Army Procurement of 10kw, 60Hz Gas Turbine Generators Is Becoming Even More Questionable Due to Rising Fuel Costs

A previous report on the Army's intended procurement of the 10-kilowatt (KW), 60-hertz (Hz) gas turbine generator disclosed that it did not meet the Army's requirements. The generator's reliability was too low, fuel consumption was too high, and life-cycle costs were excessive. The Department of Defense subsequently stated that it would consider all pertinent factors before making a decision at the development and acceptance review. Since the Army still has not decided whether to buy gas turbines or diesels, this serves as an update of information covered in the previous report.

The life-cycle costs of the 10kw, 60Hz gas turbine generator have increased greatly since the original report. At that time the estimated savings of buying the diesel generators was between $275 million and $1.6 million. The increases in fuel cost since then have also greatly increased the estimated savings. Assuming $3 a gallon for fuel cost during the next 20 years, savings could increase to between $533 million and $4.2 billion.

Recommendations

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