II xhibit -40, udget ine Item ustification: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506: ircraft rocurement, avy / 04: ther ircraft / 1: ther ircraft -1 ine Item umber / itle: 0443 / Q-8 I ode (=ervice eady, =ot ervice eady): rogram lements for ode Items: / ther elated rogram lements: / ine Item /I ode: 253 esource ummary Item /I ode(s): / rior ears 2015 2016 2017 ase 2017 2017 otal 2018 2019 2020 2021 o omplete rocurement Quantity (nits in ach) 40 5 5 1-1 2 2 2 2 2 61 ross/weapon ystem ost ($ in illions) 694.744 109.663 163.680 72.435-72.435 90.846 97.797 87.814 84.795 168.973 1,570.747 ess dvance rocurement ($ in illions) - - - - - - - - - - - - et rocurement (-1) ($ in illions) 694.744 109.663 163.680 72.435-72.435 90.846 97.797 87.814 84.795 168.973 1,570.747 lus dvance rocurement ($ in illions) - - - - - - - - - - - - otal bligation uthority ($ in illions) 694.744 109.663 163.680 72.435-72.435 90.846 97.797 87.814 84.795 168.973 1,570.747 (he following esource ummary rows are for informational purposes only. he corresponding budget requests are documented elsewhere.) Initial pares ($ in illions) - 12.573-1.506-1.506 1.634 4.831 3.111 0.604 ontinuing ontinuing lyaway nit ost ($ in housands) 13,629.275 14,867.400 21,667.200 34,000.000-34,000.000 31,510.500 29,611.000 30,505.500 31,248.500 49,385.500 18,137.148 ross/weapon ystem nit ost ($ in housands) 17,368.600 21,932.600 32,736.000 72,435.000-72,435.000 45,423.000 48,898.500 43,907.000 42,397.500 84,486.500 25,749.951 escription: he 2017 funding request was reduced by $3.355 to account for the availability of prior year execution balances. he Q-8 nmanned ir ystem (popular name "ire cout") provides real-time and non-real-time Intelligence, urveillance and econnaissance (I) data to tactical users without the use of manned aircraft or reliance on limited joint theater or national assets. he baseline Q-8 can accomplish missions including overthe-horizon tactical reconnaissance, classification, targeting and laser designation and battle damage assessment (including voice communications relay). he Q-8 launches and recovers vertically, and can operate from suitably-equipped air capable ships, as well as confined area land bases. Interoperability is achieved through the use of the actical ontrol ystem () software in the mission control system (), also referred to as a round ontrol tation (), and through the use of the actical ommon ata ink (). he data from the Q-8 is provided through standard o ommand, ontrol, ommunications, omputers and I (4I) system architectures and protocols. he epartment conducted a itle 10 ection 2433 (unn-curdy reach) review on the Q-8 program in 2014 due to a unit cost breach and certified a restructured program to ongress on 16 une 2014. he restructured program includes Q-8 air vehicles procured under the original program of record (), Q-8 air vehicles (ndurance pgrade) procured under the epartment of the avy's apid eployment apability () procurement process, and an additional 21 Q-8 air vehicles to be procured to complete the program leet requirements of 70 air vehicles (61 procurement and 9 & / 30 Q-8s and 40 Q-8s), and associated, nmanned erial ehicle ommon utomatic ecovery ystems () and support equipment. In addition to the air vehicles, adar and Weapons capabilities were developed under the avy's authorities. ll acquisition actions previously planned under the s have transitioned into the restructured. he Q-8-based system achieved ilestone ( ) in ay 2007. he