{"id":35885,"date":"2020-02-13T20:09:04","date_gmt":"2020-02-13T20:09:04","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/02\/13\/struggles-with-bae-production-lines-produce-low-hanging-fruit-for-funding-cuts-in-fy21\/"},"modified":"2026-08-07T22:58:08","modified_gmt":"2026-08-07T22:58:08","slug":"struggles-with-bae-production-lines-produce-low-hanging-fruit-for-funding-cuts-in-fy21","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/smr\/federal-budget\/2020\/02\/13\/struggles-with-bae-production-lines-produce-low-hanging-fruit-for-funding-cuts-in-fy21\/","title":{"rendered":"Struggles with BAE production lines produce low-hanging fruit for funding cuts in FY21"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 Struggles with manufacturing the <a href=\"https:\/\/www.defensenews.com\/land\/2016\/12\/15\/bae-systems-presents-first-ampv-prototype-to-us-army\/\" target=_blank>U.S. Army\u2019s new armored vehicle <\/a>and its modernized howitzer have set both programs up as l<a href=\"https:\/\/www.defensenews.com\/smr\/federal-budget\/2020\/02\/13\/heres-the-armys-top-10-canceled-and-reduced-programs-in-fy21\/\" target=_blank>ow-hanging fruit for funding cuts<\/a> in the <a href=\"https:\/\/www.defensenews.com\/smr\/federal-budget\/2020\/02\/10\/us-armys-178b-budget-request-for-fy21-shrinks-but-remains-focused-on-modernization\/\" target=_blank>service\u2019s fiscal 2021 budget request<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Both the Armored Multi-Purpose Vehicle (AMPV) and the <a href=\"https:\/\/www.defensenews.com\/land\/2017\/12\/21\/us-army-awards-bae-contract-to-build-full-rate-production-howitzers\/\" target=_blank>M109A7 Paladin Integrated Management (PIM) system<\/a> are being build at BAE Systems\u2019 York, Pennsylvania, production line.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Army spent $445 million to buy AMPVs \u2014 the service\u2019s M113 replacement \u2014 in FY20, but it plans to only spend $193 million \u2014 roughly half of that \u2014 in FY21, according to budget documents released Feb. 10.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In FY20, the Army indicated in its budget documents that it would buy 143 AMPVs in FY21. But now the service is only planning to buy 32. The total objective procurement requirement remains the same across the service\u2019s five-year budget plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The PIM program also saw reductions over FY20. The Army plans to spend $436 million in FY21 after spending $553 million in FY20. The service, according to FY20 budget documents, planned to purchase 37 systems, but the new FY21 five-year plan shows the Army reduced the procurement number by seven. The objective requirement also remains the same, indicating the service intends to delay buying the systems rather than truncate the overall procurement.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/ausa-digital-show-dailies\/2018\/10\/07\/from-paladin-upgrades-to-a-1000-mile-cannon-army-artillery-aims-high-er-farther\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635599569525570277-october-29-frontlines-5jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">From Paladin upgrades to a 1,000-mile cannon, Army artillery aims high \u2014 er, farther<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">After two decades of counterinsurgency warfare, the Army is beefing up its investments in artillery, once a core part of America\u2019s ground force.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The AMPV program entered low-rate initial production, or LRIP, in January 2019. However, the program office indicated last year that delivery of the first LRIP vehicles would be delayed by two months and the completion of production qualification testing would be delayed by seven months due to tooling and assembly line challenges at York, according to a report released earlier this month by the Office of the Director of Operational Test and Evaluation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DOT&amp;E as well as Army Test and Evaluation Command identified deficiencies with the vehicle. According to the DOT&amp;E report, there are 14 deficiencies that will be corrected prior to LRIP, and seven will be corrected after LRIP has begun but before the start of its initial operational test and evaluation expected in the third quarter of FY21. But that could be delayed by another four months.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"666\" src=\"\/wp-content\/uploads\/2026\/08\/m109A6.jpg.jpg\" alt=\"\" class=\"wp-image-43490\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/m109A6.jpg.jpg 1000w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/m109A6.