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.



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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: [See PDF for image] [End of figure] (120258): 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.

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