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GAO-01-603R 1 (2001-04-10)

handle is hein.gao/gaocrptangz0001 and id is 1 raw text is: SGAO Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 April 10, 2001 The Honorable Lane Evans House of Representatives Subject: Status Update of the New 155 mm Lightweight Howitzer Dear Mr. Evans: In July 2000, we issued a report to you and several other members of Congress describing problems with the new 155 mm Lightweight Howitzer program. The new 155 mm Lightweight Howitzer is expected to replace the M-198 towed howitzer. The Army-Marine Corps Lightweight Howitzer Joint Program Office is directing this program's development, with BAE SYSTEMS (BAE), a British company, as the prime contractor. This correspondence responds to your request of December 2000 that we continue to monitor and report on this program due to your continued concerns about its schedule, cost, and technical difficulties. RESULTS IN BRIEF Since our July 2000 report, all key milestones except one have continued to slip. For example, acceptance of the first developmental howitzer slipped an additional 5 months from June to November 2000, and delivery of the remaining 7 developmental howitzers was delayed an additional 5 to 10 months. The production decision has slipped from March 2002 to September 2002 and the initial fielding of the new howitzer by the Marine Corps has slipped another 8 months to July 2004 or 28 months from the date set at the original contract award. The initial fielding of the howitzer to the Army remains unchanged at March 2005. Since July 2000, total program cost estimates have increased from $1,129.9 million to $1,250.2 million, an increase of $120.3 million.2 This increase is principally the result of restructuring the developmental contract which added $20.2 million and an approximately $100 million increase for an electronic aiming system. 1 See Defense Acquisitions: Howitzer Program Experiencing Cost Increases and Schedule Delays (GAO/NSIAD-00-182, July 28, 2000). 2 All fiscal year 2002 cost estimates are predecisional, as the President's fiscal year 2002 budget has not yet been submitted to the Congress. GAO-01-603R 155mm Lightweight Howitzer

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