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/m109A6.jpg.jpg?resize=768,511 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">U.S. Soldiers with Bravo Battery, 3rd Battalion, 29th Field Artillery Regiment, 3rd Armored Brigade Combat Team, 4th Infantry Division, conduct a Fire Coordination Exercise with M109A6 Paladins at the 7th Army Training Command&#8217;s Grafenwoehr Training Area, Germany, Aug. 21, 2017. M109A7 howitzers will replace the M109A6 variant. Photo by Gertrud Zach\/U.S. Army<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The Army has been working to address breech reliability issues discovered several years ago during initial IOT&amp;E events in 2017 and 2018, according to the DOT&amp;E report, and it recalled 68 PIM LRIP vehicles for \u201ccomplete teardown, inspection, repair and retesting\u201d due to weld deficiencies in the BAE production process at York.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The service has delayed PIM\u2019s full-rate production decision due to \u201cproduction quality and capacity challenges\u201d in the line, according to the report. But BAE has a plan to correct the problems, the DOT&amp;E report notes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Army made clear during a FY21 budget briefing with Pentagon press on Feb. 11 that the cuts made to PIM and AMPV were not made just to make way for modernization priorities, but due to production challenges. Yet the benefit of having a slower procurement in both programs means more money can be moved toward the Army\u2019s top six efforts to rapidly develop future capabilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">John Daniels, the Army\u2019s deputy assistant secretary for plans, programs and resources, said at the briefing, the cuts were due to \u201cgetting the production facility right-sized.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Army may have gone in with a bit too much \u201centhusiasm,\u201d he said, when anticipating the rate vehicles would be coming off the line, but \u201cthen we found out there was some additional unforeseen issues in the industrial base to get the quantities right, so it was better to reduce.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The service, therefore, took the opportunity to use the funding to pay other bills, Daniels said, \u201cand to slow the production curve to get a little bit of time to get a better vehicle out.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even with the reductions and the production line challenges, Daniels said the AMPV program would only see about a six-month delay.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s not going to be one of these things you figure out in a couple months, it\u2019s going to be an iterative, every-year look at what is the right rate,\u201d he cautioned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOnce you get it up and running, what is the most effective and efficient way to run that line? The good news is you are running PIM and the AMPV through the same facility, so there is a bit of commonality there and also it\u2019s going to consume a fair amount of production capability,\u201d Daniels said. \u201cSo we have to look at what is the ramp-up cost if you want to go beyond what the line can currently do if everything is working correctly.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Manufacturing problems with the Army&#8217;s Armored Multi-Purpose Vehicle and M109A7 Paladin Integrated Management system have freed up funds for other priorities in FY21.<\/p>\n","protected":false},"author":7,"featured_media":25367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":114,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,114,12,14,36,30],"tags":[],"coauthors":[3330],"class_list":["post-35885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-federal-budget","category-industry","category-land","category-newsletters","category-smr"],"acf":{"subheadline":"","legacy_arc_id":"AY7OAJOCQBAAVADJFEUQYXSCM4","arc_canonical_url":"\/smr\/federal-budget\/2020\/02\/13\/struggles-with-bae-production-lines-produce-low-hanging-fruit-for-funding-cuts-in-fy21\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Struggles with BAE production lines produce low-hanging fruit for funding cuts in FY21 - Defense News<\/title>\n<meta name=\"description\" content=\"Manufacturing problems with the Army&#039;s Armored Multi-Purpose Vehicle and M109A7 Paladin Integrated Management system have freed up funds for other priorities in FY21.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Struggles with BAE production lines produce low-hanging fruit for funding cuts in FY21\" \/>\n<meta property=\"og:description\" content=\"Manufacturing problems with the Army&#039;s Armored Multi-Purpose Vehicle and M109A7 Paladin 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