unn-curdy certification process revoked the program's approval. for the restructured Q-8 program is currently scheduled in the 3Q16. deployed Q-8 system includes air vehicle(s), payloads (i.e. electro-optical/infrared/laser designator-range finder, utomated Identification ystem, voice communications relay, adar, Weapons, and other specialty payloads), (with and integrated for interoperability), a for automatic launch and recovery, and associated spares and support equipment. he quantities and schedules for and components are based on host ship requirements, while quantities and schedules for air vehicle components, support equipment, and training equipment are based on operational deployment plans. limited number of land-based supplement the shipboard systems to support shore-based operations, such as pre-deployment or acceptance functional check flights. hese land-based will otal I 0443 - Q-8 II avy age 1 of 11-1 ine #25 olume 1-187
II xhibit -40, udget ine Item ustification: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506: ircraft rocurement, avy / 04: ther ircraft / 1: ther ircraft -1 ine Item umber / itle: 0443 / Q-8 I ode (=ervice eady, =ot ervice eady): rogram lements for ode Items: / ther elated rogram lements: / ine Item /I ode: 253 Item /I ode(s): / also support depot-level maintenance/post-maintenance activities. he Q-8 provides additional mission endurance and payload-weight-power, increased reliability, and improved maintainability to the Q-8 system. Q-8 systems will support missions on ittoral ombat hip () and/or suitably-equipped air capable ships. Quantities of air vehicles are derived from and/or suitably-equipped air capable ship deployment requirements for urface Warfare and ine ountermeasures mission sets. I 0443 - Q-8 II avy age 2 of 11-1 ine #25 olume 1-188
II xhibit -40, udget ine Item ustification: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506: ircraft rocurement, avy / 04: ther ircraft / 1: ther ircraft -1 ine Item umber / itle: 0443 / Q-8 I ode (=ervice eady, =ot ervice eady): rogram lements for ode Items: / ther elated rogram lements: / ine Item /I ode: 253 Item /I ode(s): / xhibits chedule rior ears 2015 2016 2017 ase 2017 2017 otal xhibit ype itle* ubexhibits I Quantity / otal ost (ach) / ($ ) Quantity / otal ost (ach) / ($ ) Quantity / otal ost (ach) / ($ ) Quantity / otal ost (ach) / ($ ) Quantity / otal ost (ach) / ($ ) Quantity / otal ost (ach) / ($ ) -5 1 / Q-8-5a, -21 40 / 694.744 5 / 109.663 5 / 163.680 1 / 72.435 - / - 1 / 72.435-40 otal ross/weapon ystem ost 40 / 694.744 5 / 109.663 5 / 163.680 1 / 72.435 - / - 1 / 72.435 *itle represents 1) the umber / itle for Items; 2) the umber / itle [I] for mmunition; and/or 3) the umber / itle (odification ype) for odifications. ote: otals in this xhibit -40 set may not be exact or sum exactly due to rounding. ustification: asis for 17 budget request: rovides Q-8 air vehicles, ship ancillary equipment which includes ission ontrol tation, nmanned erial ehicle ommon utomatic ecovery ystems, support equipment, actical ommon ata ink systems and specialty payloads; quantity and cost can vary by shipboard deployment need date and requirement. upport costs include peculiar training equipment, peculiar support equipment for airframe and avionics requirements, publications, and production support. ther Integrated ogistics upport (I) includes production reach back, depot standup, and government logistics support requirements necessary to field the Q-8 system. he quantities and schedules for and components are based on host ship requirements, while quantities and schedules for air vehicle components, support equipment, and training equipment are based on operational deployment plans. fficiencies over the quantity cost curve are achievable for the 17 production contract quantity of one due to the potential of consolidating with 15/16 production activities. I 0443 - Q-8 II avy age 3 of 11-1 ine #25 olume 1-189
