-------------------------Indexing Terms------------------------- REPORTNUM: NSIAD-98-140 TITLE: BATTLEFIELD AUTOMATION - ACQUISITION ISSUES FACING THE ARMY BATTLE COMMAND, BRIGADE AND BELOW PROGRAM DATE: 06/30/1998 ----------------------------------------------------------------- ****************************************************************** ** This file contains an ASCII representation of the text of a ** ** GAO report. Delineations within the text indicating chapter ** ** titles, headings, and bullets are preserved. Major ** ** divisions and subdivisions of the text, such as Chapters, ** ** Sections, and Appendixes, are identified by double and ** ** single lines. The numbers on the right end of these lines ** ** indicate the position of each of the subsections in the ** ** document outline. 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For further details, please ** ** send an e-mail message to: ** ** ** **** ** ** ** with the message 'info' in the body. ** ****************************************************************** Cover ================================================================ COVER Report to the Chairman Subcommittee on National Security Committee on Appropriations House of Representatives June 1998 BATTLEFIELD AUTOMATION - ACQUISITION ISSUES FACING THE ARMY BATTLE COMMAND, BRIGADE AND BELOW PROGRAM GAO/NSIAD-98-140 Battlefield Automation (707284) Abbreviations =============================================================== ABBREV DOD - EPLRS - FBCB2 - SINCGARS - Letter =============================================================== LETTER B-277967 June 30, 1998 The Honorable C.W. Bill Young Chairman National Security Subcommittee Committee on Appropriations House of Representatives Dear Mr. Chairman: The Army plans to increase the exchange of information on the battlefield through the Force XXI Battle Command, Brigade and Below (FBCB2) Program\\1 . The goal is to "digitize" the forces--create an automated information network at the brigade level and below by installing computers on individual battlefield platforms and linking those computers by radio. The Army plans to equip a division with this capability by the end of fiscal year 2000. As requested, we reviewed the Army's acquisition plans for FBCB2. Specifically, we evaluated the program's significance to the Army's battlefield digitization goal, the Army's derivation of cost estimates, and the feasibility of the Army's fielding schedule. We also collected information on experimental performance results to date. -------------------- \1 Army pamphlet 10-1, Organization of the United States Army Jun. 1994, describes "brigade and below" as follows: the brigade (3,000-5,000 soldiers), battalion (300-1,000 soldiers), company (62-190 soldiers), platoon (16-44 soldiers), squad (9-10 soldiers), and the individual soldier. BACKGROUND ------------------------------------------------------------ Letter :1 FBCB2 will be the principal digital command and control system for the Army at the brigade level and below and will constitute the third major component of the Army's Battle Command System. Currently, the Battle Command System comprises the (1) Global Command and Control System-Army located at strategic and theater levels, which interoperates with other theater, joint, and multinational command and control systems, and with Army systems at the corps and levels below and (2) Army Tactical Command and Control System, which meets the command and control needs from corps to battalion. When fielded, FBCB2 is expected to provide enhanced situational awareness to the lowest tactical level\2 --the individual soldier--and a seamless flow of command and control information across the battlespace. To accomplish these objectives, FBCB2 will be composed of: -- a computer that can display a variety of information\3 , including a common picture of the battlefield overlaid with graphical depictions (known as icons) of friendly and enemy forces; -- software that automatically integrates Global Positioning System data, military intelligence data, combat identification data, and platform data (such as the status of fuel and ammunition); and -- interfaces to communications systems. Battlefield data will be communicated to and received from users of FBCB2 through a "Tactical Internet." This is a radio network comprising the Enhanced Position Location Reporting System (EPLRS) and the Single Channel Ground and Airborne Radio System (SINCGARS). By connecting platforms through this Tactical Internet, data needed for battlefield situational awareness and command and control decisions can be made available to commanders at all levels of the Army's Battle Command System. To explore the FBCB2 concept, the Army acquired and installed sufficient quantities of equipment to field a brigade-size experimental force in June 1996. This experimental force then used FBCB2 prototype equipment in an Advanced Warfighting Experiment, which culminated in March 1997 during a 2 week deployment against an opposing force at the National Training Center, Fort Irwin, California. Results from the Advanced Warfighting Experiment were considered sufficiently positive that the Army conducted an FBCB2 Milestone I/II review in July 1997.