Issues Facing the Army's Future Combat Systems Program
Gao ID: GAO-03-1010R August 13, 2003
Under its transformation efforts, the Army plans to change the way it organizes, trains, deploys, and equips its forces. It expects the future force to be organized around brigade-size units that perform virtually all Army combat functions. The Army wants to fully equip these units with the Future Combat Systems (FCS), a family of 18 networked, warfighting systems which are intended to be more lethal, survivable, deployable, and sustainable than existing heavy combat systems. In order to deploy faster, the FCS vehicles are expected to be a fraction of the weight of existing heavy armored fighting vehicles. The Army believes that nontraditional fighting tactics coupled with an extensive information network will compensate for the loss of size and armor mass by utilizing information superiority and synchronized operations to see, engage, and destroy the enemy before the enemy detects the future forces. The Army has allocated about $22 billion for the FCS program during fiscal years 2004 through 2009 and several billions more for non-FCS programs that the FCS will need to become fully capable. In addition, the Army recently implemented FCS schedule changes, which added about 2 years to the system development and demonstration (SDD) phase.
The FCS program has several progressive features, but also faces a number of challenges. The FCS concept shows that the Army leadership is thinking innovatively to arrive at the best ways to prepare for future Army operations. For example, Army leaders decided to include interoperability with other systems in the FCS design and design the individual FCS systems to work as part of a networked system-of-systems. These features represent an improvement over the past approach of developing individual systems first and then attempting to integrate them later, an approach that could lead to schedule and cost growth. The system-of-systems approach also allows program managers more flexibility to make trade-offs among the individual systems. Collectively, the system-of-systems could still provide an effective combat capability even if some of the individual system capabilities are lost or degraded. In addition, the Army has adopted best practice tools to measure the progress of technology development. For example, it is employing technology readiness levels to measure the maturity of technologies being considered for FCS components. The acquisition strategy for the FCS is aggressive, particularly in light of the program's vast scope. The SDD phase began with more risk present than recommended by best practices or Department of Defense (DOD) guidance. For example, many critical technologies were significantly immature and will require further development at the same time as product development is conducted. This concurrent development increases the risk of cost growth and schedule delays. Since FCS will dominate the Army's investment accounts over the next decade, any cost growth and schedule delays could affect the entire Army. Even with the recent extension of SDD by about 2 years, the FCS strategy calls for developing multiple systems and a network in less time than DOD typically needs to develop a single advanced system. In addition, a favorable decision to begin SDD on a system-of-systems like FCS poses challenges for the acquisition process such as defining and evaluating requirements, analyzing alternatives, estimating and tracking costs, conducting test and evaluation, and conducting oversight.
GAO-03-1010R, Issues Facing the Army's Future Combat Systems Program
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August 13, 2003:
The Honorable Curt Weldon:
Chairman:
The Honorable Neil Abercrombie:
Ranking Minority Member:
Subcommittee on Tactical Air and Land Forces:
Committee on Armed Services:
House of Representatives:
Subject: Issues Facing the Army's Future Combat Systems Program:
In October 1999, the Army announced plans to transform into a more
strategically responsive force that could more rapidly deploy and
effectively operate in all types of military operations, whether small-
scale contingencies or major theater wars. The Future Combat Systems
(FCS) program is to provide the suite of weaponry and other equipment
for the transformed force. The Army plans to develop a family of 18
systems under the FCS program. Because of its size, the FCS program
will dominate the Army's investment accounts over the next decade.
In July 2002, we began to review the FCS program as the program was
approaching a decision on whether to start the system development and
demonstration (SDD) phase--referred to as the milestone B decision. On
April 10, 2003, we briefed staff of the House Committee on Armed
Services on our work and provided a copy of the briefing to the staff
of the Senate Armed Services Committee. We also briefed Army and DOD
officials associated with the FCS program. The objectives of the
briefing were to provide (1) an understanding of the content, approach,
and schedule of the FCS program; (2) observations on both the positive
and challenging features of the program; and (3) different approaches
to proceeding with FCS that warrant consideration. The enclosure
contains the briefing slides.
On May 17, 2003, the Under Secretary of Defense (Acquisition,
Technology, and Logistics) approved the Army's request to begin the SDD
phase for the FCS program. He directed the Army to perform a full
milestone B update in November 2004 to obtain authority to continue SDD
and to authorize prototype production. He also listed 14 actions items
to be completed prior to the milestone update.
We believe the issues raised in our briefing remain relevant as the FCS
program begins the SDD phase. Because of your committees' interest in
the FCS program, we are enclosing the full briefing with this report
and summarizing it in the following paragraphs.
Background:
Under its transformation efforts, the Army plans to change the way it
organizes, trains, deploys, and equips its forces. It expects the
future force to be organized around brigade-size units that perform
virtually all Army combat functions.[Footnote 1] The Army wants to
fully equip these units with FCS, a family of 18 networked, war-
fighting systems which are intended to be more lethal, survivable,
deployable, and sustainable than existing heavy combat systems. In
order to deploy faster, the FCS vehicles are expected to be a fraction
of the weight of existing heavy armored fighting vehicles. The Army
believes that nontraditional fighting tactics coupled with an extensive
information network will compensate for the loss of size and armor mass
by utilizing information superiority and synchronized operations to
see, engage, and destroy the enemy before the enemy detects the future
forces.
