We reported on the EFV program in 2006 and 2010. ACV Acquisition Approach Prioritizes Protected Land Mobility over Amphibious Capabilities

Since we reported on the ACV acquisition in 2014, the USMC has  adopted a new ACV acquisition approach consisting of three concurrent  efforts that emphasize the requirement for protected land mobility in the  near term and seek improved amphibious capabilities over time. According to USMC officials, the  first effort is the AAV Survivability Upgrade Program that plans to upgrade  legacy AAV protection and mobility. The second effort subdivides into two  increments, ACV 1.1 and 1.2. The AAV Survivability  Upgrade Program plans to upgrade 392 of the fleet’s 1058 AAVs. ACV Acquisition Emphasizes Protected Land Mobility in the Near Term and Improved Amphibious Capabilities in the Second Iteration

The first increment of ACV development—ACV 1.1—is a wheeled vehicle  that is intended to provide enhanced protected land mobility and limited  amphibious capability. ACV 1.1 is a continuation of the previously  suspended Marine Personnel Carrier program.speed of five knots, ACV 1.1 intends to offer swim speeds comparable to  the AAV and is expected to swim from shore to shore, crossing obstacles  such as rivers, rather than from ship to shore. According to program  officials, the ACV acquisition will be informed by both a 2008 analysis of  alternatives done for the Marine Personnel Carrier program as well as the  2012 ACV analysis of alternatives. Technology Exploration Is Underway for High Water Speed Capability for Use in a Possible ACV 2.0

The third effort, referred to as ACV 2.0, focuses on technology exploration  to attain high water speed capability. According to DOD officials, the results of this high water  speed research, knowledge gained from fielding the ACV 1.1 and 1.2,  and information from the naval surface connector strategy are expected  to inform the development of a replacement for the AAV fleet. Upcoming Activities Will Permit Further Analysis to Determine Use of Best Practices

Our prior work on best practices has found that successful programs take  steps to gather knowledge that confirms that their technologies are  mature, their designs stable, and their production processes are in  control.the right knowledge at the right time, enabling leadership to make  informed decisions about when and how best to move into various  acquisition phases. The ACV 1.1 acquisition has yet to reach the first knowledge point,  limiting our ability to determine how fully the acquisition will adopt the best  practices knowledge-based framework. However, our review of the  planned acquisition approach for ACV 1.1 has identified both the use of— and a deviation from—best practices. The ACV acquisition’s incremental approach to development is  consistent with best practices. The adoption of an incremental approach has  helped the program progress towards striking the balance between  customer needs and resources (e.g., technologies, cost and  schedule) that is sought at Knowledge Point 1. The ACV acquisition’s pursuit of high water speed capabilities via  technology exploration is also aligned with best practices. In previous  reports, we have found that DOD should separate technology  development from product development, and fully develop  technologies before introducing them into the design of a system. The ACV 1.1 acquisition is planning to hold its preliminary design  review 90 days after the Milestone B decision. According to DOD officials, the review will be held after Milestone B  because no contracts will have been awarded prior to that time. In  addition, they stated that the use of non-developmental technology  will reduce acquisition risks and result in a high level of knowledge  prior to the Milestone B decision. We have identified a number of best practices for the  development of analyses of alternatives. Other documents completed recently include an acquisition  strategy, results of a system requirements review, and the finalized  document providing key acquisition requirements. These documents will  permit us to conduct a more robust analysis and assessment of the ACV  acquisition’s use of best practices. In commenting on a draft of this report, DOD stated that it believes its  efforts on this program are aligned with our best practices and it will  continue to monitor the program and ensure that mitigations are in place  to address potential risk areas. Given that we have not been able to  conduct a robust analysis of key documents, including the analysis of  alternatives, we cannot yet assess how well the program is aligned with  best practices.
Why GAO Did This Study

The National Defense Authorization Act for Fiscal Year 2014 mandated GAO to review and report annually to the congressional defense committees on the ACV program until 2018. In April 2014 GAO produced the first of the mandated reports describing the status of the Marine Corps' efforts to initiate an ACV program. This second mandated report discusses (1) the current ACV acquisition approach and (2) how the ACV acquisition approach compares to acquisition management best practices.
To conduct this work, GAO reviewed program documentation and other materials for the ACV acquisition, including Acquisition Decision Memorandums, relevant analyses of alternatives, and a briefing on the most recent analysis of alternatives update. GAO also reviewed documentation and budget information for the AAV Survivability Upgrade Program and the Marine Personnel Carrier program. GAO identified acquisition best practices based on its prior body of work in that area and DOD guidance. GAO also interviewed program and agency officials.

What GAO Found

Since GAO reported on the Amphibious Combat Vehicle (ACV) acquisition in 2014, the Marine Corps has adopted a new ACV acquisition approach consisting of three concurrent efforts that emphasize the requirement for improved protection from threats such as improvised explosive devices in the near term with improved amphibious capabilities over time. The first of the three efforts, the Assault Amphibious Vehicle (AAV) Survivability Upgrade Program, plans to upgrade legacy AAV protection and mobility. The second effort subdivides into two increments, ACV 1.1 and ACV 1.2. ACV 1.1 is a continuation of a previously suspended Marine Personnel Carrier program that intends to provide enhanced protected land mobility and limited amphibious capability. Testing on the ACV 1.1 will inform the development of the ACV 1.2, with the intent that the ACV 1.2 will demonstrate improved amphibious capability and at a minimum, achieve parity with the legacy AAV. The third effort, referred to as ACV 2.0, focuses on technology exploration to attain high water speed capability. Results of this high water speed research are intended to further inform the development of a replacement for the AAV fleet.
GAO's analysis of the ACV 1.1 planned acquisition approach has demonstrated the Marine Corps’ use of, and deviation from, best practices; however, ACV 1.1 is still in the initial stages of the acquisition process, limiting our ability to determine how fully this approach will adopt a best practices knowledge-based framework. GAO’s prior work on best practices has found that successful programs take steps to gather knowledge that confirms that their technologies are mature, their designs stable, and their production processes are in control. The knowledge-based acquisition framework involves achieving the right knowledge at the right time, enabling leadership to make informed decisions about when and how best to move into various acquisition phases. Specifically, the Marine Corps' incremental approach for the ACV acquisition is consistent with best practices and can increase the likelihood of success. The adoption of an incremental approach has helped the program progress towards achieving the balance—that is sought in accordance with best practices—between customer needs and resources (e.g., technologies, cost, and schedule). In addition, the ACV acquisition’s pursuit of high water speed capabilities via technology exploration is also aligned with best practices. In previous reports, GAO has found that DOD should separate technology development from product development, and fully develop technologies before introducing them into the design of a system. In contrast, the program plans to hold the ACV 1.1 preliminary design review after Milestone B—the decision point allowing entry into system development—which is a deviation from best practices that can increase technical risk. According to DOD officials, this approach was selected because no contracts will have been awarded prior to Milestone B and the use of non-developmental technology will reduce acquisition risks and result in a high level of knowledge prior to the Milestone B decision. The recent completion of key documents—including an updated analysis of alternatives—will permit a more robust analysis and assessment of the ACV program’s use of additional acquisition best practices.

What GAO Recommends

GAO is not making recommendations in this report. In commenting on a draft of this report, DOD stated that it believes its efforts on this program are aligned with GAO's best practices and it will continue to monitor the program and ensure that mitigations are in place to address potential risk areas. In GAO's upcoming review, additional analysis will assess how well the program is aligned with best practices.