology demonstration contracts for the GCV
program. Secretary Carter also directed the Army to conduct a “dynamic update” of the GCV’s
33 Information in this section is taken from Ann Roosevelt, “New Ground Combat Vehicle RFP Offers Affordability
Targets,” Defense Daily, December 1, 2010.
34 Information in this section is taken from Kate Brannen, “U.S. Army: Budgets Allow $9 – 10.5 Million GCV,”
Defense News, December 13, 2010; and Grace V. Jean, “Army’s Ground Combat Vehicle Stirs Confusion in Industry,”
National Defense, January 2011 edition.
35 Kate Brannen, “U.S. Army: Budgets Allow $9 – 10.5 Million GCV.” Ibid.
36 Ibid. For additional information on the Expeditionary Fighting Vehicle see CRS Report RS22947, The Marines’
Expeditionary Fighting Vehicle (EFV): Background and Issues for Congress, by Andrew Feickert.
37 Memorandum, Ground Combat Vehicle (GCV) Infantry Fighting Vehicle (IFV) Milestone (MS) A Acquisition
Decision Memorandum, August 17, 2011.
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Analysis of Alternatives (AoA) which had been criticized by some as being inadequate. Secretary
Carter also stipulated:
• The GCV average procurement unit cost (APUC) would be less than or equal to
$13 million (expressed in FY2011 constant dollars);
• Combined cost of replenishment spares and repair parts less than or equal to
$200 per mile (expressed in FY2011 constant dollars); and
• Seven years from technology development contract award to first production
vehicle.
Army Awards Technology Development (TD) Contracts38
On August 18, 2011—a day after Secretary Carter issued his acquisition decision memorandum—
the Army awarded two technology development contracts. The first contract for $439.7 million
went to the General Dynamics-led team and the second contract for $449.9 million went to the
BAE Systems-Northrop Grumman team. The technology development phase is expected to last
24 months (not counting the period the contract was under protest). In April 2013, General
Dynamics was reportedly awarded $180 million to extend the TD phase by six months and BAE
was awarded $160 million for a six-month extension.39
SAIC-Boeing Team Files Protest Over GCV TD Contract Award40
On August 23, 2011, the third team vying for the GCV TD contract, SAIC-Boeing, filed a protest
with the Government Accountability Office (GAO) contending there were errors in the evaluation
process, claiming the government relied on evaluation criteria outside the published request for
proposal and aspects of the team’s bid were discounted because of a lack of familiarity with the
German Puma infantry fighting vehicle that forms the basis of the SAIC-Boeing vehicle. Because
of the protest, the General Dynamics and BAE Systems-Northrop Grumman teams were required
to stop work until the protest was adjudicated.
GAO Denies SAIC-Boeing Team Protest41
On December 5, 2011, GAO denied the SAIC-Boeing GCV protest, stating the Army’s award of
only two TD contracts was reasonable and consistent with the stated evaluation criteria and did
not improperly favor the other two teams in the competition. On December 6, 2011, the Army
lifted the stop-work order that had been placed on the General Dynamics and BAE Systems-
Northrop Grumman teams so work could resume on the GCV.
38 Ann Roosevelt, “Army GCV Program Kicks Off – Emphasizes Affordability, Capability,” Defense Daily, August 22,
2011.
39 Tony Bertuca, “Army Awards GCV Extension Contracts to GDLS, BAE Systems,” InsideDefense.com, April 23,
2013.
40 Sebastian Sprenger, “SAIC-Boeing Team Files Protest Over Ground Combat Vehicle Award,” InsideDefense.com,
August 26, 2011, and Tony Bertuca, “Army Stops Work on GCV Due to Protest,” InsideDefense.com, August 30,
2011.
41 Brendan McGarry and Danielle Ivory, “SAIC Loses Bid Protest for U.S. Army Ground Combat Vehicle,”
Bloomberg.com, December 5, 2011, and GAO Decision, Scientific Applications International Corporation, B-405612;
B-405612.2; B-405612.3, December 5, 2011, http://www.gao.gov/assets/590/587607.pdf.
