--------------------------------------------------------------------------- PENUMBER: 0603869C PETITLE: CORPS SAM/Medium Extended Air Defense System - TMD 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 1262 CORPS SAM/MEADS Concepts 20,123 56,232 47,956 9,509 0 0 0 0 TBD TBD A. Mission Description and Budget Item Justification The CORPS SAM/Medium Extended Air Defense System (MEADS) is an advanced air and missile defense system. CORPS SAM/MEADS is designed to fill a critical void providing highly mobile defense of maneuver forces from ballistic and cruise missiles and unmanned aerial vehicles (UAVs). In May 1996 the Memorandum of Understanding (MOU) among the U.S., Germany, and Italy was signed. Subsequently, in June 1996, the Charter for the North Atlantic Treaty Organization (NATO) MEADS Design and Development, Production, and Logistics Management Organization (NAMEADSMO) was approved. In accordance with these directives, the NATO MEADS Management Agency (NAMEADSMA) is responsible for the accomplishment of the Project Definition-Validation Phase (PD-V). The objective of the PD-V Phase is 1) to define and validate through engineering analyses, simulations and demonstrations a MEADS which is compliant with the commonly agreed requirements of the Participants while taking maximum advantage of the technology existing in the countries of the Participants and 2) to define a balanced cooperative Program to develop, produce in single source and support MEADS which has acceptable technical and financial risks for the Participants. The CORPS SAM/MEADS National Product Office has also been established and will be responsible for planning, budgeting, and coordinating all U.S. national efforts in support of the MEADS program as well as executing national specific tasks related to satisfying the CORPS SAM requirements. The CORPS SAM/MEADS mission and consequently its design is a function of the assets that CORPS SAM/MEADS must protect, the threat against these assets, and the depth and nature of the battlefield. CORPS SAM/MEADS will be designed to deal with shorter range Tactical Ballistic Missiles (TBMs), cruise missiles, UAVs, and other air breathing threats. It will be required to protect critical maneuver force assets throughout all phases of tactical operations and it will be operating in the division area of the battlefield outside the umbrella of an upper tier system. CORPS SAM/MEADS will be designed to provide: 1) defense against multiple and simultaneous attacks by Short Range Ballistic Missiles (SRBMs), low cross-section cruise missiles, and other air- breathing threats to the force; 2) immediate deployment for early entry operations with as few as six C-141 sorties; 3) mobility to move rapidly and protect maneuver force assets during offensive operations; 4) a distributed architecture and modular components to increase survivability and flexibility of employment in a number of operational configurations; 5) a significant increase in firepower while greatly reducing manpower and logistics requirements. Given these characteristics, CORPS SAM/MEADS will be able to rapidly respond to a variety of crisis situations and satisfy the needs of the joint operational and tactical commanders. FY 1996 ($ in Thousands): - $9,605 Conducted International Teaming. - $5,600 Awarded prime contracts to initiate PD-V Phase. - $400 Support contracts to provide technical analysis and tools in specialty areas (e.g. lethality, BM/C4I, system simulations, FAAD/CORPS SAM/MEADS integration) - $1,530 Overall management/support to execute the cooperative program in accordance with the NATO Charter and MOU for PD-V (includes travel and other administrative expenses). - $2,988 CORPS SAM/MEADS National Product Office management/support (including contracts) to conduct assigned tasks in support of and directly related to both national and MEADS international efforts (e.g. user coordination, national oversight and review activities, technology transfer, and technology assessment efforts; threat/scenario, modeling/simulation, cost estimating, Cost and Operational Effectiveness Analysis (COEA), etc.). Includes all U.S. personnel salaries and benefits. - $20,123 Total FY 1997 ($ in Thousands): - $45,070 Prime contracts for PD-V Phase. - $4,920 Support contracts to provide technical analysis and tools in specialty areas (e.g. lethality, BM/C4I, system simulations, FAAD/CORPS SAM/MEADS integration) and support in conducting independent evaluations of contractor trades and analysis. - $1,378 Overall management and administrative support to execute the cooperative program in accordance with the NATO Charter and MOU for PD-V (includes travel and other administrative expenses). - $4,864 CORPS SAM/MEADS National Product Office management/support (including contracts) to conduct assigned tasks in support of and directly related to both national and MEADS international efforts (e.g. user coordination, national oversight and review activities, technology transfer, and technology assessment efforts; threat/scenario, modeling/simulation, cost estimating, COEA, etc.). Includes all U.S. personnel salaries and benefits. - $56,232 Total FY 1998 ($ in Thousands): - $36,660 Prime contracts for PD-V Phase. - $6,380 Support contracts to provide technical analysis and tools in specialty areas (e.g. lethality, BM/C4I, system simulations, FAAD/CORPS SAM/MEADS integration), support in conducting independent evaluations of contractor trades and analysis, and provide additional technical analysis of contractor competitive proposals for design and development (D&D). - $1,392 Overall management and administrative support to execute the cooperative program in accordance with the NATO Charter and MOU for PD-V (includes travel and other administrative expenses). - $3,524 CORPS SAM/MEADS National Product Office management/support (including contracts) to conduct assigned tasks in support of and directly related to both national and MEADS international efforts (e.g. user coordination, national oversight and review activities, technology transfer, and technology assessment efforts; threat/scenario, modeling/simulation, cost estimating, COEA, etc.). Includes