Army Budget:

Potential Reductions to Tracked and Wheeled Vehicles Budgets

NSIAD-90-13: Published: Nov 27, 1989. Publicly Released: Nov 27, 1989.

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Pursuant to a congressional request, GAO reviewed the Army's land vehicle procurement appropriations and 1990 budget estimates.

GAO found that the Army's land vehicle procurement budget could be reduced by: (1) $690,000 in requested 1990 Bradley fire control system funds and $654,000 in 1989 appropriations, after applying revised contract cost estimates; (2) $16.7 million in 1988 and 1989 M1A1 tank transmission appropriations and $12.8 million in requested 1990 funds, because contract costs were less than estimated; (3) $504,000 estimate for 1990 Bradley Turret Drive System program funding, and $1.1 million in 1989 and 1990 funds for the M1A1 tank fire control system, because of unit price renegotiations; (4) $124.8 million in requested 1990 funds for the M88 series recovery vehicle, since the Army terminated the M88 contract; (5) $17.6 million for the 1990 M1A1 Tank Basic Vehicle program and $46.4 million in 1988 and 1989 appropriations, and $600,000 for the 1990 M1A1 Tank Track program, because the Army could not provide supporting cost data; (6) $37.4 million for spares and repair parts to adjust for decreased 1990 funding requirements; (7) $18.3 million in 1987, 1988, and 1989 High Mobility Multi-Purpose Wheeled Vehicle appropriations, because contract costs were less than expected; (8) $21 million in requested 1990 funds for the heavy equipment transporter, because contract costs were lower than expected, and some funds were not required until 1991; and (9) $6.1 million in 1988 and 1990 funds for the small unit support vehicle, and $11.8 million in 1988, 1989 and 1990 Armored Combat Earthmover appropriations, using updated cost data.

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