UNCLASSIFIED Selected Acquisition Report (SAR) RCS: DD-A&T(Q&A)823-198 F-35 Lightning II Joint Strike Fighter (JSF) Program (F-35) As of FY 2018 President's Budget Defense Acquisition Management Information Retrieval (DAMIR) UNCLASSIFIED UNCLASSIFIED F-35 December 2016 SAR Table of Contents Sensitivity Originator Common Acronyms and Abbreviations for MDAP Programs Program Information Responsible Office References Mission and Description Executive Summary Threshold Breaches Schedule Performance Track to Budget Cost and Funding Cost and Funding Low Rate Initial Production Foreign Military Sales Nuclear Costs Unit Cost Cost Variance Contracts Deliveries and Expenditures Operating and Support Cost UNCLASSIFIED 3 4 6 6 7 8 9 13 14 18 22 26 31 70 71 71 72 79 87 94 95 2 UNCLASSIFIED F-35 December 2016 SAR Sensitivity Originator Name: Gabriel Quevedo Email: gabriel.quevedo@jsf.mil Phone: 703-601-5606 Organization: F-35 Lightning II Program UNCLASSIFIED 3 UNCLASSIFIED F-35 December 2016 SAR Common Acronyms and Abbreviations for MDAP Programs Acq O&M - Acquisition-Related Operations and Maintenance ACAT - Acquisition Category ADM - Acquisition Decision Memorandum APB - Acquisition Program Baseline APPN - Appropriation APUC - Average Procurement Unit Cost $B - Billions of Dollars BA - Budget Authority/Budget Activity Blk - Block BY - Base Year CAPE - Cost Assessment and Program Evaluation CARD - Cost Analysis Requirements Description CDD - Capability Development Document CLIN - Contract Line Item Number CPD - Capability Production Document CY - Calendar Year DAB - Defense Acquisition Board DAE - Defense Acquisition Executive DAMIR - Defense Acquisition Management Information Retrieval DoD - Department of Defense DSN - Defense Switched Network EMD - Engineering and Manufacturing Development EVM - Earned Value Management FOC - Full Operational Capability FMS - Foreign Military Sales FRP - Full Rate Production FY - Fiscal Year FYDP - Future Years Defense Program ICE - Independent Cost Estimate IOC - Initial Operational Capability Inc - Increment JROC - Joint Requirements Oversight Council $K - Thousands of Dollars KPP - Key Performance Parameter LRIP - Low Rate Initial Production $M - Millions of Dollars MDA - Milestone Decision Authority MDAP - Major Defense Acquisition Program MILCON - Military Construction N/A - Not Applicable O&M - Operations and Maintenance ORD - Operational Requirements Document OSD - Office of the Secretary of Defense O&S - Operating and Support PAUC - Program Acquisition Unit Cost UNCLASSIFIED 4 UNCLASSIFIED F-35 December 2016 SAR PB - President’s Budget PE - Program Element PEO - Program Executive Officer PM - Program Manager POE - Program Office Estimate RDT&E - Research, Development, Test, and Evaluation SAR - Selected Acquisition Report SCP - Service Cost Position TBD - To Be Determined TY - Then Year UCR - Unit Cost Reporting U.S. - United States USD(AT&L) - Under Secretary of Defense (Acquisition, Technology and Logistics) UNCLASSIFIED 5 UNCLASSIFIED F-35 December 2016 SAR Program Information Program Name F-35 Lightning II Joint Strike Fighter (JSF) Program (F-35) DoD Component DoD Joint Participants United States Navy; United States Air Force; United States Marine Corps; United Kingdom; Italy; The Netherlands; Turkey; Canada; Australia; Denmark; Norway The F-35 Program is a joint DoD program for which Service Acquisition Executive Authority alternates between the Department of the Navy (DoN) and the Department of the Air Force (DAF), and currently resides with the DAF. Responsible Office VADM Mathias Winter F-35 Lightning II Program Office 200 12th St South Arlington, VA 22202-5402 Phone: Fax: DSN Phone: DSN Fax: Date Assigned: 703-601-5602 703-602-7649 329-5650 May 25, 2017 mathias.winter@jsf.mil UNCLASSIFIED 6 UNCLASSIFIED F-35 December 2016 SAR References F-35 Aircraft SAR Baseline (Development Estimate) Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated March 26, 2012 Approved