all U.S. personnel salaries and benefits. - $47,956 Total FY 1999 ($ in Thousands): - $8,670 Prime contractors complete PD-V Phase. - $300 Support contracts to provide technical analysis and tools in specialty areas (e.g. lethality, BMC4I, system simulations, FAAD/CORPS SAM/MEADS integration), support in conducting independent evaluations of contractor trades and analysis, and provide additional technical analysis of contractors competitive proposals for D&D. - $200 Overall management and administrative support to execute the cooperative program in accordance with the NATO Charter and MOU for PD-V (includes travel and other administrative expenses). - $339 CORPS SAM/MEADS National Product Office management/support (including contracts) to conduct assigned tasks in support of and directly related to both national and MEADS international efforts (e.g. user coordination, national oversight and review activities, technology transfer, and technology assessment efforts; threat/scenario, modeling/simulation, cost estimating, COEA, etc.). Includes all U.S. personnel salaries and benefits. - $9,509 Total Acquisition Strategy At this time MEADS is accepted as the acquisition strategy to meet the Army CORPS SAM requirement. The acquisition strategy was developed based on having two competitive transatlantic industrial teams conduct the PD-V phase in which technology among the nations would be leveraged to define the most cost-effective solution to meet the requirements. In Oct 95, following a formal U.S. source selection process, the U.S. Army announced the selection of Lockheed-Martin Integrated Systems, Inc. and H&R Company (joint venture between Hughes Aircraft and Raytheon Company) as U.S. industrial participants. Following a random selection process, each team was paired with a European team with the goal of creating two equal transatlantic industrial entities. Both European teams consist of the following firms: Alenia, DASA, and Siemens. Contracts to conduct a four month international industrial teaming phase were awarded on 1 May 96. Following the teaming phase, the international teams were awarded two contracts on 4 Oct 96 to execute PD-V. During PD-V the contractors will be required to define/develop a total system concept based upon the International Technical Requirements Document; conduct requirements analysis/flowdown; establish baseline system concept; conduct concurrent engineering design trades; perform simulations/modeling; provide life cycle cost estimates; and establish integrated program plans to include a risk assessment/abatement plan. The effort will also include demonstration of critical functions associated with integrated system performance and resolution of key technical issues for the proposed system design concept through use of end-to-end digital simulation. Also, during the PD-V phase the two international entities will compete for selection as the sole contractor to conduct the Design and Development and Production phases. The CORPS SAM/MEADS National Product Office is pursuing integration of CORPS SAM BM/C4I with the Project Manager, Air Defense Command and Control Systems (ADCCS), to take advantage of previous Army developments that can be incorporated into the MEADS program. B. Program Change Summary ($ in Thousands) FY 1996 FY 1997 FY 1998 FY 1999 Total Cost Previous President’s Budget 19,675 56,232 48,113 9,553 133,573 Appropriated Value 56,232 Adjustment to Appropriated Value: a. MEADS below threshold reprogramming 26,232 Current Budget Submit/President’s Budget 20,123 56,232 47,956 9,509 133,820 Change Summary Explanation: Funding: Background: This project was funded under PE 0603216C project 2212 prior to FY 95, PE 0603869C project 2262 in FY 95, and PE 0603869C project 1262 in FY 96 and beyond. Funding: FY 1996 (-319): Undistributed Defense-Wide Reduction. FY 1998 (-157): Undistributed Defense-Wide Reduction. FY 1999 (-44): Undistributed Defense-Wide Reduction. Schedule: None Technical: None 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 N/A 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 Engineering Milestone: System Requirements Review X System Design Review X Contract Milestone: Int'l Teaming Contract Award * PD-V Contract Award * Release RFP for Design and Dev X Complete PD-V X Other Program Events: Rqmts Harmonization w/GE/IT * Sign MOU * Establish NATO Agency * Conduct SC Review1 * Conduct SC Review2 * Conduct SC Review3 * A. Project Cost Breakdown ($ in Thousands) Project Cost Category FY 1996 FY 1997 FY 1998 FY 1999 CORPS SAM/MEADS Concepts 20,123 56,232 47,956 9,509 Total 20,123 56,232 47,956 9,509 B. Budget Acquisition History and Planning Information ($ in Thousands) Performing Organizations: Contractor or Government Performing Activity Contract Method/T ype or Funding Vehicle Award or Obligat ion Date Perfor ming Activi ty EAC Projec t Office EAC Total Prior to FY 1996 Budget FY 1996 Budget FY 1997 Budget FY 1998 Budget FY 1999 Budget to Comple te Total Progra m Product Development Organizations Lockheed Team FFP May-96 0 5,533 0 0 0 TBD 5,533 Raytheon Team FFP May-96 0 4,072 0 0 0 TBD 4,072 Project Def/Val FFP Oct-96 0 5,600 45,070 36,660 8,670 TBD 96,000 Support and Management Organizations NAMEADSMA I-H Support 0 400 4,920 6,380 300 TBD 12,000 NAMEADSMA I-H Support 0 1,530 1,378 1,392 200 TBD 4,500 U.S. Product Ofc I-H SPT/IOB 0 2,988 4,864 3,524 339 TBD 11,715 Test and Evaluation Organizations B. Budget Acquisition History and Planning Information Continued ($ in Thousands) Government Furnished Property: Item Description Contract Method/T ype or Funding Vehicle Award or Obligat ion Date Delivery Date Total Prior to FY 1996 Budget FY 1996 Budget FY 1997 Budget FY 1998 Budget FY 1999 Budget to Comple te Total Progra m Product Development Property TBD Support and Management Property TBD Test and Evaluation Property TBD Subtotal Product Development 15,205 45,070 36,660 8,670 105,60 5 Subtotal Support and Management 4,918 11,162 11,296 839 28,215 Subtotal Test and Evaluation Total Project 20,123 56,232 47,956 9,509 133,82 0 February 1997 4 - Demonstration and Validation 0603869C CORPS SAM/Medium Extended Air Defense System - TMD