Land Combat Systems: Dec. 30, 2017

Land Combat Systems

The Land Combat Systems (LCS) industry, as part of the overall defense industry, is critical to the U.S. and partner nation’s defense security. For the purposes of this study, the industry is sub-categorized into two markets: Tactical Wheeled Vehicles (TWV), including Protected Vehicles (PV), and Combat Vehicles (CV). Tactical Wheeled Vehicles include light, medium, and heavy wheeled vehicles carrying personnel and equipment with a limited ability to carry weapons. Combat Vehicles include tracked and wheeled vehicles mainly used in a ground combat role. The purpose of studying the LCS industry is to analyze representative issues and dilemmas faced by firms, the Department of Defense (DoD), and the U.S. Government (USG). The LCS industry consists of a number of key domestic and international firms as well as government depot facilities. Within the TWV market firms often manufacture both commercial and military products, sometimes on the same assembly line. However, most firms in the CV market are solely military suppliers. Cyclic government demand is a key driver in the TWV and CV markets. In addition, government customers control many variables which directly impacts the success or failure of LCS programs and the respective success or failure of individual firms. Given the facts above and based upon the study team observations and analysis, the USG and DoD should consider expanding Foreign Military Sales (FMS) opportunities, updating logistical sustainment plans and practices, revising requirements generation and oversight of Science and Technology (S&T) and innovation, and consolidating efforts within the Defense Industrial Base (DIB). These changes will maximize efficiency, increase competition, incentivize innovation, and minimize cost while maintaining the optimum readiness level for the designated mission requirements.