Sunday, September 4, 2011

Jim Rogers' advice for the "End of America"

The Daily Crux
customerservice@stansberryresearch.com




Dear Daily Crux reader,

Of all the investment "gurus" featured in The Daily Crux, none is more popular or more respected than Jim Rogers.

Rogers is best known for co-founding the Quantum Fund with billionaire George Soros – which famously returned over 4,200% in just 10 years.

He’s also well-known for "calling" the huge bull markets in commodities.

Raised in rural Demopolis, Alabama, Rogers had his first job at age five. He went on to attend Yale and Oxford University before making a name for himself on Wall Street during the terrible bear market of the 1970s. He retired at age 37 to travel the world, and has since authored five fantastic books on investing and success.

Longtime readers are familiar with Jim's thoughts on commodities and the insane policies of our government, so this interview is a little different...

Like our colleague Porter Stansberry, Rogers believes the U.S. is headed for a serious crisis. We sat down with him to learn his advice for succeeding in the turmoil ahead.

You don't want to miss this one.

Justin Brill
Managing Editor, The Daily Crux
www.thedailycrux.com
––––––––––––––––––––––––––––––––––––––––––

The Daily Crux Sunday Interview
Jim Rogers' advice for the "End of America"


The Daily Crux: It's no secret that you're super-popular among Crux readers. Articles and videos featuring your insights are consistently among the most "clicked-on" we publish.

Most of your recent interviews and commentary have focused on precious metals, commodities, and the foolishness coming out of Washington from the likes of President Obama, Treasury Secretary Tim Geithner, and Fed Chairman Ben Bernanke... So today, I'd like to talk about something a little different... some of the ideas from your latest book, A Gift To My Children: A Father's Lessons for Life and Investing.

One of the many lessons you pass along to your daughters in the book is the idea that the 21st century will belong to China. Most readers know you're a longtime bull on China... But are you bullish at all about the future of the United States? Are America's best days behind it?

Rogers: Well, in 1918, the U.K. was the richest, most powerful country in the world. If you looked at a map of the world, it was all red – the British Empire was everywhere.

But there was a lot of corrosion underneath. And within three generations, the U.K. was bankrupt. The U.K. could not sell government bonds. It had to be bailed out by the IMF.

Now, it certainly had some rallies along the way. Sometimes things got better... or looked better. But the trend was always down.

Starting in 1979, the U.K. had a revival when the North Sea oil started flowing. Over the next 20 years or so, the U.K. had a huge boom in oil production, which made things much better in the U.K... And of course, there was the stock market bull market, which made the City of London more exciting and prosperous.

But now, the North Sea oil is declining and the city of London is going into decline, just like Wall Street and financial centers all over the world.

As unlikely as it appears, these things happen... And they're happening in the U.S. right now. So I keep looking for what could happen to cause a revival in the U.S.

We have agriculture, but even our agriculture is facing problems. Conceivably, we have a lot of shale gas. If that technology is ever perfected, that would help the U.S.

But these things are not enough to turn the U.S. around permanently, just as the North Sea was not enough to turn the U.K. around permanently.

So, no... Right now, I'm not bullish on the future... And I would urge everyone to learn about investing outside of the U.S.

Crux: Is there any way this decline can be stopped at this point?

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Rogers: Well, yes... If Americans suddenly decided to withdraw troops from 120 or 130 countries around the world, cut spending with a chainsaw, and lower taxes with a totally new taxation system while cutting litigation and improving education – sure, it's possible.

The problem is what it takes would cause so much pain, no politician could get elected on that kind of platform. And if he did, he would either be assassinated or kicked out of office pretty quickly, because it's just too much.

We've had 50 years of overindulgence in the U.S... and you don't just wake up one day after 50 years of going crazy suddenly to say, "Oh well, OK. Everything's all right now. Let's move on to something else."

No. You've got to pay the price. And unfortunately, the price is going to be very expensive.

Crux: In the book, you also talk about some of your most important investment lessons. In light of the crisis you see coming, can you give us your advice on what readers can do to protect themselves... both those in or near retirement and those who are younger?

Rogers: As you know, I think everyone should learn about real assets. We're entering a period of shortages which are going to get worse.

And even if they don't get worse, the governments are going to print money if the economies don't get better.

