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

MEDIUM TACTICAL VEHICLE REPLACEMENT (MTVR)

Description

The Weapon System

The Medium Tactical Vehicle Replacement (MTVR) is fielding a cost-effective, state-of-the-art truck that replaces an aging fleet of M809 and M939-series five-ton trucks. With an independent suspension and other new capabilities, the MTVR is capable of crossing terrain previously regarded as impassable for trucks. It carries a 7-ton payload cross-country or up to 15 tons on improved roads.

Production Status, Population, and Planned Life

MTVR is currently in production, after award of a five-year multi-year contract. MS III took place in December 2000. Although a unilateral Marine Corps program, MTVR was "harmonized," by Congress; accordingly, the contracting agency for MTVR remains the U.S. Army Tank-Automotive and Armaments Command (TACOM).

The Approved Acquisition Objective is 7,360 trucks with 6,393 trucks, in the following mix:. 3,358 cargo trucks, 2,250 extended wheel base cargo trucks, 477 dump trucks, and 308 wreckers. Planned life is 22 years. IOC was attained in the 2nd quarter of FY01.

Prime contractor: Oshkosh Truck Corporation, Oshkosh, WI

Office of Primary Responsibility: The MTVR program is jointly managed by the PM Transportation, COMMARCORSYSCOM (under the direction of the Program Executive Officer, Ground Combat and Support Systems (PEO-GCSS)) and PM-MTVR.

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

1.Reduced demand from weapon systems via reliability and maintainability improvements

  • Up-front investment in RAM-D improvements should eliminate mid-life rebuild costs, the most expensive cost in truck ownership.
  • Federal Retailers Excise Tax (FRET) is a major cost driver. FRET relief has been requested, but such relief is difficult to obtain. The OSD Business Initiatives Council approved this request in December 2001 but tihs request was rejected by the Department of the Treasury

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

  • TBD

3.Competitive sourcing of product support, leading to streamlining and overhead reductions

  • A Contractor Logistic Support (CLS) Test Contract used to test Fast-Pay initiatives with Oshkosh Truck Corp., DFAS, and DAAS. The SOW was written to specifically test interfaces with SASSY/ATLASS and other current systems, and will include testing of automated initiatives by other participating agencies.
  • A three-year CLS contract was signed in September 2001.

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05282003