APB Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated June 18, 2014 F-35 Engine SAR Baseline (Development Estimate) Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated March 26, 2012 Approved APB Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated June 18, 2014 UNCLASSIFIED 7 UNCLASSIFIED F-35 December 2016 SAR Mission and Description The F-35 Lightning II Program will develop and field an affordable, highly common family of next-generation strike aircraft for the U.S. Navy, Air Force, Marine Corps, and allies. The three variants are the F-35A; F-35B; and the F-35C. The F-35A will be a stealthy multi-role aircraft, primarily air-to-ground, for the Air Force to replace the F-16 and A-10 and complement the F22. The F-35B variant will be a multi-role strike fighter aircraft to replace the AV-8B and F/A-18A/C/D for the Marine Corps. The F-35C will provide the U.S. Navy a multi-role, stealthy strike fighter aircraft to complement the F/A-18E/F. The planned DoD F-35 Fleet will replace the joint services' legacy fleets. The transition from multiple type/model/series to a common platform will result in a smaller total force over time and operational and overall cost efficiencies. UNCLASSIFIED 8 UNCLASSIFIED F-35 December 2016 SAR Executive Summary The F-35 remains the DoD’s largest cooperative acquisition program, with eight International Partners participating with the U.S. under Memorandums of Understanding for System Development and Demonstration (SDD) and Production, Sustainment and Follow-on Development. Additionally, the program currently has three FMS customers. The F-35 program is executing well across the entire spectrum of acquisition, to include development and design, flight test, production, fielding and base stand-up, sustainment of fielded aircraft, and building a global sustainment enterprise. The F-35 weapon system is now operational and forward deployed. The size of the fleet continues to grow and is rapidly expanding its capability. Program costs are well understood and are stable. With respect to production costs and operating costs that the program can influence; they are decreasing. The costs to complete the Development program still remain well within the budget established in 2011 after the Nunn-McCurdy Breach. The overall assessment is that the program is making solid progress as it grows and accelerates; and shows improvement as the program continues to manage emerging issues and mitigates program risks. We are again pleased to report many accomplishments by the F-35 team during the past year but none are more satisfying than the declaration of IOC for the F-35A by the U.S. Air Force (USAF) last summer, and seeing the U.S. Marine Corps (USMC) forward deploy its F-35Bs. The F-35 fleet now exceeds 210 aircraft and it has surpassed 73,000 flight hours. The Program’s main focus areas include: Delivering the full Block 3F capabilities; completing development within the time and resources we have; smoothly transitioning from SDD to Follow-on-Modernization (FoM); completing the production ramp-up while continuing to improve quality and delivery schedule; continuing to grow the global sustainment enterprise and improving the fielded fleet’s performance; and continuing to strengthen International partnerships and participation. Development Delivering Full Block 3F capabilities: Steady progress is being made toward delivery of full Block 3F warfighter capability and completion of the SDD program. Two important milestones are associated with the closeout of this phase of the program: completion of SDD flight test and the delivery of the full Block 3F capability. The Joint Program Office (JPO)/Industry team will continue SDD until the full Block 3F capability is delivered to the warfighter. Delivery of full 3F capability is projected to meet APB threshold dates for all 3 variants with the exception of F-35B which will be cleared to 1.3 Mach by the threshold date with expansion to 1.6 Mach by May 2018. Critical path for F-35B to 1.6 Mach is