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STATEMENT BY
DR. MARVIN SAMBUR
ASSISTANT SECRETARY OF THE AIR FORCE (ACQUISITION)

AND

LIEUTENANT GENERAL RONALD E. KEYS
DEPUTY CHIEF OF STAFF FOR AIR AND SPACE OPERATIONS

BEFORE THE
SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES
HOUSE ARMED SERVICE COMMITTEE
UNITED STATES HOUSE OF REPRESENTATIVES

CONCERNING
TACAIR MODERNIZATION

APRIL 2, 2003  

  

Chairman Weldon, Ranking Member Abercrombie and Members of the Subcommittee:

Thank you for this opportunity to discuss with you the Air Force's 2004 budget plan and to report to you on our efforts and progress on acquisition reform.  General Keys and I are proud to come before you today and discuss our plan for maintaining the United States Air Force as the dominant air force in the world.  Your support will be vital as we work together to ensure that we continue to deliver programs that support warfighter capabilities, which are needed to ensure victory.

Over the last year, we have been very successful in implementing new changes to the Air Force acquisition process and in providing increased capabilities to the warfighter.  My staff and I have been diligently working to develop processes and enhance the culture within the Air Force acquisition workforce, so as to institutionalize these changes and ensure our air dominance.

We will continue to leverage the technology of this nation to create advantages for our military forces and meet the challenges that we will face in the years ahead as articulated by the Secretary of Defense. 

Changing Our Acquisition Process

The Secretary and Chief of Staff of the Air Force gave us a mandate to change the way we do business to deliver capability to the warfighter.  From slipping development times, to reduced deliveries, to increased costs, programs have not met established baselines and goals.  During this past year, I have been working to determine the root cause of these execution problems.  The findings identify several factors lead to poor program execution including: unstable requirements, faulty cost estimates, lack of test community buy-in, inadequate system's engineering and unstable funding.  For the Air Force, these program execution problems result in the average cost growth of 30% for acquisition programs and the doubling of the average procurement times.

Given the problems noted above and the resulting increases in program costs and delays in program schedules, I have formulated a series of policies to address the underlying causes.

First, in order to overcome our unstable requirements process, I have implemented an Agile Acquisition Policy that demands collaboration:  that is active, cooperative dialogue between the warfighter, acquirer, and tester working as one team at the outset and throughout the requirements and development process.  This will ensure that warfighter requirements are clearly articulated, the acquirers communicate what can be delivered and the testers understands what needs to be verified.  Surprises are kept in check when the user provides a concept of operations up front and a consistent, continuous dialogue between all stakeholders provides a robust definition of a requirement, which the acquisition community can deliver and the tester can verify. 

These changes set the goal of institutionalizing collaboration throughout the Air Force and DoD acquisition to include our operations, test and sustainment communities.  Collaboration must start well before a product is delivered in order to control costs and to provide the user with the required capability.  When the Acquisition Enterprise, consisting of the Warfighter, Acquisition, Test, and the Sustainment community, starts working together a better product is produced.  

Second, I have addressed the issue of faulty cost estimates by instituting policy changes that will foster credibility within the acquisition community.  Credibility means delivering what we promise, on time and on budget.  In the past, we have designed our programs with a 60-70% confidence level of meeting cost, schedule, and performance goals.  In order to be credible both to the warfighters and Congress, I have implemented a 90% confidence level in meeting our requirements. 

By demanding collaboration between all the parties, we can ensure the right trade-offs are made throughout the acquisition process to meet the required goals.  It is imperative that, both the warfighting and acquisition communities work together to make tradeoffs of non-critical elements within programs to buy down risk, throughout the acquisition cycle.  Bottom line: credibility means delivering what we promise, on time and on budget.

Third, not having test community buy-in created problems further along in the acquisition process.  As such, we have started to work with the test community on processes to reduce the number of serial events for testing.  This is different from the current process of serial and overlapping Development and Operational Testing, which can take several years.  We are developing a seamless verification process to ensure that both the developmental test and operation test occur in a single process, not fragmented as it has been in the past.   If the operational testers are involved early in the process, then they can assess the operational value of developmental testing and reduce duplication of effort.

