(U) A. Mission Description and Budget Item Justification:

The Evolved Expendable Launch Vehicle (EELV) program is a space launch system development program. The purpose of this program is to replace the current fleet of medium to heavy-lift class expendable launch vehicles (Titan II, Delta II, Atlas II, and Titan IV) with a more affordable family of space launch vehicles. With a nonrecurring development cost of $2 billion, EELV is projected to save 25-50 percent over the current fleet of expendable launch vehicles during a 20 year period. Program content includes the development of the system design, demonstrations of key technologies, modifications to industrial capability and launch facilities, and demonstration launches of both medium and heavy-lift EELV variants. In accordance with the approved EELV acquisition strategy, portions of the EMD contract funds will fund modification and construction of RDT&E launch facilities at both Cape Canaveral AS (CCAS) FL and Vandenberg AFB (VAFB) CA. The EELV family of vehicles must be capable of meeting the Government's spacelift needs (DoD, intelligence, and other government missions) through at least 2020, as defined in the National Mission Model. The first operational launch for the Medium-Lift Variant (MLV) is required by FY02 to support satellite block changes and transitions. The first operational capability for the Heavy-Lift Variant (HLV) is required by FY05 to provide for continued assured access to space following the Titan IV phaseout. The program is in Budget Activity 5, Engineering and Manufacturing Development, because it supports engineering and manufacturing development of the EELV concept leading to deployment of a lower cost expendable launch vehicle system.

(U) Acquisition Strategy:

The EELV concept of a family of launch vehicles emphasizes commonality of hardware and infrastructure and economies of scale to enhance production, operations, and support efficiencies. Cost improvements will be achieved through commonality, consolidation, reduction of supporting infrastructure (launch pads, manufacturing facilities, workforce), and optimization of production and launch operations, processes, and rates. Development contracts will be competitively awarded. Downselect to a single EELV contract/concept is planned at the EMD decision point (third quarter FY98). Production contracts will be sole source to the EELV EMD contractor.

(U) FY 1996

(U) $0

Not Applicable. EELV was funded in PE 0603853F in FY 1996 and FY1997.

(U) FY 1997

(U) $0

Not Applicable. EELV was funded in PE 0603853F in FY 1996 and FY 1997.

(U) FY 1998

(U) $9,900	Competitively award a single EMD contract in mid 1998. Contract will span through FY04. If EMD contractor does not complete the Tailored Critical Design Review (TCDR) in Pre-EMD, then TCDR will be completed under this contract.
(U) $15,000	Portion of EMD contract funds that will fund modification and construction of launch facilities at both Cape Canaveral AS (CCAS) FL and Vandenberg AFB (VAFB) CA. Actual modification costs are pending final downselect of EMD contractors. Includes Project Numbers XUMU983006 and DBEH983007.
(U) $3,476	Program management and other support costs.
(U) $28,376	Total

(U) FY 1999

(U) $117,100	Continue EMD contract.
(U) $150,000	Portion of EMD contract funds that will fund modification and construction of launch facilities at both CCAS FL and VAFB CA. Actual modification costs are pending final downselect of EMD contractors.
(U) $26,850	Program management and other support costs.
(U) $293,950	Total

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

	FY 1996	FY 1997	FY 1998	FY 1999
(U) Previous President's Budget			93,500	297,915
(U) Appropriated Value
(U) Adjustments to Appropriated Value
a. Congressional General Reductions
b. Small Business Innovative Research
c. Omnibus or other above threshold reprogramming
d. Below Threshold Reprogramming
(U) Adjustments to Budget Years Since FY97 PB			-65,124	-3,965
(U) Current Budget Submit/President's Budget			28,376	293,950

(U) Change Summary Explanation:

- Funding: FY98 funds were reduced by $63.260 million and transferred to PE 0603853F (EELV Dem/Val program element) to reflect the approved schedule for the pre-EMD phase. The pre-EMD phase will run from December 1996 to May 1998. The change is required to implement the approved acquisition strategy as documented in the Single Acquisition Management Plan (SAMP).

- Schedule: Not Applicable.

- Technical: Not Applicable.

(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 Comp	Total
(U) National User (non-AF budget)	72,300	18,600	7,100							98,000
(U) Missile Procurement, AF (PE 030593F)					245,428	285,471	171,951	303,782	Cont.	Cont.
Related RDT&E:
(U) EELV EMD (PE 0603853F).	36,894	42,333	63,260	0	0	0	0	0	0	172,533
(U) EELV (Space) (PE 0305953F)				3,383	3,480	3,577	2,398	795	Continue	Continue
(U) Medium Launch Vehicles (PE 0305119F).
(U) Titan Space Launch Vehicles (PE 0305144F).

(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
EMD Module
(U) Defense Acquisition Board											X
(U) EMD contract award											X
(U) Tailored Critical Design Review completed No Later Than date Dec 98												X
(U) Low Rate Initial Production start planned for 1st quarter FY00
(U) System Test Flight #1 (MLV) planned for FY01
(U) System Test Flight #2 (HLV) planned for FY03

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

	FY 1996	FY 1997	FY 1998	FY 1999
(U) EMD Contract			24,900	267,100
(U) Mission Support			3,476	26,850
(U) Total			28,376	293,950