Tactical wheeled vehicle market on downward slide.

• Author: Magnuson, Stew

As the Army and Marine Corps prepare to take delivery of their first batches of joint light tactical vehicles this fall, the land services have few other major programs in the works, and truck manufacturers will have to content themselves with upgrade and modernization contracts, officials indicated at a recent industry conference.

"My expectation is that tactical wheeled vehicle investments will focus primarily on incremental modernization opportunities, basically to improve flexibility and maneuverability, but no fundamental change in the capabilities of those assets," James MacStravic, principal deputy assistant secretary of defense for acquisition, said at the National Defense Industrial Association's annual Tactical Wheeled Vehicles conference in Reston, Virginia.

The budget numbers tell the tale.

The services are spending about $25 billion less on tactical wheeled vehicle programs than they did at the height of the Iraq and Afghanistan wars. The only new acquisition program of note that is scheduled to go forward is the Army's ground mobility vehicle, with an anticipated buy of 250 units.

The GMV is envisioned for light infantry airborne forces and would sacrifice protection for speed and mobility and could seat five to nine soldiers. The Army is requesting $5 million to procure 10 GMVs in 2017 with an eye toward eventually buying 250 vehicles.

"The Army has a very real chance of doing something quick and effective and innovative if we are careful in both defining our requirements and not putting too many processes in the way," MacStravic said.

The Army is completing an analysis of alternatives and there is funding in the 2017 budget request if Congress allocates it. However, if there is a continuing resolution that extends into next year, the Army will not be able to proceed until the budget is sorted out.

"That program could be ready to run with no fuel in the tank," he said.

MacStravic said the ground mobility vehicle is relatively safe. "We are not actively looking for programs to cancel at this point. We are trying to make sure not to make new programs that we can't afford in the future," he said.

The Marine Corps has little funding to spend on its tactical wheeled vehicle fleets, service officials said.

"With the preponderance of the fleet in sustainment, the biggest challenge we have in a declining budget situation is maintaining the fleet that is... 14.9 years old and was projected for a 22-year lifecycle," said Steve Pinter...