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Small Diameter Bomb (SDB)

Under the official title of "Component Advanced Development for the Small Diameter Bomb," the program was conducted by the Air Armament Center and the Air Force Research Laboratory Flight Vehicles Integration Branch located at Eglin Air Force Base, Fla. Flight testing demonstration for multiple Small Smart Bomb ejection external carriage from an F-16 was initially scheduled for 3Q00, and an internal carriage combined test event with the Royal Australian Air Force in 1Q01.

In the FY2001 supplemental the Department of Defense requested a supplemental appropriation of $20,000,000 for a new program to develop a Small Diameter Bomb (SDB). The Senate Appropriations Committee did not recommend approval of this request. The Committee noted that $12,000,000 appropriated for this purpose in fiscal year 2001 is on withhold in the Office of the Secretary of Defense. The Committee was concerned that program outlined by the Air Force was unexecutable and noted that a contract award before the end of the fiscal year is unlikely. The Committee remained supportive of this initiative and encouraged the Department to begin the program with the previously appropriated funds.

The FY2001 supplemental request included $20,000,000 for a new program to develop a 250 pound Small Diameter Bomb (SDB). A total of $12,000,000 was appropriated to initiate this effort in fiscal year 2001. Contract award was planned for late fiscal year 2001 or early fiscal year 2002. Given the availability of funds, and the delay in contract award, the House Committee on Appropriations recommendation includes $13,000,000.

Like the JDAM program, the source selection process used by the Air Force for the Component Advanced Development phase of the Small Diameter Bomb program included acquisition reforms that significantly simplified and accelerated the process. These reforms included extensive exchanges of information with industry, oral proposals, and limiting submitted data to only that essential for the decision.

All major contracts within this Program have been awarded through full and open competition. Two contractors have been selected for the 24 month CAD phase using Firm Fixed Price contracts. Downselect to one contractor will occur prior to System Development and Demonstration (SDD). SDD was a fixed target variant with near precision and significant weapon effectiveness. SDD was a Cost Plus Award Fee contract. Leverage of Air Force Research Laboratory (AFRL) funding and resources supported the CAD phase.

The government is buying the SDB based on a contractor-developed, government-approved System Performance Specification (SPS) which will become contractually binding at downselect. The contractor will assume performance responsibility as defined in the SPS and warrants system performance for 20 years. Accordingly, the contractor is responsible not only for the design of the missile system, but also for planning and executing the seamless verification program to verify the system performance. In its role as facilitator and advisor to the contractor, the government formally arranges and funds the use of government flight test support for testing. Although funded by the government, flight test support funds are part of the negotiated commitment between the contractor and the government ensuring the contractor is able to execute the test program according to the scope of the SDD contract.

Like the JDAM program, the source selection process used by the Air Force for the Component Advanced Development phase of the Small Diameter Bomb program included acquisition reforms that significantly simplified and accelerated the process. These reforms included extensive exchanges of information with industry, oral proposals, and limiting submitted data to only that essential for the decision. Within only five months after posting of the request for proposal, the Air Force was able to award the two contracts planned for this competition - one to Boeing, the other to Lockheed Martin. At the end of this phase of the Small Diameter Bomb program, the Air Force wouldselect a single contractor to perform both the System Development and Demonstration phase and the Production phase of the program.

Acquisition and Management selected two contractors, Boeing and Lockheed Martin (Lockheed) to participate in the 2-year limited competition CAD phase. The program contained two weapon variants-one effective against fixed and non-moving relocatable targets (Phase I) with a planned fourth quarter FY 2006 fielding, and a second variant (Phase II) effective against moving targets with a planned fielding date 3 years later. The strategy for developing and fielding different variants progressively based on technology maturation is considered "spiral" or "incremental" development. Boeing and Lockheed each received $47 million to design their SDB weapon and carriage system, develop and test subsystems, and conduct system-level, risk-reduction efforts for the fixed target SDB variant (Phase I). The contractors were also to design for future integration of a seeker and were to begin developing and testing autonomous target recognition algorithms for use in identifying moving targets (Phase II) for a future spiral or increment. The winning contractor would then continue through to the System Development and Demonstration Phase and into production for both variants of the SDB weapon system.

The Boeing Phantom Works R&D unit had successfully conducted a number of miniature munitions programs that have led to this current program. These include the Miniature Munitions Technology Program, which performed five consecutive highly successful drop tests; the Small Smart Bomb Range EXtension, which also successfully completed several flight tests; and the Smart Multiple Ejector Rack, which allows greater payload carriage with reduced maintenance.

