Oshkosh Joint Light Tactical Vehicle (JLTV) - Background and issues for U.S. Congress
The JLTV is an Army-led, multiservice initiative to develop a family of future light tactical vehicles to replace many of the High Mobility, Multi-Wheeled Vehicles (HMMWVs) used by the armed services today. HMMWVs, which first entered service in 1985, were developed during the Cold War when improvised explosive devices (IEDs) and other anti-vehicle explosive devices were not a major factor in military planning. The HMMWVs’ demonstrated vulnerability to IEDs and the difficulties and costs experienced in “up-armoring” HMMWVs already in the inventory have led to a renewed emphasis on vehicle survivability. DOD officials have emphasized that JLTVs are not intended to replace HMMWVs “one for one.”
JLTV in Syria (Picture source: U.S. DoD)
The JLTV is an Acquisition Category (ACAT) 1D program. The Army bears the overall responsibility for developing the JLTV through its Joint Program Office, which reports to the Program Executive Office (PEO) for Combat Support & Combat Service Support (PEO CS&CSS) in Warren, MI, which reports to the Assistant Secretary of the Army for Acquisition, Logistics, and Technology (ASA[AL&T]). Marine participation is centered on a program office under the supervision of the Program Executive Officer Land Systems (PEO LS) Marine Corps at Quantico, VA.
History of the JLTV
The Joint Light Tactical Vehicle (JLTV) is being developed by the Army and the Marine Corps as a successor to the High Mobility, Multi-Wheeled Vehicle (HMMWV), which has been in service since 1985. On October 28, 2008, awards were made for the JLTV Technology Development (TD) Phase to three industry teams: (1) BAE Systems, (2) the team of Lockheed Martin and General Tactical Vehicle, and (3) AM General and General Dynamics Land Systems.
On January 26, 2012, the Army issued the Request for Proposal (RFP) for the JLTV’s Engineering Manufacturing Development (EMD) phase. Up to three EMD contracts scheduled for June could have been awarded. The period of performance for EMD (Engineering and Manufacturing Development) contracts was 27 months, and the overall EMD phase was scheduled to last 33 months. Vendors were required to provide 22 JLTV prototypes for testing 12 months after contract award. The target cost for the base vehicle was $250,000, excluding add-on armor and other kits.
On August 22, 2012, the Army announced the award of three firm-fixed-price JLTV EMD contracts totaling approximately $185 million. The three companies awarded the EMD contracts were AM General, LLC (South Bend, IN); Lockheed Martin Corporation (Grand Prairie, TX); and Oshkosh Corporation (Oshkosh, WI).
On September 3, 2013, the Army began JLTV testing at Aberdeen Proving Ground, MD; Yuma, AZ; and Redstone Arsenal, AL. The Army planned to select a single vendor by 2015, with the first Army brigade being equipped with JLTVs by 2018. FY2015 program plans anticipated a Milestone C (Production and Deployment Phase Approval) decision in the fourth quarter of FY2015, followed by Low Rate Initial Production (LRIP).
In June 2014, the Army issued a draft RFP for the JLTV Full-Rate Production Phase. The Secretary of Defense conducted an interim review of the JLTV program and found it is likely to meet all eight key performance parameters. Three companies who were picked in 2012 to build prototypes—Oshkosh, Lockheed Martin, and AM General—submitted their bids for the LRIP contract by the February 10, 2015, deadline.
On August 25, 2015, it was announced the Army had awarded Oshkosh a $6.7 billion low rate initial production (LRIP) contract with eight options to procure the initial 16,901 vehicles for the Army and Marines. The JLTV is being produced in Oshkosh, WI. In this summarized report, Army Recognition doesn't include Lockheed Martin’s JLTV protest and withdrawing from the competition. Only Oshkosh is mentioned.
It is also reported the Army plans to use the JLTV as the interim platform for its upcoming Light Reconnaissance Vehicle (LRV) program instead of procuring a new system. The British Army is reportedly trying to acquire 2,747 JLTVs through Foreign Military Sales (FMS). The Marines have also reportedly increased their JLTV requirement for a total of 9,091 JLTVs.
