Exhibit P-40, Budget Line Item Justification: PB 2015 Air Force Date: March 2014 3010F: Aircraft Procurement, Air Force / BA 05: Modification of Inservice Aircraft / BSA 5: Other Aircraft ID Code (A=Service Ready, B=Not Service Ready) : Program Elements for Code B Items: 0401218F Other Related Program Elements: 0401134F, 0401218F, 0401897F Resource Summary Prior Years FY 2013 FY 2014 OCO # FY 2016 FY 2017 FY 2018 FY 2019 To Complete Procurement Quantity (Units in Each) - - - - - - - - - - - - Gross/Weapon System Cost ($ in Millions) 57.427 23.426 29.556 63.568-63.568 59.308 54.560 55.583 56.624-400.052 Less PY Advance Procurement ($ in Millions) - - - - - - - - - - - - Net Procurement (P1) ($ in Millions) 57.427 23.426 29.556 63.568-63.568 59.308 54.560 55.583 56.624-400.052 Plus CY Advance Procurement ($ in Millions) - - - - - - - - - - - - Obligation Authority ($ in Millions) 57.427 23.426 29.556 63.568-63.568 59.308 54.560 55.583 56.624-400.052 (The following Resource Summary rows are for informational purposes only. The corresponding budget requests are documented elsewhere.) Initial Spares ($ in Millions) - - - - - - - - - - - - Flyaway ($ in Millions) - - - - - - - - - - - - Gross/Weapon System ($ in Millions) - - - - - - - - - - - - # The OCO Request will be submitted at a later date. Description: The C-135 is a four engine aircraft used for long range cargo and passenger airlift and to support theater commanders. The four engine KC-135 provides air refueling through either the refueling boom or drogue. As a cargo aircraft, the KC-135 can carry six standard 463-L pallets. There are 400 aircraft (396 KCs, 4 special purpose) in the C-135 inventory. The average age is 52 years, with 26 years of service life remaining (projected service life of 2040). The primary modifications in FY15 are Block 45, VHF Omni-Directional Radio (VOR)/Instrument Landing System (ILS) Antennae and Low Cost Modifications (LCMs) that address obsolescence and improve flight safety, reliability, and maintainability. In accordance with Section 1815 of the FY 2008 National Defense Authorization Act (P.L. 110-181), this item is necessary for use by the active and reserve components of the Armed Forces for homeland defense missions, domestic emergency responses, and providing military support to civil authorities. Funding for this exhibit contained in PEs 0401218F and 0401897F. AF AFNG AFR Secondary Distribution FY 2013 FY 2014 OCO FY 2016 FY 2017 FY 2018 FY 2019 Obligation Authority 14.532 29.505 33.544-33.544 - - - - Obligation Authority 6.482 0.038 21.299-21.299 - - - - Obligation Authority 2.412 0.013 8.725-8.725 - - - - Air Force Page 1 of 7 P-1 Line #52 Volume 2-299
Exhibit P-40, Budget Line Item Justification: PB 2015 Air Force Date: March 2014 3010F: Aircraft Procurement, Air Force / BA 05: Modification of Inservice Aircraft / BSA 5: Other Aircraft ID Code (A=Service Ready, B=Not Service Ready) : Program Elements for Code B Items: 0401218F Other Related Program Elements: 0401134F, 0401218F, 0401897F : Secondary Distribution Secondary Distribution FY 2013 FY 2014 OCO FY 2016 FY 2017 FY 2018 FY 2019 Obligation Authority 23.426 29.556 63.568-63.568 - - - - Exhibits Schedule Prior Years FY 2013 FY 2014 OCO Title* Item - 1 / VOR/ILS