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National Guard CS/CSS Overview. August 6, 2013. AM General Actions to Ensure Future. Restructured business: Renegotiated labor agreement Renegotiated supply base pricing, focus on small business viability Workforce reductions, both salaried and hourly
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National GuardCS/CSSOverview August 6, 2013
AM General Actions to Ensure Future • Restructured business: • Renegotiated labor agreement • Renegotiated supply base pricing, focus on small business viability • Workforce reductions, both salaried and hourly • Developed winning JLTV bid – DD250, 14 Aug • Finalist for SOCOM GMW 1.1 program • Worked with Congress and Adjutants General to fund National Guard HMMWV modernization initiative • Directed significant new resources to cultivating international sales • Enhanced focus on building commercial business
National Guard HMMWV • At the request of National Guard leadership, Congress provided $100M for HMMWV modernization in the FY ‘13 budget • Program structure being developed by the Army, AM General, and Red River Army Depot (RRAD) • Approx. 800 vehicles will be produced • AM General will be the prime contractor with support from RRAD • New vehicle chassis including engine, drive train, suspension built at the AM General HMMWV plant • RRAD will refurbish existing chassis’ to like new condition and provide to AM General for final integration and test • This program is envisioned as a multi-year, long-term effort to modernize the National Guard fleet • House passed FY’14 Defense Appropriations Bill provides additional $100M for the program
Ground Mobility Vehicle (GMV1.1) • Customer: Special Operations Command (SOCOM) • Purpose: • Multiple awards possible for R&D Phase and down select to one for Production • Proposal Delivered July 2013 • R&D Award August 2013 (est) • Production Award April/May 2014 (est) • LRIP - 127 vehicles • FRP – 1170 vehicles • Total – 1297 vehicles
Joint Light Tactical Vehicle – BRV-O • Customer: Joint Program Office (JPO) at TACOM • Purpose: Produce and deliver 2000 vehicles for LRIP (FY15-17) and 15,000 for FRP (FY18-22) • Overview: • Contract: Fixed price award to either AMG, Lockheed or Oshkosh (est) • Basis of award will be on the best value to the Government: • Technical capability • Contract cost • O&S cost • Value of government owned Tech Data Package • Small business participation
International Pursuits • The HMMWV continues to be the Gold Standard for tactical wheeled vehicles around the world • Over 40,000 vehicles have been delivered to over 50 countries in every corner of the globe • Demand continues with a potential global market of over 30,000 new vehicles over the next 5 – 7 years despite the US Army decision to discontinue the purchase of new vehicles • Five pursuits comprise our near term new business targets with a potential for nearly 5000 vehicles to be under contract in 2013 and 2014 • Ecuador is expected to purchase over 3100 vehicles under two 2013 Foreign Military Sales (FMS) cases for the Army and National Police • Iraq has identified an initial requirement for 350 vehicles for the Ministry of Interior National Police and Border Patrol Forces to be under contract in 2013 • Tunisia will procure 350 vehicles for Border Patrol and the Army in 2013 • In June 2013 AM General successfully concluded a series of very rigorous tests for the Malaysian Army and expects annual new vehicle procurements of 300 – 500 vehicles beginning in 2014 • Both the Royal Saudi Land Forces and the Saudi Ministry of Interior have requirements for new vehicles. Initial production quantities in 2014 are expected to be 300 – 500 new vehicles