II xhibit -5, ost nalysis: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1 I ode (=ervice eady, =ot ervice eady) : -1 ine Item umber / itle: 0443 / Q-8 /I ode: Item umber / itle [I]: 1 / Q-8 esource ummary rior ears 2015 2016 2017 ase 2017 2017 otal rocurement Quantity (nits in ach) 40 5 5 1-1 ross/weapon ystem ost ($ in illions) 694.744 109.663 163.680 72.435-72.435 ess dvance rocurement ($ in illions) - - - - - - et rocurement (-1) ($ in illions) 694.744 109.663 163.680 72.435-72.435 lus dvance rocurement ($ in illions) - - - - - - otal bligation uthority ($ in illions) 694.744 109.663 163.680 72.435-72.435 (he following esource ummary rows are for informational purposes only. he corresponding budget requests are documented elsewhere.) Initial pares ($ in illions) - 12.573-1.506-1.506 ross/weapon ystem nit ost ($ in housands) 17,368.600 21,932.600 32,736.000 72,435.000-72,435.000 ote: ubtotals or otals in this xhibit -5 may not be exact or sum exactly due to rounding. ost lements lyaway ost ecurring ost nit ost rior ears 2015 2016 2017 ase 2017 2017 otal (ach) otal ost ($ ) nit ost (ach) otal ost ($ ) nit ost (ach) 1.1.1) irframe/ ( ) 11,942.000 40 477.680 8,637.200 5 43.186 14,270.000 5 71.350 16,810.000 1 16.810 - - - 16,810.000 1 16.810 1.1.2) lectronics - - 2.250 - - 22.145 - - 22.693 - - 4.990 - - - - - 4.990 1.1.3) ec lyaway otal ost ($ ) nit ost - - - - - 0.423 - - 1.594 - - 0.698 - - - - - 0.698 ubtotal: ecurring ost - - 479.930 - - 65.754 - - 95.637 - - 22.498 - - - - - 22.498 on ecurring ost 1.2.1) on-ecur ost (1) - - 8.522 - - - - - 2.686 - - 1.967 - - - - - 1.967 1.2.2) ncillary quipment ubtotal: on ecurring ost - - 56.719 - - 8.583 - - 10.013 - - 9.535 - - - - - 9.535 - - 65.241 - - 8.583 - - 12.699 - - 11.502 - - - - - 11.502 ubtotal: lyaway ost - - 545.171 - - 74.337 - - 108.336 - - 34.000 - - - - - 34.000 upport ost 2.1) irframe - - 7.674 - - 3.631 - - 5.805 - - 5.147 - - - - - 5.147 2.2) vionics - - - - - 0.320 - - 0.320 - - 1.128 - - - - - 1.128 2.3) eculiar raining quipment (2) - - 27.339 - - 11.861 - - 26.770 - - 10.225 - - - - - 10.225 2.4) ubs/ech quipment 2.5) roduction ngineering upport - - - - - 2.149 - - 2.178 - - 2.436 - - - - - 2.436 - - 79.445 - - 9.266 - - 11.742 - - 11.655 - - - - - 11.655 (ach) otal ost ($ ) nit ost (ach) otal ost ($ ) nit ost (ach) otal ost ($ ) I 0443 - Q-8 II avy age 4 of 11-1 ine #25 olume 1-190
II xhibit -5, ost nalysis: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1 I ode (=ervice eady, =ot ervice eady) : ote: ubtotals or otals in this xhibit -5 may not be exact or sum exactly due to rounding. ost lements nit ost -1 ine Item umber / itle: 0443 / Q-8 /I ode: Item umber / itle [I]: 1 / Q-8 rior ears 2015 2016 2017 ase 2017 2017 otal (ach) otal ost ($ ) nit ost (ach) otal ost ($ ) nit ost (ach) 2.6) ther I upport - - 35.115 - - 8.099 - - 8.529 - - 7.844 - - - - - 7.844 ubtotal: upport ost - - 149.573 - - 35.326 - - 55.344 - - 38.435 - - - - - 38.435 ross/weapon ystem ost otal ost ($ ) 17,368.600 40 694.744 21,932.600 5 109.663 32,736.000 5 