ANTENNAE Item - 2 / Visual System Replacement (VSR) Item - 3 / LOW COST SAFETY MODIFICATIONS Item - 4 / LOW COST MODIFICATIONS Exhibits ID CD Cost Cost Cost Cost Cost - - 3.686 - - 2.452 - - 0.051 - - 1.727 - - - - - 1.727 - - 29.431 - - 0.336 - - - - - - - - - - - - - - 0.025 - - 0.025 - - 0.025 - - 0.025 - - - - - 0.025 - - 4.272 - - 0.692 - - 1.995 - - 0.471 - - - - - 0.471 P-3a - P-3a - - 20.013 - - 19.921 - - 27.485 - - 61.345 - - - - - 61.345 Gross/Weapon System Cost - - 57.427 - - 23.426 - - 29.556 - - 63.568 - - - - - 63.568 *** Although this is an Exhibit P-40a item, the actual exhibit is not included since all of the required information for this item is already being shown here. *For Items, Title represents the Item Number / Title [DODIC]. For the P-3a, Title represents the Modification Number / Title. Note: s in this Exhibit P-40 set may not be exact or add due to rounding. Justification: Where applicable, justification for individual modifications is provided in the P-3A exhibits. Cost Air Force Page 2 of 7 P-1 Line #52 Volume 2-300
Resource Summary Prior Years FY 2013 FY 2014 OCO # Procurement Quantity (Units in Each) - - - - - - Gross/Weapon System Cost ($ in Millions) 20.013 19.921 27.485 61.345-61.345 Less PY Advance Procurement ($ in Millions) - - - - - - Net Procurement (P1) ($ in Millions) 20.013 19.921 27.485 61.345-61.345 Plus CY Advance Procurement ($ in Millions) - - - - - - Obligation Authority ($ in Millions) 20.013 19.921 27.485 61.345-61.345 (The following Resource Summary rows are for informational purposes only. The corresponding budget requests are documented elsewhere.) Initial Spares ($ in Millions) - - - - - - Gross/Weapon System ($ in Millions) - - - - - - # The OCO Request will be submitted at a later date. Description: Block 45 addresses reliability and maintainability issues currently experienced by the KC-135 Fleet. The modification includes a new Digital Flight Director (DFD), Digital Radar Altimeter (RA), Digital Autopilot (AP) and Electronic Engine Instrument Displays (EEID). Block 45 requirements are outlined in the Capability Development Document (CDD) for KC-135 Communications, Navigation, and Surveillance/Air Traffic Management (CNS/ATM), dated 21 Oct 08. The DFD replaces the existing obsolete analog flight director (high maintenance driver) and provides a fully integrated flight guidance system and at the same time provides improved capability. The RA replaces the existing obsolete AL-101 radio altimeter (high maintenance driver) with a new state of the art digital high mean time between failure (MTBF) RA. The digital AP replaces the current obsolete analog AP system. The EEID replaces the obsolete analog engine instruments. The Air Force expects to achieve MTBF figures as follows: Radar Altimeter - 8,462 (current 1,454) Digital Flight Director - 11,388 (current 899) Autopilot - 2,335 (current 339) Engine Instruments - 4,726 (current 2,336) In addition, by replacing these components, the Air Force expects to realize approximately $8.50M annually (or $440M total) in cost avoidance relative to system repair costs. Aircraft Breakdown: USAF plans to modify 399 C-135 aircraft (395 KC-135 R/T, 4 special purpose) with Block 45 (DFD, AP, RA and EEID). Two of the 395 