The Army has allocated about $22 billion for the FCS program during
fiscal years 2004 through 2009 and several billions more for non-FCS
programs that the FCS will need to become fully capable. In addition,
the Army recently implemented FCS schedule changes, which added about 2
years to the SDD phase.
Features and Challenges of the FCS Concept:
The FCS program has several progressive features, but also faces a
number of challenges. The FCS concept shows that the Army leadership is
thinking innovatively to arrive at the best ways to prepare for future
Army operations. For example, Army leaders decided to include
interoperability with other systems in the FCS design and design the
individual FCS systems to work as part of a networked system-of-
systems. These features represent an improvement over the past approach
of developing individual systems first and then attempting to integrate
them later, an approach that could lead to schedule and cost growth.
The system-of-systems approach also allows program managers more
flexibility to make trade-offs among the individual systems.
Collectively, the system-of-systems could still provide an effective
combat capability even if some of the individual system capabilities
are lost or degraded. In addition, the Army has adopted best practice
tools to measure the progress of technology development. For example,
it is employing technology readiness levels to measure the maturity of
technologies being considered for FCS components.
The acquisition strategy for the FCS is aggressive, particularly in
light of the program's vast scope. The SDD phase began with more risk
present than recommended by best practices or DOD guidance. For
example, many critical technologies were significantly immature and
will require further development at the same time as product
development is conducted. This concurrent development increases the
risk of cost growth and schedule delays. Since FCS will dominate the
Army's investment accounts over the next decade, any cost growth and
schedule delays could affect the entire Army.
Even with the recent extension of SDD by about 2 years, the FCS
strategy calls for developing multiple systems and a network in less
time than DOD typically needs to develop a single advanced system. In
addition, a favorable decision to begin SDD on a system-of-systems like
FCS poses challenges for the acquisition process such as defining and
evaluating requirements, analyzing alternatives, estimating and
tracking costs, conducting test and evaluation, and conducting
oversight.
Options for Proceeding with FCS:
In our briefing, we noted that while proceeding with FCS as planned
posed significant challenges, doing nothing would not allow the Army to
meet its transformation objectives. Moreover, if each of the 18 FCS
systems and the network were managed as traditional, individual
programs, it could weaken the architecture and would amount to
controlled evolution versus transformation.
We offered three options for proceeding with FCS at lower risk. Each
option involves trade-offs or consequences, as indicated below.
Proposed Action: Further mature key technologies before entering SDD;
Potential Consequences: Reduces risk and increases knowledge but could
delay system integration and fielding.
Proposed Action: Use advanced technology demonstrations to mature key
technologies; Potential Consequences: Accelerates development of least
mature and most complex technologies but could delay fielding.
Proposed Action: Approve FCS architecture while implementing a
knowledge-based approach for incorporating individual systems into
SDD; Potential Consequences: Provides a better fit with the
acquisition process and more opportunity to change course if planned
progress is not made. Could increase the difficulty of maintaining the
integrity of the system of systems and reduce flexibility to make
decisions across system lines.
[End of table]
Agency Comments:
In early April 2003, we discussed a draft of the briefing at length
with Army and DOD officials and revised the briefing as appropriate. We
recently provided a draft of this letter and enclosed briefing to DOD
for review and comment. In official oral comments, DOD officials stated
that there were no objections to the content of the letter and
briefing.
Scope and Methodology:
We focused our assessment on the Army's strategy for developing and
acquiring FCS and compared it with knowledge-based acquisition
principles. Specifically, we examined (1) the technologies the Army has
proposed for FCS and (2) the challenges associated with developing a
complex system-of-systems. We reviewed relevant program documents and
interviewed key officials to understand the FCS concept and determine
the Army's strategy for developing and acquiring FCS. We met with
officials from the research and development commands to identify key
technologies the Army is considering for use in FCS.[Footnote 2] We
conducted our work from July 2002 to June 2003 in accordance with
generally accepted government auditing standards.
We plan to provide copies of this report to the Senate Armed Services
Committee; the Senate Committee on Appropriations, Subcommittee on
Defense; and the House Committee on Appropriations, Subcommittee on
Defense. We also will provide copies to the Director, Office of
Management and Budget; the Secretary of Defense; and the Secretary of
the Army. We will make copies available to others upon request.
If you or your staff have any questions concerning this report, please
contact me on (202) 512-2811; or Bill Graveline, Assistant Director, on
(256) 922-7514. Major contributors to this correspondence are John
David Anderson, Marcus Ferguson, Lawrence Gaston, Thomas Gordon, and
William Lipscomb.
Paul L. Francis:
Director, Acquisition and Sourcing Management:
Signed by Paul L. Francis:
Enclosure:
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FOOTNOTES
[1] According to Army planning documents, Special Forces, Rangers, and
airborne forces are the only combat formations that will continue to
perform their current missions and not be replaced in the future force.
[2] On April 28, 2003, the Institute for Defense Analysis issued a
draft report of the Independent Assessment Panel for Future Combat
Systems, called the Welch Report. We could not include information from
that report in our briefing of April 10, 2003. The report, however, is
being considered in our ongoing work regarding FCS.