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P-8 MMA - Production

P-8A entered production in August 2010 with its sole critical technology, a hydro-carbon sensor, mature. The program plans to integrate additional capabilities into the P-8A. Program officials stated that work on the first of these upgradesimprovements to the Multi-static Active Coherent antisubmarine warfare systemhas started. The program also awarded contracts to develop an initial architecture for increment 3.

P-8A continued to experience late design changes as it started production before completing developmental testing. The number of design drawings increased by 10 percent within 1 year as the program implemented fixes to correct deficiencies discovered during testing. According to program officials, these design changes are mostly software-related, but they also include hardware changes that must be tested and retrofitted on production aircraft before the planned first deployment in December 2013.

The manufacturing processes for P-8A are considered mature, although the program encountered minor anomalies and maintenance issues with each of the first five production aircraft during the formal acceptance process. As a result, the Defense Contract Management Agency requested that Boeing conduct more pre-acceptance testing to catch and fix problems earlier. According to program officials, Boeing has agreed to perform a post-production flight prior to presenting each aircraft for formal acceptance.

On July 20, 2012, the DOT&E issued the memorandum Readiness of the P-8A Poseidon for Initial Operational Test and Evaluation, which identified concerns over mission system stability and performance. The DOT&E concerns related to the open deficiency reports that DOT&E staff stated ...have the potential to significantly degrade operational effectiveness and suitability across the range of Poseidon missions. The director recommended that the Navy continue to critically evaluate hardware and software deficiencies before beginning IOT&E.

On August 28, 2012, DOT&E issued a second memorandum P-8A Poseidon Multi-Mission Maritime Aircraft Operational Test and Evaluation Risk Assessment, which recognized some improved system performance particularly for the Electronic Support Measure sensor, that stated ...a number of unresolved deficiencies could degrade operational effectiveness during IOT&E in specific mission areas. Specifically, the memorandum highlighted unresolved deficiencies including data link problems leading to unreliable transmission of radar and infrared imagery intelligence products and voice communication, imagery quality and collection problems, radar resolution quality and pointing errors, unreliable identification of hostile targets, and impaired survivability fuel system performance.

On August 12, 2012, the PEO, Air Anti-Submarine Warfare, Assault, and Special Mission Programs sent a message to the OPNAV N84 requesting waiver for 28 unresolved deficiency reports. The message stated that the PEO had discussed the open deficiencies at the Operational Test Readiness Review and had assessed them to pose an acceptable level of risk for successful completion of IOT&E in support of a December 2013 first deployment. Based on the PEOs assessment and his own participation in the Operational Test Readiness Review, the OPNAV N84 granted the program manager the waiver on correcting the 28 unresolved system deficiencies to allow the program to begin IOT&E.

P-8A entered initial operational test and evaluation in September 2012 after receiving approval from DOD's Office of Developmental Test and Evaluation. That office's assessment concluded that the program was on track to meet its performance requirements and that software maturity and reliability had steadily increased throughout developmental testing. Further, remaining issues, such as those related to weapons bay heating and torpedo performance, were not likely to present more than moderate risk during operational testing. The program planned to complete testing by February 2013. Successful completion of operational tests was one criteria necessary for the full-rate production decision in July 2013.

According to program officials, the P-8A had reduced the unit cost of the aircraft on each of its first three production contracts. To help ensure the price is fair and reasonable, DOD negotiated an agreement with Boeing to provide the Defense Contract Audit Agency (DCAA) access to data on select Boeing commercial aircraft procurements. The P-8A airframe has been designated a commercial item, so the contractor is not required to submit cost or pricing data. Officials indicated DCAA did not raise any concerns regarding the reasonableness of aircraft pricing prior to the award of the third production contract.

The P-8A entered production in August 2010 with mature technologies, a stable design, and proven production processes; however, the program has continued to experience late design changes because it began production before completing developmental testing. The number of total design drawings has increased by 10 percent within the past year to address deficiencies discovered during testing. According to program officials, these design changes are mostly software-related, but they also include hardware changes, that must be tested and retrofitted on production aircraft before the planned first deployment in December 2013. The program expects to complete initial operational testing by February 2013, the results of which were used, among other factors, to evaluate the program's readiness for full-rate production in July 2013.