aircraft modifications are prototypes funded with RDT&E. The rest will be funded with APAF. The Milestone Decision Authority (MDA) & Program Executive Officer(PEO) approved procurement of 34 LRIP kits prior to test completion and MS C approval in Jul 13. Through preliminary developmental test and evaluation, the KC-135 Block 45 modification program material solution demonstrated mature performance supporting LRIP kit procurement prior to the MS C decision. This approach is in accordance with the approved Block 45 acquisition strategy as discussed in the MS B decision briefing and as documented in the MS B Acquisition Decision Memorandum (ADM). This program has associated Research Development Test and Evaluation funding in PE 0401218F. This program has associated initial spares funding in BA 06. FY13 Rescission of $17M reflected in Other Government Costs (OGC). **Note: OGC also includes funding for Test, Milstrip, Fuel & Over & Above; therefore, entire FY13 amounts are not solely indicative of rescission.** Milestone/Development Status Developmental Test & Evaluation completed March 2013. Milestone C approval recieved July 25 2013. Air Force Page 3 of 7 P-1 Line #52 Volume 2-301
AF AFNG AFR : Secondary Distribution Secondary Distribution FY 2013 FY 2014 OCO Obligation Authority 12.065 27.485 32.173-32.173 Obligation Authority 5.713-20.663-20.663 Obligation Authority 2.143-8.509-8.509 Obligation Authority 19.921 27.485 61.345-61.345 Air Force Page 4 of 7 P-1 Line #52 Volume 2-302
Models of Systems Affected: KC-135 Modification Type: Capability Improvement Related RDT&E PEs: 0401218F RDT&E PE # Financial Plan Prior Years FY 2013 FY 2014 OCO / Cost / Cost / Cost / Cost / Cost / Cost 0401218F 2 / 50.033 - / - - / - - / - - / - - / - Procurement A Kits Recurring Block 45:INSTALL KITS Group A (Active) 15 / 1.474 8 / 1.064 - / - 18 / 2.838 - / - 18 / 2.838 Block 45:INSTALL KITS Group A (Guard) 0 / 0.000 8 / 1.064 - / - 19 / 2.997 - / - 19 / 2.997 Block 45:INSTALL KITS Group A (Reserve) 0 / 0.000 3 / 0.399 - / - 8 / 1.262 - / - 8 / 1.262 Subtotal: Recurring - / 1.474 - / 2.527 - / - - / 7.097 - / - - / 7.097 B Kits Recurring Block 45:EQUIPMENT Group B (Active) 15 / 8.495 8 / 4.649 - / - 18 / 12.778 - / - 18 / 12.778 Block 45:EQUIPMENT Group B (Guard) 0 / 0.000 8 / 4.649 - / - 19 / 13.487 - / - 19 / 13.487 Block 45:EQUIPMENT Group B (Reserve) 0 / 0.000 3 / 1.744 - / - 8 / 5.679 - / - 8 / 5.679 Subtotal: Recurring - / 8.495 - / 11.042 - / - - / 31.944 - / - - / 31.944 Subtotal: Block 45 - / 9.969 - / 13.569 - / - - / 39.041 - / - - / 39.041 Subtotal: Procurement, All Modification Items - / 9.969 - / 13.569 - / - - / 39.041 - / - - / 39.041 Support (All Modification Items) GROUP B: TOTAL NONRECURRING - / 0.000 - / - - / - - / - - / - - / - Change Orders - / - - / - - / 9.000 - / - - / - - / - Data - / - - / - - / 1.950 - / - - / - - / - SIM/TRAINER 2 / 7.887 - / 0.550 2 / 3.550 2 / 3.090 - / - 2 / 3.090 SUPPORT-EQUIP - / 0.030 - / - - / - - / 0.083 - / - - / 0.083 OTHER GOVT - / 1.542 - / 5.218 - / 5.193 - / 8.630 - / - - / 8.630 PMA - Contractor Services - / 0.582 - / 0.484 - / 0.492 - / 0.500 - / - - / 0.500 PMA - Other Gov't Costs - / 0.003 - / 0.100 - / 0.050 - / 0.075 - / - - / 0.075 Subtotal: Support 2 / 10.044 - / 6.352 2 / 20.235 2 / 12.378 - / - 2 / 12.378 Installation - / - - / - 15 / 7.250 19 / 9.926 - / - 19 / 9.926 Subtotal: Installation - / - - / - 15 / 7.250 19 / 9.926 - / - 19 / 9.926 Cost (Procurement + Support + Installation) 20.013 19.921 27.485 61.345-61.345 Air Force Page 5 of 7 P-1 Line #52 Volume 2-303