a structural integrity update and the air worthiness certification. Steady progress is being made toward completion of the SDD program. With respect to completion of F-35 flight test, the original 2011 re-baseline Program of Record showed flight testing to end on October 31, 2017. The JPO has maintained that there are three to four months of risk to the completion date and current projection of the end of SDD flight test by February 2018. As a result of extensive review of work remaining and risk to completion, DoD has directed the JPO to maintain the resources necessary to continue flight testing to May 2018, if necessary, to ensure delivery of the full Block 3F capability. The biggest risks to the timely completion of SDD flight testing include software stability, the discovery of any new software deficiencies, the time it takes to correct deficiencies, and the health of our Developmental Test (DT) fleet. The remaining cost to complete the F-35’s $55B development program is estimated to be $2.3B; money which was already budgeted for the program. Should flight testing go beyond February 2018 to May 2018, the JPO has been directed to hold $100M of FoM funding in FY 2018 to pay for this added flight testing. Use of this internal funding will result in no impact to any other DoD programs or the Services/DoD’s budget requirements. Initial Operational Test and Evaluation (IOT&E): A number of criteria are required to be met by the Director, Operational Test & Evaluation before IOT&E can begin. These include the release of the final Block 3F aircraft capability, the release of Autonomic Logistics Information System (ALIS) 3.0, the release of a verified and validated Mission Data File (MDF), the UNCLASSIFIED 9 UNCLASSIFIED F-35 December 2016 SAR readiness of 23 instrumented aircraft in a Block 3F production representative configuration, and functioning Air-to-Air Range Infrastructure 2 (AARI 2) capability on the test aircraft and ranges. Additionally, a verified, validated, and accredited F-35 simulator must be delivered approximately four months prior to completion of the 13-month long IOT&E program. This simulator requirement will be met by the Joint Simulation Environment located at Naval Air Station Patuxent River in Maryland. It is likely that by February 2018, the field release of ALIS 3.0, the field release of a verified and validated MDF, and the modifications necessary to place all 23 aircraft into a production representative configuration will not be completed. However, a large subset of those entrance criteria to start IOT&E will be met by February 2018. DOT&E has agreed to execute certain pre-IOT&E events to the advantage of ship availabilities and seasonal weather conditions. Additionally, in cooperation with the JPO, DOT&E is assessing the feasibility to start IOT&E as soon as possible with less than all 23 Block 3F Operational Test (OT) jets; potentially as early as March-April 2018. This IOT&E start approach is desirable for many reasons: First, obtaining earlier feedback from the OT community will enable the JPO and Industry to make corrections and fixes sooner, providing better capabilities to the warfighter. Second, delaying IOT&E will result in higher costs because IOT&E support will have to continue longer than planned. The JPO estimates that a six-month delay in the start of IOT&E will cost an additional $30M. Finally, since F-35s will be produced at over 100+ airplanes per year during IOT&E, the sooner deficiencies are discovered, the quicker they can be cut into production, saving the time and resources that would otherwise be needed to retrofit these jets if they were to be produced without the corrections. Transition to FoM: The F-35 FoM program continues to move forward and execute the acquisition strategy for the Block 4 planning and systems engineering phase. FoM systems engineering has been less efficient than planned which coupled with previous funding reductions have required the JPO to begin an update of the