As of January 2013, the Navys budget to develop and procure the P-8A Poseidon aircraft totaled $33.5 billion for 122 aircraft. As of January 2013, the Navy had spent $13.0 billion, which included $7.4 billion in research, development, test, and evaluation funds and $5.6 billion in procurement funds.

The P-8A Poseidon successfully achieved its most significant remaining System Development & Demonstration milestones, including completion of Initial Operational Test and Evaluation (IOT&E), achievement of Initial Operating Capability, commencement of first operational deployment and approval for Full Rate Production (FRP). Live Fire Test and Evaluation completed in February 2013. IOT&E completed in March 2013. The IOT&E report released by Commander, Operational Test Force in July 2013 rated the P-8A as operationally effective, operationally suitable, and recommended Fleet introduction.

Department of Defense Office of Inspector General on June 10, 2013 recommended that the Under Secretary of Defense for Acquisition, Technology, and Logistics award an additional low-rate initial production lot for the P-8A Poseidon aircraft in July 2013 and defer the full-rate production decision for the P-8A Poseidon program until the program manager for Maritime Surveillance Aircraft demonstrates: the airframe can achieve the required 25-year lifespan without succumbing to structural fatigue; testing has resolved mission limited deficiencies; and the aircraft can perform its primary missions, including anti-surface warfare. A change to the P-8A Acquisition Strategy to add a fourth lot of LRIP of thirteen aircraft in FY 2013 was approved July 15, 2013.

Low-Rate Initial Production (LRIP) is the initial production effort of the production and deployment acquisition phase. LRIP is intended to result in completion of manufacturing development in order to verify adequate and efficient manufacturing capability and to produce the minimum quantity necessary to provide production representative articles for IOT&E. LRIP establishes an initial production base for the system and permits an orderly increase in the production rate for the system, sufficient to lead to full-rate production upon successful completion of operational (and live-fire, where applicable) testing. At program initiation (Milestone B), the milestone decision authority determines the LRIP quantity for major defense acquisition programs and major systems.

The program received FRP approval on January 3, 2014 and awarded the FRP Lot I contract for sixteen aircraft on February 25, 2014. To date, five lots of LRIP/FRP aircraft, including fifty-three aircraft and associated trainers, spares and support equipment, are on contract with Boeing Defense Space and Security. The initial two lots of thirteen total LRIP aircraft were delivered to the fleet on or ahead of schedule. The remaining forty LRIP/FRP aircraft were on order and the program continues preparations for award of subsequent production lots. The program continued to reduce unit costs for each aircraft production lot through effective negotiations with the prime contractor and through development and implementation of production process improvement initiatives.

Increment 2 Engineering Change Proposal (ECP) 1 developmental flight testing completed in March 2014. Quick look reports on multiple Developmental Test flights over submarine indicated successful detect and localization on every event. Increment 2 ECP 2 Final Design Review completed in December 2013 and software development is on-track. Increment 2 ECP 3 proposal is currently under evaluation.

The program continued to expand its Government-furnished equipment (GFE) strategy to reduce vendor pass-through costs, enabling achievement of below threshold baseline cost procurement. The program initiated development of Anti-Tamper Plan templates for potential future Foreign Military Sales in support of a Defense Exportability Features pilot program. These templates will reduce the time and expense required to create country-specific features and will contribute to commonality. USD(AT&L) approved the Program Protection Plan (PPP) in November 2013 in support of the FRP decision. The program is implementing measures to protect critical program information and mitigate supply chain risks. The program continues to refine its criticality analysis in order to detect and mitigate any system vulnerabilities.

As of January 2014 the US Navy had an inventory of 13 aircraft, building toward a projected inventory of 117 aircraft. The program achived Initial Operational Capabilities (IOC) in November 2013, with a projected Full Operational Capabilities (FOC) date of 2018.

In FY 2014, DASD(SE) participated in several Program Management Reviews to track systems engineering efforts. The program resolved critical deficiencies, enabling an FRP decision, two operational squadron deployments, and a 2-month-early Initial Operational Capability (IOC). In 2015, Increment (Inc) 2 capabilities began fielding along with prototype development of the Inc 3 open architecture.

