(U) A. Mission Description and Budget Item Justification

(U) National security requirements dictate a continuing, highly reliable means of placing critical DoD satellites into required orbits. The Titan IV program provides the capability to launch the largest of these satellites into near-earth or geosynchronous orbits from either the east or west coast launch facilities. Titan IV is used to launch Air Force, NRO, and NASA payloads. This program provides several different configurations for the Titan IV [No Upper Stage (NUS), Inertial Upper Stage (IUS), and Centaur]. In addition, the Titan IV program has developed a new vehicle configuration, the Titan IVB, with solid rocket motor upgrade (SRMU), new avionics and ground support equipment to meet reliability and increased performance requirements. This program provides continuing integration support to the payload community as well as continuing engineering support to maintain system characterization and reliability.

(U) Beginning in FY94, this program element also included funding for engineering costs, payload integration, and Government costs for the Titan II space launch vehicle. This program is included in Budget Activity 7, Operational Systems Development, since both Titan II and Titan IV are operational launch vehicles.

(U) FY 1996

(U) $48,599	41 Vehicle Reallocation/completion/Solid Rocket Motor Upgrade (SRMU) static firing
(U) $35,800	Continue development of Titan IVB
(U) $7,481	Continue integration for the Defense Support Program (DSP) and Milstar
(U) $35,600	Continue Titan Booster support
(U) $1,462	Award Fee
(U) $128,942	Total

(U) FY 1997

(U) $37,540	41 Vehicle Reallocation/completion/Solid Rocket Motor Upgrade (SRMU) static firing
(U) $35,400	Continue development of Titan IVB
(U) $4,500	Continue integration for the Defense Support Program (DSP) and Milstar
(U) $20,047	Continue Titan Booster support
(U) $97,487	Total

(U) FY 1998

(U) $39,580	41 Vehicle Reallocation/completion/Solid Rocket Motor Upgrade (SRMU) static firing
(U) $11,200	Continue development of Titan IVB
(U) $26,000	Continue integration for the Defense Support Program (DSP) and Milstar
(U) $5,604	Continue Titan Booster support
(U) $82,384	Total

(U) FY 1999

(U) $87,436	41 Vehicle Reallocation/completion/Solid Rocket Motor Upgrade (SRMU) static firing
(U) $8,876	Continue development of Titan IVB
(U) $38,000	Continue integration for the Defense Support Program (DSP) and Milstar
(U) $3,290	Continue Titan Booster support
(U) $137,602	Total

(U) Acquisition Strategy:

(U) The program has implemented a revised acquisition strategy for the entire 41-vehicle program. During FY1996, Titan IV has transitioned from the old 41-vehicle development/production and payload integration contracts to new contracts designed to improve cost accountability, correct contract discrepancies, and establish an overall programmatic view for the effort to complete the program. The new contracts combine Titan II and Titan IV production, storage, pad maintenance and deactivation, launch operations, anomaly resolution, development and hardware requalification, payload integration, and program studies to provide the greatest potential for cost savings by maximizing use of resources and eliminating duplicative processes.

(U) B. Program Change Summary ($ in Thousands)

	FY 1996	FY 1997	FY 1998	FY 1999
(U) Previous President's Budget	126,330	105,472	179,741	90,648
(U) Appropriated Value
(U) Adjustments to Appropriated Value
a. Cong Gen Reductions		-5,403
b. SBIR		-2,582
c. Omnibus or Other Above Threshold Reprogram	8,750
d. Below Threshold Reprogramming (BTR)	-5,308
e. Rescissions	-830
(U) Adjustments to Budget Years Since 97PB			-97,357	+46,954
(U) Current Budget Submit/BES/98PB	128,942	97,487	82,384	137,602

(U) Change Summary Explanation:

Funding: FY96 Omnibus Reprogram includes additional funds for Solid Rocket Motor Upgrade requalification requirements, and deletes some funding to pay for higher Air Force priorities. Other FY96 reductions are due to higher Air Force priorities. FY98 reduction realigns SRMU requalification funds to missile procurement appropriation. FY99 increase is for deferred engineering design effort of Titan IVB vehicles.

Schedule: FY96 and FY97 reductions result from deletion of the CPF Acquisition Program Baseline (APB) Initial Operational Capability (IOC) milestone in June 97.

Technical: FY96 and FY97 reductions result from termination of the off-pad Centaur upper stage processing , cryogenic tanking, and storage capability.

(U) C. Other Program Funding Summary ($ in Thousands)

	FY 1996	FY 1997	FY 1998	FY 1999	FY 2000	FY 2001	FY 2002	FY 2003	To Compl	Total Cost
(U) Missile Procurement, Budget Activity 5, Space Boosters	407,238	432,194	555,304	585,288	393,892	333,006	328,303	254,909	800,300	4,090,434
Related RDT&E:
(U) Not Applicable

(U) D. Schedule Profile

FY 1996

FY 1997

FY 1998

FY 1999

	1	2	3	4	1	2	3	4	1	2	3	4	1	2	3	4
(U)Draft Single Acquisition Management Plan (SAMP) to OSD staff						X
(U) 41-Vehicle Production and Launch Operations Ltr. Contract Award U) 41-Vehicle Production and Launch Operations Contract Definitization			X	X
(U) Titan IV-B (SRMU) Initial Operational Capability (IOC) (U) Titan Development (Hardware Requal) Contract Definitization						X		X

(U) A. Project Cost Breakdown ($ in Thousands)

	FY 1996	FY 1997	FY 1998	FY 1999
(U) Titan IV
(U) Contract Costs R&D ( 85-C-0019/96-C-0035)	84,399	72,940	50,780	96,312
(U) Contract Costs UPI (92-C-0028)	7,481	4,500	26,000	38,000
(U) Other Government Costs	37,062	20,047	5,604	3,290
(U) Total	128,942	97,487	82,384	137,602

(U) B. Budget Acquisition History and Planning Information ($ in Thousands)

Performing Organizations:

Contractor or Government Performing Activity

Contract Method/Type or Funding Vehicle

Award or Obligation Date

Performing Activity EAC**

Project Office EAC**

Total Prior to FY 1996*

Budget FY 1996

Budget FY 1997

Budget FY 1998

Budget FY 1999

Budget to Complete

Total Program

Product Development Organizations

LMC 85-C-0019	SS/FPIF	1QFY85	11,110,900	11,203,100	2,191,584	14,733
LMC 85-C-0085	SS/FPIF	1QFY85	638,600	638,600	82,067
LMC 92-C-0028	SS/CPAF	3QFY92	619,975	609,400	83,370	7,481	4,500	26,000	38,000	Cont	Cont
LMC - 96-C-0035	SS/CPAF	3QFY96	57,840	57,840	0	69,666	72,940	50,780	96,312	Cont	Cont
Facilities	n/a	n/a			93,300	0	0	0	0	0	93,300

Support and Management Organizations

Tecolote, SRS, TRW, Antioch,			Not App	Not App	118,204	32,342	15,661	5,604	3,290	Cont	Cont
Aerospace			Not App	Not App	68,516	4,720	4,386
Pending Reprog

Test and Evaluation Organizations

Not Applicable

Subtotal Product Development	2,450,321	91,880	77,440	76,780	134,312	Cont	Cont
Subtotal Support and Management	186,720	37,062	20,047	5,604	3,290	Cont	Cont
Subtotal Test and Evaluation
Total Project	2,637,041	128,942	97,487	82,384	137,602	Cont	Cont

* These figures are only Air Force Titan IV RDT&E funds