Federal Manager's Daily Report

The Future Combat System, a networked family of weapons

and other systems central to the Army’s combat

transformation, remains a long way from having the level

of knowledge it should have had before starting product

development prematurely in 2003, the Government

Accountability Office has said.

It said investment in such systems has doubled in the

last five years to about $1.4 trillion, and that FCS and

complementary programs could cost $200 billion and will

have to compete for funds at a time when federal fiscal

imbalances are putting a lot of pressure on discretionary

spending, so these programs will have to be executable

within projected resources.

However, the elements of a sound business case for FCS

such as an acquisition program, firm requirements, mature

technologies, a knowledge-based acquisition strategy, a

realistic cost estimate and sufficient funding, are not

yet present, according to GAO-06-478T.

It said because the program would face trade-offs when

technologies inevitably don’t work out, available funds

are reduced, and performance parameters change. In that

case, business arrangements for carrying out the program

related to contract development and the lead system

integrator approach would need to enable the government

to adjust course in response.

The program is slated to spend $8 billion through fiscal

2006, a small part of the estimated total cost, but DoD

needs to prevent the buildup in investment from limiting

its decision-making flexibility as detailed knowledge about

FCS becomes available, GAO said.

It said markers for gauging knowledge must be clear, that

incentives must be aligned with demonstrating such knowledge,

and provisions must be made for the Army to change course if

the program does not go according to plan.