Life cycle is 25 years. Aircraft quantities are: P-8A = 109 (Total Aircraft Inventory (TAI)) and 89 (Primary Authorized Aircraft (PAA) less test assets). Flight hours per aircraft per year are: P-8A = 699. The calculation is based on summing the total operational flight hours and dividing by total operational aircraft. P-8A operations are based on: one Fleet Replacement Squadron (12 aircraft) and 12 Fleet squadrons (6-7 aircraft each). As a result of reducing P-8A procurement from 117 to 109 aircraft, the P-8A will have a seven six-aircraft and five seven-aircraft squadrons. SAR submittals maintained the Program of Record of 12 seven-aircraft squadrons and a PAA of 96. Estimate duration: start year = 2012, end year = 2044, total years = 33. Estimate uses November 2009 Manpower Estimate Report (MER); MER requirement was adjusted to an authorized level, based on P-3C actual manpower by work center.

On January 29, 2016 Boeing announced it would further equip the U.S. Navy and Royal Australian Air Force (RAAF) with maritime patrol capabilities, building 20 more P-8A Poseidon aircraft following a $2.5 billion U.S. Navy order announced yesterday. The contract, for Lot 7 of the total P-8A program of record, includes 16 aircraft for the U.S. Navy and the next four aircraft for the RAAF. The RAAFs initial four P-8A aircraft were included in the August 2015 Lot 6 contract award.

We continue to hear feedback from our Navy customer about the incredible capabilities of the P-8A, said James Dodd, Boeing vice president and program manager of P-8 Programs. The deployed squadrons tell us its exceeding expectations were looking forward to providing even more capability to the fleet and to Australia. This latest award put Boeing on contract to build 78 Poseidons for the Navy and eight for the Australian fleet, with 33 Poseidons delivered to the U.S. Navy to date. The Lot 7 aircraft will begin delivery in late 2017.

The Boeing Co., Seattle, Washington, was awarded on April 5, 2016 a $235,273,721 firm-fixed-price modification to the previously awarded P-8A Multi-mission Maritime Aircraft advance acquisition contract N00019-14-C-0067. This modification provides for the procurement of long-lead items for the manufacture and delivery of 11 Lot 8 full-rate production IV P-8A aircraft for the Navy. Work will be performed in Seattle, Washington (82.6 percent); Baltimore, Maryland (6.2 percent); Greenlawn, New York (4.2 percent); Cambridge, United Kingdom (3.5 percent); and North Amityville, New York (3.5 percent), and is expected to be completed in January 2017. Fiscal 2016 aircraft procurement (Navy) funds in the amount of $235,273,7121 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

On March 30, 2017 the Boeing Co., Seattle, Washington, is being awarded a $2,196,638,752 modification to a previously awarded fixed-price, cost-plus-fixed-fee contract (N00019-14-C-0067) for the manufacture and delivery of 17 Lot 8 full-rate production P-8A aircraft for the Navy (11), foreign military sales (2), and cooperative agreement partners (4); and long lead parts associated with the manufacture of 10 Lot 9 P-8A aircraft for the Navy (7) and the foreign military sales partners (3). In addition, this modification also provides for Lot 8 segregable efforts consisting of unknown obsolescence, class I change assessment, obsolescence monitoring, and integrated baseline/program management reviews.

Work will be performed in Seattle, Washington (80 percent); Baltimore, Maryland (3 percent); Greenlawn, New York (2.8 percent); outside the U.S. (1.7 percent); North Amityville, New York (1.1 percent); Rockford, Illinois (0.9 percent); Rancho Santa Margarita, California (0.7 percent); Salt Lake City, Utah (0.6 percent); and various locations within the U.S. (9.2 percent), and is expected to be completed in December 2020. Fiscal 2017 aircraft procurement (Navy); cooperative agreement; and foreign military sales funds in the amount of $1,748,799,516 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract combines purchase for the Navy ($1,447,499,092; 65.9 percent); cooperative agreement partners ($476,809,236; 21.7 percent); and foreign military sales partners ($272,330,424; 12.4 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

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