In July 2001, MBDA and Boeing signed a teaming agreement for world-wide sales of the Joint Direct Attack Munition (JDAM) family of weapons and its derivatives, such as the extended range variant (JDAM-ER). The teaming agreement also includes the US Small Diameter Bomb (SDB) program, under which Boeing was selected for the next 2-year risk reduction phase. Both JDAM-ER and the Boeing SDB solution use the MBDA Diamond Back wing kit to achieve range extension. Diamond Back is a low cost, high performance, footprint expansion wing kit, compatible with precision guided weapons including IN/GPS-guided munitions such as JDAM or SDB.

Within only five months after posting of the request for proposal, the Air Force was able to award the two contracts planned for this competition - one to Boeing, the other to Lockheed Martin. Boeing joined with Northrop Grumman on the mobile target variant. At the end of this phase of the Small Diameter Bomb program, the Air Force would select a single contractor to perform both the System Development and Demonstration phase and the Production phase of the program.

On 28 September 2001 Lockheed Martin Corp., Orlando, Fla., and McDonnell Douglas Corp., St. Louis, Mo., were awarded an $11,612,500 (each contractor) firm-fixed-price contract to provide for the component advanced development phase of the Small Diameter Bomb Weapon System Program. Both contractors will develop 250-pound class weapon and carriage systems for integration on various aircraft platforms. At this time, the total amount of funds has been obligated to each contractor. This work will be complete March 2002. Solicitation began in June 2001; negotiations were completed September 2001. The Air Armament Center, Eglin Air Force Base, Fla., is the contracting activity (F08635-01R-0070).

The US Air Force awarded a two-year, $47 million contract to The Boeing Company to begin developing a Small Diameter Bomb system for manned and unmanned aircraft. The Boeing Phantom Works R&D unit had successfully conducted a number of miniature munitions programs that have led to this current program. These include the Miniature Munitions Technology Program, which performed five consecutive highly successful drop tests; the Small Smart Bomb Range EXtension, which also successfully completed several flight tests; and the Smart Multiple Ejector Rack, which allows greater payload carriage with reduced maintenance.

Lockheed Martin Missiles and Fire Control was awarded a $47 million contract by the Aeronautical Systems Center at Eglin Air Force Base, Fla. for the Component Advanced Development of the Small Diameter Bomb (SDB) program. In developing its advanced concepts for SDB, Missiles and Fire Control drew upon its considerable experience in other strike weapon programs such as the Joint Air-to-Surface Standoff Missile (JASSM) and the Wind Corrected Munitions Dispenser (WCMD). The Lockheed Martin SDB is designed for use on the F-15, F-16, F-22, F-117, Joint Strike Fighter, A-10, B-1, B-2, and B-52 aircraft as well as the Unmanned Combat Aerial Vehicle. Lockheed Martin was one of two companies downselected in the SDB competition. Boeing was also awarded a contract. The contract is for a two-year competitive program to develop the company's design for the bomb and carriage system. After two years, the Air Force will select one contractor to continue with development, test and production.

In December 2001, representatives from the Air Combat Command (ACC), Langley Air Force Base, Virginia, determined that due to real world events (the need to sustain the current capability in support of the Global War on Terrorism and Homeland Defense), it was unable to fully fund the SDB Program in the FY 2004 Program Objective Memorandum. Thus, ACC, in conjunction with the SDB Program Office, started exploring the options available for the SDB Program.

On January 25, 2002, Boeing presented a proposal to the former Principal Deputy, the SSA at the time, advocating for early downselect in its favor to provide the warfighter an SDB capability much earlier than originally planned. When the SDB Program Office learned of the discussions, the SDB Program Office conveyed its concern that Boeing's technology was not sufficiently mature at that point and that there was no reason for an early downselect decision "except to reduce emphasis on [Phase II] at downselect." After the brief, the former Principal Deputy directed the SDB Program executive officer to determine whether both contractors had strategies to accelerate delivery of an SDB capability and directed the SDB Program Office to prepare a brief proposing possible alternatives for accelerating the fielding of the Phase I weapon.

