Army Acquisition:

Palletized Load System Acquisition Quantity Overstated

NSIAD-92-163: Published: Apr 22, 1992. Publicly Released: Apr 22, 1992.

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Pursuant to a congressional request, GAO reviewed the Army's acquisition of its new ammunition resupply vehicle, the Palletized Load System (PLS), focusing on whether the Army's acquisition quantity: (1) has been reduced to reflect force reductions and updated threat assessments; and (2) is appropriate based on planned PLS uses.

GAO found that: (1) although the Army has reduced the PLS acquisition quantity to reflect the approved force structure reduction, the Army's requirements are still based on outdated Soviet-Warsaw Pact threat assumptions; and (2) the Army may further reduce its PLS requirements to reflect lower anticipated ammunition consumption rates and reduce the need for Pre-Positioning of Materiel Configured to Unit Sets (POMCUS) stored at European sites, due to the diminished Central European threat. GAO also found that, while the Army adjusted the PLS acquisition quantity to reflect approved force structure reductions, the quantity includes 450 trucks, 30 trailers, and 2,480 demountable cargo beds costing $141 million for inappropriate requirements to support: (1) National Guard and Army reserve artillery battalions until their 8-inch self-propelled howitzer artillery is replaced by the Multiple Launch Rocket System; and (2) two planned cadre divisions, which is inconsistent with the concept to equip low-priority units with earlier-generation systems.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Army reduced its PLS quantities associated with POMCUS. Further, overall PLS requirements will also be revised to meet force structure changes.

    Recommendation: The Secretary of the Army should adjust the PLS acquisition quantity to reflect decreased ammunition consumption rates and POMCUS requirements associated with a reduced post-Soviet-Warsaw Pact threat.

    Agency Affected: Department of Defense: Department of the Army

  2. Status: Closed - Implemented

    Comments: The Army has eliminated the PLS requirement for Reserve and National Guard units with the 8-inch howitzer.

    Recommendation: The Secretary of the Army should adjust the PLS acquisition quantity to eliminate PLS requirements for National Guard and Army Reserve artillery batallions that would use PLS for only a limited time.

    Agency Affected: Department of Defense: Department of the Army

  3. Status: Closed - Not Implemented

    Comments: A full-rate production decision was made on PLS in December 1992. Cadre division requirements are not part of the basic multiyear contract but are associated with future contract options. The Army plans to review the PLS requirement for cadre divisions once Congress decides the status of these divisions.

    Recommendation: The Secretary of the Army should adjust the PLS acquisition quantity to eliminate PLS requirements for two planned Cadre Divisions which are inconsistent with the concept to use earlier-generation systems in those low-priority units.

    Agency Affected: Department of Defense: Department of the Army

 

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