Comparative Analysis of Options for Preserving the Tank Industrial Base

摘要

This thesis analyzes the impact of potential closure of the sole tank productionfacility in the United States, including the effects of closure on future tank production. The analysis is based on the FY93 DOD budget which appropriated funds for upgrades to existing MI Abrams tanks through 1995. Three possible alternatives to preserving the tank industrial base are presented and analyzed with respect to applicable factors currently facing decisionmakers in DOD, Congress and industry. The three alternatives are: (1) terminate production upon completion of the initial upgrade in 1995, (2) continue the upgrade from 1996 to 1999, or (3) slow down existing production rates to stretch out production and minimize production stoppages. These alternatives are analyzed utilizing factors such as workforce effects, costs, subcontractor base impact, mobilization/surge impact, spare parts requirements, and operational effectiveness. The thesis concludes with a recommendation on how to preserve the tank industrial base with additional recommendations and areas requiring further study. The methodology utilized here can be applied to other DOD systems and programs dependent on a single manufacturer for systems facing a similar predicament.