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The Pentagon ordered an end to an expensive Army modernization program led by Boeing’s St. Louis-based Integrated Defense Systems.

In a statement released on Tuesday, the Defense Department said it has ordered a "transition" from the $160 billion Future Combat Systems program to a series of acquisition programs that would ultimately extend some high-tech battlefield equipment to all combat brigades.

The Army will strip $87 billion worth of light-armored ground vehicles from the program and start over.

Defense Secretary Robert M. Gates proposed "significantly" restructuring the modernization program in April. He made it clear he wanted to cancel the ground vehicles, saying they were ill-suited for the kinds of wars the United States is fighting in Afghanistan and Iraq. He added that he also was "troubled by terms" of the single contract for the expensive modernization effort.
This year, the Government Accountability Office cautioned that the program was moving ahead even though some of the technology was unproven.

Boeing is the lead contractor for the modernization program along with Science Applications International Corp. of San Diego.

Future Combat Systems was the Army’s largest modernization program. It was designed to create a lethal, more agile combat force using a network of unmanned aircraft, sensors and other high-tech equipment affordable health insurance florida.

In a statement, Boeing said it was reviewing a Pentagon acquisition decision memorandum. While disappointed in the decision to cancel the manned ground vehicle portion of the program, the company said the Pentagon’s decision to expand network capabilities "reflects confidence" in the progress on the modernization program.

"We are committed to working closely with our Army customer to implement required changes to the program in a timely and efficient manner," the company said.

Pentagon officials told the Reuters news agency on Tuesday that Boeing would face competition to manage the replacement programs.

"Boeing will have an opportunity to participate in all those pieces," Ashton Carter, undersecretary of defense for acquisition, technology and logistics told the news service.

The Army will enter negotiations with Boeing on termination of the vehicle program, said spokesman Paul Mehney.

But Boeing will be retained to help develop the battlefield network that links high-tech gadgetry — unmanned aircraft and robots — to soldiers and their superiors, Mehney said.

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