So the best place for most people's money is in real assets. It's like the 1970s again. Stock markets and economies around the world were very bad in those 15 years or so. And yet commodities had one of the greatest bull markets of all time. You didn't make much money in stocks unless you were in very selective stocks.

Likewise with currencies... There are huge imbalances in the world now. The largest creditor nations in the world are China, Korea, Taiwan, Japan, Hong Kong, and Singapore. And the largest debtors... you know who they are and where they are.

These imbalances get worked out in the currency markets, among other places. It used to be the gold market, but we're not on the gold standard anymore. So people need to learn about having some of their money outside their own country – whether their country is Australia, Germany, or the U.S. – because we're going to be in a period of more turmoil... maybe even chaos. You're already seeing governments fail, even countries fail.

There's going to be much more social unrest, including in the U.S.

Everyone has a fire insurance policy or medical insurance policy. They hope they never use these policies, but they have them. If you begin to look at your life and investments and finances in the same way, you see having some of your assets outside your own country – no matter which country that is – is a smart insurance policy, and perhaps a way to make a lot of money.

I would also urge everyone to learn how to sell short. If you don't want to do that, at least learn about currencies. You don't want to keep all your money in cash in difficult times.

A lot of people put all their money into Icelandic krona and thought they were fine. Of course, we know Iceland went bankrupt and the krona collapsed. So be sure you learn something about currencies, because keeping all your money in cash could be a disaster.

For younger readers, I would suggest you work to learn foreign languages, preferably Chinese or at least an Asian language.

I see finance as continuing to go into decline... It's going to be a very, very depressed area of the world economy for years to come. All those people thinking about getting an MBA – unless they're truly passionate about finance – should look at some of the other area, of the world economy where they're going to have much better outlooks.

But even then – as I make clear in my book – they shouldn't go into something unless they really love it.

Crux: If you were starting over again today, would you still go into finance and investing? Do you think you would be as successful?

Rogers: Actually, Wall Street was a disaster the years I was there. And I did OK. I know Roy Neuberger who started Neuberger Berman went to Wall Street in 1929 – it couldn't have been a worse time – and yet he became wildly successful in finance.

So of course it can be done. But the numbers of people who do it are going to be very few and far between going forward. You'll need to be very passionate about it, because the wind is going to be in your face.

In 1958, America had 5,000 MBAs every year and the rest of the world had none. Now, America has a couple hundred thousand every year and the rest of the world has tens of thousands. So there's huge competition in finance.

By the way, an MBA won't teach you about commodities or raw materials. It will teach you mainly about stocks, bonds, and options.

But now there's huge competition at a time when there's staggering debt in the financial world, and politicians all over the world are coming down hard against banks, brokers, and financial institutions. Taxes, regulations, requirements.

So, finance is going to be a horrible place to be, just as it was in the '50s, '60s, and '70s. I mean, almost no one went to Wall Street in the '50s, '60s, and '70s. The city of London was a wasteland in those days. And then we had the big bull market and that all changed. But now, we're going back to a period where the producers of the real goods are the ones in charge, making the money and the excitement.

This has happened repeatedly throughout history. We've had long periods when the financial types were the kingpins, and we've had long periods when the producers of real goods were the kingpins. It's reversing again now, and we're just going back to what's always happened.

Crux: So fields like agriculture and engineering would be preferable?

Rogers: Very much so, if you like it. There are more graduates who study physical education or public relations than agriculture or mining in America... So there's going to be huge shortages in those fields.

The average age of farmers in America is 58. In 10 years, if they're still alive, they'll be 68. In Japan, the average age of farmers is already 66. So there are magnificent opportunities in areas like agriculture, engineering, and mining for people who love it. Producing real goods... That's where the next fortunes are going to be made.

Crux: Great advice... Finally, your book is full of some wonderful life-lessons you've learned over your career and travels. Could you leave us with a couple of your favorites?

Rogers: Sure... Be skeptical... Be curious... Don't believe anything you read until you've done your own research, your own thinking. This idea is responsible for some of my biggest successes.

Be persistent. The people who are successful are not the smartest or the most gifted or the most talented... The people who are successful are the ones who are persistent, persevere, and follow their own passions.

And as I told my daughters, beware of the boys.

Crux: Thanks so much for talking with us today.

Jim Rogers: My pleasure. Thanks for having me.

Editor's Note: You can learn more about Jim Rogers' books – including A Gift to My Children, Adventure Capitalist, and Hot Commodities – by clicking here. We consider them "required reading" here at the Crux.


