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Summary

The Future Combat System (FCS) is the U.S. Army's multiyear, multibillion- dollar program at the heart of the Army's transformation efforts. It is to be the Army's major research, development, and acquisition program to consist of 18 manned and unmanned systems tied together by an extensive communications network. FCS is intended to replace such current systems as the M-1 Abrams tank and the M-2 Bradley infantry fighting vehicle with advanced, networked combat systems. The FCS program has been characterized by the Army and others as a high- risk venture due to the advanced technologies involved as well as the challenge of networking all of the FCS subsystems together so that FCS-equipped units can function as intended.<p> The FCS program exists in a dynamic national security environment which could significantly influence the program's progress. The wars in Iraq and Afghanistan, proposed and possible defense budget cuts, and the upcoming Quadrennial Defense Review will each likely play a role in shaping the FCS program. The revised FCS program timeline — including four "spirals" whereby equipment is to be tested first by a FCS evaluation brigade and then introduced into the current force — has extended the program's timeline by four years and has added additional funding requirements, but it has also served to reduce some of the risk associated with this admittedly high-risk venture. <p> The overall FCS program budget has risen steadily since the program's inception and because the program is still in its early stages, its full costs are not yet known. The FCS program is managed by a lead systems integrator group consisting of major defense contractors Boeing and Science Applications International Corporation (SAIC). Although widely criticized, the Army adopted this program management approach largely because it did not have enough acquisition, scientific, and engineering staff to manage a program of this complexity and scope. In addition the program's use of an Other Transaction Authority (OTA) agreement in lieu of a more structured Federal Acquisition Regulation (FAR) contract raised a number of concerns regarding program oversight and protecting the taxpayer's interests. Partly due to Congressional pressure, the Army recently decided to change from an OTA to a more traditional contract, although specific details at this point are few. <p> The FCS is experiencing a number of program development issues in its Joint Tactical Radio System (JTRS) program as well as in the manned and unmanned ground vehicle programs. Congress, in its authorization, appropriation, and oversight roles may wish to review the relevancy of the FCS program in terms of current and potential future threats, the overall viability of the program, program management and contractual agreements, and program "off ramps" into the current force should the FCS program be modified or curtailed. This report will be updated as the situation warrants.

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