By Ann Roosevelt
The Army can re-evaluate its acquisition strategy for the Family of Medium tactical Vehicles (FMTV) competitive rebuy, now that it must relook its award to Oshkosh [OSK] in light of recent acquisition reforms, BAE Systems officials said.
“In our view, this would be an absolute opportune time for senior leadership of arm, and Department of Defense take a look at this issue,” said Al Crews, vice president of contracts and legal, BAE Systems in a teleconference yesterday.
The Government Accountability Office’s (GAO) recent protest decision finding the Army’s evaluation was flawed, after BAE Systems and Navistar Defense LLC protested the Army’s August award of the potential $3 billion FMTV rebuy.
The GAO decision “demonstrates the FMTV acquisition as it stands now is seriously flawed,” Dennis Morris, president of Global Tactical Systems (GTS), BAE Systems, said.
GAO Dec. 17 released a redacted version of its decision upholding areas of the protests and recommending a reevaluation of proposals in specific areas. At the end of the process, if Oshkosh is not found to have the best value for the Army, GAO said, then the contract should be terminated. Army leaders are reviewing the decision at this time (Defense Daily, Dec. 15).
BAE has been building FMTV for 17 years, and was the incumbent on the contract.
BAE officials would like to see the Army re-evaluate the work in line with the Weapon Systems Acquisition Reform Act of 2009 (WSARA), which fits the FMTV work.
Senate Armed Services Chairman Carl Levin (D-Mich), supported the bill, noting in February that, “Report after report has indicated that the key to successful acquisition programs is getting things right from the start with sound systems engineering, cost-estimating, and developmental testing early in the program cycle.”
The FMTV rebuy “meets the definition” of a major acquisition programs, its potential $3 billion estimate well above the WSARA $2.19 billion, Morris said. “As the RFP stands now, it wouldn’t comply.”
Also yesterday, the Sealy FMTV Task Force issued a statement calling on DoD to apply the weapons acquisition overhaul standards to the process that will decide which contractor should build the FMTV.
“We urge the Pentagon to use the high principles set by this reform, apply them to the Army’s FMTV program and let the best defense contractor win,” Lance LaCour, Co-Chairman of the Task Force and CEO of Katy Area Economic Development Council, said. “Our troops in Afghanistan and Iraq deserve the best and safest vehicles and American taxpayers deserve a well-run, efficient program that will not be hampered by cost overruns.”
Kim Meloneck, Sealy Economic Development Corp., referring to how the measure passed unanimously in both the House and Senate before being signed into law by the president. “A new Army procurement chief should be in place in days so there’s no reason to wait. Let’s apply these principles now and make sure it’s done right.”
Additionally, officials contend the RFP is inconsistent with the John Warner National Defense Authorization Act for Fiscal Year 2007 that requires the Army to procure improved versions of FMTV incorporating lessons learned from Iraq and Afghanistan.
Morris said there were some 60-plus changes to FMTV, plus changes to the Long Term Armor Strategy (LTAS) armored cab, which was being tested even as the RFP went out.
Thus, the RFP was calling for a vehicle that is “at least two years behind the trucks we’re building today,” he said.
The tactical wheeled vehicle FMTV is a critical, complex multi-billion program, not a commodity and shouldn’t be treated in a simplistic way, Chris Chambers, vice president and general manager, Global Tactical; Systems Programs, BAE Systems, said.
Also, officials said the plant and its employees were still concerned about what would happen when the current FMTV contract runs out in the fall of 2010.
The Army has 60 days to re-evaluate the two areas GAO cited in its decision and present a plan on the Army’s next steps.