Models of Systems Affected: Procurement Secondary Distribution Modification Type: Capability Improvement Related RDT&E PEs: 0401218F FY 2013 FY 2014 OCO FY 2016 FY 2017 FY 2018 FY 2019 / Cost / Cost / Cost / Cost / Cost / Cost / Cost / Cost / Cost AF - / 5.713 - / - - / 15.616 - / - - / 15.616 - / - - / - - / - - / - AFNG - / 5.713 - / - - / 16.484 - / - - / 16.484 - / - - / - - / - - / - AFR - / 2.143 - / - - / 6.941 - / - - / 6.941 - / - - / - - / - - / - Subtotal: Block 45 Secondary Distribution - / 13.569 - / - - / 39.041 - / - - / 39.041 - / - - / - - / - - / - Subtotal: Procurement, All Modification Items - / 13.569 - / - - / 39.041 - / - - / 39.041 - / - - / - - / - - / - Support AF - / 6.352 2 / 20.235 2 / 12.378 - / - 2 / 12.378 - / - - / - - / - - / - Subtotal: Support - / 6.352 2 / 20.235 2 / 12.378 - / - 2 / 12.378 - / - - / - - / - - / - Installation Contractor Facility AF - / - 15 / 7.250 8 / 4.179 - / - 8 / 4.179 - / - - / - - / - - / - AFNG - / - - / - 8 / 4.179 - / - 8 / 4.179 - / - - / - - / - - / - AFR - / - - / - 3 / 1.568 - / - 3 / 1.568 - / - - / - - / - - / - Subtotal: Contractor Facility - / - 15 / 7.250 19 / 9.926 - / - 19 / 9.926 - / - - / - - / - - / - Subtotal: Block 45 - / - 15 / 7.250 19 / 9.926 - / - 19 / 9.926 - / - - / - - / - - / - Subtotal: Installation - / - 15 / 7.250 19 / 9.926 - / - 19 / 9.926 - / - - / - - / - - / - : Secondary Distribution, All Modification Items - / 19.921 - / 27.485 - / 61.345 - / - - / 61.345 - / - - / - - / - - / - Air Force Page 6 of 7 P-1 Line #52 Volume 2-304
Modification Item MDAP/MAIS Code: Manufacturer Information Manufacturer Name: Rockwell Collins Manufacturer Location: Cedar Rapids, IA Administrative Leadtime (in Months): 1 Production Leadtime (in Months): 8 Dates FY 2013 FY 2014 Contract Dates Jul 2013 Jan 2015 Delivery Dates Mar 2014 Sep 2015 Installation Information Method of Implementation: Contractor Facility Installation Cost Prior Years FY 2013 FY 2014 OCO / Cost / Cost / Cost / Cost / Cost / Cost Prior Years - / - - / - 15 / 7.250 - / - - / - - / - Secondary Distribution - AF - / - - / - 15 / 7.250 - / - - / - - / - FY 2013 - / - - / - - / - 19 / 9.926 - / - 19 / 9.926 Secondary Distribution - AF - / - - / - - / - 8 / 4.179 - / - 8 / 4.179 Secondary Distribution - AFNG - / - - / - - / - 8 / 4.179 - / - 8 / 4.179 Secondary Distribution - AFR - / - - / - - / - 3 / 1.568 - / - 3 / 1.568 FY 2014 - / - - / - - / - - / - - / - - / - - / - - / - - / - - / - - / - - / - - / - - / - 15 / 7.250 19 / 9.926 - / - 19 / 9.926 Secondary Distribution - AF - / - - / - 15 / 7.250 8 / 4.179 - / - 8 / 4.179 Secondary Distribution - AFNG - / - - / - - / - 8 / 4.179 - / - 8 / 4.179 Secondary Distribution - AFR - / - - / - - / - 3 / 1.568 - / - 3 / 1.568 Installation Schedule FY 2013 FY 2014 PYS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 In 0 - - - - - - 8 7-3 8 8 Out 0 - - - - - - - 8 7-3 8 Air Force Page 7 of 7 P-1 Line #52 Volume 2-305