Defense Acquisitions: Army Purchased Truck Trailers That Cannot be Used as Planned
NSIAD-00-15
Published: Oct 27, 1999. Publicly Released: Oct 27, 1999.
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Highlights
Pursuant to a congressional request, GAO provided information on the Army's purchase of the High Mobility Trailers, focusing on the: (1) factors leading to the substantial increase in the contract unit price of the trailers; (2) reasons the trailers cannot be used as planned and the cost to the Army for required modifications; and (3) Army's acquisition strategy and plans to procure additional trailers.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To ensure that the Army does not again acquire trailers that need substantial modifications before being fielded, the Secretary of Defense should require the Army, before proceeding with follow-on production of the trailer, to demonstrate the design will meet requirements and will not damage the trucks. |
Closed – Implemented
The Army revised its trailer acquisition strategy to procure additional trailers. Originally it planned to award a follow-on trailer production contract using the original trailer specifications and drawings. Instead, it plans to award two contracts for the development of trailer prototypes based on performance specifications. The Army then plans to test the prototypes and award a production contract to the contractor whose prototype offers the Army the best value. The new strategy meets the intent of GAO's recommendation.
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Topics
Army procurementContract modificationsCost analysisCost overrunsMilitary land vehiclesPrices and pricingProcurement planningSchedule slippagesU.S. ArmyMilitary forces