0203801A Patriot/THAAD Product Improvement Program

COST (In Thousands)	FY 1996 Actual	FY 1997 Estimate	FY 1998 Estimate	FY 1999 Estimate	FY 2000 Estimate	FY 2001 Estimate	FY 2002 Estimate	FY 2003 Estimate	Cost to Complete	Total Cost
Total Program Element (PE) Cost

Mission Description and Budget Item Justification: The changing global threat and the new Army Warfighting Doctrine developed to respond to this changing threat all significantly impact the mission of Air Defense Artillery (ADA). This doctrine calls for U.S. forces to be able to win two nearly simultaneous major regional conflicts and to conduct combat operations characterized by rapid response and a high probability of success while minimizing the risk of significant American casualties. ADA must continually be upgraded and modernized in accordance with the ADA missions. The FY 98 budget funds critical improvements to PATRIOT and Stinger. These projects support development of upgrades to current equipment and are appropriately funded in Budget Activity 7.

	COST (In Thousands)	FY 1996 Actual	FY 1997 Estimate	FY 1998 Estimate	FY 1999 Estimate	FY 2000 Estimate	FY 2001 Estimate	FY 2002 Estimate	FY 2003 Estimate	Cost to Complete	Total Cost
D036	PATRIOT Product Improvement Program	43137	46280	12388	9474	5777	4768	0	0	0	401886

A. Mission Description and Justification D036 - PATRIOT Product Improvement Program: The PATRIOT system is being upgraded through a series of individual materiel changes (MC) culminating in the attainment of the PATRIOT Advanced Capability - 3 (PAC-3) system. The communication upgrades improve PATRIOT’s above and below battalion communication equipment. These changes eliminate PATRIOT peculiar communications equipment and improve PATRIOT’s interoperability between systems and between the services.

Acquisition Strategy: The design objective of the PATRIOT system was to provide a baseline system capable of being modified to cope with the evolving threat. This alternative minimizes technological risks and provides a means of enhancing system capability through planned upgrades of deployed systems. The PATRIOT Program consists of two interrelated acquisition programs - The PATRIOT Growth Program and the PAC-3 Missile Program. Growth program modifications are grouped into configurations which are scheduled to be fielded in the same time-frame. Configuration groupings are a convenience for managing block changes of hardware and software and are not a performance-related grouping. However, incremental increases in performance will be determined for each configuration in order to provide benchmarks for configuration testing and for the development of user doctrine and tactics.

FY 1996 Accomplishments:

	5226	P3I test program
	3978	Communications upgrades
	750	Responsive threat analysis
	33183	Anti-Cruise Missile upgrade
Total	43137

FY 1997 Planned Program:

	5326	P3I test program
	5667	Communications upgrades
	750	Responsive threat analysis
	33437	Anti-Cruise Missile upgrade
	1100	Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) Programs
Total	46280

FY 1998 Planned Program:

	5675	P3I test program
	2960	Communication upgrade
	750	Responsive threat
	3003	Horizontal Battlefield Digitization
Total	12388

FY 1999 Planned Program:

	5718	P3I test program
	750	Responsive threat
	3006	Horizontal Battlefield Digitization
Total	9474

B. Project Change Summary	FY 1996	FY 1997	FY 1998	FY 1999
FY 1997 President’s Budget	46477	12291	9406	6481
Appropriated Value	47823	46280
Adjustments to Appropriated Value	-4686
FY 1998 President’s Budget Request	43137	46280	12388	9474

Change Summary Explanation: Funding: FY 1996: Undistributed Congressional reductions/rescissions (-2488); reprogramming to higher priority requirements (-2198).

FY 1998: Funding increase for Horizontal Battlefield Digitization (+2982).

FY 1999: Funding increase for Horizontal Battlefield Digitization (+2993).