program execution plan. The F-35 JPO will manage FoM as a continuation of the F-35 program with full transparency to the enterprise for reporting on cost, schedule and performance as if it were a new program. SAR 2016 RDT&E cost excludes FoM funding; F-35B/C Sustainment/Capability enhancements; F-35A Deployability and Suitability enhancements; and F-35A Dual Capable Aircraft enhancements. FoM costs will not be included in the SAR until modernization is properly baselined. Production In August of 2016, Lockheed Martin declared an issue with non-conforming insulation on the polyalphaolefin (PAO) cooling tubes in some F-35A wing fuel tanks. The subsequent investigation and repairs affected 42 production aircraft which resulted in delays for re-work, limiting the production delivery to 46 aircraft of the planned 53 aircraft in 2016. Of the 46 delivered aircraft, 40 aircraft were assembled in the Fort Worth, Texas, Final Assembly and Check Out (FACO) facility and six aircraft were from the Italian FACO in Cameri, Italy. In 2017, the goal is to deliver a total of 66 aircraft, which includes carryover of the seven aircraft originally planned for delivery in 2016. Of those 66 aircraft, 61 aircraft will be delivered from the Fort Worth FACO, three aircraft from the Italian FACO, which includes its first “B” model produced, and the first 2 aircraft deliveries from the Japanese FACO in Nagoya, Japan. The DoD intends on executing an F-35 Block Buy contracting strategy for F-35 International Partners and FMS customers for production Lot 12 (FY 2018), Lot 13 (FY 2019) and Lot 14 (FY 2020). This strategy gives the F-35 Partners and FMS customers the flexibility to procure all aircraft in a single procurement lot, or to procure aircraft and engines in a multiple Lot format. The U.S. Services will procure Lots 12, 13 and 14 as single year procurements and will only request Congressional approval to award a single contract to procure material and equipment in Economic Order Quantity (EOQ) for FY 2019 and FY 2020. Procuring approximately 445 aircraft with this Block Buy/EOQ strategy is estimated to save approximately $2B compared to the Lot 11 annual procurement price. The estimated savings have been validated by an F-35 JPO cost estimate, an industry analysis study, and an independent assessment conducted by RAND Corporation. The current estimate for F-35 total procurement quantity increased from 2443 to 2456. This is the result of an increase of 13 F-35B aircraft to be procured by the United States Marine Corps (USMC). The increase is reflected in both the aircraft and engine subprogram and results in a change from 680 to 693 in the Department of Navy Aircraft Procurement accounts. The USMC validated this requirement through the Marine Corps Requirements Oversight Council (MROC). The additional aircraft are fully funded and the funding is reflected in the FY 2018 President's Budget submission. The additional aircraft were added after the completion of the congressionally directed Department-wide fighter mix study. The strategic review will UNCLASSIFIED 10 UNCLASSIFIED F-35 December 2016 SAR assess future tactical fighter force inventory requirements across the Department. Sustainment In October 2016, F-35 JPO Product Support Manager (PSM) released a request for information (RFI) for F-35 warehousing and support equipment repairs. The current RFI includes 709 components from which we anticipate the DoD will assign to the Services and Partners as well as the FMS customers such as wheels and brakes, electrical and hydraulic systems, maintenance of support equipment and warehousing for the global supply chain. These same capabilities either currently exist or are being developed at the U.S. Services' depots in the U.S. in accordance with current U.S. law. The Hybrid Product Support Integrator (HPSI) was established in 2016 as outlined within the Global Support Solution and as directed by the PSM. In 2017, the PSM working with Department of the Air Force