Special (GCV) Daily News Summary
19 August 2011
General Dynamics, BAE Teams Win Contracts As DoD Approves Army GCV Plan - Teams led by General Dynamics [GD] and BAE Systems were selected over a SAIC [SAI] team in winning contracts from the Army for the Technology Development phase of the Ground Combat Vehicle (GCV) Infantry Fighting Vehicle (IFV) program, hours after the top Defense Department acquisition official reviewed and certified the program.
Signed Aug. 17 by Ashton Carter, under Secretary of Defense for Acquisition, Technology and Logistics, the acquisition decision memorandum (ADM) approves Milestone A for the infantry fighting vehicle variant, the Technology Development Strategy, and found a fixed-price incentive fee type contract is appropriate for this program phase.
The General Dynamics team won a $439.7 million contract. The team includes Lockheed Martin [LMT], Raytheon [RTN] and Tognum America Inc.
The BAE team, including Northrop Grumman [NOC], won a $449.9 million contract for the TD phase.
The teams had all submitted proposals to the initial GCV IFV request for proposals in 2010 that was canceled and reworked to incorporate efficiencies aimed at ‘better buying power’ championed by Carter and DoD leaders (Defense Daily, Oct. 6, 2010.
To achieve delivery of a first production vehicle in seven years that is “affordable, effective and suitable,” Carter writes in the ADM, the Army must resource and execute a three pronged effort in the initial technology demonstration phase.
Carter expects the GCV program manager to oversee this trident approach that includes a GCV infantry fighting vehicle Analysis of Alternatives (AoA) Dynamic Update, a separate assessment of selected non-developmental vehicles and the third point, overseeing technology development strategy contractor efforts.
In March the Army delivered an AoA report to the congressional armed services committees that examined a variety of alternative vehicles to the GCV, to include the baseline Bradley M2A3 IFV, an upgraded version of the current Bradley M2A3, Army Tank Automotive Research, Development and Engineering Center (TARDEC) GCV IFV design concepts, modernized Stryker vehicle, Mine Resistant Ambush Protected (MRAP) variants and two unnamed foreign non-developmental systems, referred to as Vehicles X and Y (Defense Daily, April 14).
For further approval from DoD acquisition officials, affordability and schedule targets must be met. One target is an average procurement cost of “less than or equal to $13 million” in fiscal year 2011 constant dollars. That’s an increase from the initial affordability targets of $9 million to $10.5 million per vehicle for the average unit manufacturing cost (Defense Daily, Dec. 1, 2010).
Another target is a combined cost of replenishment spares and repair parts less than or equal to $200 per mile in the same FY ’11 constant dollars, the same figure as in the revised RFP.
A third target is to stick to the Army’s initial plan for a program that runs seven years from the technology development contract award to the first production vehicle.
Carter must be notified immediately if the projected cost of the program exceeds the cost estimate from the initial review by at least 10 percent or if there will be a schedule lag of six months. Both metrics are more stringent than the legal review certification requirements.
The ADM, addressed to the Army Secretary as well as the Director of Cost Assessment and Program Evaluation (D CAPE) lists a series of action items, to include assessments of progress and concerns for the three pronged effort in January, July and December 2012.
Additionally, by Sept. 9, D CAPE is to provide the AoA Dynamic Update guidance, and by Oct. 7, the Army must have an approAved AoA plan to satisfy the Dynamic Update guidance. CAPE will provide quarterly reports on progress and concerns for analysis.
The Army by Sept 23, must submit for Carter’s approval its written plan for the separate Assessment of Selected Non-developmental Vehicles, including how the service will pay for it. (Source: Defense Daily)
Army favors Southeast Michigan teams for combat vehicle contracts Army favors Southeast Michigan teams for combat vehicle contracts - Prime contractors in Michigan won big, and an out-of-state competitor is out of contention in new contract awards for early development work on the $18 billion-plus Ground Combat Vehicle program.