Again collaboration is a vital part of this process change.  By involving all members of the acquisition enterprise early and continuously, we can all come to agreements on what are the operational requirements, what can be delivered and how we will verify the systems being built meet those needs.

Fourth, we need to instill an adequate systems engineering foundation within the acquisition process.  Systems engineering is one of the bedrocks of sound management for acquisition programs as it ensures that contractor-proposed solutions are consistent with sound engineering principals.  Decisions based on a solid a systems engineering approach, will ensure our program managers will be better prepared to assess their programs health and will help to keep programs on budget and schedule.  As such, I am implementing a process by which all future Milestone Decision Authorities will not sign out any future Acquisition Strategy Plans that lack the necessary attention to system's engineering.  Additionally, I am demanding system-engineering performance be linked to the contract award fee or incentive fee structures.  This link will help ensure the industry will also follow a sound systems engineering approach.

Additionally, we are rebuilding our organic system engineering foundation to provide the necessary expertise throughout the Air Force Acquisition Community.  Recently, the Center of Excellence for Systems Engineering has been opened at the Air Force Institute of Technology.  Our goal is to create a reservoir of knowledge and source of best practices, which can be applied to our current and future acquisition programs.

Fifth, unstable funding is a constant problem, one that can be better managed by a more disciplined program-priority process while leveraging spiral development methods.  Through our complementary processes to review warfighting capabilities and the associated execution of the programs comprising the capabilities, I firmly believe that we will have in place the ability to better manage funding instability.  As funding perturbations, both external and internal, arise within our programs, our reviews will ensure that a disciplined process of flexing resources to programs that contribute the most to warfighting capabilities exists.  This in effect will minimize the overall perturbation to programs that provide the most "bang for the buck" and eliminating our time-honored process of applying a "peanut-butter spread" to all. 

Spiral Development Is Our Preferred Acquisition Process

The Air Force has identified the spiral development methodology of acquisition as the preferred approach to acquiring systems.  As the pace of technology has quickened, so must the pace of our Acquisition process.  Spiral development allows the Air Force to incrementally deliver weapon system capability quickly -- providing the warfighter technology as it matures within acceptable program risk.  As each spiral is more clearly defined and shorter in duration, schedules are better managed due to the shorter time exposure of the development process to internal and external change.  Mutual expectations on spiral content, cost, and schedule are also commonly understood and agreed to up-front between all stakeholders, as collaborative practices are paramount to the spiral development process.      

Spiral development will also assist in mitigating funding instability by allowing the Service to compartmentalize each individual spiral such that a funding cut in the far term won't compromise a capability that is complete and ready to go to the field today.  In the past our "big bang" theory of releasing weapon system capability to the field held all aspects of the weapon system hostage to any perturbation in the process.  With spirals we release smaller, more tightly focused capability sooner, and minimize the risk of a long drawn-out development process being affected by funding instability in either the mid- or far-term.

Another beneficial spin-off of spiral development acquisition is the flexibility to insert the latest technology into the development and production lines.  This is where the importance of a robust science and technology capacity is crucial in truly reaping the benefits of a spiral release process.

Capitalizing on Science and Technology

Providing the warfighter solutions rests in large measure with research and development. Through robust investment and deliberate focus in science and technology, the Air Force invigorates our core competency of providing technology-to-warfighting.  Combined with innovative vision, S&T opens the direct route towards transforming air and space capabilities.  Therefore we continue long-term, stable investment in S&T to ensure we realize future capabilities, as well as those that may immediately affect existing systems.

Some of these new technologies - UAV systems, laser-based communications, space-based radar, and others - show clear promise for near-term, joint warfighting applications.  Others present opportunities we can only begin to imagine.  We are exploring each of these technologies, and our investment will deliver the required capabilities to our seven AF CONOPs.

Acquisition Success through new Business Practices

The Air Force has also enacted new business practices from an integrated enterprise perspective, examining every process and process link.  I have expressly given our people the latitude to make the right decisions by relaxing our past prescriptive policies.  My implementation of a reality-based acquisition policy, which replaced the highly prescriptive Air Force Instruction (AFPD 63-1/AFI 63-101), provided guidance emphasizing innovation and risk management and will delegate decision authority to appropriate levels.  Additionally, I have empowered our people through the use of High Powered Teaming with the warfighters, to deliver initial capability to warfighters more quickly, and add capability increments in future spirals.