Listen to an Obama impersonator and what the future of America might hold by clicking here!


Sourcce;

http://bit.ly/qAlY24


Copyright 2011 Atkins & Assoc. All rights reserved.

Wednesday, August 31, 2011

Tacoma Hiring Event - Motor Vehicle Mechanics

Tacoma Hiring Event - Motor Vehicle Mechanics
Thursday, September 01, 2011
Recruiting@dyn-intl.com


Hampton Inn & Suites Tacoma-Mall
8203 South Hosmer Street
Tacoma, Washington, USA 98408
Tel: 1-253-539-2288


Motor Vehicle Mechanic (UIK-Afghanistan)
http://www.dyncorprecruiting.com/ext/detail.asp?dynBSR44201

Attention Motor Vehicle Mechanics! DynCorp International (DI) is a global government services provider delivering support solutions for defense, diplomacy, and international development. Our reputation for top quality and excellent service has been earned over six decades of consistent excellence. We offer extraordinary opportunities and challenging assignments to people who share our commitment to quality and service. We are currently seeking experienced Motor Vehicle Mechanics for assignment in Afghanistan. To apply please click on the link above.

Please bring a copy of your current resume

Veterans should bring a copy of their DD214 (copy 4).

NOTE: Attendees who have completed an online application prior to this event will receive priority in speaking with a Recruiter! Recruiters will be at the following location hosting information sessions. Hampton Inn & Suites Tacoma-Mall 8203 South Hosmer Street Tacoma, Washington, USA 98408 Tel: 1-253-539-2288

Information sessions: 10:00am to 11:30am 12:00pm to 1:00pm 2:30pm to 3:30pm 4:00pm to 5:00pm 5:30pm to 7:00pm


Copyright 2011 Atkins & Assoc. All rights reserved.


###
end

Sunday, August 28, 2011

The City Crete, Greece

Chania, Crete
The City Crete, Greece

Chania Crete The City Crete Greece

Chania Crete The City Crete Greece


If these videos don't respond please visit my alternate site here!


Chania Crete The City Crete Greece



Source;

http://bit.ly/pwe3QJ



Copyright 2011 Atkins & Assoc. All rights reserved.

The Emissary

The Story of the Apostle Paul
August 28, 2011


Windows Media Video

The port in which the apostle Paul was ship wrecked is commonly known as Fair Havens. {ref.} It's located on the Isle of Crete in Greece.


Source;

http://bit.ly/p3ttkI



Copyright 2011 Atkins & Assoc. All rights reserved.

Angels Of The Apocalypse

Crimson Rivers: Angels Of The Apocalypse
HD available

Rating: R Duration: 1:46:00 Release: 8/27/2004
Type: Feature Film Genres: Action, Crime, Thriller

While investigating a series of ritualistic murders, Commissioner Niemans learns the Apocalypse may be rapidly approaching.

Why It Crackles
Fights, ritual killings and the end of the world delivered by your two favorite names in French film, actor Jean Reno and writer Luc Besson.



Watch



Copyright 2011 Atkins & Assoc. All rights reserved.

The Three Stooges

The Three Stooges ***** 5 stars

Rating: Not Rated Duration: 1:27:50 Release: 4/24/2000
Type: Feature Film Genres: Biography, Comedy, Drama

Why it Crackles
Michael Chiklis is a convincing Curly.

A biography of the Three Stooges, in which their careers and rise to fame is shown throughout the eyes of their leader, Moe.

Cast: Michael Chiklis, Paul Ben-Victor, John Kassir, Evan Handler
Director: James Frawley
Writers: Janet Roach, Kirk Ellis
Producer: Jim Lemley
Distributed By: Columbia Pictures Television


Movie Description:

The Three Stooges opens in 1959, as a TV executive tries to persuade Moe Howard (Victor) to reunite with his former onscreen partners to publicize the television premiere of a package of Three Stooges classic comedy shorts. Howard then flashes back on his long and remarkable career with Shemp (Kassir), Larry (Handler) and "Curly" (Chiklis). Success proves to be a bumpy road fraught with bad deals, poor health, rocky relationships and group disharmony.



Copyright 2011 Atkins & Assoc. All rights reserved.


Saturday, August 27, 2011

Special (GCV) Daily News Summary

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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