Project teams led by BAE Systems Inc., which houses its Heavy Brigade Combat Team and other Michigan vehicle contract programs in Sterling Heights, and by Sterling Heights-based General Dynamics Land Systems won awards of $450 million and $440 million respectively for the first phase of that program.
A third team — led by McLean, Va.-based Science Applications Inteneration Corp. and that also included The Boeing Co., Krauss-Maffei Wegmann and Rheinmetall — did not receive a contract award as many in the defense industry had expected.
The program calls for the U.S. Army Tacom Life Cycle Management Command to order more than 1,800 infantry fighting vehicles, at a unit cost between $9 million and $13 million each, to replace the aging fleet of Bradley fighting vehicles.
BAE had teamed up with Los Angeles-based Northrop Grumman Corp. in its bid for the vehicle program, one of the few surviving legacy programs of the U.S. Army’s former Future Combat Systems. GDLS had teamed up with Raytheon Co. and Bethesda, Md.-based Lockheed Martin Corp. on its bid.
The Army had said in recent months that up to three awards could be issued for the three bidding contract teams. Analysts have said if the Army selected only two winners, the losing team would likely file a protest before the U.S. Government Accountability Office.
In another unusual move, local defense sources said Pentagon acquisition chief Ashton Carter also called for a simultaneous review of alternatives in a memorandum earlier this week, in addition to approving awards for the Ground Combat Vehicle technology development phase. (Source: Crain’s Detroit Business)
BAE Systems--Northrop Grumman Team Selected for $449.9 Million Technology Development Contract for Ground Combat Vehicle Program - BAE Systems has been awarded a $449.9 million contract to participate in the technology development (TD) phase of the U.S. Army's Ground Combat Vehicle (GCV) program. BAE Systems is teamed with Northrop Grumman Corporation to offer a vehicle that provides exceptional growth and survivability at an affordable price.
The TD phase of the GCV program is a 24-month program directed at maturing the GCV proposal through the preliminary design review in anticipation of prototype builds during the engineering and manufacturing development phase of the program. The BAE Systems-Northrop Grumman team was one of two industry teams awarded TD contracts.
"Advancing to this next phase in the competition brings us one step closer to fielding a vehicle for our soldiers that is affordable, provides for maximum force protection and is built to accommodate future technological enhancements," said Mark Signorelli, vice president and general manager of Weapon Systems at BAE Systems. "We appreciate being selected by the U.S. Army and the Department of Defense to mature our GCV solution, a critical capability required to modernize our Army and provide soldiers with a decisive edge against any adversary. At BAE Systems, we take pride in protecting those who protect us and with our partners and teammates, are fully committed to the success of this program."
The BAE Systems-Northrop Grumman vehicle features an adaptive platform that will remain relevant for decades to come, bringing more survivability, mobility and versatility to the Army and with levels of protection scalable to the demands of a variety of missions.
"The BAE Systems-Northrop Grumman team has applied its expertise and lessons learned from a decade of warfare to design a network-ready, fully integrated vehicle with significantly increased capability, so U.S. forces can engage and prevail in full-spectrum operations today and in the future," said Joe G. Taylor, Jr., Northrop Grumman Information Systems' vice president for Ground Combat Systems.
The team's offering includes a hybrid electric drive propulsion system that enables exceptional force protection and mobility in a lower weight vehicle while provisioning for growth in power requirements as new technologies are matured and integrated into the platform. This technology allows for GCV to meet the demands of near term operations while providing a robust platform for future technology integration and growth at low risk and cost.
The BAE Systems-Northrop Grumman Ground Combat Vehicle team includes: QinetiQ, iRobot Corporation, MTU and Saft. As prime contractor, BAE Systems leads the overall program management, systems integration, vehicle design, structure and logistical support as well as readiness and sustainment of the platform. Northrop Grumman serves as the C4ISR lead. QinetiQ provides the key component of the hybrid electric drive propulsion system, the E-X-Drive(R). iRobot serves as the unmanned ground vehicle integrator and will enhance future autonomous operations. MTU provides the engine and power generation for GCV and Saft provides the battery and energy storage system.