Our transformation of Acquisition practices are only the beginning of a comprehensive and aggressive approach to reforming business practices.  Our efforts today will have a direct effect on efficient and effective air and space capability acquisition both immediately, and in the future.

Initiatives Show Results

During the last year we have had several successes based on these principles outlined above.  One such example is the Passive Attack Weapon.  This weapon was developed as a result of a 180-day Quick Reaction Program at Air Combat Command, and was available to the warfighter at the 98-day mark.  To date, we have delivered 58 weapons and completed all aircraft integration.  Support elements have been delivered, and our seamless verification of the system is complete.  Production was completed on time, with 15% more weapons delivered than originally proposed as we completed the program under budget.  

Weapon System Modernization

 F/A-22

The F/A-22, with its revolutionary combination of stealth, supercruise (i.e. supersonic cruise without afterburner), maneuverability, and integrated avionics, will dominate the skies.  The F/A-22 will ensure U.S. air dominance against all projected future threats.  In addition, when outfitted with the Small Diameter Bomb, the F/A-22's ability to penetrate an adversary's anti-access airspace and destroy his most critical air defense capabilities, will enable 24 hr stealth operations and freedom of movement for all follow-on forces-- fully leveraging our nation's asymmetric technological advantages.  In 2001, flight-testing continued to demonstrate the revolutionary capabilities.  Specifically, the F/A-22 successfully completed an AIM-120 guided missile launch, and initial radar detection range measurements (met specification requirements the first time out).  On 14 Aug 2001, the Defense Acquisition Board approved the F/A-22's entry into low-rate initial production (LRIP).  Entering operational service in 2005, this transformational leap in technology is the linchpin to preserving the nation's most important military advantage for the warfighter: the capability to rapidly obtain and maintain air and space dominance.  The program continues to proceed toward full rate production.  LRIP production aircraft are well into the manufacturing process; contracts already awarded include Lot 1 (10), Lot 2 (13), Lot 3 (20), and advance buy for Lot 4 (~22). 

The EMD program has been restructured to resolve the EMD shortfall within the overall F/A-22 budget.  Funding was re-phased from modernization and production in FY03 and from production in FY04-FY06.  The modernization program was re-planned in concert with the warfighter to account for these changes while ensuring critical capabilities are brought on board when required.  While the EMD shortfall and higher than anticipated Lot 3 aircraft costs did result in a revised estimate of 276 aircraft, it did not impact the Air Force's commitment to the "Buy-to-Budget" strategy.  The Air Force is focused on successfully completing F/A-22 development and initiating Dedicated Initial Operational Test & Evaluation (DIOT&E).  While currently scheduled to start in Oct 03, DIOT&E remains event-based and we will not begin until we are assured of success.  Our greatest remaining development challenge is avionics stability, yet we remain confident we will successfully resolve this issue.

Despite the issues above, F/A-22 program has made great strides in the past 6-9 months.  Not only has the flight test program increased the test point burn down rate to the point where envelope expansion is back on track, but also the vertical fin buffet challenge has been resolved, and the cause of canopy howl has been identified and a repair plan developed.  The program recently crossed the 3,000 hour cumulative flight hour milestone and has seven aircraft flying at Edwards and one at Nellis.  Testing has also included 16 live missile launches (4 guided) and successful firing of the gun.  Production processes during final assembly at Marietta continue to show improvement.  Out of station work has been reduced significantly, part shortfalls are down 70%, and tool validation has been completed.