and Department of the Navy established an event based three-phased approach to continue the transition of the HPSI. Phase one is the initial HPSI Activation, Phase two is Solution maturation and Cost Reduction and Phase three is Solution Optimization. The primary focus within Phase 1 will be to achieve the Warfighters required performance outcomes within allocated budgets. During this phase, system-level performance outcomes will continue to be managed by the PSM, with accountability and metrics flowed from the PSM to HPSI Manager and Industry Leads through Service Level Agreements (SLAs) and contracts. In addition, this phase will also allow refinement of processes to include establishment by the PSM of individual Performance Based Agreements (PBAs) with F-35 Users as well as internal performance arrangements with other elements of the JPO providing support to achieve the required sustainment outcomes. This will ensure "best for enterprise" behaviors are evaluated to determine what, if any, changes or improvements are needed to deliver program commitments. International and FMS International participation on the program with eight Partners and three FMS customers remains strong. Over the past ten months, aircraft deliveries to our United Kingdom, Italy, and Norway Partners have continued, while FMS customers Israel and Japan received their first aircraft deliveries. Two significant milestones for Italy included the delivery of its first jet completed at the Italian FACO facility in Cameri, Italy and also the first aircraft arrival into its operational base located in Amendola, Italy. Notably, Israel also achieved first aircraft arrival into its operational base in Nevatim, Israel and it has identified a requirement for an additional 17 aircraft from an existing fleet of 33. Also, the Japanese aircraft FACO in Nagoya and engine FACO in Mizuho are both on track to deliver their first respective Japanese aircraft and engine later this year. In May 2016, the two Dutch aircraft that are part of the DT fleet at Edwards Air Force Base (AFB) in California completed their first deployment to the Netherlands, where they conducted aerial and ground environmental noise surveys, performed flights over the North Sea range, and also appeared at the Netherlands' Open Days, the largest air show held annually in the Netherlands. In early June 2016, the Danish Parliament approved its government’s recommendation to acquire 27 F-35As, and Denmark became the 7th partner nation and 11th nation overall to buy the F-35. Also, that same month, F-35Bs landed for the first time in the United Kingdom. The United Kingdom F-35B was the first to touch down and was followed shortly afterwards by two other F-35Bs from the USMC and two USAF F-35As. The F-35s were in the United Kingdom to support the Royal International Air Tattoo and the Farnborough Air Show taking place in early July. More importantly, this was a deployment for the United Kingdom, USMC and USAF where they sustained and maintained the aircraft, generated sorties, and ultimately provided lessons learned on future F-35 operations. In September 2016, Turkey held the 65 percent Design Review for its first Main Operating Base which will be located in Malatya, Turkey. This review is a major milestone on the way to ensuring Turkey’s infrastructure is ready for aircraft arrival in 2019. In late October 2016, the Turkey Defense Industrial Executive Committee met and approved the Block Buy for 24 aircraft over three contract years. Following flight testing and the USAF's recommendation, Australia authorized aerial refueling operations between its KC-30A tanker aircraft and F-35As in January. Preparations at Australia's first operating base, Royal Australian AFB in Williamtown continue as construction of hangers, training centers, and information support centers remain on schedule. November was a significant month for South Korea as it was one of the countries assigned initial F-35 component repair capability. In