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Business, Industry, and Consumers: FMTV Low Rate Initial Production

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Report Type Reports and Testimonies
Report Date Dec. 21, 1994
Report No. NSIAD-95-77R
Subject
Summary:

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.

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