Memorandum by Oshkosh Truck Corporation
THE DEFENCE WHITE PAPER
1. INTRODUCTION
Oshkosh Truck Corporation (Oshkosh) welcomes
the opportunity afforded by the Defence White Paper inquiry to
share with the Committee some thoughts on the issues of procurement
and logistics support in the new military environment envisaged
in the White Paper.
It will not surprise the Committee that in this
submission we choose to focus on the logistics support provided
by trucks in theatre. Oshkosh has extensive, first-hand experience
of military campaigns in Bosnia, Afghanistan and Iraq, where approximately
6,500 Oshkosh trucks are being used by the US military. We also
supply Heavy Equipment Transporters (HETs) to the MoD, some of
which are now being used for the haulage of heavy equipment and
supplies in Iraq for the British Armed Forces.
In addition, in January 2003, Oshkosh was selected
as the preferred supplier for the MoD's Wheeled Tanker (WT) programme,
for the provision of approximately 350 vehicles. The new fleet
will significantly expand the MoD's on- and off-road supply capabilities,
allowing improved supply of fuel and water to the field. This
is crucial to the MoD's ability to carry out military operations
worldwide.
Wheeled Tanker is already ahead of its production
schedule. The first tractor unit was presented for inspection
and a test-drive earlier this month and has been given the green
light by the Project Manager. The second tractor unit was originally
scheduled to be assembled off-line, but the design and production
documentation was so advanced that Oshkosh were able to manufacture
it on the production line. Full production is due to begin in
Spring 2005 at Oshkosh's Llantrisant plant, creating 180 new jobs
there.
Finally, Oshkosh is currently bidding for the
MoD's Support Vehicle (SV) contract to supply around 8,500 support
vehicles to the British armed forces. As with the WT contract,
Oshkosh is partnering with ABRO (Army Base Repair Organisation)
and DSDA (Defence Storage and Distribution Agency) on Support
Vehicle.
2. LOGISTICS
AS A
STRATEGIC ENABLER
The White Paper, Delivering Security in a
Changing World, published in December 2003, sets out the Government's
vision of the current and future strategic environment, and the
new flexible capabilities which need to be developed to deliver
desired military effect. The White Paper asserts that "multiple
concurrent Small to Medium Scale operations" are likely to
make up the military landscape of the future. The Paper suggests
that the contingencies foreseen will require a rebalancing of
the Armed Forces and the enhancement of strategic enablers, including
logistics. Oshkosh supports the view that modernisation of the
UK Armed Forces must deliver "greater speed, precision, agility,
deployability, reach and sustainability"—all of which
are crucial to the successful execution of expeditionary operations.
These six key elements are all dependent on
efficient logistics. Without strong logistics planning and intelligent
logistics procurement, all six are, quite simply, unachievable.
Oshkosh has been very encouraged by the consideration of logistics
as a "component of capability in its own right". However,
despite the fact that the White Paper recognises the importance
of logistics in the rapid deployment, configuration and delivery
of forces, it does not dwell on practical considerations that
might contribute to improved logistics planning and procurement.
These are, doubtless, covered off in the End-to-End Review and
in other MoD internal reviews.
However, given that this inquiry's terms of
reference include consideration of "the future force structures,
equipment and expenditure implications of the White Paper",
Oshkosh believes that a more detailed examination of the role
and requirements of logistics is appropriate to this forum and
the work of this Committee.
3. DEPLOYABILITY
AND REDUCING
THE LOGISTICS
TAIL
Logistics vehicles may not be the most glamorous
or most recognised element in the land movement spectrum, but
they are, in fact, one of the most critical. Their performance
dictates where and when the fighting troops are ready for battle
and for how long that battle can be sustained.
In expeditionary warfare, deployability is a
critical element. Military trucks have to be brought into the
theatre of conflict and therefore, ideally, logistics vehicles
should be transportable via ship, aboard a C-130 and via helicopter.
Moreover, regardless of the means of transportation, mobilising
a logistics fleet is an expensive business. Therefore, once the
assets are in theatre they must be put to the best possible use,
preferably 24-hours a day, as in Operation Enduring Freedom and
Operation Telic.
Once in theatre, logistics trucks must be highly
reliable, and servicing, when necessary, must be quick and easy.
Higher reliability means greater mission availability and greater
deployability. It also translates to fewer spares, fewer mechanics,
fewer repair facilities—all of which allows for greater
speed and agility.
In addition, parts commonality reduces the logistic
tail—reducing spares, training, publications and special
tools—enabling expeditionary forces to operate more efficiently
and with greater costs savings—by reducing whole-life costs.
Procurement decisions must take account of all
the factors that have an impact on deployability and that might
make military logistics more burdensome. They need to take account
not only of factors that might negatively impact on logistics
performance in theatre, but also on those factors that carry hidden,
extra costs.
Oshkosh builds these considerations into its
service offer from the outset. For example, in the solutions selected
by the MoD for its Wheeled Tanker programme and in our current
SV bid, we offer a family of similar vehicles that can fulfil
all mission requirements. All the SVs and WTs are based on the
same chassis platform, reducing parts support and training requirements
to make whole fleet support easier and less expensive. We also
ensure that "whole life support" is available to all
our customers. This includes the necessary training, parts and
service, on-line parts ordering systems, interactive electronic
technical manuals and computer diagnostics which contribute to
more operating time at lower costs over the life of the fleet.
