As part of the Army Cohesion and Stability Study (ARCOST) of 1980, a proposal to adopt the Army Superior Unit Award was forwarded to Major Army Commands (MACOM) for comment on 18 March 1981. This recommendation was based on the fact that present Army unit awards were for combat service only. While all MACOM\ and most of the Army Staff supported the proposal, the leadership elected not to approve the new award. In 1984, the Vice Chief of Staff, Army, directed that a Peacetime Unit Award be developed and submitted for approval. In April 1985, the Secretary of the Army (SECARMY) approved the Army Superior Unit Award for meritorious unit performance of a uniquely difficult and challenging mission under extraordinary circumstances that involved the national interest. As a result of the strict criteria and lack of approving awards, the criteria was changed by SECARMY in July 1986. This change deleted the words "unique" and "national interest". Only one award was approved prior to the revision and it went to the 3d Battalion, 502d Infantry, 101st Airborne Division. Nearly 200 of the 248 soldiers that were killed in the plane crash in Gander, Newfoundland, were from the battalion and were on their way home in December 1985 from duty with the Multinational Force and Observers in the Sinai Desert. The Army Superior Unit Award is the third highest unit decoration which may be bestowed upon a U.S. Army unit.
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