C. Other Program Funding Summary Missile Procurement, Army	FY 1996	FY 1997	FY 1998	FY 1999	FY 2000	FY 2001	FY 2002	FY 2003	To Complete	Total Cost
Budget Activity 2 - PATRIOT (C49100)	4924	0	349109	369885	459233	445367	433145	396760		12087483
Budget Activity 3 - PATRIOT Mod (C50700)	6767	23442	20825	15575	19589	24310	19894	16544	39645	565916

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
Development Test & Evaluation		X

A. Project Cost Breakdown	FY 1996	FY 1997	FY 1998	FY 1999
Contract Engineering Support	37376	37926	6963	4006
Program Management Support	1301	1436	1691	1291
Developmental Test and Evaluation	4460	5818	3734	4177
SBIR/STTR		1100
Total	43137	46280	12388	9474

B. Budget Acquisition History and Planning Information
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	FY 1996	FY 1997	FY 1998	FY 1999	Budget to Complete	Total Program
Product Development Organizations
Raytheon
DAAH0182CA181					3722						3722
DAAH0187CA025					22455						22455
DAAH0189C0458					23228						23228
DAAH0192C0036					5000						5000
Small Contracts					1168						1168
General Electric
DAAH0187CA006					4824						4824
Brunswick Corp.
DAAH0189C0167					3100						3100
Martin Marietta
DAAH0192C0301	SS/CPFF	15Jul92	5463	5463	3763	100					3863
Raytheon
DAAH0191C0602	SS/CPIF	22Apr92	20702	20702	23077						23077
DAAH0192C0006	SS/CPAF	27Jan92			56460						56460
DAAH0195C0043	SS/CPAF	01Feb95			6005	4093	513	1000	1000	1690	14301
PAC 2 Anti-Cruise						33183	32637				65820
TPS							200				200
RL-CEU							4576	2960			7536
Horiz Btlfld Digit								3003	3006		6009
SBIR/STTR							1100				1100
Support and Management Organizations
CAS
DAAH0187CA008					2270						2270
DAAH0190C0487					6266						6266
DAAH0194C0105	C/CPAF	31Jan94			5344	791		791	791	422	8139
In-House Support					10817	510	1436	900	500	1163	15326
Test and Evaluation Organizations
Missile Command	1095				2322	1098	1882	1000	700	1312	8314
White Sands Missile Range	1095/MIPR				2841	1370	2596	1534	1737	2843	12921
Other Govt Agen	MIPR				2023	1992	1340	1200	1740	3115	11410
RDEC and Other Govt Agent					95377						95377

Government Furnished Property: None.

Subtotal Product Development	152802	37376	39026	6963	4006	1690	241863
Subtotal Support and Management	24697	1301	1436	1691	1291	1585	32001
Subtotal Test and Evaluation	102563	4460	5818	3734	4177	7270	128022
Total Project	280062	43137	46280	12388	9474	10545	401886

	COST (In Thousands)	FY 1996 Actual	FY 1997 Estimate	FY 1998 Estimate	FY 1999 Estimate	FY 2000 Estimate	FY 2001 Estimate	FY 2002 Estimate	FY 2003 Estimate	Cost to Complete	Total Cost
D303	Stinger Product Improvement Program	16061	18277	5024	1957	27982	27984	39406	39456	Continuing	Continuing

A. Mission Description and Budget Item Justification: D303-Stinger Product Improvement Program: This project provides a product evolution of the STINGER-RMP to improve countermeasures capability via externally loaded software, which is downloaded from a reprogrammable module in the gripstock. This concept allows for timely upgrades to correct system deficiencies, rapid reaction to new threats or threat countermeasures, development of specialty software programs where full capability may not be desired, and accommodation of new missions. The Block I upgrade project, which adds a roll sensor and enhanced software, extends the missile service life, solves the recognized system performance deficiencies in countermeasures and other engagement conditions, and increases terminal accuracy. The Block II program is a development of an advanced infrared (IR) Focal Plane Array Seeker which improves the performance of the missile against an expanded target and in background clutter. The program develops the improved missile for adaptation to any or all of the STINGER firing platforms, extends the missile service life and establishes a government post deployment software support posture. The Block II Engineering, Manufacturing, Development (EMD) program provides for development to a performance specification, design qualification of guidance section conducted as part of the production qualification, and platform integration. A portion of funds in FY 1996 and FY 1997 will be used to develop MIL-STD 1760 launcher electronics to be fielded with the Apache Longbow Helicopter air-to-air requirements, based on Joint Service (U.S. Air Force and U.S. Army) doctrine. The air-to-air requirement satisfies three tasks: self protection, protect force, and augmentation of air defense forces. Funding in FY 1996 and FY 1997 in this project also supports an eight nation Memorandum of Understanding (MOU) signed by the Office of Secretary of Defense in 1994 for the conduct of a two-year competitive Feasibility Study on NATO Very Short Range Air Defense Systems (VSHORADS) and Short Range Air Defense Systems (SHORADS). The output of the Feasibility Study will form the basis for the development of a VSHORADS/SHORADS NATO Staff Requirement and information to support the development of a follow-on system to STINGER.