That way we make sure customers get optimal value for money, with
no nasty surprises during the life of the contract and without
sacrificing the quality of the equipment and services that the
troops need. This approach reflects the requirements that our
experience in the field suggests need to be borne in mind when
taking procurement decisions. It also underpins our approach to
all military work.
Parts commonality is also a crucial element
in considerations of interoperability (see below).
4. ADVANCED MOBILITY
Cargo trucks must be able to keep up with the
pace of battle. That means reaching their destination, whether
it is across desert, rough track, muddy fields, tracks or tarmac.
For this reason, logistics vehicles should have: rugged suspension
systems capable of handling off-road terrain; a power-to-weight
ratio that can keep the truck moving, even fully loaded on extreme
slopes; and, manoeuvrability. These features can make the difference
between reaching a destination and not reaching it, arriving on
time for operations, and troops being adequately supplied to maintain
their position in theatre. These sorts of logistics considerations
can be critical to both military strategy and tactics.
Last year, during the Defence Select Committee's
Lessons of Iraq inquiry, frequent mention was made by Members
of the Committee and by witnesses giving evidence, of the "Basra
decision" (the decision to send British forces to take and
hold Basra rather than including them in the advance on Baghdad).
These discussions necessarily touched upon specific logistics
and supply concerns—overstretched supply lines, the ability
of British troops to keep up with American convoys and the feasibility
of deployment of British troops through Turkey and Northern Iraq,
had it been necessary.
The US Marine Corps used Oshkosh trucks in the
push to Baghdad. From first-hand experience, we know that the
ability to carry troops, equipment, water and fuel safely and
rapidly across difficult terrain is a decisive factor in strategic
planning and mission success. The modernisation of logistic vehicle
fleets and their specifications for use in expeditionary warfare
are crucial elements in any analysis of logistics capability.
5. INTEROPERABILITY
As the White Paper correctly states, "increasingly,
our Armed Forces need to be able to operate seamlessly alongside
our allies". As the Secretary of State for Defence, the Rt.
Hon. Geoff Hoon MP, pointed out in his statement to the House
introducing the White Paper, large scale expeditionary operations
will doubtless be conducted with US forces. This will lead to
the requirement for UK Armed Forces to work alongside Americans.
This involves not only interoperability with
US command and control structures, but the ability to match US
pace and the procurement of compatible and/or complimentary equipment.
As suppliers to the US Marine Corps and to the British Armed forces,
this issue of interoperability is uppermost in our minds. Working
in theatre with coalition forces has reinforced our conviction
that interoperability will become ever more important.
Parts commonality can play a major part in meeting
interoperability targets. As described above, it is also a critical
element in the reduction of costs and achievement of value for
money. Conscious of these issues, our Wheeled Tanker and Support
Vehicle designs are based on the MTVR (Medium Tactical Vehicle
Replacement) family which is used by the US Marine Corps, Navy
and Seabees. This means that the WT and SV have already been thoroughly
tried and tested—with a stamp of approval for proven performance
and reliability from the US. At the same time, there are real
whole life cost benefits from the interoperability achieved.
6. THE ROLE
OF INDUSTRY
The Report of the National Audit Office (NAO)
on Operation Telic (11 December 20003) pays tribute to "the
commitment of contractors". The NAO highlights the trend
whereby military operations rely increasingly on the involvement
and co-operation of commercial contractors and personnel. Our
own experience in Iraq leads us to concur with the view that industry
has a valuable role to play, not only in terms of manufacturing
and supplying necessary and value-for-money equipment, but also
in terms of the support, repairs and upgrade of equipment in theatre.
In Iraq, Oshkosh provided additional logistic
support to the US Marine Corps by embedding our technicians with
specific units. This meant that technical expertise was on hand
whenever it was needed, allowing for high levels of service and
effective logistic capability to be maintained at all times. Embedding
technicians and specialists in theatre allows soldiers to carry
out their duties and makes it more likely that the six key elements
of speed, precision, agility, deployability, reach and sustainability
can be achieved.
Oshkosh welcomes those MoD initiatives which
are aimed at enhancing the relationship between the military and
industry. The changing strategic environment is likely to make
it all the more important for the military to work closely with
industry to ensure that the best equipment possible is being procured
for the troops, at the best price, and that future needs are understood
and serviced.
7. CONCLUSIONS
The future strategic environment is expected
to increase demands on the UK's ability to undertake expeditionary
warfare. The Government's plans for modernisation of the British
Armed Forces are aimed at delivering greater speed, precision,
agility, deployability, reach and sustainability. Logistics capability
is critical to achieving these objectives. Land-based logistics,
such as vehicles, which are needed to deliver troops to their
battlefield positions, supply them in theatre, move them and their
equipment safely and rapidly to meet strategic objectives, must
be procured with the `big picture' in mind. Deployability, reliability,
advanced mobility, interoperability, additional support services
and technical expertise are all elements that can impact on performance
and on cost.
Oshkosh welcomes the fact that, although not
explored in detail in this White Paper, this principle has been
understood by the MoD and now lies at the heart of Defence Industrial
Policy. The aim of the defence procurement system is to ensure
that the armed forces have the best equipment at the best whole
life cost for the Government and hence, the taxpayer. This means
that suitable weight must be given to all the factors in the procurement
mix. This is fundamental to any thinking on how to modernise the
armed forces and where to concentrate resources.
Ms Kirsten Skyba,
Vice President, Communications, Oshkosh Truck Corporation
February 2004
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