UNCLASSIFIED. FY 2014 FY 2014 OCO ## Total FY 2015 FY 2016 FY 2017 FY 2018
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1 II xhibit -40, udget Item ustification heet: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods I ode (=ervice eady, =ot ervice eady) : rogram lements for ode : ther elated rogram lements: /I ode(s): esource ummary rior 2014 ears # ase ## o omplete rocurement Quantity (nits in ach) ross/weapon ystem ost ($ in illions) , ess dvance rocurement ($ in illions) et rocurement (1) ($ in illions) , lus dvance rocurement ($ in illions) bligation uthority ($ in illions) , (he following esource ummary rows are for informational purposes only. he corresponding budget requests are documented elsewhere.) Initial pares ($ in illions) lyaway nit ost (nits in ollars) ross/weapon ystem nit ost (nits in ollars) - 732, , , , , ,331K 571, , ,023K # 2013 rogram is from the 2013 resident's udget, submitted ebruary 2012 ## he 2014 equest will be submitted at a later date escription: his line item procures K48 od 7 ommon roadband dvanced onar ystem () kits for Heavyweight orpedo pgrades. he K-48 s kit incorporates a new uidance and ontrol (&) modification. he & odification provides a common & with the od 7 replacing obsolete electronic components with ommercial ff he helf () processors and increased processing capacity. he increased capacity is required for future advanced signal processing techniques that are needed for performance upgrades in shallow water target detection/classification. his modification allows the K-48 torpedo to operate effectively in adverse environments, enabling the K-48 torpedo to counter foreseeable enemy submarine threats. he torpedo kit consists of two major components: &, and a roadband onar nalog eceiver (). he & is continuous from the s in production from 05, and procurement of the began in 06. he is a specific item which consists of a preamplifier, receiver, and interfacing hardware that provides the capability to transmit and receive over a wide frequency band, taking advantage of broadband signal processing techniques. his provides for improvements in advanced threat countermeasures (s) capabilities. he K48 od 7 Kit competitive contract was awarded on 4 arch 2011 to ockheed artin ippican, arion. he contract was awarded for a total of 103 K48 od 7 Kits, of which, 81 kits were procured with 10 funding, and 22 kits with 11 funding. he ockheed artin ippican contract contains priced options for 12 to 15. new competitive contract is planned for 16. [40 / Hardware]: HW unding under this cost code provides for the procurement of hardware kits from the contractor, engineering change proposals and non-recurring engineering to resolve production issues including obsolescence. on-recurring ngineering () funds base contract year technology refresh due to obsolescence issues and non-deliverable hardware consumed in production acceptance testing. In option years and out-years, this also contains reserve for prior year ixed rice Incentive (I) Is to pay for the government's share of billing price increases along the contract's share line. I Is are only funded to target price at award. ngineering ervices and ngineering hange roposals (s) pays for studies, plans, design changes and implementation of design changes at the contractor, primarily due to obsolescence that occures during the contract performance. lso included in this cost code is the cost of government installation of kits procured in prior years. he installation includes required upgrades to convert the K48 od 6 orpedo into a K48 od 7 orpedo. he pre-amp, guidance control box, I filter, and roadband onar nalog eceiver () are installed and replaced at the I K-48 orpedo ods II avy age 1 of 10-1 ine #21 olume 1-209
2 II xhibit -40, udget Item ustification heet: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods I ode (=ervice eady, =ot ervice eady) : rogram lements for ode : ther elated rogram lements: /I ode(s): government Intermediate aintenance ctivity. he orpedo goes through a final integration test and is loaded with the operational software and completes quality assurance checkout prior to issuing it as a Warshot or xercise orpedo. [40 / upport and ncillary quipment]: I QI unding under this cost code provides procurement and maintenance of support and test equipment at aval ndersea Warfare enters (W) Keyport and the contractor facility for assembly, testing and integration. [40 / rod ngineering (ontractor & In-House)]: I II ( I-H) unding under this cost code provides for production tasks performed by W and K and includes review of contractor generated ngineering hange roposals (s), review and resolution of contractor failures and proposed corrective action, configuration