\4 FBCB2 was conditionally approved for entry into the engineering and manufacturing development acquisition phase (acquisition milestone II) pending completion of certain essential action items, including the final Operational Requirements Document and the Test and Evaluation Master Plan. The program is expected to incur life cycle costs of about $3 billion (in then year dollars) by fiscal year 2012. Department of Defense (DOD) Regulation 5000.2R offers a general model for management of the acquisition process for programs such as FBCB2. This regulation states that managers shall structure a program to ensure a logical progression through a series of phases designed to reduce risk, ensure affordability, and provide adequate information for decision-making. At the start of a program, consideration is given to program size, complexity, and risk and a determination is made regarding acquisition category. More costly, complex, and risky systems are generally accorded more oversight. The determination made at program initiation is reexamined at each milestone in light of then-current program conditions. The regulation describes the differences among acquisition categories and places them in one of three categories: I, II, or III. In general, the milestone decision authority for category I programs is at a higher level than category II or III programs. In addition, category I programs generally require that more information--such as an Analysis of Alternatives\5 and a Cost Analysis Improvement Group\6 review--be available for decision-making. Category I programs are defined as programs estimated by the Under Secretary of Defense for Acquisition and Technology to require eventual expenditure for research, development, test, and evaluation of more than $355 million (fiscal year 1996 constant dollars) or procurement of more than $2.1 billion (fiscal year 1996 constant dollars). Category II programs have lower dollar classification thresholds than category I programs; for example, the research, development, test, and evaluation dollar threshold for an acquisition category II program is $140 million (fiscal year 1996 constant dollars). Category III programs are defined as those which do not meet the criteria for category I or II programs. FBCB2 is currently classified as a category II acquisition program. -------------------- \2 The Army describes "situational awareness" as near real time information on current unit positions and their tactical/logistical status. Also, intelligence sources will enable a continuous flow of information on enemy locations and intelligently derived and widely disseminated analysis of probable enemy intent. \3 Platforms such as the M1A2 Abrams tank and the M2A3 Bradley fighting vehicle, which already have an on-board data processing capability, will not require another computer. Instead, the FBCB2 "embedded battle command" software will be used to interface with existing software. Other platforms will require FBCB2 computers. In November 1997, the Army's acquisition objective was 2,604 embedded FBCB2 systems and 59,522 systems requiring computer installations. \4 Department of Defense Regulation 5000.2R explains that the acquisition process shall be structured in logical phases separated by major decision points called milestones. In general, an acquisition program will progress through four milestones. These milestones are: milestone 0, approval to conduct concept studies; milestone I, approval to begin a new acquisition program; milestone II, approval to enter engineering and manufacturing development; and, milestone III, approval for production or fielding/deployment. \5 DOD regulation 5000.2R requires an analysis of alternatives for all acquisition I programs. These analyses are intended to (1) aid and document decision-making by illuminating the relative advantages and disadvantages of alternatives being considered, and (2) show the sensitivity of each alternative to possible changes in key assumptions (e.g., threat) or variables (e.g., selected performance capabilities). Discussion of interoperability and commonality of components/systems that are similar in function to other DOD component programs or Allied programs are sometimes included. The analysis shall aid decision-makers in judging whether any of the proposed alternatives to an existing system offer sufficient military and/or economic benefit to be worth the cost. There shall be a clear linkage between the analysis of alternatives, system requirements, and system evaluation measures of effectiveness. \6 The Cost Analysis Improvement Group is part of the Office of the Secretary of Defense, Program Analyses and Evaluation Office and their reviews are used to ensure cost data of sufficient accuracy is available to support reasonable judgements on affordability for acquisition I programs. RESULTS IN BRIEF ------------------------------------------------------------ Letter :2 On the basis of the Army's estimate of FBCB2 research, development, test and evaluation costs, the program has been classified as a category II acquisition--one that does not require systematic oversight by the Under Secretary of Defense for Acquisition and Technology. We believe that because of the FBCB2's significance, cost, and schedule