Army Delays $92-Billion Modernization Program Led by Boeing

The U.S. Army is delaying for two years the launch of its first combat unit to be fully equipped in a $92-billion modernization program co-led by Boeing Co., top generals told Congress on Wednesday.

Underlying technology will take longer than had been planned for development of the so-called Future Combat System, Army Chief of Staff Gen. Peter Schoomaker told the House Armed Services Committee.

The program is the centerpiece of the Army’s drive to become lighter, more rapidly deployable and more lethal. It involves networked communication links to 18 manned and unmanned ground systems, as well as to unmanned aerial vehicles.

The other lead systems integrator is employee-owned Science Applications International Corp.

“We will have our first full FCS-capable unit, with new technology and new platform” two years later than previously planned, Schoomaker said.

Under the restructured program, details of which are to be disclosed by the Army today, the likelihood of meeting targets for rolling out the technology is greater than 70%, up from an estimated 28% before, he said.

Lt. Gen. Benjamin Griffin, the Army’s deputy chief of staff for force development, said he did not expect Boeing’s role to change as a result of the restructuring, which involves speeding the integration of some systems and slowing others.

“To the best of my knowledge, their role is not changed,” he told reporters at a break in a hearing.

A spokeswoman for Chicago-based Boeing, Maria McCullough, said: “We continue to be very excited about the program and very committed to Future Combat Systems.”

The Pentagon last May approved the start of the $14.9-billion “system development and demonstration” phase of the combat system program, which led to dozens of subcontractor awards by Boeing and Science Applications. The fate of those contracts is not clear.

A House-Senate conference committee has approved $2.9 billion for the project as part of a fiscal 2005 defense spending plan.