management activities, contractor monitoring, risk analysis, technical problem resolution, software engineering, safety, integrated logistics support, environmental engineering, and information systems. unding maintains production specification in accordance with production processes and provides subject matter experts to support root cause analysis of failed contractor hardware and monitor contractor defect and reduction processes to ensure deficiencies are effectively addressed. unding is also provided for program office acquisition support. [40 / Quality ssurance]: QI (I-H) unding under this cost code provides for quality assurance (Q) tasks performed by W K and including: Q reviews of the contractor and subcontractors data and documentation indicating conformity to product performance requirements and review of objective quality evidence. [40 / cceptance & (ontractor & In-House)]: II unding under this cost code provides for production acceptance testing of contractor hardware. [40 / 11 - ongressional dd - bsolescence]: 11 - I - unding under this cost code provides for production engineering tasks associated with K-48 hardware obsolescence. [40 / 12 - ongressional dd - ech Insert]: 12 - I - H II unding under this cost code provides for production engineering tasks associated with a technology refresh for the K-48 sonar array and signal processor cards. [40 / 13 - ongressional dd - W nhancements]: 13 - I - W H unding under this cost code provides for production engineering tasks associated with a technology refresh for the K-48 sonar array. Item omenclature* K-48 orpedo ods ross/weapon ystem ost Item chedule rior ears ase xhibits I nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) 40, 5, ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) *Item omenclature represents Item umber, I, and Item ame for the 40 and 5; ame for the 18 and 23; odification umber and odification itle for the 3; Item umber and Item ame for the 10. I K-48 orpedo ods II avy age 2 of 10-1 ine #21 olume 1-210
3 II xhibit -40, udget Item ustification heet: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods I ode (=ervice eady, =ot ervice eady) : rogram lements for ode : ther elated rogram lements: /I ode(s): ote: s in this xhibit -40 set may not be exact or add due to rounding. ustification: he K48 od 7 kit contract was awarded in arch 2011 to ockheed artin ippican () and the contract has a base year plus four option years. he K48 od 7 kit contract contains unit price breaks for various procurement quantity bands in each option year due to quantity unit price efficiencies and learning curve. he K48 od 7 Kit unit prices for the budget were taken directly from the option unit prices for the 12 through 15 options. he awarded K48 od 7 kit contract includes an increase of approximately 3% inflation per year for similar quantities in each of the quantity bands for step ladder prices from year to year. new competitive contract is planned in 16 and significant on-ecurring ngineering effort is anticipated to address obsolescence. fter the -13 submission, the new prime contractor for Kits informed the program of significantly under estimating the time required to produce the test equipment and proof of manufacturing units on the new competitive contract. he ixed riced Incentive contract type chosen by the government has protected the government from the significant overruns that contractor is projecting. he impact is that there is a significant shift in production deliveries and as a result, the government has shifted the install funding in cost code 1001 in 13 and 14 to procure additional kits. he number of kits procured over the is unchanged. I K-48 orpedo ods II avy age 3 of 10-1 ine #21 olume 1-211
4 II xhibit -40, udget Item ustification or ggregated : 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip ( indicates the presence of a -5) 1) Hardware I / I ode nit ost -1 ine Item omenclature: K-48 orpedo ods ggregated Item ame: K-48 orpedo ods ll rior ears ase (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) 1.1) od Kits (1) 1.2) Kits 388, , , , , ) ) ngineering ervices/ s ost ($ ) ) Installation ubtotal 1) Hardware 2) upport and ncillary quipment 2.1) upport & ncillary quipment ubtotal 2) upport and ncillary quipment 3) rod ngineering (ontractor & In-House) 3.1) roduction nginnering (ontractor & In-House) ubtotal 3) rod ngineering (ontractor & In-House) 4) Quality ssurance 4.1) Quality ssurance (In-House) ubtotal 4) Quality ssurance 5) cceptance & (ontractor & In- House) 5.1) cceptance & (ontractor & In-House) ubtotal 5) cceptance & (ontractor & In-House) 6) 11 - ongressional dd - bsolescence nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) I K-48 orpedo ods II avy age 4 of 10-1 ine #21 olume 1-212
