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PILOT PROGRAMS TO
REDUCE TOTAL OWNERSHIP COSTS
(R-TOC)

ABRAMS TANK SYSTEM

Description

The Weapon System

The Abrams Tank provides heavy armor superiority on the battlefield. The tank closes with and destroys enemy forces using mobility, firepower and shock effect. The 105-mm main gun on the M1 and Improved M1 (IPM1) and the 120-mm main gun on the M1A1 and M1A2, combined with the powerful 1,500 hp turbine engine and special armor, make the Abrams tank particularly suitable for attacking or defending against large concentrations of heavy armor. The Abrams Tank program is complex, with a number of variants ranging from the analog M1/IPM1/M1A1 versions to the digital M1A2/M1A2SEP (System Enhancement Program).

The Abrams has products in all phases of the life cycle. In addition to U. S. production, current Foreign Military Sales (FMS) customers include Egypt, Saudi Arabia, and Kuwait, with future competitions involving Turkey, Greece, Sweden, and Qatar.

The Abrams is currently the second largest consumer of sustainment dollars in the U.S. Army (after the Apache). Within the system, the existing engine is the O&S cost driver. The Abrams R-TOC pilot program has identified four specific initiatives that will significantly reduce O&S costs. The four R-TOC initiatives of the Pilot Program are:

  • A partnership with industry to overhaul selected engine components using contractor parts and technical support with government skilled labor and facilities. Subsequently, the engine will be completely redesigned and replaced to lower fuel consumption and increase reliability. This will be accomplished under the LV100-5 Engine Program.
  • A partnership with industry to overhaul the entire M1A1 fleet, increasing fleet life by approximately 30 years.
  • Implementation of a technical support program to identify and replace obsolete parts, enhance vehicle safety, and provide post-deployment software support.
  • Maximization of Direct Vendor Delivery, Electronic Data Interchange and Electronic Commerce to streamline process of providing M1A2-unique spares and repair parts to the field Team Armor Partnership.

In October 2000, Abrams tank system was one of four R-TOC Pilot Programs designated to experiment with performance agreements with users, performance agreements with support providers, and program-specific working capital funds.

Production Status, Population, and Planned Life

There are currently 2,506 M1's, 4,550 M1A1's, and 714 M1A2's. 1,247 M1's will be replaced with 460 M1A2's between now and 2020. The size of the Abrams tank fleet will stabilize at 6,983 in 2020.

Prime contractor: General Dynamics Land Systems (GDLS)

Office of Primary Responsibility: Project Manager, Abrams Tank Systems, U.S. Army Tank-automotive and Armaments Command.

R-TOC Focus Areas: (From USD (AT&L) memorandum dated May 10, 1999)

  1. Reduced demand from weapon systems via reliability and maintainability improvements
  2. The following initiatives have been funded.

    • Rebuild of ACT 1500 gas turbine engines (near term), via the Partnership to Reduce O&S Costs, Engine (PROSE) initiative.
    • Replacement of the Abrams engine will reduce engine O&S cost by 2/3, reduce fule consumption by 1/3, and provide easier access and maintenance.
    • Abrams Integrated Management (AIM) System. An innovative depot-contractor teaming arrangement to provide for overhauling M1A1's to original factory standards and providing selective technology upgrade.
    • Technical Support to redesign Turret and Hull Networks Boxes and incorporate embedded diagnostics.

  3. Reduced supply chain response times, leading to reduced spares, system support footprint, and depot needs

    Performance Based Field Logistics Support (now called Team Armor Partnership): a government/industry partnership to provide M1A2 unique logistics support via repair, upgrade, storage and repair of spares and components. The arrangement provides for reduced surcharge and streamlined order delivery management.

  4. Competitive sourcing of product support, leading to streamlining and overhead reductions
    • Improvements through a combination of near term initiatives
    • GDLS is the depot level repair facility for MIA2-unique support.

Performance-based Pilot Activities

Abrams is one of four R-TOC Pilot Programs selected in October 2000 to experiment with:

  • Establishment of formal performance agreements between the program managers and their warfighter customers based on warfighter expectations and mission availability, particularly for legacy systems.
  • Use of program-specific formal agreements (or "contracts") with organic providers based on output and availability.
  • Use of a program-specific working capital fund to pool funding sources and provide a robust financial base for the program managers to fund product support providers to meet mission availability expectations.

Performance-based agreements between all involved organizations will be developed for each Recapitalization initiative, which is a major focus of the Abrams R-TOC approach. The agreements will define what is expected of each organization, and the benefits will be assessed across a select portion of the fleet, to show how the initiative would affect the entire fleet.

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