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PENUMBER:  98PRES1
PETITLE:  FY 1998-1999    President’s Budget (PB)

PO

MEMORANDUM FOR SECRETARY OF DEFENSE
DEPUTY SECRETARY OF DEFENSE

THROUGH:  UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND
                  TECHNOLOGY

SUBJECT:  Ballistic Missile Defense Organization FY 1998-1999
President’s Budget (PB)--INFORMATION MEMORANDUM

The Ballistic Missile Defense Organization (BMDO) FY 1998 PB
reflects the Department of Defense's current Ballistic Missile
Defense plan and is consistent with the Ballistic Missile Defense
(BMD) priorities of the Department of Defense.  The BMDO's
Theater Missile Defense program continues as our highest
priority, followed by a National Missile Defense deployment
readiness program, and a limited advanced technology program.

I anticipate that Congress may again add resources to
selected programs causing outyear program instability.
Additionally, I am concerned that the absence of a Medium
Extended Air Defense System outyear funding level in the PB will
prompt Congressional reductions jeopardizing the schedule for
this important international cooperative effort.  Finally, the
last minute realignment by Program Budget Decision 224C3 of BMDO
Procurement Appropriations to the Services causes some management
concerns.  In this regard, I am continuing to follow the
authorities and responsibilities of the BMDO Charter.
Accordingly, I have provided the Services with the justification
materials for the BMD procurement portions of their budget
submissions.  The Program Overview and appropriate exhibits are
at Tab A.

Attachments:
As stated

EXECUTIVE SUMMARY

MEMORANDUM FOR SECRETARY OF DEFENSE
DEPUTY SECRETARY OF DEFENSE

THROUGH:  UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND
                  TECHNOLOGY

FROM:  DIRECTOR, BALLISTIC MISSILE DEFENSE ORGANIZATION
  Prepared by Mr. Wrausmann/POF/604-3721/December 31, 1996

SUBJECT:  Ballistic Missile Defense Organization (BMDO)
FY 1998 President’s Budget Submission (PB)--
                INFORMATION MEMORANDUM

PURPOSE:  Provide the BMDO transmittal memorandum and PB for
FY 1998.

DISCUSSION: The BMDO FY 1998 PB reflects the Department of
Defense's current Ballistic Missile Defense (BMD) plan and is
consistent with the BMD priorities of the Department of Defense.
 The BMDO's Theater Missile Defense program continues as our
highest priority, followed by a National Missile Defense
deployment readiness program, and a limited advanced technology
program.

I anticipate that Congress may again add resources to
selected programs causing outyear program instability.
Additionally, I am concerned that the absence of a Medium
Extended Air Defense System outyear funding level in the PB will
prompt Congressional reductions jeopardizing the schedule for
this important international cooperative effort.  Finally, the
last minute realignment by Program Budget Decision 224C3 of BMDO
Procurement Appropriations to the Services causes some management
concerns.  In this regard, I am continuing to follow the
authorities and responsibilities of the BMDO Charter.
Accordingly, I have provided the Services with the justification
materials for the BMD procurement portions of their budget
submissions.  The Transmittal Memorandum, Program Overview, and
appropriate exhibits are at Tab A.

COORDINATION:  The BMDO FY 1998 President’s Budget was prepared
IAW DOD 7000.14-R, dated May 1994.