On March 6, 2002, Boeing and Lockheed presented their acceleration strategies to the former Assistant Secretary of the Air Force for Acquisition (former Assistant Secretary) and the former Principal Deputy. In its briefing, Boeing again advocated for an early downselect decision, stating its Phase I technology was mature and that it was willing to cooperate with Lockheed and incorporate the best value components. Boeing also stated it was able to conduct the seeker competition between Lockheed and Northrop Grumman and select the best solution for the warfighter.

On March 8, 2002, the SDB program manager presented a brief to the former Assistant Secretary and the former Principal Deputy on the "Small Diameter Bomb (SDB) Acceleration Potential," that showed Lockheed was "stronger" in the Phase II program requirements. The briefing also mentions "exploring partnership opportunities," that "there [was] no clear winner at [that] point," and although "Boeing Report[ed] They Can Deliver Now-They Cannot." On March 12, 2002, and March 18, 2002, the CSAF and the Secretary of the Air Force (SECAF) were presented the same brief. On March 19, 2002, the SDB program manager stated the outcome of the SECAF meeting was that the SECAF believes in competition and that he made it "crystal clear . . . we are in this for the competition benefits." A "Winner Take All Downselect remains at [the] end of Sep[tember] [20]03."

On May 13, 2002, the SDB contracting officer sent letters to Boeing and Lockheed that directed them to "stop work on all tasks unique to the development of the Phase II SDB, including the seeker and ATR [Autonomous Target Recognition] algorithm tasks." The letters further stated that "due to possible changes in requirements identified by ACC leading to subsequent reprioritization of the program's objectives, it may become necessary to modify the scope of the program."

Once the Air Force deferred the Phase II requirements, Lockheed considered dropping out of the competition. The company felt its position was disadvantaged because the deferral eliminated the area in which they believed they possessed a competitive advantage. The representatives also stated the only reason that Lockheed decided to remain in the competition was because the Air Force told them they would have the opportunity to compete for the Phase II requirement in the future.

In May 2002 EDO Corporation was awarded a contract from Lockheed Martin to develop a weapon carriage system for the Component Advance Development phase of the Small Diameter Bomb Program ("SDB"). The system will be capable of carrying and safely ejecting multiple weapons at up to and including supersonic speeds from various aircraft platforms. EDO's Marine and Aircraft Systems division in Amityville, NY will design and develop the mechanical subsystem and EDO M.Tech, Huntingdon Valley, PA, will provide the electronics subsystem. This contract extended for approximately two (2) years.

In June 2002 Harris Corporation, a world leader in digital data links and anti-jam technologies for precision munitions, announced that it has been awarded a contract by The Boeing Company, St. Louis, Missouri, to support the Component Advanced Development (CAD) phase of Boeing's offering for the Small Diameter Bomb (SDB) program. Harris is Boeing Gold Preferred Supplier Certified (PSC) and a long-time provider to Boeing of anti-jam technology, including equipment for the Conventional Air Launched Cruise Missile (CALCM). Harris is leveraging this AJ GPS legacy to help Boeing on the Component Advanced Development (CAD) phase of the Small Diameter Bomb (SDB) program. Harris is supplying its advanced, anti-jam GPS (AJ GPS) module for GPS-guided munitions for SDB. This technology makes these weapons resistant to unintentional or intentional RF interference-or jamming-of their satellite guidance receivers.

The President's FY2003 budget included $54 million for development of a small diameter bomb.

Due to a shortfall in funding, senior Air Force officials agreed to defer the Phase II program requirements and changed the source selection evaluation criteria. The Air Force also determined that a sole-source justification and approval was necessary to make the downselect to a single contractor because of the limited competition CAD phase. The senior Air Force officials deferred the Phase II requirements to a future spiral or increment and changed the source selection evaluation criteria during the evaluation period to significantly reduce emphasis on the Phase II requirements during the downselect. They also provided the contractors (Boeing and Lockheed) with conflicting information on the procurement strategy for the deferred Phase II requirements and failed to adequately document that strategy.

Based on the source selection decision by the SDB Program Executive Officer, on October 17, 2003, the SDB contracting officer awarded a cost-plus-award-fee-type contract (FA8682-04-C-0019) to Boeing for the Phase I (fixed targets) and carriage system portion of the SDB Program. After the contract was awarded, the Air Force issued an addendum to the sole-source justification and approval to include the previously deferred Phase II requirements. On October 20, 2003 Boeing's McDonnell Douglas Corp., Saint Louis, MO subsidiary, was awarded an $188,300,000 cost-plus award-fee contract to provide for the systems development and demonstration (SDD) phase of the Small Diameter Bomb (SDB) program. The SDD phase allows continued development and testing of a production representative system. At this time, $81,000,000 of the funds had been obligated. Further funds would be obligated as individual delivery orders were issued. This work was to be completed by September 2006. Solicitation began June 2003.