F-35

Acting in concert with the F/A-22 will be the F-35 Joint Strike Fighter (JSF).  The F/A-22/F-35 force mix will balance affordability, capability and force structure-critical capabilities for the Global Strike concept of operations-to ensure sufficient quantities of advanced fighter aircraft to give the US dominant force across the full spectrum of conflicts.  The F-35 program will develop and field a highly common family of next-generation strike fighter aircraft for the Air Force, Navy, Marine Corps and our allies.  The Air Force Conventional Takeoff and Landing (CTOL) variant will be a multi-role, primary air-to-ground aircraft to replace the F-16 and A-10 and complement the F/A-22.  While the F/A-22 will establish air dominance, the F-35-with its combination of stealth, large internal payloads and multi-spectral avionics-will provide persistent stealth and precision engagement to the future battlespace.  The F-35 will carry a wide array of weapons, including J-series, AMRAAM and AIM-9X.  It will be optimized for all-weather, air-to-ground employment, including direct attack on the most lethal surface-to-air missile systems.  F-35 planned reliability and maintainability will enable an increase in sortie generation rate and mission reliability, and will reduce the logistics footprint as compared to legacy aircraft. 

The F-35 program is in the second year of the System Development and Demonstration (SDD) phase.  The SDD program is employing a block upgrade approach, based upon an open system architecture, to provide early delivery of a basic combat capability followed by integration of additional avionics and weapons capabilities to support the Services' Initial Operational Capability (IOC) requirements in the 2010-2012 timeframe.  Over the past year, the program has achieved several SDD technical milestones, including the Air System Requirements Review, the Integrated Baseline Reviews, the Propulsion Preliminary Design Reviews and, most recently, the Air System Preliminary Design Review for all three F-35 variants.  The program is currently expected to meet or exceed all Key Performance Parameter thresholds.

The F-35 program is on track to supply 1,763 CTOL aircraft to the Air Force and to meet the Air Force's IOC goal in Fiscal Year 2011.  Maintaining this schedule will ensure the optimal balance between affordably replacing aging aircraft and providing the warfighter the required force structure.    

The F-35 is the DoD's largest cooperative development program.  In Fiscal Year 2002, the F-35 program successfully concluded SDD cooperation agreements with seven additional international partners:  Canada, Denmark, the Netherlands, Norway, Italy, Turkey, and Australia.  These countries, along with the United Kingdom, are contributing over $4 billion to the SDD program.  The Department is also negotiating with Israel and Singapore regarding their participation as Security Cooperation Participants.  International participation in the F-35 program will help ensure maintenance of economies of scale, which will keep the F-35 affordable both in flyaway and support costs over the life of the program.  Additionally, international participation in the F-35 program will promote appropriate US-foreign technology sharing and bring the US and our allies closer to the goal of full joint/combined warfare capability.

Unmanned Combat Air Vehicle (UCAV)

The Unmanned Combat Air Vehicle (UCAV) vision is to develop an affordable weapon system that expands tactical, and perhaps strategic, mission options and provides a revolutionary new element in the air power arsenal. The UCAV weapon system will exploit the design and operational freedoms of relocating the pilot outside of the vehicle while maintaining the rationale, judgment, and moral qualities of the human operator.

The ongoing X-45 UCAV program is a joint Defense Advanced Research Projects Agency (DARPA) / U.S. Air Force effort being conducted in multiple overlapping spirals of increasing capability towards the UCAV vision. Spiral 0 consisting of X-45A air vehicle demonstrators, mission control system, and simulators are performing well at the NASA-Dryden Flight Research Center in CA today.  Spiral 1, planned for delivery in FY05, will integrate the intelligent multiple-vehicle coordinated operations demonstrated in Spiral 0 with a robust air vehicle design that offers increased range and payload.  Future spirals will provide increasing capability to meet warfighter needs and enhance the effectiveness of integrated operations of manned and unmanned aircraft.

F-15 Program

The F-15 Eagle remains the USAF's lead air superiority and only all-weather deep interdiction aircraft well into this century.  The deep interdiction version, the F-15E, provides night/through the weather air-to-surface attack, employing all USAF precision-guided munitions, including J-series weapons.  The F-15 is heavily involved in OPERATIONS Enduring Freedom, Noble Eagle, and Iraqi Freedom.

