(U) A. Mission Description and Budget Item Justification:

The Evolved Expendable Launch Vehicle (EELV) program is a space launch system development program. The purpose of this program is to replace the current fleet of medium to heavy-lift class expendable launch vehicles (Titan II, Delta II, Atlas II, and Titan IV) with a more affordable family of space launch vehicles. With a nonrecurring development cost of $2 billion, EELV is projected to save 25-50 percent over the current fleet of expendable launch vehicles during a 20 year period. Program content includes the development of the system design, demonstrations of key technologies, modifications to industrial capability and launch facilities, and demonstration launches of both medium- and heavy-lift EELV variants. The EELV family of vehicles must be capable of meeting the Government's spacelift needs (DoD, intelligence, and other government missions) through at least 2020, as defined in the National Mission Model. The first operational launch for the Medium-Lift Variant (MLV) is required by FY02 to support satellite block changes and transitions. The first operational capability for the Heavy-Lift Variant (HLV) is required by FY05 to maintain assured access to space following the Titan IV phaseout. This program is in Budget Activity 4, Demonstration and Validation, because it supports risk reduction, demonstration and validation of technologies, and concept verifications leading to lower cost expendable launch vehicles.

(U) Acquisition Strategy:

The EELV concept of a family of launch vehicles emphasizes commonality of hardware and infrastructure and economies of scale to enhance production, operations, and support efficiencies. Cost improvements will be achieved through commonality, consolidation, reduction of supporting infrastructure (launch pads, manufacturing facilities, workforce), and optimization of production and launch operations, processes, and rates. Development contracts will be competitively awarded. Downselect to a single EELV contract/concept is planned at the EMD decision point (third quarter FY98). Production contracts will be sole source to the EELV EMD contractor.

(U) FY 1996

(U) $32,000	Completed four Low Cost Concept Validation (LCCV) contracts culminating in the Dec 96 downselect to two Pre-EMD contracts to continue concept development.
(U) $4,894	Program management and other support costs.
(U) $36,894	Total

(U) FY 1997

(U) $38,854	Awarded two $60M, FFP, Pre-EMD contracts in Dec 96. Pre-EMD contracts will span 17 months.
(U) $3,479	Program management and other support costs.
(U) $42,333	Total

(U) FY 1998

(U) $56,900	Complete two $60 million, firm fixed price, Pre-EMD contracts in May 98.
(U) $6,360	Program management and other support costs.
(U) $0	Downselect to single EMD contractor. EMD begins in June 98 funded under PE 0604853F.
(U) $63,260	Total

(U) B. Program Change Summary ($ in Thousands)

	FY 1996	FY 1997	FY 1998	FY 1999
(U) Previous President's Budget	37,147	44,457
(U) Appropriated Value	39,226	44,457
(U) Adjustments to Appropriated Value
a. Congressional General Reductions	-916	-1,003
b. Small Business Innovative Research	-605	-1,121
c. Omnibus or other above threshold reprogramming	-799
d. Below Threshold Reprogramming	-12
(U) Adjustments to Budget Years Since FY97 PB			+63,260
(U) Current Budget Submit/President's Budget	36,894	42,333	63,260

(U) Change Summary Explanation:

- Funding: The FY96 reductions were for general Congressional reductions and an additional $0.811M reduction to support higher military requirements. FY97 reductions were the result of general Congressional Reductions. FY98 funds were transferred from PE 0604853F (EELV EMD) to reflect the approved schedule for the pre-EMD phase. The pre-EMD phase will run from December 1996 to May 1998. The change is required to implement the approved acquisition strategy as documented in the Single Acquisition Management Plan (SAMP).

- Schedule: Not Applicable.

- Technical: Not Applicable.

(U) C. Other Program Funding Summary ($ in Thousands)

FY 1996

FY 1997

FY 1998

FY 1999

FY 2000

FY 2001

FY 2002

FY 2003

To Comp

Total

(U) National User (non-AF budget)	72,300	18,600	7,100						0	98,000
(U) Missile Procurement, AF (PE 030593F)					245,428	285,471	171,951	303,782	Cont.	Cont.
Related RDT&E
(U) EELV EMD (PE 0604853F)			28,376	293,950	324,891	232,991	256,797	419,280	162,200	1,718,485
(U) EELV (PE 0305953F)				3,383	3,480	3,577	2,398	795	Cont.	Cont.
(U) Medium Launch Vehicles (PE 0305119F)
(U) Titan Space Launch Vehicles (PE 0305144F)

(U) D. Schedule Profile

FY 1996

FY 1997

FY 1998

FY 1999

	1	2	3	4	1	2	3	4	1	2	3	4	1	2	3	4
LCCV Module
(U) Tailored Preliminary Design Review				X
(U) DAB					X
(U) Downselect to two contracts					X
Pre-EMD Module
(U) Pre-EMD contract awards					X
(U) Downselect Design Review										X
(U) EMD DAB											X
(U) Downselect to single EMD contract/concept											X