addition, the first six Korean aircraft were awarded as part of the recent Lot 10 aircraft contract, with expected UNCLASSIFIED 11 UNCLASSIFIED F-35 December 2016 SAR delivery in 2018. Over the past year, the JPO has worked closely with the U.S. Defense Security Cooperation Agency to promptly and thoroughly answer all questions provided by the Canadian government in support of its fighter replacement analysis. Further, the JPO has continued to work with potential FMS customers, including Belgium, Finland, and Spain, responding to all requests for information and other official inquiries. In summary, the F-35 Program is nearing delivery of full Block 3F capability and completion of development within the cost and schedule boundaries laid in during the 2011 Rebaseline, remaining work in SDD is understood and stable, the program continues to plan the development transition to FoM, the F-35 fleet is rapidly expanding and F-35s are now flying in the U.S., Japan, Italy, and Israel. The Program is also continuing to ramp up production and building the global sustainment enterprise. As always, our number one overarching priority is to continue to drive cost out of all aspects of the F-35 Program, making it more affordable for all our customers. UNCLASSIFIED 12 UNCLASSIFIED F-35 December 2016 SAR Threshold Breaches F-35 Aircraft APB Breaches Schedule Performance Cost RDT&E Procurement MILCON Acq O&M O&S Cost Unit Cost PAUC APUC Nunn-McCurdy Breaches Current UCR Baseline PAUC APUC Original UCR Baseline PAUC APUC None None None None F-35 Engine APB Breaches Schedule Performance Cost RDT&E Procurement MILCON Acq O&M O&S Cost Unit Cost PAUC APUC Nunn-McCurdy Breaches Current UCR Baseline PAUC APUC Original UCR Baseline PAUC APUC None None None None UNCLASSIFIED 13 UNCLASSIFIED F-35 December 2016 SAR Schedule 33F. I and Threshold 1! Current Estimate 1! Current EstimateIBresoh'13 '33 '31 '33 '35 '33 '11 '13 '15 '13 FEB Aircraft Conoeot Demonstration Milestone El EMD Contrsot?wsro Firelir'nineirzir Design Review EDP. TDLSE ommon} ommon}: (I: 3.533 ommon) DAE DAE 2} tstFItCM Proouotion Aircraft Milestone El Fte-soorovsl 23 Fleet Release USMC IDC USAFIDC Ellooiu: 3F Fleet Release USN IDC Completed IGTELE Full Ftete Proouotion Deoision DAEI Milestone ill! 33!. F-35 Engine See Note UNCLASSIFIED 14 UNCLASSIFIED F-35 December 2016 SAR F-35 Aircraft Schedule Events Events SAR Baseline Development Estimate Current APB Development Objective/Threshold Current Estimate Concept Demonstration Contract Award Nov 1996 Nov 1996 Nov 1996 Nov 1996 Milestone B Oct 2001 Oct 2001 Apr 2002 Oct 2001 EMD Contract Award Oct 2001 Oct 2001 Oct 2001 Oct 2001 Preliminary Design Review Apr 2003 Mar 2003 Mar 2003 Mar 2003 CDR (CTOL&Common) Feb 2006 Feb 2006 Feb 2006 Feb 2006 CDR (STOVL&Common) Feb 2006 Feb 2006 Feb 2006 Feb 2006 CDR (CV&Common) Jun 2007 Jun 2007 Jun 2007 Jun 2007 DAE (IPR 1) Mar 2006 Mar 2006 Mar 2006 Mar 2006 1st Flt CTOL Dec 2006 Dec 2006 Dec 2006 Dec 2006 DAE (IPR 2) Apr 2007 Apr 2007 Apr 2007 Apr 2007 1st Flt STOVL Jun 2008 Jun 2008 Jun 2008 Jun 2008 1st Flt CV Jun 2010 May 2010 May 2010 May 2010 1st Production Aircraft Delivered May 2011 May 2011 May 2011 May 2011 Milestone B Re-approval Mar 2012 Nov 2011 May 2012 Mar 2012 Block 2B Fleet Release Mar 2015 Mar 2015 Sep 2015 Jun 2015 USMC IOC TBD Jul 2015 Dec 2015 Jul 2015 USAF IOC TBD Aug 2016 Dec 2016 Aug 2016 Block 3F Fleet Release Aug 2017 Aug 2017 Feb 2018 Aug 2017 USN IOC TBD Aug 2018 Feb 2019 Aug 2018 Completed IOT&E Feb 2019 Feb 2019 Aug 2019 Feb 2019 Full Rate Production Decision Apr 2019 Apr 2019 Oct 2019 Apr 2019 DAB Milestone C Apr 2019 Apr 2019 Oct 2019 Apr 2019 CDR Change Explanations None UNCLASSIFIED 15 UNCLASSIFIED F-35 December 2016 SAR Acronyms and Abbreviations CDR - Critical Design Review CTOL - Conventional Takeoff and Landing CV - Aircraft Carrier Suitable Variant Flt - Flight IOT&E - Initial Operational Test and Evaluation IPR - Interim Progress Review STOVL - Short Takeoff and Vertical