Army Revises New Ground Combat Vehicle Program, Causing Delay

The U.S. Army is revising a request for proposals for a new ground vehicle that drew interest from companies including Boeing Co. and BAE Systems Plc and delaying the program about six months.

The Army said today in a statement that it will reissue in about two months a new request for proposals laying out its requirement that contractors use more mature technologies in their designs to reduce “significant” risk during the seven- year development phase.

BAE, based in London, has formed a team with Northrop Grumman Corp. for the program, and Chicago-based Boeing has partnered with Science Applications International Corp. and German firms Krauss-Maffei Wegmann Gmbh & Co and Rheinmetall AG. General Dynamics Corp. is teamed with Lockheed Martin Corp., Raytheon Co. and MTU Detroit Diesel.

The development phase of the program is valued at $2.1 billion. The Army doesn’t know yet how many vehicles it will buy nor the estimated value of the production work, said Lieutenant Colonel Jimmie Cummings, an Army spokesman.

The Ground Combat Vehicle is a successor to the manned vehicle portion of the $159 billion Future Combat Systems program canceled last year because Defense Secretary Robert Gates said the vehicles didn’t adequately incorporate the battlefield lessons of Iraq or Afghanistan.

Gates said after canceling the program that he would ensure the Army was provided money in future budgets to modernize its forces.

“An Army vehicle modernization program is essential,” Gates said at a briefing in April 2009. “It is a very big priority.”

To contact the reporters on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net.

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.