The Air Force must maintain the F-15A-D's and F-15E's abilities to fulfill their roles in light of the evolving threat and world situation.  Several of the current modifications to the F-15 are an upgrade to the radar (the APG-63(V)1 Radar Upgrade) to address significant reliability obsolescence problems; an upgrade to the engine (the F100-220E Engine Upgrade) to address significant reliability problems; addition of a new mission computer (the Advanced Display Core Processor) to provide computing power to support future capability growth; an upgrade of the armament control system (the Programmable Armament Control Set upgrade) to support employment of J-series weapons; and addition of high-off-boresight targeting of sensors and air-to-air weapons (the Joint Helmet Mounted Cueing System) to improve survivability in within-visual-range air combat.

A recent success story of the program is the fielding of LITENING ER pods to support current operations.  Following CSAF direction, the Air Force completed a 90-day evaluation of the LITENING pod in December 2002 on F-15E aircraft.  Positive evaluation results led to direction to procure and field 24 pods.  Funding reallocation and Congressional approval were accomplished within 2 months, and pod deliveries began in January 2003.  There are currently 16 pods in-country supporting Operation Iraqi Freedom, and the balance will be delivered to the Air Force by 31 March 2003.

F-16

The F-16 is the Air Force's principal multi-role fighter and is the largest Air Force and International sales procurement program with over 4,000 produced for service, encompassing 23 countries.  It is currently operating within the Active, AFRES, and ANG forces.  The F-16 is a single-engine, multi-role, tactical fighter, with full air-to-air and air-to-ground combat capabilities.  The F-16 comprises over 50% of the precision engagement fighter force and is the Air Force's primary Suppression of Enemy Air Defense (SEAD) platform.  It is extensively deployed with various ongoing operations to include OPERATIONS NOBLE EAGLE, ENDURING FREEDOM, and IRAQI FREEDOM. 

The F-16 is currently projected to be in service beyond 2020.  Several key modifications are underway to ensure the Fighting Falcon remains a key combat enabler. The Falcon STructural Augmentation Roadmap (Falcon STAR) is a structural modification for achieving an 8000-hour component service life.  Installation is programmed for FY2004 through FY2014.  The Common Configuration Implementation Program (CCIP) modification will improve the avionics commonality between the Block 40 and 50 aircraft.  It combines 5 modifications into 1 modification; thereby reducing the number of times a jet is opened and maximizing configuration control.  Further, it combines the Block 40 and 50 Operational Flight Programs (OFPs) into common OFPs.  The CCIP modification is timed with the Air Expedition Force schedule with installations running through FY2010.  Lastly, the Combat Upgrade Plan Integration Details (CUPID) modification will incorporate GPS, data link, night vision, and countermeasures into Block 25 through 32 aircraft.  We expect to complete CUPID in FY2003.

Small Diameter Bomb (SDB)

SDB will provide the following capabilities to the warfighter: Increased number of kills per pass; combat effective in adverse weather; minimized collateral damage; autonomous target attack; enhanced (>40nm) weapon standoff range; reduced logistic footprints and aircraft generation times.  SDB will be compatible with the following current platforms (F-15E, F-16, F-117, A-10, B-1, B-2, B-52), and is planned for next generation platforms (F/A-22, F-35, Unmanned Combat Air Vehicle (UCAV), Predator B).  Boeing and Lockheed Martin are currently competing in the two-year CAD phase with a downselect expected to occur in September 2003.  Low Rate Initial Production (LRIP) will start in FY05 with a planned RAA on the F-15E in FY06.  The SDB Threshold Platform is the F-15E, although F/A-22 is a major focus item in support of the Global Strike CONOPS.  SDB will be a pilot program for Seamless Verification, which is intended to maximize DT, OT, and contractor test resources in conducting an effective test program in support of warfighter requirements, while minimizing test-related cost and schedule.

Joint Standoff Weapon (JSOW)

The Joint Standoff Weapon is a joint Air Force-Navy program, with the Navy as the lead service.  JSOWA, INS/GPS precision glide weapon that the Air Force is procuring, is designed to attack a variety of area targets-fixed, relocatable, and mobile targets-during day, night and adverse weather conditions.  JSOW enhances aircraft survivability as compared to current interdiction weapon systems by providing the capability for launch aircraft to stand off outside the range of enemy point defenses.  The F-16, B-52, and F-15E are now capable of delivering JSOWA and the B-2 will again be capable of carrying the weapons by the mid April 03.  The weapon will also be integrated on the B-1 and F-35. 

