Army concerned by termination fees

A senior Army official warned on Wednesday that cutting funds requested to pay for the cancellation of the manned ground vehicle portion of the Army's Future Combat Systems would hinder the service as it begins a modernization effort. Lt. Gen. Ross Thompson, the Army's acquisition chief, said in a conference call with reporters that he expects cancellation fees to contractors to be "in the hundreds of millions of dollars."

If the Army doesn't receive enough money in fiscal 2010 to pay those fees, it will mean delays in modernization plans, Thompson said.

Last week, the House, citing unspent fiscal 2009 funds that could be used to pay termination fees, approved an fiscal 2010 defense authorization bill that provides only $100 million of the $427 million requested by the Pentagon for cancellation costs. Thompson said he recognized concerns among lawmakers about the future of the Army's modernization efforts, but he argued that the service needs "as much stability as possible in funding."

The Army still plans to pursue many of the other technologies developed under FCS, but those efforts will now be clustered under the newly named Army Brigade Combat Team Modernization program.

Service officials say they hope to have a new blueprint for vehicles by September.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.