The AAV is a tracked (non-wheeled) vehicle with the capability to self- deploy—or launch from ships (see figure 1). The AAV has a water speed of approximately six knots, and is usually deployed from within sight of the shore, a factor that poses survivability risks in certain threat environments. According to USMC officials, the AAV has become increasingly difficult to maintain and sustain. As weapons technology and the nature of threats have evolved over the past four decades, the AAV is viewed as having limitations in water speed, land mobility, lethality, protection, and network capability. According to DOD, the need to modernize USMC’s ability to move personnel and equipment from ship to shore is essential. In the last 15 years, USMC has undertaken a number of efforts to do this. EFV: USMC began development of the EFV in 2000. The EFV was to travel at higher water speeds—around 20 knots—which would have allowed transporting ships to launch the EFV further from shore than the AAVs it was to replace. However, following a 2007 breach of a statutory cost threshold, that program was restructured and subsequently, in 2011, canceled by DOD due to affordability concerns. ACV: In 2011, the USMC completed initial acquisition documentation providing the performance requirements for a new replacement amphibious vehicle called the ACV. The ACV was expected to be self- deploying with a water speed of 8 to 12 knots which would permit deployment beyond the visual range of the shore, but would not achieve high water speed. It was also expected to provide for sustained operations on shore with improved troop protection. However, USMC leadership then requested an affordability analysis be completed that would explore the technical feasibility of integrating high water speed into ACV development. According to DOD officials, the analysis indicated that achieving high water speed was technically possible but required unacceptable tradeoffs as the program attempted to balance vehicle weight, capabilities, and cost. Meanwhile, the USMC retained a requirement to provide protected land mobility in response to the threat of improvised explosive devices—a requirement the AAV could not meet due to its underbody design. In 2014 we reported that, according to program officials, the program office was in the process of revising its ACV acquisition approach based on this affordability analysis. ACV 1.1, 1.2 and 2.0: In 2014, the USMC revised its ACV acquisition approach, adopting a plan to develop the ACV in three increments: The first increment of ACV development—ACV 1.1—is planned to be a wheeled vehicle that would provide improved protected land mobility and limited amphibious capability. The ACV 1.1 is expected to be part of an amphibious assault through the use of surface connector craft to travel from ship to shore. Surface connectors are vessels that enable the transportation of military assets, including personnel, material, and equipment, from a sea base or ship to the shore. ACV 1.1, a successor to the previously suspended Marine Personnel Carrier program, is using prototypes, demonstration testing, and other study results from that program. DOD officials estimated that, in comparing the past Marine Personnel Carrier program and the ACV 1.1 as currently envisioned, the two are about 98 percent the same. Troop capacity—nine for the Marine Personnel Carrier and a threshold, or minimum, of 10 for the ACV 1.1—is the main difference between the two. Figure 2 provides a notional drawing of the ACV 1.1. The second increment—ACV 1.2—adds two variants of the vehicle for other uses and aims to improve amphibious capability. Program officials anticipate that it will demonstrate amphibious capability that matches the AAV, including the ability to self-deploy and swim to shore. According to DOD officials, ACV 1.2 will be based on the results of ACV 1.1 testing and it is anticipated that some 1.1s will be upgraded with ACV 1.2 modifications. The third effort, referred to as ACV 2.0, focuses on technology exploration to attain high water speed—a critical capability, according to DOD officials. These technology exploration efforts are seeking design options that may enable high water speed capability without accruing unacceptable trade-offs in other capabilities, cost or schedule. According to officials, ACV 2.0 is a conceptual placeholder for a future decision point when the Marine Corps plans to determine how to replace the AAV fleet, which is expected to occur in the mid- 2020s. High water speed capability may ultimately be achieved through an amphibious vehicle or a surface connector craft. Our prior work on best practices has found that successful programs take steps to gather knowledge that confirms that their technologies are mature, their designs are stable, and their production processes are in control. The knowledge-based acquisition framework involves achieving the right knowledge at the right time, enabling leadership to make informed decisions about when and how best to move into various acquisition phases. Successful product developers ensure a high level of knowledge is achieved at key junctures in development, characterized as knowledge points. Knowledge Point 1 falls early in the acquisition process and coincides with a program’s