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Reported Reasons Why the SAIC-Boeing Team Was Not Selected42
Reports suggest that the SAIC-Boeing GCV proposal was rejected by the Army primarily due to
concerns over the vehicle’s proposed force protection features. The Army’s primary concern
appeared to have been the vehicle’s proposed active protection system43 and the underbody armor
designed to protect crewmembers from IEDs. As part of GAO’s examination of the protest, it was
noted that the Army:
Identified 20 significant weaknesses and informed SAIC that it was “of utmost importance”
for the firm to address them, and that a failure to do so adequately would result in SAIC’s
proposal being found ineligible for award.44
When the Army asked SAIC to provide more information on underbody armor, SAIC responded
the information was classified and was the property of the German Ministry of Defense (MOD).
While SAIC and the German MOD offered potential solutions, the Army judged these as
inadequate to address its concerns. There were also additional Army concerns—such as
insufficient head clearance for crew members, problems with vehicle occupant seating, a risk of
toxic fumes in the crew compartment due to battery pack location, and various hazards affecting a
soldier’s ability to exit the rear of the GCV—that played a role in GAO’s denial of SAIC’s
protest.
Current Program Activities
Analysis of Alternatives (AoA)45
Reports suggest the Army’s AoA for the GCV did not identify an existing, less expensive combat
vehicle that would meet the Army’s requirement. The vehicles considered by the Army during
AoA were the Bradley M2A3; a turretless Bradley; A Stryker Double V-Hull Infantry Carrier; the
Swedish CV9035; the German-made Puma; and the Israeli Namer. The AoA is an important step
in the defense acquisition process and is required to be conducted before major investment
decisions as well as before each decision milestone.
42 Information in this section is from Sebastian Sprenger, “GAO: Force Protection Features Cost SAIC-Boeing in GCV
Competition,” InsideDefense.com, January 13, 2012; Tony Bertuca, “OSD to Brief Congress on Active Protection
Systems Testing in March,” InsideDefense.com, January 20, 2012; and GAO Decision, Scientific Applications
International Corporation, B-405612; B-405612.2; B-405612.3, December 5, 2011, http://www.gao.gov/assets/590/
587607.pdf.
43 In this context, an active protective system or APS is a system which will automatically detect and engage incoming
rocket-propelled grenades and anti-tank guided and unguided missiles.
44 GAO Decision, Scientific Applications International Corporation, B-405612; B-405612.2; B-405612.3, December 5,
2011, http://www.gao.gov/assets/590/587607.pdf, pp. 5-6.
45 Information in this section is taken from Tony Bertuca, “Army Says GCV Analysis of Alternatives Found no
Suitable Options,” InsideDefense.com, November 16, 2012.
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Active Protection System (APS) and the GCV46
The Army is reportedly considering the Israeli-made Trophy APS system for inclusion in the
GCV. Previously, the Army had considered the Trophy APS as part of the now-cancelled FCS
program, but there were a number of technical and safety challenges as well as cost
considerations that precluded the adoption of the Trophy system. Army officials noted the Trophy
is an “option” and allegedly both General Dynamics and BAE Systems have both offered APS
solutions as part of their GCV technology development work, but not much is publically known
about these technologies.