risk, the FBCB2 should be classified as a category I acquisition and receive a higher level of oversight. Specifically: -- Although FBCB2 is critical to the Army's digitization plan--the system ties the upper level command and control systems to the digital battlefield--FBCB2 is the only major system in the Army's Battle Command System that has not been designated category I. The system's potential to provide thousands of soldiers with the ability to send and receive clear and consistent battlefield information in almost real time demonstrates the system's significance as a linchpin of the digital battlefield. This significance is confirmed by the Army's own designation of FBCB2 as one of the highest priority command and control systems and the Army's plan to equip a division with an FBCB2 capability by the end of fiscal year 2000. -- Our analysis indicates that there are additional research, development, test, and evaluation costs that, when included, increase the dollar significance of this program to a category I acquisition level. -- The FBCB2 program faces significant schedule risk in meeting the fiscal year 2000 mandate for fielding the first digitized division. The mandate was set by the Army Deputy Chief of Staff for Operations and Plans in August 1997. To achieve this schedule, the FBCB2 program will, in a 18-month period, need to pass a series of tests, including two operational tests. Each test requires different versions of software for each of the two hardware components--the computer and the communications interface unit. Additionally, new versions of two weapon systems participating in the FBCB2 operational tests--the Abrams tank and the Bradley Fighting Vehicle--will be concluding their own operational tests just prior to the start of FBCB2 operational testing. The Army acknowledges that the program schedule is high risk. However, despite this acknowledged schedule risk, the Army is moving ahead with its highly compressed schedule with no apparent risk management strategy specifically addressing alternatives and the implications of not fielding an adequately developed system by the end of fiscal year 2000. Because the FBCB2 program has only recently entered engineering and manufacturing development, no operational evaluations are yet available for analysis. However, the 1997 Task Force XXI Advanced Warfighting Experiment employed a prototype FBCB2. Two independent organizations, the Army's Operational Test and Evaluation Command and the Office of the Secretary of Defense, Operational Test and Evaluation Office, assessed FBCB2 results and found a number of problems. These included poor message completion, limitations related to the experimental hardware and software, a lack of adequate digital connectivity, immaturity of the Applique--the Army's name for the FBCB2 computer--and the Tactical Internet, and inadequate training. These organizations offered recommendations for the continued development, maturity, and oversight of upcoming FBCB2 operational tests. Army officials currently assess the program's technical risk as medium. PROGRAM SIGNIFICANCE, ESTIMATED COST, AND SCHEDULE RISK INDICATE NEED FOR HIGHER LEVEL SYSTEMATIC OVERSIGHT ------------------------------------------------------------ Letter :3 FBCB2 is currently designated a category II acquisition on the basis of the Army's estimate of research, development, test, and evaluation costs. As a result, oversight is provided within the Army. We believe that the program should be a category I acquisition on the basis of (a) significance of the program; (b) estimated research, development, test, and evaluation costs; and (c) high schedule risk. The Army acknowledges that the program schedule involves high risk. FBCB2 IS A PRIORITY ONE ARMY PROGRAM ---------------------------------------------------------- Letter :3.1 Throughout the next decade and beyond, the Army plans to modernize its forces through an overarching initiative called Force XXI. Components of the Force XXI initiative are Army XXI, which extends to about the year 2010, and the Army After Next, which is looking beyond the year 2010. Included within the modernization objectives of Army XXI is the integration of information technologies to acquire, exchange, and employ timely information throughout the battlespace. In general, integrated situational awareness and command and control information technologies available to Army commanders currently extend through the Army Tactical Command and Control System to tactical operations centers at the brigade and battalion levels. By extending the integration of information technologies to the thousands of soldiers operating outside the tactical operations centers, the Army expects to increase the lethality, survivability, and operational tempo of its forces. FBCB2 is the critical link needed to extend the information to those soldiers. On August 1, 1997, the Deputy Chief of Staff for Operations and Plans announced that the first digitized division would be the 4th Infantry Division and that, at a minimum, fielded equipment would include the Army Training and Doctrine Command's list of priority one systems and associated equipment. The Training and Doctrine Command has identified 15 priority one systems. They