The Department of the Army announced today that it will partially terminate the Manned Ground Vehicle (MGV) development effort under the Future Combat Systems (FCS) Brigade Combat Team (BCT) System Development and Demonstration (SDD) contract with the Boeing Company. The partial termination is for the convenience of the government.

The Army is taking this action to comply with both the Secretary of Defense’s recommendation to cancel the FCS BCT program as well as the June 23 FCS BCT acquisition decision memorandum. The Army issued a stop work order for MGV and Non-Line of Sight Cannon (NLOS-C) efforts on June 24, in preparation for the partial termination.

The termination of the MGV effort will also negatively impact the development of the NLOS-C, which remains under a stop work directive. The Army, in conjunction with the Department of Defense (DoD), is working with the Congress to determine a viable path forward for the NLOS-C related efforts.

In coordination with the DoD, the Army is conducting a 120-day requirements analysis for a new ground combat vehicle (GCV) program. Incorporating lessons learned and threats encountered from the wars in Iraq and Afghanistan, the Army will continue to leverage the work accomplished during the FCS MGV development efforts into the new GCV.

As the Army transitions to a holistic BCT modernization plan, the Boeing Company will continue to perform as a prime contractor on the Early-Infantry BCT (E-IBCT) spin out effort. The first increment of this plan (insertion of FCS technology to the E-IBCTs) will provide the Infantry Brigade Combat Teams an enhanced network capability, improved situational awareness and a remote indirect fire capability.