Potential GCV Budgetary Issues47
A report suggests DOD plans to cut $150 million from the Army’s $1.4 billion FY2014 GCV
Budget Request, and additional cuts between $600 million and $700 million annually between
FY2014 and FY2018 are also under consideration. These significant proposed cuts would likely
have a major impact on the GCV program, and the Army is reportedly “reviewing the GCV
acquisition strategy.”48 The Army is also reportedly negotiating final GCV numbers with DOD
and supposedly has asked that funds eliminated from the GCV program be redirected to other
Army modernization efforts. The Army and DOD have also examined other program cost saving
measures such as allowing only a single EMD competitor or extending the EMD period to allow
for smaller contract awards over time. Unnamed congressional officials reportedly noted that they
would keep an “open mind” on any GCV changes, especially those changes intended to reduce
costs or requirements, but cautioned that “too many changes could put the program in
jeopardy.”49
The Army reportedly predicts that due to automatic sequester cuts and a continuing resolution, the
Army would likely continue to “trade away” requirements in order to keep the GCV program
alive.50 In order to keep the GCV program affordable, it was suggested protection requirements
for the vehicle might be lowered and protection instead achieved with specialized, add-on armor
kits, much like what is being planned for the Joint Light Tactical Vehicle (JLTV).51 The Army
supposedly might also opt for a man-accessible turret in lieu of a remote-controlled version and
plans for an Active Protection System (APS) might also be deferred.52 Given concern by some in
Congress about “too many changes” to the GCV, it is not known how receptive some Members
might be to possible trade-offs to achieve vehicle affordability goals. As capabilities are traded-
off or modified to keep vehicle costs down, the Army runs the risk of “dumbing down” the GCV
46 Information in this section is taken from Tony Bertuca, “Army Mulls Options in Ground Combat Vehicle Active
Protection Systems,” InsideDefense.com, November 16, 2012.
47 Information in this section is taken from Tony Bertuca, “Massive GCV Cuts on the Table as Army Reviews
Program,” InsideDefense.com, December 5, 2012.
48 Ibid.
49 Ibid.
50 Tony Bertuca, “Army Acquisition Official Predicts More Trades in Ground Combat Vehicle,” InsideDefense.com,
March 8, 2013.
51 For additional information on the JLTV see CRS Report RS22942, Joint Light Tactical Vehicle (JLTV): Background
and Issues for Congress, by Andrew Feickert.
52 Ibid.
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to the point where its capabilities are not that much different than the Bradley-series of infantry
fighting vehicles currently in service, thereby calling into question the need for the GCV.
DOD Initiates Major GCV Program Changes53
On January 16, 2013 the Under Secretary of Defense for Acquisition, Technology, and Logistics
(USD AT&L) Frank Kendall issued an Acquisition Decision Memorandum and an accompanying
information memorandum detailing major changes to the GCV program to “enable a more
affordable and executable program.” These changes include the following:
• The Technology Demonstration (TD) phase is extended for six months to enable
contractors the ability to modify their designs in support of the requirement
modifications to the Capability Development Document (CDD). While the
contracts for the original 24 month TD were firm fixed price, the parallel work
during this phase from the Analysis of Alternatives, Non Developmental Item
(NDI) evaluations, and trade space evaluations with the contractors have
provided opportunities to modify the requirements for a more affordable and
executable GCV design. The additional six months in TD enables the contractors
to complete preliminary designs that represent what we really want to produce.
• The Engineering and Manufacturing Development (EMD) plan is to award both
EMD and production options to a single vendor. This single change saves the
Department nearly $ 2.5 B in RDT&E resources. Milestone B will remain as a
full and open competition for the EMD phase of the GCV Infantry Fighting
Vehicle Program and allows other vendors (including non U.S. NDI product
based vendors) to propose modified NDI vehicles.
• In support of full and open competition resulting in a single award for EMD, the
Army’s previously planned procurement of long lead materials for test rigs and
production prototypes is not authorized at this time. This decision eliminates
spending scarce resources on incomplete designs and is consistent with our full
and open competitive intent.
• Lastly, in support of the schedule risk associated with the integration during
EMD and the six month TD extension, I have directed Milestone C to move from
FY18 to FY19 and the associated re-phasing of procurement dollars. I will drive
this program to hold this schedule to the maximum extent possible; this shift is
both more affordable and executable.
• All of these changes, when supported with the approval of the requirements
changes for the CDD under review, will save a total of $4+ Billion over the
FYDP [Future Year Defense Plan – FY2014-FY2019].54
53 Unless otherwise noted, information in this section is taken from Frank Kendall, Under Secretary of Defense for
Acquisition, Technology, and Logistics (AT&L), Ground Combat Vehicle Infantry Fighting Vehicle Acquisition
Decision Memorandum and Information Memorandum: Ground Combat Vehicle Program both issued on January 16,
2013.