primarily consist of command, control, and communications systems, including FBCB2. It is considered a critical element within the Army's digitization effort because of the contribution it makes to achieving the required capabilities for the digitized battlefield. Approved by the Joint Requirements Oversight Council of the Joint Chiefs of Staff in January 1995, these capabilities are: -- integrated battle command from platoon to corps, -- relevant common picture of the battlespace at each level, -- smaller units that are more lethal and survivable, -- more responsive logistics within and between theaters, and -- joint interoperability at appropriate levels. It is unlikely that all the required capabilities of the digitized battlefield can be achieved without FBCB2. However, despite this critical role, the Army has not designated FBCB2 as a category I acquisition--a designation it has given to the other major systems in the Army's Battle Command System. The significance of this program has also been noted by the Office of the Secretary of Defense Operational Test and Evaluation Office, which in October 1997 recommended that FBCB2 be elevated to a acquisition category I-D status on the basis of the program's "significant and far-reaching impact\7 ." That office placed FBCB2 on the same level as the Army's Maneuver Control System, which is also an acquisition category I-D program. The Maneuver Control System is a key component of the Army's Tactical Command and Control System that provides automated critical battlefield assistance to commanders and their battle staff at the corps-to-battalion level. -------------------- \7 The "D" refers to the Defense Acquisition Board which advises the milestone decision authority, the Under Secretary of Defense for Acquisition and Technology. Other category I programs are designated I-C programs; the "C" refers to the Component Head or Component Acquisition Executive as the milestone decision authority. COST ESTIMATE DOES NOT INCLUDE ALL PROGRAM COSTS ---------------------------------------------------------- Letter :3.2 The Army's cost estimate for research, development, test, and evaluation activities, adjusted to fiscal year 1996 constant dollars,\8 is $265.4 million. This estimate covers the period from fiscal year 1997 through fiscal year 2004. However, we believe the Army's estimate is understated in that other research, development, test, and evaluation costs should be added. As shown in table 1, these costs raise the research, development, test, and evaluation cost estimate above the category I threshold of $355 million. Table 1 Our Estimate of Total FBCB2 Research, Development, Test, and Evaluation Costs (Dollars in millions) Fiscal year Then year Conversion 1996 Cost category estimate factor estimate ---------------------------------- ---------- ---------- ---------- Research, development, test, and $283.4 1.0424 $271.9 evaluation costs included in Army's life cycle cost estimate (1998 dollars) Less: adjustment for fiscal year (6.8) 1.0424 (6.5) 1998 (1998 dollars) ====================================================================== Subtotal of Army estimated costs $265.4 Additional relevant costs identified Sunk costs included in Army life 48.7 1.0424 46.7 cycle cost estimate (1998 dollars) Adjustment for fiscal year 1999 5.5 1.0643 5.2 (1999 dollars) Warfighter Rapid Acquisition Program 4.3 1.0210 4.2 Applique (1997 dollars) Applique 2.6 1.0424 2.5 (1998 dollars) Warfighter Rapid Acquisition Program 8.0 1.0210 7.8 Tactical Internet (1997 dollars) 8.0 1.0424 7.7 Tactical Internet (1998 dollars) Expected transfer to Abrams 14.2 1.0643 13.3 Program Manager (1999 dollars) Expected transfer to Bradley 3.5 1.0643 3.3 Program Manager (1999 dollars) Estimated cost of FBCB2 limited 8.5 1.0424 8.2 user test (1998 dollars) Estimated cost of FBCB2 initial operational test and evaluation (1999 dollars) 15.4 1.0643 14.5 (2000 dollars) 7.5 1.0867 6.9 ====================================================================== Subtotal of Our additional costs $120.3 ====================================================================== Total $385.7 ---------------------------------------------------------------------- We discussed these figures with Army program officials, and they agreed with $7.2 million of our additional costs, which included partial amounts from the Warfighters Rapid Acquisition Program\9 related to the FBCB2 computer--$2.0 million of the fiscal year 1997 ($1.4 million) and 1998 ($.6 million)--and a $5.2 million difference between what was included in the life cycle cost estimate ($47 million) and the actual budget request ($52.5 million) converted to 1996 constant dollars. Army officials disagreed with the addition of remaining cost categories amounting to $113.1 million on the basis that (1) Army policies and procedures require them to include only those funds obligated by the program office after the establishment of a formal acquisition program; (2) FBCB2-related funds obligated by other program managers, such as the Abrams and Bradley managers, should be excluded; and (3) costs directly related to test and evaluation activities for acquisition category II, like FBCB2, are identified in the Army Operational Test and