Preliminary Army and Marine JLTV fielding plans call for 500 JLTVs to be fielded to an Infantry Brigade Combat Team (IBCT) in the 10th Mountain Division at Ft. Drum, NY, and 65 JLTVs to an Infantry Battalion with the 2nd Marine Expeditionary Force (MEF) at Camp Lejeune, NC, in early 2019. The Department of Defense (DOD) reports both the Army and Marines have extended their procurement profiles due to program strategy changes, primarily due to updating the mix of vehicle variants and kits. A redacted May 2, 2018, DOD Inspector General (IG) report noted the services have not demonstrated effective test results to prepare the JLTV program for full-rate production but the JLTV Program Office has plans to address this concern.
The major potential issues for Congress include whether an increase in endstrength and force structure might result in an increase in overall JLTV requirements, and possible effects of JLTV Foreign Military Sales.
Change in requirements, program schedule, and variants
In February 2011, the JLTV Program Office announced the award of the EMD contract would be delayed until January or February 2012 because the Army changed requirements for the JLTV to have the same level of under-body protection as the Mine-Resistant, Ambush-Protected All-Terrain Vehicle (M-ATV). DOD had planned to award two contracts for the EMD phase, which was scheduled to last 24 months, 11 but instead opted for a 48-month-long EMD phase before awarding Production and Deployment contracts in the second quarter of FY2016. In addition, the Category B variant was eliminated because it proved to be too heavy to meet the required weight limit of approximately 15,639 pounds to make it transportable by Army CH-47F and Marine Corps CH-53K helicopters. It was decided that there would be two variants—a Combat Tactical Vehicle (CTV), which can transport four passengers and carry 3,500 pounds, and a Combat Support Vehicle (CSV), which can transport two passengers and carry 5,100 pounds.
JLTV EMD contracts awarded
On August 22, 2012, the Army announced the award of three firm-fixed-price JLTV EMD contracts totaling approximately $185 million.13 The three companies awarded the EMD contracts were AM General, LLC (South Bend, IN); Lockheed Martin Corporation (Grand Prairie, TX); and Oshkosh Corporation (Oshkosh, WI). The period of performance was for 27 months, with each contractor receiving initial funding between $28 million and $36 million per contractor, with the balance of funding up to the full contract amount being provided in FY2013 and FY2014. In 12 months, each team was required to deliver 22 full-up prototypes and contractor support for a 14-month comprehensive government testing program, which included blast, automotive, and user evaluation testing. The overall EMD Phase was scheduled to last 33 months. According to the Army, “the EMD Phase is designed to test and prepare the next-generation vehicles for a Limited User Test, Capabilities Production Document and Milestone C procurement decision in FY 2015.”
Unsuccessful bidders Navistar Defense, BAE Systems, and General Tactical Vehicles (a team of General Dynamics and AM General) were permitted to continue developing JLTV candidate vehicles at their own risk and expense if they notified the government within 30 days of the EMD contract award. Reports suggested some bidders considered continuing development of JLTV candidates for submission for production source selection.
U.S. Army releases final RFP for JLTV full-rate production
On December 12, 2014, the Army reportedly released the final RFP for JLTV low-rate initial production and full-rate production and gave competitors until February 10, 2016, to refine and submit their bids. The Army—on behalf of itself and the Marines—planned to select a winner and issue a single contract award in late summer 2015.
The winning contractor would build approximately 17,000 JLTVs for the Army and Marines during three years of low-rate initial production, followed by five years of full-rate production.
The first Army unit would be equipped with JLTVs in FY2018, and the Army’s complete acquisition of JLTVs would be completed in 2040. The Marines would begin acquiring their 5,500 JLTVs at the beginning of production and would be completed by FY2022.
Bids submitted for JLTV low-rate initial production (LRIP)
It was reported that the three companies who were picked in 2012 to build prototypes—Oshkosh, Lockheed Martin, and AM General—submitted their bids for the LRIP contract by the February 10, 2015, deadline. It was also reported that none of the three competitors have said publicly if they included in their proposals an option for the Army to purchase a technical data package for their vehicles. If the Army acquired the technical data package, theoretically the Army could use that data for future production runs, which could enhance competition and possibly result in better prices for the government.