54 Quoted directly from USD (AT&L) Information Memorandum: Ground Combat Vehicle Program, January 16, 2013.
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The major changes include extended the current TD phase by six months, permitting only a single
contractor to proceed to the GCV’s EMD phase and postponing the program’s Milestone C
production decision until FY2019, almost a year longer than the previously-planned early
FY2018 Milestone C decision. There have been concerns expressed by some that designating
only one EMD contractor will eliminate cost savings from competition and extending the TD
phase by six months and the Milestone C decision by up to a year will add cost to the program.55
FY2013 Legislative Activity
January 26, 2012, Administration Major Budget Decision Briefing56
On January 26, 2012, senior DOD leadership unveiled a new defense strategy, based on a review
of the current defense strategy and budgetary constraints. This new strategy envisions, among
other things,
• a smaller, leaner military that is agile, flexible, rapidly-deployable, and
technologically-advanced; and
• rebalancing global posture and presence, emphasizing where potential problems
are likely to arise, to Asia-Pacific and the Middle East.
As part of these major strategy and budgetary decisions, the GCV program was restructured, due
largely to program delays resulting from the SAIC-Boeing protest. This restructuring was
essentially moving the overall GCV program timeline out one year to reflect developmental time
lost due to the SAIC-Boeing protest adjudication process. This restructuring, in addition to an
overall program delay of one year, also reflects a $1.7 billion cut to the program over a five-year
period.57 It is suggested that the loss of these funds would not have a significant impact on the
GCV program, as these funds could not be used because of the protest delay and these funds
would be requested at a later date.58
FY2013 GCV Budget Request and Program Changes
The FY2013 Budget Request for the GCV was $639.874 million for Research, Development, Test
and Evaluation (RDT&E).59 This request reflected the aforementioned one-year delay and $1.7
55 Tony Bertuca, “Pentagon Affirms Major GCV Program Changes for Billions in Savings,” InsideDefense.com,
January 17, 2013 and Ann Roosevelt, “Fiscal Pressures to Stretch Army GCV Technology Development by Six
Months,” Defense Daily, January 18, 2013.
56 Information in this section is taken from U.S. Department of Defense News Transcript, “Major Budget Decisions
Briefing from the Pentagon,” presented by Secretary of Defense Leon E. Panetta and Chairman of the Joints Chiefs of
Staff General Martin E. Dempsey, January 26, 2012; U.S. Department of Defense News Transcript, “Major Budget
Decisions Briefing from the Pentagon,” presented by Deputy Secretary of Defense Ashton B. Carter and Vice
Chairman of the Joint Chiefs of Staff Admiral James A. Winnefeld Jr., January 26, 2012; and U.S. Department of
Defense Publication, Sustaining U.S. Global Leadership: Priorities for 21st Century Defense, January 2012.
57 Transcripts, Army Chief of Staff General Raymond Odierno briefing “Budget Impact to the Army,” January 27.
2012.
58 Tony Bertuca,“Odierno Says Bid Protest Delay Cost GCV One Year and $1.7 Billion,” InsideDefense.com, January
27, 2012.
59 The Army Budget Request - Fiscal Year 2013, Justification Book Volume 5B, Research, Development, Test and
(continued...)
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billion program cut. Based on the one-year delay, the Army adjusted the GCVs program schedule
as follows:
• Due to the protest, the 24-month Technology Development Phase began
December 6, 2011.
• Following Milestone B planned for the first quarter FY2014, the Army plans to
award two competitively selected 48-month contracts for the Engineering and
Manufacturing Development (EMD) phase.
• During EMD, each contractor will continue to refine designs and deliver
prototypes to support engineering development, risk mitigation, and technical
and operational tests.