163.680 72,435.000 1 72.435 - - - 72,435.000 1 72.435 emarks: ll current and future year air vehicle production is Q-8 airframes. nit ost (ach) otal ost ($ ) nit ost he program intends to consolidate production years 15/16 in order to reduce the cost impact of procuring at rates below the minimum sustaining rate of six per year. fficiencies over the quantity cost curve are achievable for the 17 production contract quantity of one due to the potential of consolidating with 15/16 production activities. rovides Q-8 air vehicles, ship ancillary equipment which includes ission ontrol tation, nmanned erial ehicle ommon utomatic ecovery ystems, support equipment, actical ommon ata ink systems and specialty payloads; quantity and cost can vary by shipboard deployment need date and requirement. upport costs include peculiar training equipment, peculiar support equipment for airframe and avionics requirements, publications, and production support. ther Integrated ogistics upport (I) includes production reach back, depot standup, and government logistics support requirements necessary to field the Q-8 system. ummary of the 17-21 increases from 16: he avionics peculiar ground support equipment () increase in 17 results from procurement of Q-8 avionics support equipment required to field the Q-8 system and support 18 deployment requirements. (ach) otal ost ($ ) nit ost (ach) otal ost ($ ) ( ) indicates the presence of a -5a ootnotes: (1) on-recurring efforts include iminishing anufacturing ources and aterial hortages (), evaluation and studies on system obsolescence and replacement, and ngineering hange roposals focused on performance and supportability requirements identified during fielding and deployments. (2) raining devices will be procured for pre-deployment, proficiency, and maintenance training. hanges in eculiar raining quipment reflect a bonafide need for raining support to. I 0443 - Q-8 II avy age 5 of 11-1 ine #25 olume 1-191
II xhibit -5a, rocurement History and lanning: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1 ost lements ontractor and ocation -1 ine Item umber / itle: 0443 / Q-8 ethod/ype or unding ehicle ocation of ward ate ate of irst elivery Item umber / itle [I]: 1 / Q-8 (ach) nit ost pecs vail ow? ate evision vailable 1.1.1) irframe/ ( ) 2012 orthrop rumman (3) / an iego / I I pr 2012 ar 2015 10 14,308.000 ug 2011 1.1.1) irframe/ ( ) 2013 orthrop rumman (3) / an iego / I I ay 2013 ec 2015 5 14,080.400 ay 2012 1.1.1) irframe/ ( ) 2014 orthrop rumman (3) / an iego / I I pr 2014 eb 2016 2 12,627.000 ay 2013 1.1.1) irframe/ ( ) 2015 orthrop rumman (3) / an iego / I I ar 2016 eb 2018 5 8,637.200 ul 2014 1.1.1) irframe/ ( ) 2016 orthrop rumman (3) / an iego / I I ar 2016 ul 2018 5 14,270.000 ul 2015 1.1.1) irframe/ ( ) 2017 orthrop rumman (3) / an iego / I I an 2017 eb 2019 1 16,810.000 ay 2016 Issue ate ( ) indicates the presence of a -21 ootnotes: (3) urrent production rate of one air vehicle per year is below increasing unit cost. he current production rate is tied to bona fide need of air vehicles to support. I 0443 - Q-8 II avy age 6 of 11-1 ine #25 olume 1-192
II I 0443 - Q-8 II avy age 7 of 11-1 ine #25 xhibit -21, roduction chedule: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1-1 ine Item umber / itle: 0443 / Q-8 Item umber / itle [I]: 1 / Q-8 ost lements (nits in ach) iscal ear 2012 iscal ear 2013 alendar ear 2012 alendar ear 2013 # I Q I 1 2011 1 1.1.1) irframe/ rior ears eliveries: 23 1 2012 10-10 - - - - - - - - - - - - - - - - - - 10 1 2013 5-5 - - - - - 5 1 2014 2-2 2 1 2015 5 (4) - 5 5 1 2016 5-5 5 1 2017 1 (5) - 1 1 olume 1-193
