Army and Lead Systems Integrator team sign major agreement for Future Combat Systems way ahead (Dec. 11, 2003).

The Army and Future Combat Systems (FCS) Lead Systems Integrator (LSI) team of Boeing-Science Applications International Corporation (SAIC) formalized their baseline plan yesterday for the execution of the FCS Systems Development and Demonstration (SDD) phase by definitizing the Other Transactions Agreement (OTA) signed on May 30, 2003.

Definitization means the contracting parties, represented by the U.S. Army Tank-Automotive and Armaments Command and Boeing, have reached agreement on more precisely defined provisions relative to the scope, schedule, and price for SDD performance.

The definitized Agreement describes efforts to be completed and establishes an upper limit of $14.78 billion with funds incrementally obligated through FY 2011. By signing this definitized Agreement, the government commits to plan for and provide funding in accordance with the execution schedule. The definitized agreement limits government liability to the amount obligated each year and termination costs, if applicable.

"This is an important step forward toward the Army's Future Force," said Lt. Gen. Joseph Yakovac, Military Deputy to the Assistant Secretary of the Army for Acquisition, Logistics and Technology. "We will now begin to integrate ongoing systems and sub-systems design and development activity into the integrated whole that will be the FCS-equipped Unit of Action.

"The Army-LSI team has worked very hard together to agree on this framework. By this definitizing action, we are taking another major step forward in realizing a key Army Transformation objective. The Army remains satisfied with the LSI's major partner source-selection process from this past summer, and we are confident that we're on the right path," said Yakovac.

During this SDD phase, The Army-LSI team will work with the 23 FCS partners, chosen through an Army-approved competitive process over the summer, to begin the design and development of the first FCS increment.

FCS is a joint, networked-centered "system of systems" that is focused to support the nation's most important system--The Soldier--to give them unprecedented situational awareness that will allow them to see first, understand first, act first, and finish decisively.

FCS is composed of The Soldier, supported by an advanced communications and digital information network that connects 18 manned and unmanned ground and aerial vehicles and sensors and munitions. The FCS program will, over time, replace the majority of units in the Army with 'units of action' equipped with a new family of manned and unmanned ground vehicles and aerial vehicles.

Part of what makes FCS transformational is its adherence to the new DoD Evolutionary Acquisition model of Spiral Development, which allows developers to insert emerging technology as the systems mature over time. Also, the ability to interface with other military services, governmental agencies, and multi-national partners has been built into the FCS network from the ground up, making the system more relevant to regional combatant commanders.