On November 25, 2003, the former Assistant Secretary approved an addendum to the sole-source Justification and Approval. This supplement to the J&A either redefined document that changed the future spiral development activities for the SDB program to sole-source. The reinstatement of the Phase II requirements constitutes a significant change in the scope of the original contract. Not only does Phase II represent the more difficult work, but it also represents the majority of the dollars associated with the program.

The SDB Program Office stated that the planned procurement strategy mitigated program cost and performance risk because Boeing intended to compete the seeker technology, the key component of the Phase II technology. The Air Force planned to have Boeing hold a competition for the Phase II unique requirements. Lockheed was reluctant to participate in a "Boeing-Run" seeker competition because it does not believe they would receive fair consideration. However, the procurement strategy did not provide Lockheed an opportunity to compete as the prime contractor for the Phase II program requirements and mitigating any potential bias by Boeing in the selection of a subcontractor may be difficult.

On 15 December 2003 Harris Corporation, a world leader in digital data links and anti-jam technologies for precision munitions, announced that it has been selected by The Boeing Company, St. Louis, Missouri, to provide anti-jam GPS electronics (AJ GPS) for the Small Diameter Bomb. Harris' initial two-year contract includes design and development work. With the anticipated production phase, Harris estimates the overall value of the SDB AJ GPS program to the company could reach $500 million by 2020. Boeing indicated in an earlier news release that first delivery of the munitions is scheduled for October 2005.

On November 10, 2004, Lockheed filed a formal protest with the Government Accountability Office concerning the SDB procurement because of the former Principal Deputy Assistant Secretary of the Air Force for Acquisition and Management bias towards Boeing. Darleen Druyun, an ex-Air Force weapons buyer, confessed to improperly steering billions of dollars of deals to Boeing before going to work there as a $250,000-a-year vice president. In late 2004, Ms. Druyun was convicted and sentenced to nine months in jail for some of her criminal actions. On 16 February 2005 the US Air Force denied two Lockheed Martin protests involving classified deals for which Boeing Co. was also a bidder. "After careful consideration, the Air Force denied both protests," said Air Force spokesman Douglas Karas, without elaborating.

In a decision issued on February 18, 2005, the Government Accountability Office (GAO) resolved a protest filed by Lockheed Martin on November 10 and docketed as B-295402, concerning the Department of the Air Force's award of a contract to the Boeing Company for the production of the Small Diameter Bomb (SDB). The protester alleged that the decision to award to Boeing was tainted by the improper involvement and influence of Darleen Druyun, particularly in modifying the contract requirements in a way that favored Boeing. At the time, Druyun was the Air Force's Principal Deputy Assistant Secretary for Acquisition; she subsequently pled guilty in United States District Court to violating the provisions of 18 U.S.C. section 208(a) regarding conflicts of interest.

With regard to the SDB procurement, GAO sustained Lockheed Martin's protest because the record showed that Darleen Druyun was involved in the decisionmaking process that culminated in changes made to evaluation factors -- including deletion of specific technical requirements. The record further showed that the Air Force currently intends to amend Boeing's contract on a sole-source basis to add those previously deleted requirements. GAO recommended that, rather than making this sole-source addition to Boeing's contract, the Air Force conduct a competition for those requirements.

On 22 April 2005, the Air Force announced that the Boeing Company, St. Louis, was awarded an $18.5 million contract for Low-Rate Initial Production of the Small Diameter Bomb Increment I (SDB I) - the DoD's miniature munition designed to kill fixed and stationary targets. The announcement follows a successful Defense Acquisition Board Milestone C decision review chaired by the Undersecretary of Defense for Acquisition, Technology, and Logistics. The Milestone decision is the culmination of an aggressive eighteen month development and demonstration program that came in on time, on budget, and met all commitments made to the warfighter. The initial production contract is for over 150 GBU-39 munitions, over 25 Air Force common BRU-61/A carriages, and associated spares, trainers and technical support.

The SDB entered System Design and Development (SDD) on October 17, 2003. Testing in this phase was anticipated to conclude in late FY05 with IOT&E to conclude in late FY06.



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