Acquisition Strategy: The Block I development program is a Sole Source (SS)/Cost Plus Incentive Fee (CPIF) contract awarded in 1992. The Block II development began FY 1993 as Technology Base Broad Agency announcement with a SS/Cost Plus Fixed Fee (CPFF) contract. Current SS/CPFF contract awarded 1996 for pre-EMD, EMD start FY 2000, MS IIIa FY 2005, and FUE FY 2007. A SS/CPIF contract for MIL-STD Launcher electronics development is planned for mid-FY 1997. The VSHORADS/SHORADS Competitive/Firm Fixed Price (FFP) contract was awarded to two international consortia. The United Kingdom was designated as the Pilot Nation, serving as Contracting Authority.

FY 1996 Accomplishments:

	2007	Conducted testing of Block I Phase II Software
	1019	Completed Block I Phase II Software Design; performed Block I Software Critical Design Review and release Engineering Change Proposal
	493	Initiated Block I performance assessment
	4238	Fabricated/tested second Block II Seeker Head
FY 1996 Accomplishments: (continued)
	3088	Initiated Block II electronics state-of-the-art packaging (miniaturization) of electronics section
	1434	Upgraded Block II Seeker to correct limitations discovered in initial development
	1040	Initiated development of contractor Block II Simulation and defined Platform versus Block II interfaces
	1127	Initiated development of Stinger Universal Electronics for MIL-STD 1760 launcher which supports digital electronic-based systems.
	575	Conducted Bradley linebacker concept studies
	200	VSHORADS/SHORADS international proposal evaluation/negotiations/contract awards
	840	VSHORADS/SHORADS technology and subsystem development
Total	16061

FY 1997 Planned Program:

	702	Complete Block I performance assessment
	2435	Initiate development of Unmanned Aerial Vehicle (UAV) specific software
	531	UAV software performance analysis
	3898	Produce prototype Block II electronics state of the art packaging (miniaturization) of electronics section
	4811	Integration of Block II tactical-sized guidance assembly
	2191	Perform valuation of Block II guidance assembly
	2202	VSHORADS/SHORADS system variants development and evaluation of system variants
	1061	Continue development of MIL-STD 1760 Launcher electronics
	446	Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) Programs
Total	18277

FY 1998 Planned Program:

	1450	Finalize Block II packaging and fabricate one tactical size guidance section
	1464	Design and package Block II control section
	460	Initiate development of contractor hardware-in-the-loop flight simulations
	1650	Complete VSHORADS/SHORADS Feasibility Study and Forward NATO Staff Requirement
Total	5024

FY 1999 Planned Program:

	735	Design/fabricate/evaluate three Block II launch tube and end cap units
	840	Continue Contractor Hardware-in-the Loop Flight Simulations
	382	Block II airframe dynamic analysis/performance prediction
Total	1957

B. Project Change Summary	FY 1996	FY 1997	FY 1998	FY 1999
FY 1997 President’s Budget	13662	18668	2314	2849
Appropriated Value	14046	18277
Adjustments to Appropriated Value	2015
FY 1998 President’s Budget Request	16061	18277	5024	1957

Change Summary Explanation: Funding: FY 1996: Funding reprogrammed for OSD International MOU program, Bradley concept studies, and launcher electronics design (+2743); project decrement for undistributed congressional reductions and rescissions (-728).