5 II xhibit -40, udget Item ustification or ggregated : 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip ( indicates the presence of a -5) 6.1) ongressional dd - bsolescence ubtotal 6) 11 - ongressional dd - bsolescence 7) 12 - ongressional dd - ech Insert 7.1) ongressional dd - ech Insertion ubtotal 7) 12 - ongressional dd - ech Insert 8) 13 - ongressional dd - W nhancements 8.1) ongressional dd - W nhancements ubtotal 8) 13 - ongressional dd - W nhancements I / I ode nit ost -1 ine Item omenclature: K-48 orpedo ods ggregated Item ame: K-48 orpedo ods ll rior ears ase (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost (ach) ost ($ ) nit ost ootnotes: (1) fter the -13 submission, the new prime contractor for 10/11 Kits informed the program of under estimating the time required to produce the test equipment and proof of manufacturing () units on the new competitive contract. he ixed riced Incentive contract type chosen by the government has limited the government's liability in overruns that the contractor is projecting. he impact to the -14 udget is that there is a shift in production deliveries and as a result, the government has shifted the installation funding in cost code 1001 in 13 and 14 to procure additional kits. ue to excess production capacity, the contractor has committed to regain the originally awarded schedule by the end of the 14 deliveries. (ach) ost ($ ) I K-48 orpedo ods II avy age 5 of 10-1 ine #21 olume 1-213
6 II xhibit -5, udget rocurement History and lanning: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip ( indicates the presence of a -21) 1) Hardware 1.2) Kits 1.2) Kits 1.2) Kits 1.2) Kits ontractor and ocation 2010 (2) KH I/ II / arion, 2011 KH I/ II / arion, 2012 (3) KH I/ II / arion, 2013 KH I/ II / arion, -1 ine Item omenclature: K-48 orpedo ods ethod/ype, or unding ehicle ocation of ward ate ate of irst elivery (ach) ggregated Item ame: K-48 orpedo ods nit ost pecs vail ow? ate evsn vail Issue ate / I ar 2011 eb ar 2010 / I ar 2011 ar ar 2010 / I ay 2012 ul , / I ay 2013 ct , ) Kits KH I/ 2014 II / arion, / I ay 2014 pr , ootnotes: (2) he K48 od 7 Kit competitive was awarded on 4 arch 2011 to ockheed artin ippican, arion. he contract was awarded for a combined total of 103 K48 d 7 Kits, of which 81 kits were procured with 10 funding and 22 kits with 11 funding. (3) he delivery gap from 12 to 15 is due to a delay in the 10/11 competitive contract award and a schedule delay in the delivery of roof of anufacturing () units. I K-48 orpedo ods II avy age 6 of 10-1 ine #21 olume 1-214
7 II I K-48 orpedo ods II avy age 7 of 10-1 ine #21 xhibit -21, udget roduction chedule: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods ggregated Item ame: K-48 orpedo ods (nits in ach) iscal ear 2011 iscal ear 2012 alendar ear 2011 alendar ear 2012 # I Q I ) Hardware 1.2) Kits ll rior ears eliveries: olume 1-215
8 II I K-48 orpedo ods II avy age 8 of 10-1 ine #21 xhibit -21, udget roduction chedule: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods ggregated Item ame: K-48 orpedo ods (nits in ach) iscal ear 2013 iscal ear 2014 alendar ear 2013 alendar ear 2014 # I Q I ) Hardware 1.2) Kits ll rior ears eliveries: olume 1-216
9 II I K-48 orpedo ods II avy age 9 of 10-1 ine #21 xhibit -21, udget roduction chedule: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods ggregated Item ame: K-48 orpedo ods (nits in ach) iscal ear 2015 iscal ear 2016 alendar ear 2015 alendar ear 2016 # I Q I ) Hardware 1.2) Kits ll rior ears eliveries: olume 1-217
10 II xhibit -21, udget roduction chedule: 2014 avy ate: pril 2013 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 2: od f orpedoes nd elated quip -1 ine Item omenclature: K-48 orpedo ods ggregated Item ame: K-48 orpedo ods roduction ates (ach / ear) # ame - ocation X Initial rior to ct 1 fter ct 1 fg rocurement eadtime (onths) fter ct 1 eorder rior to ct 1 fter ct 1 fg 1 KH I/ II - arion, "" in the elivery chedule indicated the ontract ward ate. 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 99,999, all quantities are shown as each. If the maximum quantity is between 100,000 and 99,999,499 all quantities are shown in thousands (rounded to the nearest thousand). If the maximum quantity is greater than 99,999,499 all quantities are shown in millions (rounded to the nearest million). fter ct 1 I K-48 orpedo ods II avy age 10 of 10-1 ine #21 olume 1-218
UNCLASSIFIED. UNCLASSIFIED Navy Page 1 of 10 P-1 Line #21
II xhibit -40, udget ine Item ustification: 2016 avy ate: ebruary 2015 ppropriation / udget ctivity / udget ub ctivity: 1507: Weapons rocurement, avy / 03: orpedoes and elated quipment / 1: orpedoes and
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