Evaluation Command's Support of Operational Testing program element. Our assessment of the Army's arguments follows. -------------------- \8 To make the adjustments, we used the inflation indices published by the Army Material Command on December 27, 1996. \9 The Warfighter Rapid Acquisition Program started with a $50 million fiscal year 1997 appropriation for Force XXI Initiatives. The fiscal year 1997 funding was followed by a fiscal year 1998 appropriation of nearly $100 million. The Force XXI Initiatives funding was intended to allow the Army to accelerate the fielding of promising technologies. FUNDS USED TO BUY PROTOTYPE HARDWARE AND SOFTWARE SHOULD BE INCLUDED -------------------------------------------------------- Letter :3.2.1 The Army Digitization Program provided $47.6 million for FBCB2 research, development, test, and evaluation activities through fiscal year 1996. The funds used were to buy FBCB2 prototype hardware and software used in the Advanced Warfighting Experiment at the National Training Center. Army officials stated that these funds were obligated prior to the establishment of the FBCB2 acquisition program and thus should not be included in this cost estimate. We found that the Army had included these funds in its total life cycle cost estimate and, while the source of the funds was the digitization program element, the explanation to the Congress in appropriate descriptive summaries shows the funds were needed for activities related to the development of FBCB2 hardware and software. Therefore, we believe these funds should be included in the derivation of the FBCB2 research, development, test, and evaluation cost estimate. FUNDS FOR INTEGRATION ACTIVITIES AND OBLIGATED BY ABRAMS AND BRADLEY PROGRAM MANAGERS SHOULD BE INCLUDED -------------------------------------------------------- Letter :3.2.2 Our analysis shows that $2.8 million in fiscal year 1997 funding and $1.9 million in fiscal year 1998 funding were specified for FBCB2 platform (shown as Applique in figure 1)\10 integration activities and obligated by Abrams and Bradley program managers. Army officials stated that a new Army regulation requires that all platform-related costs be identified as part of the total platform cost and that these funds were given to and obligated by the Abrams and Bradley program offices. However, the Army obtained these funds from the Warfighters Rapid Acquisition Program on the basis that they would be used to provide an improved design that was not part of the original FBCB2 budget. Additionally, when requesting these funds, the Army stated that, without this funding, FBCB2 would be at risk of not meeting its fiscal year 2000 deadline. In our opinion, since these funds were specifically requested, used, and obligated for FBCB2, they should be considered part of the total research, development, test, and evaluation cost estimate. Our analysis also shows that $7.8 million in fiscal year 1997 and $7.7 million in fiscal year 1998 were requested to complete system engineering and integration work on the Tactical Internet. According to Army officials, these funds were obligated by program managers for Tactical Radio Command Systems and Warfighter Information Network-Terrestrial and, since they were not controlled or obligated by the FBCB2 program manager, should not be included in the estimate. We believe these funds should be included as part of FBCB2 research, development, test and evaluation cost because the Army justified its need for these funds on the basis that they would be used to correct known shortcomings and make the Tactical Internet compatible with the evolution of the FBCB2 software development effort. In describing the critical nature of the funding, the Army concluded that without the Tactical Internet there would be no FBCB2. We also found that interface funding is specifically characterized in the fiscal year 1999 Army descriptive summary for the Digitization program element as needed to complete integration, procure prototypes, and initiate testing of FBCB2 in the M1A1 Abrams, M1A2 Abrams with system enhancements, and the M2A2 Bradley Operation Desert Storm configurations. Therefore, we believe these funds are more appropriately categorized as FBCB2-related rather than research, development, test, and evaluation activities unique to the Abrams or Bradley platforms. -------------------- \10 The Applique funding provided to the Army by the Warfighters Rapid Acquisition Program was accounted for in two ways. For fiscal year 1997 the adjusted amount of $4.2 million was apportioned as $1.6 million to the FBCB2 program element and $2.8 to the Abrams and Bradley program managers. In fiscal 1998, the adjusted amount of $2.5 million was apportioned as $0.6 million to the FBCB2 program element and $1.9 million to the Abrams and Bradley program managers. TEST AND EVALUATION COSTS ARE ALREADY IDENTIFIED IN ANOTHER PROGRAM ELEMENT -------------------------------------------------------- Letter :3.2.3 According to Army policy, test and evaluation costs associated with a category I program are included in the program element. Since we believe FBCB2 should be classified as a category I acquisition, we included $8.5 million in fiscal year 1998 for the FBCB2 Limited