FMTV Low Rate Initial Production

NSIAD-95-77R: Published: Dec 21, 1994. Publicly Released: Dec 21, 1994.

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GAO reviewed the Army's decision to continue low-rate initial production (LRIP) of its Family of Medium Tactical Vehicles (FMTV). GAO noted that: (1) the Army has not justified its plan to procure additional FMTV or demonstrated that FMTV are operationally suitable; (2) the current Army contract authorizes a sufficient number of vehicles under LRIP to maintain production until scheduled testing can be completed; (3) although FMTV has had numerous testing problems and has not proven to be reliable and suitable for Army needs, the Army has received authorization to extend LRIP by 773 additional vehicles at a cost of $73.7 million; and (4) the Army can maintain a minimal production rate with the current LRIP authorization until operational testing can be completed and a full-rate production decision can be made in August 1995.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: On April 17, 1995, the Army Acquisition Executive agreed to extend LRIP; however, he placed conditions on this extension. One of the conditions was that the FMTV contract could not be modified to extend LRIP until the vehicle's production configuration was frozen.

    Recommendation: The Assistant Secretary of the Army (Research, Development and Acquisition) should direct FMTV program officials to cancel plans to modify the contract and delay the planned increase of the 773 vehicles in LRIP until the system successfully completes operational testing.

    Agency Affected: Department of Defense: Department of the Army: Office of the Assistant Secretary (Research, Development and Acquisition)


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