II I 0443 - Q-8 II avy age 8 of 11-1 ine #25 xhibit -21, roduction chedule: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1-1 ine Item umber / itle: 0443 / Q-8 Item umber / itle [I]: 1 / Q-8 ost lements (nits in ach) iscal ear 2014 iscal ear 2015 alendar ear 2014 alendar ear 2015 # I Q I 1 2013 1 1.1.1) irframe/ rior ears eliveries: 23 1 2012 10-10 - - - - - - - - - - - - - - - - - 1 1 1 - - - - 7 1 2013 5-5 - - - - - - - - - - - - - - - - - - - - - - - - 5 1 2014 2-2 - - - - - - - - - - - - - - - - - - 2 1 2015 5 (4) - 5 5 1 2016 5-5 5 1 2017 1 (5) - 1 1 olume 1-194
II I 0443 - Q-8 II avy age 9 of 11-1 ine #25 xhibit -21, roduction chedule: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1-1 ine Item umber / itle: 0443 / Q-8 Item umber / itle [I]: 1 / Q-8 ost lements (nits in ach) iscal ear 2016 iscal ear 2017 alendar ear 2016 alendar ear 2017 # I Q I 1 2015 1 1.1.1) irframe/ rior ears eliveries: 23 1 2012 10 3 7 1 2 3 1-1 2013 5-5 - - 2 2 1-1 2014 2-2 - - - - 1 1-1 2015 5 (4) - 5 - - - - - - - - - - - - - - - - - - - 5 1 2016 5-5 - - - - - - - - - - - - - - - - - - - 5 1 2017 1 (5) - 1 - - - - - - - - - 1 olume 1-195
II I 0443 - Q-8 II avy age 10 of 11-1 ine #25 xhibit -21, roduction chedule: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1-1 ine Item umber / itle: 0443 / Q-8 Item umber / itle [I]: 1 / Q-8 ost lements (nits in ach) iscal ear 2018 iscal ear 2019 alendar ear 2018 alendar ear 2019 # I Q I 1 2017 1 1.1.1) irframe/ rior ears eliveries: 23 1 2012 10 10 - - 1 2013 5 5 - - 1 2014 2 2 - - 1 2015 5 (4) - 5 - - - - 1 1 1 1 1-1 2016 5-5 - - - - - - - - - 1 1-1 1-1 - 1 2017 1 (5) - 1 - - - - - - - - - - - - - - - - 1 - olume 1-196
II xhibit -21, roduction chedule: 2017 avy ate: ebruary 2016 ppropriation / udget ctivity / udget ub ctivity: 1506 / 04 / 1 ef # roduction ates (ach / ear) anufacturer ame - ocation or 2017 1-8-5 or 2017 X or 2017-1 ine Item umber / itle: 0443 / Q-8 rior to ct 1 fter ct 1 Initial anufacturing rocurement eadtime (onths) otal fter ct 1 rior to ct 1 Item umber / itle [I]: 1 / Q-8 fter ct 1 eorder anufacturing otal fter ct 1 1 orthrop rumman (3) - an iego 6 10 33 - - - - 5 4 25 29 "" in the elivery chedule indicates the ontract ward ate. ote: ue to space limitations, quantities in the xhibit -21 delivery calendar are truncated and rounded based on the maximum quantity in the calendar as follows. If the maximum quantity is less than or equal to than 9,999, all quantities are shown as each. If the maximum quantity is between 10,000 and 999,999 all quantities are shown in thousands. If the maximum quantity is between 1,000,000 and 999,999,999 all quantities are shown in millions (rounded to the nearest thousand).if the maximum quantity is equal or greater than 1,000,000,000 all quantities are shown in billions (rounded to the nearest million). ootnotes: (3) urrent production rate of one air vehicle per year is below increasing unit cost. he current production rate is tied to bona fide need of air vehicles to support. (4) he program intends to consolidate production years 15/16 in order to reduce the cost impact of procuring at rates below the minimum sustaining rate. (5) fficiencies over the quantity cost curve are achievable for the 17 production contract quantity of one due to the potential of consolidating with 15/16 production activities. I 0443 - Q-8 II avy age 11 of 11-1 ine #25 olume 1-197