Last year the Air Force decided to withdraw from the JSOWB program to service armored targets and begin development of an Extended Range Wind Corrected Munitions Dispenser (WCMD-ER).  The decision to add a wing kit and GPS to WCMD enhances the weapon's capability and leverages the existing inventory of tactical munitions dispensers.  The new weapon will significantly contribute to the Air Force's warfighting capability.  The new area attack munitions mix is based on the acceleration of JSOWA, the Sensor Fuzed Weapon and the WCMD-ER.     

Joint Air-to-Surface Standoff Missile (JASSM)

The Joint Air-to-Surface Standoff Missile (JASSM) is a "kick down the door" type weapon to be used in the early stages of a war to neutralize enemy's defenses and war infrastructure by targeting high value, fixed and relocatable targets.  JASSM's standoff range is greater than 200 NM.  It is a conventional, precision, autonomous, low observable missile with a 1,000 lb penetrator and blast/fragment warhead.  JASSM is all weather capable using GPS/INS guidance and an Imaging Infra-Red (IIR) terminal seeker. 

JASSM began low rate initial production (LRIP) in FY02 with a buy of 76 missiles.  Deliveries will begin in April 03.  The B-52 will be the first aircraft to reach RAA (required assets available) in Sep 03.  B-2, B-1, and F-16 will follow in FY04.  The JASSM test program was recently stopped after two free flight anomalies.  Those issues have been addressed and the USAF is confident they are fixed.  The final JASSM DT test is scheduled for late March; OT will be resumed if that test is successful.  The test program will be complete in July allowing JASSM to have a full-rate production milestone decision in Nov 03.

JASSM-Extended Range (ER) is a spiral development program that will increase the range capability to greater than 500 nm.  JASSM-ER will start development in late FY03 with congressional plus-up funds.  Development will end in FY07 when the program will enter production with the first deliveries in FY08.

MC2A

The MC2A will provide rapid machine-to-machine integration of information from manned, unmanned and space-based sensors.  The MC2A is the next generation wide area surveillance platform designed to provide a near real-time, horizontally integrated view of the air and surface battlespace through the use of advanced sensors, network centric systems and high-speed, wide-band communications systems.  The platform will be a key enabler to engage time sensitive targets with precision accuracy. 

Spiral 1 capability is funded to include next generation Ground Moving Target Indicator (GMTI) for counterland mission capability, focused Air Moving Target Indicator (AMTI) supporting Cruise Missile Defense (CMD), an open system architecture for the Battle Management, Command and Control (BMC2) mission suite subsystem and growth potential for Unmanned Aerial Vehicle (UAV) control, space-based radar interface and Intelligence, Surveillance and Reconnaissance (ISR) management functions.

Future spirals are envisioned to incorporate transformational horizontal integration and C2 Constellation battle management functions, an advanced AMTI sensor, UAV control, space-based radar integration and laser communications.  Available technology will determine if combining GMTI and a 360-degree AMTI sensor on a single aircraft is possible, or whether the 360-degree AMTI sensor will be hosted on a second MC2A configuration. 

Conclusion
 

The Air Force remains focused on providing the necessary capabilities to the warfighter in order to win America's wars.  These capabilities can only be achieved through effective and efficient management during the development, production, and fielding of systems.  By incorporating a strong collaborative process, re-establishing our credibility, implementing spiral development, and infusing systems engineering in our acquisition process, we can overcome the tough challenges ahead.
 

Through our new business practices, we are providing our workforce with the tools to make decisions and changes, but this is not enough.  The Air Force must provide strong support to program mangers and the necessary latitude to manage systems development, production, and sustainment with limited interference.  Only then can we meet the agile acquisition needs of our warfighters. 
 

Given the limited budget and increasing needs, this is a challenge that must be met head on.  We are committed to pursuing those actions necessary to make transformation work.

I appreciate the support provided by Congress and look forward to working with this Committee to best satisfy our warfighter needs in the future. 

Thank you for the opportunity to provide this statement for the record.