U.S. Army awards JLTV contract
On August 25, 2015, the Army awarded Oshkosh a $6.7 billion low rate initial production (LRIP) contract with eight options to procure the initial 16,901 vehicles for the Army and Marines. The JLTV is to be produced in Oshkosh, WI.20 A full-rate production decision is planned for FY2018 and calls for the production of 49,100 JLTVs for the Army and 5,500 for the Marine Corps.
JLTV LRIP production begins
On March 22, 2016, the Army reportedly placed a $243 million order with Oshkosh Defense to build 657 JLTVs, as well as 2,977 installation kits and related vehicle support LRIP items. The first JLTVs were delivered in September 2016.
Delay in JLTV Initial Operating Capability (IOC)
Primarily due to program disruption resulting from the Lockheed Martin protest, the JLTV will not reach IOC in mid-2019 as originally planned. Instead, the Army anticipates a six-month delay in IOC until the end of 2019, and the Marine Corps IOC, originally expected for the fourth quarter of FY2018, will now be a year later in the first quarter of FY2020. Although these delays are significantly longer than the protest period, officials from both services noted their respected IOCs were adjusted to reflect delays in scheduled testing.
U.S. Army places $100 million order for JLTVs
The Army reportedly ordered 258 JLTVs and 1,727 associated components in December 2017 for a total of $100.1 million, with the estimated contract completion date May 31, 2019. According to Oshkosh Defense, it has delivered more than 1,000 vehicles since October 2016, and Soldiers and Marines are expected to start receiving JLTVs for operational use in FY2019. Also in FY2019, a full-rate production decision is expected, with an Army and Marine Initial Operating Capability (IOC) expected in early FY2020.
JLTV tested by the U.S. Marine Corps (Picture source: USMC)
U.S. Army Selects JLTV to serve as its interim Light Reconnaissance Vehicle (LRV)
The Army has reportedly decided to use the JLTV as the platform for its upcoming Light Reconnaissance Vehicle (LRV) program, instead of procuring a new system. Army officials note the JLTV is an interim solution, largely based on costs associated with developing a new system, and, in the future, the Army could opt to pursue an original design for its LRV. It is not known whether additional JLTVs will need to be acquired under the Army’s JLTV contract to meet LRV requirements. Reportedly, some Army officials want JLTVs that will serve as an LRV to have two more seats to accommodate scouts as well as a weapon larger than a .50 caliber machine gun, such as a 30 mm cannon.33 These modifications are viewed as necessary to increase the effectiveness of scout platoons as well as provide sufficient firepower to destroy enemy reconnaissance formations.
U.S. Air Force JLTV Acquisition
In the near term, the U.S. Air Force plans to replace HMMWVs with JLTVs in its security forces, explosive ordnance disposal, pararescue, tactical air control, and special tactics units. Reportedly, the Air Force eventually would like to replace its entire 3,270 HMMWV fleet with JLTVs, but Air Force budget documents detail JLTV procurement only from FY2019 through FY2022.
U.S. Marines increase JLTV requirement to 9,091 vehicles
The Marines reportedly plan to increase their JLTV requirement from 5,500 vehicles to 9,091 vehicles—about a 65% increase over the Marines’ original approved acquisition objective.
Marine leadership reportedly wants to acquire these additional vehicles as quickly as possible, budget permitting. In June 2017, Marine Corps officials reportedly noted that it would take “a couple of years” to formally adjust its approved acquisition objective (AAO), meaning that eventually, JLTVs would account for approximately half of the Marine’s light tactical vehicle fleet.
British Foreign Military Sales (FMS) purchase of JLTV
The British Army will reportedly acquire 2,747 JLTVs, valued at more than $1 billion, through the Foreign Military Sales (FMS) process. The sale also includes an armor kit, spare tires, and fording gear, as well as training for vehicle operators and maintainers.
