Summary

Numerous congressional requests prompted a review of the key elements of the Army's decision to construct a new 105-mm projectile metal parts facility in Texas.

A 1975 report by GAO concluded that this project should be deferred until future mobilization requirements justified additional 105-mm projectile production capacity. Army estimates of the requirements for 105-mm projectiles have been based on a combination of the M-1 round, which is the Army's current 105-mm artillery round, and the XM710 round, which is still in research and development. The mobilization requirement for the standard M-1 round can be met by the existing production facilities. The proposed Lone Star facility is an M-1 projectile facility. Because the mobilization requirement supported a need for an XM710 facility, and the cost information used was for an M-1 facility, no detailed review of the cost estimates for the proposed facility was prepared. Although the monthly mobilization requirement for the XM710 totals 2.2 million rounds, the Army does not know at what rate existing facilities can produce it. Current Army estimates indicate that the rate will be 25% to 50% slower than that of the standard M-1 round. The XM710 facility will be more costly than the standard M-1 facility. Currently, U.S. Forces need other munitions which, according to the Army, have higher procurement priorities than the 105-mm round and are in a relatively worse mobilization position. (SC)