• Milestone C is planned for first quarter, FY2018, and will immediately be
followed by the award of a Low Rate Initial Production (LRIP) contract to a
single contractor.60
FY2013 National Defense Authorization Act (NDAA) (H.R. 4310)
The FY2013 NDAA fully funds the Administration’s FY2013 GCV Budget Request.61
Enactment of Sequestration and a Continuing Resolution
for FY2013
The Budget Control Act of 2011 (P.L. 112-25) required Congress to establish discretionary
spending limits for FY2012-FY2021. Congress did not meet its January 15, 2012 deadline to do
so and automatic spending cuts were triggered. On March 1, 2013, President Obama signed the
sequestration order. On March 26, 2013, H.R. 933, the Consolidated and Further Appropriations
Act, 2013, was signed into law (P.L. 113-6) providing funding through the end of FY2013. GCV
funding for FY2013 is expected to be at the FY2013 Budget Request level but subject to an
unspecified percentage of reduction based on the sequester.
FY2014 Legislative Activity
FY2014 Budget Request62
The FY2014 Budget Request for the GCV was $592.2 million for Research, Development, Test
and Evaluation (RDT&E).
(...continued)
Evaluation, Army, February 2012, p. 869.
60 Ibid., p. 870.
61 Senate Armed Services Committee Completes Conference of National Defense Authorization Act for Fiscal Year
2013, December 18, 2012.
62Assistant Secretary of the Army (Financial Manager and Comptroller), U.S. Army FY 2014 President’s Budget
Highlights, April 2013.
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FY2014 National Defense Authorization Act (H.R. 1960)63
The House Armed Services Committee Chairman’s mark of H.R. 1960 recommended fully
funding the FY2014 GCV budget request (p. 343 under program element [PE] 0605625A,
Manned Ground Vehicle).
Report of the House Armed Services Committee, FY2014 National
Defense Authorization Act, (Rpt.113-102)64
The House Armed Services Committee included GCV-related provisions in the FY2014 National
Defense Authorization Act.
Research, Development, Test, and Evaluation, Army
Items of Special Interest
Active Protection System Research and Development65
The committee notes that as a result of the removal of a requirement for an active protection
system (APS) on the Army’s Ground Combat Vehicle that the budget request included no funding
for APS research and development. The committee is concerned that this lack of investment may
soon create a critical capability gap for Army combat vehicles due to the rapid proliferation of
advanced anti-tank guided missiles and next-generation rocket propelled grenades.
The committee notes that there are numerous types of APS available, including some that have
already been fielded on operational vehicles in other countries. Therefore, the committee
encourages the Army to establish and fund a program to conduct APS research and development
starting in the fiscal year 2015 budget request.
Third-Generation Forward-Looking Infrared Sensors66
The committee notes that second-generation forward-looking infrared (FLIR) sensors currently
deployed across the Army are a critical capability that provides U.S. forces significant advantages
in combat. However, the committee understands that countermeasures continue to evolve that
could degrade and potentially overmatch second generation FLIR capabilities. In addition,
second-generation FLIR technology is now 20-years old and is at risk of becoming obsolete. The
committee believes the Army must continue to invest in third-generation FLIR development and
fielding, and that doing so requires the sustainability of the U.S. FLIR industrial base to meet the
Army’s next generation FLIR requirements.
63 FY2014 National Defense Authorization Act, H.R. 1960, Chairman’s Mark, June 5, 2013, http://docs.house.gov/
meetings/AS/AS00/20130605/100884/BILLS-113HR1960ih.pdf.
64 Information in this section is taken from Report of the House Armed Services Committee, FY2014 National Defense
Authorization Act, (Rpt.113-102), June 7, 2013.
65 Ibid., pp. 43-44.
66 Ibid., p. 54.
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Therefore, the committee directs the Secretary of the Army to submit a report to the congressional
defense committees by February 15, 2014, that outlines the state of FLIR technology and
requirements for ground systems including, but not limited to, the Ground Combat Vehicle
program. The report should also include the Army’s specific annual investment strategy to sustain
the U.S. FLIR industrial base and to develop and produce third generation FLIR sensors.
Subtitle B—Program Requirements, Restrictions, and Limitations
Section 211—Limitation on Availability of Funds for Ground Combat Vehicle
Engineering and Manufacturing Phase67
This section would prohibit the Army from obligating post-Milestone B funds for the Ground
Combat Vehicle (GCV) program until the Secretary of the Army submits a report to the
congressional defense committees.