Work under the technology development phase will be performed at BAE Systems and Northrop Grumman sites in Sterling Heights and Troy, Michigan; Santa Clara and Carson, California; York, Pennsylvania; Minneapolis, Minnesota; and Huntsville, Alabama. (Source: Market Watch)
BAE Systems and GD industry teams receive contracts for GCV development phase - The U.S. Army announced today the award of two contracts to BAE Systems Land and Armaments, L.P., Troy, Mich. ($449,964,969), and General Dynamics Land Systems, Inc., Sterling Heights, Mich. ($439,715,950), for the Ground Combat Vehicle (GCV) program technology development phase. These contractors have been selected to develop competitive, affordable and executable designs for a new Army Infantry Fighting Vehicle (IFV) over the next 24 months.
The contract awards follow the Department of Defense’s formal approval of the GCV program to enter the technology development phase. Approval of this first major milestone builds on months of ongoing collaboration between the Army and the Office of the Undersecretary of Defense (Acquisition, Technology and Logistics) to successfully develop, build and field an affordable, effective and suitable IFV.
“The Army enthusiastically welcomes the formal launch of the Ground Combat Vehicle program, which will provide much needed protection and mobility to soldiers in combat,” said Secretary of the Army John McHugh. “Given the economic environment the nation currently faces, the Army recognizes that it is imperative to continually address requirements as we build a versatile, yet affordable, next-generation infantry fighting vehicle.”
The department’s GCV acquisition strategy, which emphasizes affordability and a seven-year schedule, calls for aggressive exploration of GCV IFV capabilities trade-space via continued requirements and affordability analysis during the 24-month technology development phase. As the Army finalizes GCV requirements during this phase of the formal acquisition process, these efforts will enable the Army to realize program schedule and affordability objectives. The Army remains committed to a seven-year schedule as the appropriate amount of time necessary to design, develop, build and test the next-generation infantry fighting vehicle.
To develop a successful program with well-informed decision points at each major milestone, the Army will undertake a three-pronged approach during the first phase of this effort. First, contractors will work collaboratively with the Army to develop competitive, best-value engineering designs to meet critical Army needs. Concurrently, the Army will initiate an update to its GCV IFV analysis of alternatives and conduct separate technical and operational assessment of existing non-developmental vehicles. Results from this assessment, along with contractors design efforts, will inform GCV requirements to support the next program milestone and facilitate a full and open competition for the next phase of the GCV program.
“This is an important milestone in our Army's modernization program. GCV is the first combat vehicle designed from inception for an IED environment. It will provide armor protection and the capability to maneuver cross-country with the nine-man infantry squad." said Army Chief of Staff Gen. Martin E. Dempsey.
The Army’s overall strategy for developing GCV is consistent with efforts to implement acquisition reform and best acquisition practices. (Source: Defense Professionals)
BAE, General Dynamics in U.S. Army development deals - (BAE S.L) and General Dynamics Corp (GD.N) each won contracts on Thursday worth more than $439 million to develop technology for the first fleet of U.S. Army ground combat vehicles designed from scratch for battlefields characterized by roadside bombs.
An SAIC-led team that included Boeing Co(BA.N), Krauss-Maffei Wegmann and Rheinmetall was passed over.
BAE is partnered in its effort with Northrop Grumman Corp (NOC.N). General Dynamics is partnered with Lockheed Martin Corp (LMT.N) and Raytheon Co (RTN.N).
The rival teams are to "develop competitive, affordable and executable designs for a new Army Infantry Fighting Vehicle (IFV) over the next 24 months," the Defense Department said in a statement.
