TRUCKS' PURCHASES * USA - USA Looks to Bridge FMTV Truck Orders Until 2009-2010

Amateurs discuss tactics, professionals discuss logistics

Chesapeake City,MD,USA -Defense Industry Daily -3 June 2008: -- A military force can have all of the flashy combat vehicles it wants, but without a solid underpinning of medium and heavy trucks to handle logistics, that combat force is either dependent or hollow... The 14 variants in the Family of Medium Tactical Vehicles form the core of the USA’s new state-of-the-art medium military transport truck fleet. Which in turn forms the core of the “mature logistics capability” seen in the Iraqi theater and elsewhere. FMTV trucks are all automatic transmission, and rage from 2.5-ton cargo and van models to 5-ton cargo, tractor, van, wrecker, tanker, specialty, and dump-truck models in various 4×4 and 6×6 configurations. Some models also have attached trailers that increase their carrying capacity. Even so, the use of common engines, transmissions, drivelines, power trains, tires, cabs, et. al. create over 80% parts commonality between FMTV models. Where possible, commercial components are used for added savings.

Contracts & Key Events

- June 2/08: BAE Systems Tactical Vehicle Systems Limited Partnership in Sealy, TX received a $1.656 billion firm-fixed price and cost-reimbursement contract for 10,000 FMTV trucks, program support and federal retail excise tax. BAE’s says that the posted figure is an initial amount, and announces a possible value of up to $2.2 billion pending negotiations to finalize the contract. The contract also contains an option year for another 10,000 trucks, whose exact cost would also be determined when this contract is finalized.

- May 5/08: Stewart & Stevenson Tactical Vehicle Systems Limited Partnership, Sealy, Texas, was awarded on May 1, 2008, a $54,312,842 firm-fixed price and cost-reimbursement contract for adding 370 supplemental family of medium tactical vehicle variants to the contract... U.S. Army TACOM, Warren, Mich., is the contracting activity, and the current value of this 2003 contract is now about $3.6 billion.

- April 2/08: Stewart & Stevenson Tactical Vehicle Systems Limited Partnership, Sealy, Texas, was awarded on March 31, 2008, a $43,579,276.55 firm-fixed price contract for adding long-term armor strategy A1P2 cabs to 730 family of medium tactical vehicles... Work is expected to be completed by Nov. 15, 2008...

- April 09/07: The Pentagon’s current Selected Acquisition Report cites the FMTV program for cost changes: “Program costs increased $3,351.9 million (+19.2 percent) from $17,450.1 million to $20,802.0 million, due primarily to the addition of Long Term Armor Strategy (LTAS) A-Cab (+$1,257.1 million) and associated LTAS installation kits (+$1,319.1 million). There were also increased recurring costs for planned model mix changes (+$672.8 million) and the application of revised escalation rates (+$64.6 million). These decreases were partially offset by an acceleration of the annual procurement buy profile (-$149.7 million).” ... (Images: FMTV Load Handling System)