The committee supports the Army’s need to modernize its ground forces equipment. The GCV is
one of the Army’s top priorities and will eventually replace the Bradley Fighting Vehicle. The
committee expects the Army to execute an acquisition strategy that meets the needs of the
warfighter and minimizes the risk to the government. The Army’s recent acquisition strategy is to
down select to one contractor at the beginning of the Engineering, Manufacturing, and
Development (EMD) phase instead of funding two contractors until the end of the EMD. The
committee notes that officials from the Government Accountability Office have testified before
the committee on numerous occasions that weapon system programs that enter EMD too early
without enough ‘‘knowledge’’ can pose a significant risk to the government. ‘‘Knowledge’’ is
defined as the combination of technology maturity, a thorough understand of requirements, and
realistic cost estimates. The committee expects the Army to ensure that it has enough
‘‘knowledge’’ before it down selects to one contractor in order to minimize the cost, schedule, and
performance risk to the government and the taxpayer.
Department of Defense Appropriations Bill, 201468
The House Appropriations Committee recommended fully funding the FY2014 GCV budget
request.69
67 Ibid., p. 104.
68 Information in this section is taken from Report 113-xxx, Department of Defense Appropriations Bill, 2014, Report
of the Committee of Appropriations, June 7, 2013.
69 Ibid., p. 5.
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Congressional Budget Office (CBO) Report on
GCV Alternatives70
On April 2, 2013, CBO released a report titled “The Army’s Ground Combat Vehicle Program
and Alternatives.” This report was prepared at the request of the former Chairman and former
Ranking Member of the Tactical Air and Land Forces Subcommittee of the House Armed
Services Committee and compares the Army’s plan for the GCV with four alternatives that the
Army could choose to pursue instead.
CBO estimated the GCV program would cost $29 billion (in FY2013 dollars) over the 2014-2030
period. CBO noted none of its four recommended alternatives meets all of the Army’s GCV
requirements but all are likely to be less costly and less risky (in terms of unanticipated cost
increases and program delays) than the GCV program. The four alternatives CBO examined
were:
1. purchase the Israeli Namer Armored Personnel Carrier (APC);
2. upgrade the Bradley Infantry Fighting Vehicle (IFV);
3. purchase the German Puma IFV; and
4. cancel the GCV and Recondition Bradley IFVs.
CBO estimated its four alternatives would cost:
Table 1. Estimated Cost of CBO GCV Alternatives
Total Cost (2014-2030)
CBO Alternatives
Billions of 2013 dollars
Current GCV Program
28.8
1. Purchase Israeli Namer APC
19.5
2. Upgrade Bradley IFV
19.5
3. Purchase German Puma IFV
14.5
4. Recondition Current Bradley IFVs
4.6
Source: Congressional Budget Office, “The Army’s Ground Combat Vehicle Program and Alternatives,” April
2013.
Based on two sets of metrics—the first being improvements in protection of soldiers and
survivability of the vehicle in combat; lethality; mobility; and capacity and the second set being
weighted toward vehicles that could carry an entire nine-soldier squad—CBO recommended that
Alternative 3: the Puma would be the most capable vehicle and both the Puma and the upgraded
Bradley (Alternative 2) would be significantly more capable than the GCV. CBO’s study notes,
however, if the Army opted to acquire the Puma, it would need to buy five Pumas for every four
of its currently Bradley IFVs due to the Puma’s six-man seating capability. CBO also suggested
70 Information in this section, unless otherwise noted, is taken from Congressional Budget Office, “The Army’s
Ground Combat Vehicle Program and Alternatives,” April 2013.
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the Army’s stated urgency to acquire the GCV is “undercut by the reality that the Army would be
unable to widely field it [GCV] until 2032.”71
Criticisms of the CBO Study72
General Dynamics and BAE, GCV Technology Develop (TD) phase developers, reportedly have
raised opposition to CBO’s report suggesting CBO evaluated vehicle requirements that have
changed since March 2011 and did not take into account significant program changes since then.
