An economic analysis of commercially based tactical vehicles acquisition for the Department of Defense

Abstract

As defense budgets decline and traditional defense industry supplies downsize and consolidate, many believe that the Department of Defense (DoD) must continue to increase its business activities in the commercial marketplace. This thesis is an examination of one such venture, as a result of acquisition reform, that explores the viability of using commercially produced vehicles for military use in the Department of Defense as light tactical trucks. The National Automotive Center (NAC) has initiated a program called Commercially Based Tactical Truck (COMBATT) that identifies dual-need/dual-use automotive technologies within the Defense Department and commercial automotive industry. This innovative approach is to adapt a modified commercial pick-up truck to perform some of the missions now assigned to the High Mobility Multipurpose Wheeled Vehicle (HMMWV). An economical analysis is presented to determine if the procurement of COMBATTs would be cost effective in augmenting the current light tactical vehicle fleet of HMMWVs. Research includes analyzing production cost and anticipated operation and support costs. Additionally, a cost-effectiveness analysis is performed on the program. COMBATT is shown to reduce the cost of developing and procuring and maintaining a light tactical wheeled vehicle. Recommendations are made for the Armyαs future buying strategy for its Light Tactical Vehicles. It is concluded that the services should meet their Light Tactical Vehicle needs with an appropriate mix of HMMWVs and COMBATTs.