Analysis of the Army's decision to cease procurement of M1 tank engines

Abstract

This thesis examines the issues surrounding the potential closure of the sole tank engine production facility in the United States. The analysis will describe the impact of the production facility's closure on both the United States Army's tank fleet readiness and the industrial base. The analysis is based on the FY95 DoD budget which appropriated funds for a service life extension program for existing AGT 1500 gas turbine engines through 1998. This thesis presents three possible alternatives to preserving the tank engine industrial base. The three alternatives are: (1) terminate production, mothball the production facility and develop an alternate source to provide support of existing engines, (2) terminate production, mothball the production facility, while retaining the original contractor for support of existing engines, and (3) terminate production, downsize the current facility, maintain production capability while retaining the original contractor for support of existing engines. The following factors were utilized to analyze each course of action: (1) workforce issues, (2) costs, (3) mobilization and surge capabilities, (4) spare parts requirements and (5) operational effectiveness.