According to General Dynamics and BAE, their respective vehicle designs have evolved
significantly since early 2011, noting, for example, the current requirement for the GCV’s main
armament is a 30 mm gun whereas in the CBO study, they evaluated a 25 mm gun. Another
criticism levied against CBO’s report was CBO did not factor in other critical GCV requirements
such as the vehicle’s ability to accommodate current and future communications technologies, the
vehicle’s ability to incrementally accept improvements, and long-term sustainability.
CBO acknowledges in the report that data used in the analysis was provided by the Army in 2010
and it did not have current data available. It is not known why more up to date requirement data
was not available. The Army is not known to have said anything formally about the CBO report
or if efforts had been made to ensure CBO had access to the most current requirements and
capability data.
Potential Issues for Congress
The GCV and a Downsized Army
The GCV is intended to replace M-2 Bradley infantry fighting vehicles in the Army’s 16 Active
and 8 National Guard ABCTs. Under FY2013 strategic and budget plans, the Active Army will
downsize by 80,000 soldiers, but most defense analysts expect even deeper cuts in end strength.
In addition, DOD has stated the Army will cut at least eight Active BCTs from current force
structure and two European-based ABCTs would be eliminated from Army force structure (as part
of the eight BCT reduction).73
Many experts believe the Army will cut anywhere from 10 to 15 BCTs and a portion of these will
be ABCTs.74 In addition, it was reported former Chief of Staff of the Army, Chairman of the Joint
Chiefs of Staff General Martin Dempsey, suggested a number of remaining active ABCTs could
71 Tony Bertuca, “CBO: GCV Alternatives Safer, More Affordable, Less Risky,” InsideDefense.com, April 2, 2013.
72 Unless otherwise noted, information in this section is taken from Paul McLeary, “GCV Competitors Pan Critical
U.S. Government Report,” Defense News, April 8, 2013 and Tony Bertuca, “Army Contractors Come Out Swinging at
CBO Report Questioning GCV,” InsideDefense.com, April 5, 2013.
73 Information in this section is taken from U.S. Department of Defense News Transcript, “Major Budget Decisions
Briefing from the Pentagon,” presented by Secretary of Defense Leon E. Panetta and Chairman of the Joints Chiefs of
Staff General Martin E. Dempsey, January 26, 2012; U.S. Department of Defense News Transcript, “Major Budget
Decisions Briefing from the Pentagon,” presented by Deputy Secretary of Defense Ashton B. Carter and Vice
Chairman of the Joint Chiefs of Staff Admiral James A. Winnefeld Jr., January 26, 2012; and U.S. Department of
Defense Publication, Sustaining U.S. Global Leadership: Priorities for 21st Century Defense, January 2012.
74 Michael Hoffman, “U.S. Army May Cut 22 Percent of Brigades,” Defense News, October 24, 2011, and Michael
Hoffman, “In U.S., Guard Battles Active Duty for Missions,” Defense News, December 12, 2011.
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be moved into the Army National Guard.75 This suggests there could be less emphasis placed on
ABCTs in the future, which could serve to lessen the overall requirement for GCVs, and the
Army might not need all of the GCVs it currently plans to acquire.
Aside from the potential for fewer BCTs, some are also questioning the role ground forces, and,
by default, the GCV will play in the future.76 The Administration’s January 2102 decision that the
United States will shift strategic emphasis to the Asia-Pacific Region has led some to suggest that
under this strategy, it would be highly unlikely that the United States would ever deploy
significant numbers of U.S. ground forces in this region. This change in emphasis has led to some
analysts calling for fewer ground forces so air and naval forces can be increased to deal with
potential future threats in Asia and the Pacific. Army leadership, however, has stated they expect
few reductions to Army units stationed in the Pacific region.77
In light of questions about the number of ABCTs the Army intends to field and the role of heavy
ground forces in the future U.S. strategic construct, Congress might decide to require the Army to
re-evaluate the GCV program in terms of numbers of vehicles required and the utility of ABCTs
in the new Asia-Pacific strategic plan.