Preliminary Army and Marine JLTV fielding plans
In early 2019, the Army will reportedly field 500 JLTVs to an Infantry Brigade Combat Team (IBCT) in the 10th Mountain Division at Ft. Drum, NY, and 65 JLTVs to an Infantry Battalion with the 2nd Marine Expeditionary Force (MEF) at Camp Lejeune, NC.
JLTV procurement extended one year and increased total program cost
DOD reports both the Army and Marines have extended their procurement profiles due to program strategy changes, primarily due to updating the mix of vehicle variants and kits. The Army now plans to conclude its procurement in FY 2036 and the Marines in FY 2023. Total program costs have also increased to $28.03 billion (a 10.9 percent increase) primarily due to the increase in procurement profiles, increase in Marine Corps quantities to 9,091 vehicles, updates in vehicle configuration and kit mix for the Army, updates in vehicles and kits based on the vehicle configuration mix for the Marines, and an increase in other support and initial spares for the Army and Marines.
DOD Inspector General (IG) report and JLTV production
A redacted May 2, 2018 DOD IG report notes while the Army and Marine Corps developed adequate test plans, the services have not demonstrated effective test results to prepare the JLTV program for full-rate production. The IG’s review of test results in August and September of 2017 determined the JLTV failed to meet all maintenance-related performance requirements. The IG suggested certain capabilities be developed to address the shortfall but specifics were redacted in the public version of the report. The JLTV Program Executive Office (PEO) noted in response that the program would equip all JLTVs with the unspecified capability cited in the IG’s report.
FY 2019 National Defense Authorization Act (H.R. 5515)
Congress recommended fully funding the Army’s and Marine’s FY 2019 JLTV RDT&E budget requests. While Congress recommended fully funding the Marine’s and Air Force’s FY 2019 JLTV Procurement budget requests, it recommended decreasing the Army’s FY 2019 procurement request by $32.036 million, as it was reportedly believed the Army’s request was higher than it needed to be, given the program’s execution rate.
Department of Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 (H.R. 6157)
Congress recommended not appropriating funds for the Army’s and Marine’s FY 2019 JLTV RDT&E budget request citing in both instances “funds in excess of need.” Congress recommended a $39.999 million reduction in funds appropriated for Army FY 2019 JLTV Procurement, citing “unit cost growth, engineering change proposal (ECP) cost growth, and maintaining test support level of effort.”
Congress recommended a $7.737 million reduction in funds appropriated for Marine FY 2019 JLTV Procurement, citing “unit cost growth.” Congress recommended a $1.450 million reduction in funds appropriated for Air Force FY 2019 JLTV Procurement, citing “unit cost adjustment.”
Potential issues for Congress
Will an increase in endstrength and force structure result in an increase in overall JLTV requirements?
The Administration’s FY2019 budget request proposes endstrength increases in Active and Reserve Components for all of the services.48 The Army’s FY2019 plans call for converting an existing Infantry Brigade Combat Teams (IBCT) to an ABCT, activating three new Security Force Assistance Brigades (SFABs), establishing an additional ABCT equipment set in Europe, and creating a number of unspecified enabling units.
Although it remains to be seen whether the services will grow to the levels proposed by the Administration, as well as create the additional force structure described above, some growth in force structure seems likely. As part of this growth, it is likely overall JLTV requirements for the services would increase correspondingly. In this regard, as force structure changes become clearer, it might be beneficial for oversight if the services issue revised requirements for JLTV procurement.
JLTV Foreign Military Sales
As previously noted, the British Army will reportedly acquire 2,747 JLTVs, valued at more than $1 billion, through the Foreign Military Sales process.50 It is possible that additional nations might also opt to procure JLTVs through FMS. If additional FMS of JLTVs is a possibility, a number of potential questions could arise:
* Will increased foreign sales affect the delivery schedule of JLTVs to the services?
* Will increased foreign sales result in a decreased JLTV per unit cost, thereby resulting in cost savings or the ability for the services to acquire more JLTVs than originally planned for?
* How will FMS JLTVs increase ally interoperability?
* What sort of export control considerations will apply to FMS JLTVs?