The Pentagon's top arms buyer, in a memo signed on Wednesday, approved the Army's technology development strategy and said that a fixed-price type contract with incentive fee was appropriate for this phase of the program.
BAE Systems Land and Armaments won a $450 million contract and General Dynamics Land Systems was awarded a $439.7 million deal for the same phase of the program, the Defense Department said in its daily contract digest.
The SAIC-led team was very disappointed by the outcome, said Melissa Koskovich, a SAIC spokeswoman. "Before we can evaluate where we go from here, we will ask the government for a complete debrief," she said.
Army Secretary John McHugh, citing the budget crunch facing the United States, said it was imperative to "continually address requirements as we build a versatile, yet affordable, next-generation infantry fighting vehicle."
The Army hopes to design, develop, build and test the new infantry fighting vehicle over the next seven years, the statement said.
The Army said it would update its "analysis of alternatives" for the vehicle and conduct separate technical and operational assessment of existing non-developmental vehicles.
Results from this assessment, along with contractors design efforts, will "facilitate a full and open competition for the next phase" of the program, the Army said.
The new ground combat vehicle will be the first designed from inception for battlefields characterized by roadside bombs, or improvised explosive devices, as the military calls them.
It will provide armor protection and the capability to maneuver cross-country with a nine-man infantry squad, Army Chief of Staff General Martin Dempsey said in the statement. (Source: Reuters)
U.S. GCV Moves Ahead, But More Studies Ordered - The U.S. Army has been given the go-ahead to award up to three $450 million contracts for its Ground Combat Vehicle (GCV) program - yet is also being asked to look at every conceivable way of avoiding a full-blown development effort.
In an Aug. 17 acquisition decision memorandum, Pentagon acquisition chief Ashton Carter gave the Army permission to award contracts for the program's technology-development phase, but also ordered up a simultaneous review of alternatives.
Marked "For Official Use Only," Carter's memo also reveals a new bit of pricing data: the average procurement unit cost of each GCV will be around $13 million. This compares to the previously stated cost target of $9 million to $10.5 million.
An Army spokesman said the $13 million figure includes spare parts.
Carter's memo directs the Army to conduct two reviews to see if there is anything else out there that could fill the Army's need for a new infantry fighting vehicle (IFV) without a brand-new development effort.
However, the memo also authorizes the Army to move ahead with its current brand-new development effort.
"The ability to successfully develop, build, and field a capable [infantry fighting vehicle] within the Department's cost and schedule constraints is strongly dependent on aggressive exploration of the capabilities trade-space and the full range of alternatives prior to finalizing requirements," Carter writes.
This means the Army will begin the at-least-$900 million technology-development phase, while redoing its analysis of alternatives and studying existing systems.
Bidders on the program are an SAIC-led team that includes Boeing, Krauss-Maffei Wegmann and Rheinmetall; a BAE Systems-Northrop Grumman-led effort; and a General Dynamics Land Systems-led group that includes Lockheed Martin and Raytheon.
The Army has said it will award up to three technology development contracts, capping them at $450 million per team.
The document also reveals that Army officials disagree with the Pentagon's Cost Assessment Program Evaluation (CAPE) office on how much it will cost to build, buy and sustain the vehicles, the document shows.
"I recognize and understand the significant difference between the Army and CAPE cost positions for the development, production, and sustainment of the GCV IFV; however, there will be learning and potential requirements trades prior to milestone B that may shape the rest of the GCV IFV program, enabling establishment of baseline performance, cost and schedule," Carter writes.
He says the Army's estimate should be used until the program reaches Milestone B, its next major decision point.
The Army plans to buy more than 1,800 GCVs to replace Bradley infantry fighting vehicles.
According to DoD budget documents, GCV research and development is expected to cost $7.6 billion between 2012 and 2017.
Carter says there "must be a well-informed milestone B" and to get there the Army has to do three things: start the technology development phase while at the same time conducting two different studies of alternatives.