User Test, $15.4 million in fiscal year 1999 for the FBCB2 Initial Operational Test and Evaluation, and $7.5 million in fiscal year 2000 for the FBCB2 Initial Operational Test and Evaluation. We were unable to determine the estimated cost for Force Development Test and Evaluation. Had we been able to do so, these costs would also be included in our estimate. Our belief that FBCB2 is justifiably a category I acquisition on the basis of cost is shared by an office in Under Secretary of Defense for Acquisition and Technology. In November 1997, the Director, Test, System Engineering, and Evaluation, recommended that FBCB2 be designated a category I-D program because of "significant integration risks with other major systems and the potential dollar thresholds involved." The Director noted that cost estimates do not include communications and integration costs that potentially will drive the program above category II thresholds. We believe examples of these type of costs discussed in this report are communication costs associated with the Tactical Internet and integration costs associated with the Abrams and Bradley platforms. Army program management officials expressed concern about a category I-D designation for the FBCB2 program because it would require the insertion of formal oversight review milestones, with their consequent resource demands, into an already risky schedule. However, our recent discussions with these officials disclosed that issues of cost estimates and acquisition category are still being explored. For example, a comprehensive Army cost estimate, currently being developed with help of the Cost Analysis Improvement Group, is expected to be available by September 1998. According to these officials, the FBCB2 Overarching Integrated Product Team is trying to reach a consensus on a recommendation regarding the appropriate amount of oversight required for the program. That recommendation may await the outcome of the Army cost estimate effort currently being developed. FBCB2 SCHEDULE IS HIGH RISK ---------------------------------------------------------- Letter :3.3 To achieve the Army's end of fiscal year 2000 schedule, the FBCB2 program will need to pass a series of tests, including two operational tests. Additionally, new versions of two weapon systems participating in the FBCB2 operational tests will be concluding their own testing just prior to the start of FBCB2 operational testing. The Army acknowledges that the program schedule involves high risk. However, despite this acknowledged schedule risk, the Army is moving ahead with its highly compressed schedule without specifically addressing the implications of not fielding an adequately developed system by the end of fiscal year 2000. DELAYS IN DOCUMENTING REQUIREMENTS AND COMPLEX TESTING SCHEDULE -------------------------------------------------------- Letter :3.3.1 In its effort to move the program rapidly along to meet the year 2000 implementation deadline, the Army is making decisions that may prove troublesome later in the acquisition. In this regard, we found that the development of critical acquisition documentation and plans are experiencing significant delays. For example, in July 1997 the Army made the decision to move FBCB2 to acquisition milestone II (Engineering and Manufacturing Development) contingent on completion of the Operational Requirements Document and Test and Evaluation Master Plan by November 1, 1997. In November 1997, these actions had not been completed and the new expected approval date for these documents slipped to March 1998 . Our discussions with Army officials now indicate that these documents are not expected to be complete and approved by the Joint Requirements Oversight Council until July 1998. This means that the Army is currently relying on a December 1997 Training and Doctrine Command-approved Operational Requirements Document as the basis for the program until it is replaced by the Joint Requirements Oversight Council-approved Operational Requirements Document. Therefore, the requirements process is expected to conclude only one month prior to the start of the first FBCB2 operational test--Limited User Test--in August 1998. Further, to meet the Army's fiscal year 2000 schedule, the FBCB2 program will need to successfully complete a series of tests, including two operational tests. Each test requires different versions of software for each of the two hardware components--the computer and the communications interface unit. The second operational test also requires that FBCB2 software be successfully integrated into the new digitized versions of the Abrams tank and the Bradley Fighting vehicle. The new versions of these platforms will be concluding their own independent operational test and evaluations--to demonstrate the capability of the platform as a weapon system--just prior to the start of the FBCB2 initial operational test and evaluation. These scheduled activities are shown in figure 1. Figure 1: FBCB2 Schedule and Related Information (See figure in printed edition.) Legend: ASIP SINCGARS Advanced System Improvement Program SINCGARS FDT&E Force Development Test and Evaluation FT Field Test IOT&E Initial Operational Test and Evaluation LUT Limited User Test VHSIC EPLRS