acquisition’s decision to begin development, referred to as Milestone B. At this knowledge point, best practices are to ensure a match between resources and requirements. Achieving a high level of technology maturity and preliminary system design backed by robust systems engineering is an important indicator of whether this match has been made. This means that the technologies needed to meet essential product requirements have been demonstrated to work in their intended environment. In addition, the developer has completed a preliminary design of the product that shows the design is feasible. Figure 3 identifies the ACV 1.1 acquisition’s status within the DOD acquisition process. Our review of the available documents that have been prepared to inform the November 2015 decision to begin system development of ACV 1.1— including the acquisition strategy and an updated 2014 AOA—found that most of the ACV program’s acquisition activities to date reflect the use of best practices. The incremental approach to achieving full capability itself is consistent with best practices. The ACV 1.1 acquisition strategy minimizes program risk by using mature technology, competition, and fixed-price type-contracts when possible. In addition, our analysis of the 2014 AOA found that overall it met best practices. Going forward, however, some elements of the acquisition approach, for example, the program’s plan to hold a preliminary design review (PDR)—a technical review assessing the system design—after beginning development, do not align with best practices and could increase program risk. While some aspects of this acquisition do suggest lower levels of risk, these deviations could potentially increase program risk. GAO will continue to monitor this risk as the program moves forward. The ACV 1.1 acquisition strategy prepared to inform the upcoming start of engineering and manufacturing development minimizes program risk by following best practices, such as using mature technology, competition, and fixed-price-type contracts when possible. Technology maturity. The ACV program plans to utilize mature technology in ACV 1.1 development. According to acquisition best practices, demonstrating a high level of maturity before allowing new technologies into product development programs puts programs in a better position to succeed. To support a decision to begin development, a technology readiness assessment (TRA) was performed to assess the maturity of critical technologies to be integrated into the program. DOD defines critical technology elements as new or novel technology that a platform or system depends on to achieve successful development or production or to successfully meet a system operational threshold requirement. In a TRA, identified critical technologies are assessed against a technological readiness level (TRL) scale of 1 to 9. Specifically, a rating of TRL 1 demonstrates “basic principles observed and reported,” and TRL 9 demonstrates “actual system proven through successful mission operations.” Overall, the completed ACV 1.1 TRA assessed the program at TRL 7, indicating demonstration in an operational environment. This assessment was based on the non-developmental nature of the vehicles, the use of mature technology for modifications, and tests and demonstrations of prototype vehicles done under the Marine Personnel Carrier program. Demonstration in a relevant environment is TRL 6. Demonstration in an operational environment is TRL 7. identified adapting the Remote Weapon Station to the marine environment as a principal program risk because using the system under different operational conditions may have a significant impact on system reliability. While the program has identified additional risk mitigation strategies—including planned component testing during development and development of preventative maintenance procedures—this technology could entail a somewhat higher level of risk than the TRL level suggests and may require additional attention as development begins. Competition. According to our prior work, competition is a critical tool for achieving the best return on the government’s investment. The ACV acquisition approach has fostered competition in the acquisition process, both through competitive prototyping that took place prior to the start of development and with competition that continues through development until production. Specifically, before the Marine Personnel Carrier program was suspended, the government awarded a contract to test critical sub-systems including the engine, transmission, suspension and hydraulic hardware systems. The government also awarded four contracts for system-level prototypes demonstrating the swim capability, personnel carry capability, and survivability of each company’s vehicle. The Under Secretary of Defense for Acquisition, Technology, and Logistics—the ACV Milestone Decision Authority—has certified to the congressional defense committees that the ACV program had met the competitive prototyping requirement based on the work done under the Marine Personnel Carrier program. In addition, after development begins, the program plans to award ACV 1.1 development contracts to two vendors, maintaining competition until they select one vendor at the start of production. Contract strategy.