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<p>Modernization of legacy systems is one of the greatest challenges facing the U.S. Army today. In 1997, the Army spent $6 billion on spare and repair parts, exceeding the amount spent on new procurements. Yet, these spares, purchased based on the original design specifications, only served to maintain legacy systems, not improve them. The Modernization Through Spares (MTS) strategy seeks to leverage spares funds to achieve incremental modernization of legacy systems through the attrition of existing parts. Instead of buying the same old parts, MTS advocates the purchase of upgraded, or modernized, parts. This thesis is undertaken to analyze and document the Army's MTS policies and guidance, and to evaluate implementation at the Aviation and Missile Command (AMCOM). Case study documentation presents various approaches being followed in three programs implementing MTS. A principal finding of this research is that while MTS is a revolutionary approach to modernizing legacy systems while reducing life cycle costs, it faces a number of implementation challenges. Key among these challenges are funding, incentives, and the conceptual approach to MTS. This thesis concludes with recommendations for fundamental changes to materially increase the benefits and motivate the use of MTS.
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Kros, Todd C.</div>
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