Annual Report 2004-05

Approved Major Capital Equipment Projects

Top 30 Projects by 2004-05 Expenditure

LAND 106 Upgrade of M113 Armoured Vehicles

Prime contractor: Tenix

This project is upgrading 350 of the Army's fleet of M113 armoured vehicles, which provide transport and fire support for the Army's mechanised infantry forces to improve protection, firepower, mobility and habitability. The upgrade includes applique armour, a new armoured turret and machine gun, a new engine, drive train and suspension, and the stretching of Armoured Personnel Carriers and other variants.

The applique armour solution for the vehicles has been selected after rigorous testing and will exceed the specified performance level. Other engineering development and systems integration of the upgraded vehicles are progressing but have proven to be more difficult than anticipated in several areas. Resolution of recently identified drive train issues is slowing the construction of initial production vehicles for the test and evaluation program and placing pressure on the project schedule.

The contractor is still planning to enter full production in 2005-06, and meet the key date of an initial capability in-service by December 2006.

The project expenditure was slightly short of the revised budget estimate due to slowing on construction on initial production vehicles.

This project contributes to Army capability.