DOD’s Major Changes to the GCV Program and Overall Program
Cost
While DOD’s January 16, 2013, decision to change various aspects of the GCV program could
result in over $4 billion in savings from FY2014 to FY2019, there are other cost-related issues
that Congress might wish to consider. While there might be a $4 billion-plus cost savings from
FY2014 to FY2019, will extending the TD phase by six months and delaying the Milestone C
decision by up to a year add additional post-FY2019 program costs? Furthermore, will going
from two to one competitors during the EMD phase (even though the Acquisition Decision
Memorandum would permit other vendors from proposing non-U.S. NDI GCV versions)
eliminate cost savings associated with competition between vendors?
Another potential factor in overall program costs is if the Army decides to procure less than 1,874
GCV infantry variants due to likely ABCT force structure cuts. From a historical perspective, it
was noted in 1981 by the Congressional Budget Office (CBO):
A second factor in weapons cost growth is inefficient purchasing or “stretching out” of
particular weapon systems. Generally this results from a budget squeeze due in part to an
underestimation of inflation. Budget constraints, when combined with an unwillingness to
cancel a program or the desire to stretch it out to accommodate other systems, can result in
substantial cost growth. An example of this can be seen in recent Administration budget
proposals. The 1982 budget submitted in March proposed to buy 60 A-10 aircraft for $9.1
75 Michael Hoffman, “In U.S., Guard Battles Active Duty for Missions,” Defense News, December 12, 2011.
76 Information in this section is taken from David W. Barno, Nora Bensahel, and Travis Sharp, “Hard Choices for
Ground Forces,” Defense News, October 17, 2011, and Sebastian Sprenger, “Army Faces Renewed Questions Over
GCV Amid Strategy Review,” InsideDefense.com, November 11, 2011.
77 William Cole, “Army Won’t Shrink Force Level in Pacific Region, General Says,” Honolulu Star-Advertiser,
January 18, 2012; Phil Stewart, “U.S. Army Chief at Ease with Smaller Force, Eyes Asia,” Reuters.com, January 25,
2012; and Daniel Wasserbly, “U.S. Army Chief Says Ground Forces Will Play Vital-Role in Asia-Pacific Strategy,”
Jane’s Defence Weekly, February 1, 2012.
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million each. The October revision proposes to buy 20 A-10s for $13.4 million each—a 47
percent increase in the cost of each aircraft due primarily to the less efficient buy size. Other
examples of higher costs resulting from slipping the scheduled delivery of weapon systems
or stretching out programs can be seen in the December 1980 SAR [Selected Acquisition
Report], which showed increased program costs of $673 million (14 percent) for the AH-64
helicopter, $856 million (21 percent) for the DIVAD gun, $907 million (4 percent) for the
F/A-18 aircraft, and $1,063 million (8 percent) for the F-16 fighter aircraft—all of them due
to schedule changes.78
In this regard, Congress might wish to examine if procuring fewer than 1,874 GCVs constitutes a
“less efficient buy size” and a resultant per unit cost increase, which, combined with “stretching
out”of the GCV program could result in overall increased program costs.
Current GCV Data and CBO’s GCV Alternatives Study
Given claims by some that CBO’s GCV Alternatives Study does not reflect current GCV
requirements and newly developed capabilities, as well as CBO’s acknowledgement it only had
access to 2010 information provided by the Army, Congress might opt to explore the possibility
that CBO could revise its study using current data provided by the Army. Such a revision, in
addition to providing a more up-to-date analysis, might also serve the purpose of showing how
the GCV development has progressed, relative to the other vehicles studied, since 2010.
Author Contact Information
Andrew Feickert
Specialist in Military Ground Forces
afeickert@crs.loc.gov, 7-7673
78 Statement of Patrick L. Renehan, Chief, Defense Cost Estimate Unit, Congressional Budget Office before the Special
Panel on Defense Procurement Procedures, House Armed Services Committee, October 22, 1981.
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