FY 1998: Funding reprogrammed to support Block II development effort (+2710).

FY 1999: Funding reprogrammed to higher priority requirements (-892).

Schedule: None

Technical: Block II EMD risk reduction initiatives FY 1998-99

C. Other Program Funding Summary	FY 1996	FY 1997	FY 1998	FY 1999	FY 2000	FY 2001	FY 2002	FY 2003	To Compl	Total Cost
Missile Procurement, Army
Budget Activity 2 - Stinger (C18500)										1143340
Budget Activity 3 - Stinger Mods (C20000)	9804	29742	8710	14403	24086	34519	40108	31872	Cont’d	Cont’d
Budget Activity 3 - BSFV-E Mods (C21500)	1500	7118	3701	10			16866	26866	Cont’d	Cont’d

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
Block I CDR Software ECP				X
Block I Performance Assessment						X
Complete Block I Flight Tests				X
Initiate Future Software Development						X
Initiate Block II Guidance Section Integration Design							X
Complete Block II Tactical Size Electronics								X
Complete Block II Guidance Section Integration												X
Complete Integration of Guidance Hardware with Contractor Simulation																X

A. Project Cost Breakdown	FY 1996	FY 1997	FY 1998	FY 1999
Project Management In-House	821	1199	414	75
RDEC Engineering Support	2334	3843	200	159
Major Development Contractor	11097	10448	2760	1723
Contracted Services	727	97
Other Government Agencies	42	42
UK MOU Contractor	643	1732	1207
UK Management Office	106	176	124
UK MOU U.S. Program Support	291	294	319
SBIR/STTR		446
Total	16061	18277	5024	1957

B. Budget Acquisition History and Planning Information
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	FY 1996	FY 1997		FY 1998	FY 1999	Budget to Complete	Total Program
Product Development Organizations
Hughes Msl Sys
DAAH0192C0213	SS-CPIF	Apr 92		20606	18224	2382						20606
Future S/W Upgrd	TBD	TBD					2105					2105
DAAH0193CR127	SS-CPIF	Apr 93	4629	4629	4629							4629
DAAH0196C0180	SS-CPFF	Mar 96				6750	7196					13946
BLOCK II 98-99	SS-CPIF	TBD							2760	1723		4483
Block II EMD	SS-CPIF	TBD									125805	125805
DAAH0195C0028	SS-CPFF	Sep 96				1965						1965
SUE Dev	SS-CPIF	Apr 97					841					841
Targets Mgt Ofc	MIPR	Apr 94			2100							2100
Targets Mgt Ofc	MIPR	Various									12013	12013
BSFV Aggregate	Various	Various			7025							7025
Block I Aggregate	Various	Various			8152	50	52					8254
PMO/RDEC	Allot/1095	Various				3155	4902	614		234	54936	63841
Blk II Contracted Svcs (Aggregate)	Various	Various			181						8836	9017
SUE Aggregate	Various	Various				102	45					147
Other Govt Agen	MIPR	Various				42	42				3238	3322
SBIR/STTR							446					446
British Aerospace	C-FFP	Jul 96				322	866		604			1792
Thomson-CSF	C-FFP	Aug 96				321	866		603			1790
UK Ministry of Defense (Mgt Ofc)	MOU/1095	Dec 95				106	176		124			406
SBIR/STTR							446					446
Support and Management Organizations
DLA90093D0011	SS-FFP	Aug 96				575						575
U.S. Prog Spt MOU VSHORAD/ SHORADS	1095	Dec 95				291	294		319			904
Test and Evaluation Organizations: None

Government Furnished Property: Not applicable

Subtotal Product Development	40311	15195	17983	4705	1957	204828	284979
Subtotal Support and Management		866	294	319			1479
Subtotal Test and Evaluation
Total Project	40311	16061	18277	5024	1957	204828	286458

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