He also wants there to be a "full and open competition for the engineering and manufacturing development phase," meaning industry teams that do not participate in the technology development phase have the chance to enter the competition down the road.
The Army's original plan was to down-select from the teams that win technology development contracts. Opening up the competition later in the program gives the Army the chance to go with something else if it decides to do so.
Two Reviews
Carter wants the Army to continue to explore alternatives at the same time it puts company teams on contract.
First, he wants the service to conduct a second analysis of alternatives, what Carter calls an "analysis of alternatives dynamic update."
In early 2010, the Army launched its first analysis of alternatives for the program, a standard practice for any new development effort.
However, in an unusual move, the Army issued a Request for Proposals at the same time it searched for alternatives.
Last August, the Army decided to cancel that request, citing flaws in the program's acquisition strategy. Months later, the Army issued a new request with revised requirements.
However, the Army did not conduct a new analysis of alternatives, despite the change in requirements. This was noted in the 2012 defense authorization bill passed by the House this spring.
In addition to this alternatives study, Carter wants the Army to take a closer look at "selected Non-development Vehicles," including different mixes of the Israeli Namer armored personnel carrier, the Stryker and the Bradley. This study should also look at different options for lethality subsystems, for example remote controlled weapon stations and unmanned turrets, Carter says.
In a June 30 reprogramming request, the Army asked for $45 million to get this study underway.
"This effort will address the performance evaluation of existing U.S. and non-U.S. vehicle technologies and components to obtain high fidelity data required to validate models and perform system integration sensitivity studies," the request, signed by Pentagon comptroller Robert Hale, said.
This info, combined with the data coming out of the contractors' efforts, will feed into the overall analysis of alternatives and inform the milestone B decision.
Carter says that both studies should also consider the use of operational energy, meaning how much fuel these vehicles consume.
Carter wants the Army to report back to him by Sept. 23, 2011 on both efforts. He wants to see plans for "making appropriate alternatives actionable."
To do this, the Pentagon's Cost Assessment Program Evaluation Office will issue study guidance by Sept. 9.
Several more updates and reviews are scheduled throughout the year and into 2012.
If the program's cost estimate grows by more than 10 percent or the schedule slips by more than six months, the Pentagon acquisition chief must be informed immediately.
The first production vehicle must be ready seven years after the technology development contracts are awarded, according to the document. (Source: Defense News)
Pentagon’s Carter Signs Off on Army’s Ground Combat Vehicles - Ashton Carter, the Pentagon’s top weapons buyer, has formally approved the Army’s plan to move ahead with development of a new class of armored vehicles.
Carter yesterday signed a notice authorizing the Army to begin the technology development phase of the Ground Combat Vehicle program, according to Cheryl Irwin, a Pentagon spokeswoman. The Army plans to buy as many as 1,874 vehicles to replace the fleet of Bradley infantry fighting vehicles.
The Army plans to pick three winners for the development phase of the program, with each contract worth as much as $450 million, for a total of $1.35 billion, and ultimately one for the production contract. The overall program may cost about $20 billion, assuming the Army’s vehicle cost target of up to $10.5 million per vehicle. (Source: Bloomberg)
General Dynamics, BAE Systems Nab GCV Contracts; Boeing-SAIC Team Comes Up Empty - The Pentagon announced that teams led by General Dynamics Land Systems and BAE Systems were awarded development contracts for the Ground Combat Vehicle program, while a U.S.-German team headed by Science Applications International Corp. and Boeing came up empty.
According to the announcement, GDLS and BAE Systems will split a total of almost $900 million the Army has programmed for the initial GCV program phase. Work is expected to be completed by late June 2013, the announcement states.
Defense acquisition chief Ashton Carter yesterday signed an acquisition decision memorandum for the program's development phase. The document's approval was the final step before contracts could be awarded. The ADM leaves the door open for companies to enter the program after the technology-development segment. (Source: Inside Defense)
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