In August of 1982, the US Army Tank-Automotive Command (TACOM), initiated the first phase of the Advanced Integrated Propulsion System (AIPS) program by awarding six design analysis contracts. The AIPS program is aimed at competitively developing and producing a power package for application to the future heavy combat vehicle weight class. This paper reviews the purpose, schedule, target goals, and acquisition strategy of the AIPS program.The AIPS development differs from past programs in several ways. Technically, the engine, transmission and other subsystems will be designed and developed together as a totally integrated propulsion system. With regard to management of the program, the Government is examining acquisition strategies with the intent of insuring competition throughout all phases (research, development, and production) and achieving the simultaneous qualification of two production sources. The final acquisition strategy has yet to be determined.