Landing USAF - United States Air Force USMC - United States Marine Corps USN - United States Navy UNCLASSIFIED 16 UNCLASSIFIED F-35 December 2016 SAR F-35 Engine Schedule Events Events See Note SAR Baseline Development Estimate N/A Current APB Development Objective/Threshold N/A N/A Current Estimate N/A Change Explanations None Notes Schedule milestones for the F-35 Engine subprogram are captured as part of the system-level schedule milestones reflected in the F-35 Aircraft subprogram. UNCLASSIFIED 17 UNCLASSIFIED F-35 December 2016 SAR Performance F-35 Aircraft Performance Characteristics SAR Baseline Development Estimate Current APB Development Objective/Threshold Demonstrated Performance Current Estimate With two 1000# JDAMs and two internal AIM120s, full expendables, execute a 600 foot (450 UK STOVL) STO from LHA, LHD, and aircraft carriers (sea level, tropical day, 10 kts operational WOD) and with a combat radius of 450 nm (STOVL profile). Also must perform STOVL vertical landing with two 1000# JDAMs and two internal AIM120s, full expendables, and fuel to fly the STOVL Recovery profile. Execute 549 ft. STO with 2 JDAM (internal), 2 AIM120 (internal), fuel to fly 450nm Execute 549 ft. STO with 2 JDAM (internal), 2 AIM-120 (internal), fuel to fly 450nm (Ch-1) 590 669 669 (Ch-1) 450 505 505 (Ch-1) 600 TBD 640 (Ch-1) 93% 93% 93% (Ch-1) 95% 95% 95% (Ch-1) 95% 97% 97% (Ch-1) Less than or equal to 8 C-17 equivalent loads Less than or equal to 8 C-17 equivalents Less than or equal to 8 C17 (Ch-1) STOVL Mission Performance - STO Distance Flat Deck With four 1000# JDAMs and two internal AIM120s, full expendables, execute a 600 foot (450 UK STOVL) STO from LHA, LHD, and aircraft carriers (sea level, tropical day, 10 kts operational WOD) and with a combat radius of 550 nm (STOVL profile). Also must perform STOVL vertical landing with two 1000# JDAMs and two internal AIM120s, full expendables, and fuel to fly the STOVL Recovery profile. With four 1000# JDAMs and two internal AIM120s, full expendables, execute a 600 foot (450 UK STOVL) STO from LHA, LHD, and aircraft carriers (sea level, tropical day, 10 kts operational WOD) and with a combat radius of 550 nm (STOVL profile). Also must perform STOVL vertical landing with two 1000# JDAMs and two internal AIM120s, full expendables, and fuel to fly the STOVL Recovery profile. Combat Radius NM -CTOL Variant 690 690 Combat Radius NM -STOVL Variant 550 550 Combat Radius NM -CV Variant 730 730 Mission Reliability - CTOL Variant 98% 98% Mission Reliability - CV Variant 98% 98% Mission Reliability - STOVL Variant 98% 98% Logistics Footprint - CTOL Variant Less than or equal to 6 C Less than or equal to 6 -17 equivalents C-17 equivalents UNCLASSIFIED 18 UNCLASSIFIED F-35 December 2016 SAR equivalents Logistics Footprint - CV Variant Less than or equal to 34,000 cu ft., 183 ST Less than or equal to 34,000 cu ft., 183 ST Less than or equal to 46,000 cu ft., 243 ST Less than or equal to 44,900 cu ft., 222 ST Less than or equal to 44,900 cu ft., 222 ST (Ch-1) Less than or equal to 8 C-17 equivalent loads Less than or equal to 8 C-17 equivalents Less than or equal to 8 C17 equivalents (Ch-1) Less than or equal to 21,000 cu ft, 136 ST Less than or equal to 18,400 cu ft, 105 ST Less than or equal to 18,400 cu ft, 105 ST (Ch-1) 3.0/2.0/1.0 2.5 ASD 3.4/3.0/2.0 2.5 ASD 3.4/3.0/2.0 2.5 ASD 3.0/2.0/1.0 1.8 ASD 3.9/3.0/1.0 1.8 ASD 3.9/3.0/1.0 1.8 ASD (Ch-1) 5.5/4.0/2.0 1.1 ASD 5.5/4.0/2.0 1.1 ASD (Ch-1) Vpa. Maximum approach speed (Vpa) at required carrier landing weight (RCLW) of less than 144 knots. Vpa. Maximum approach speed (Vpa) at required carrier landing weight (RCLW) of less than 144 knots. Logistics Footprint - STOVL Variant Less than or equal to 4 C Less than or equal to 4 -17 equivalents C-17 equivalents Logistics Footprint - STOVL Variant L-Class Less than or equal to 15,000 cu ft, 104 ST Less than or equal to 15,000 cu ft, 104 ST Sortie Generation Rates - CTOL Variant 4.0/3.0/2.0 2.5 ASD 4.0/3.0/2.0 2.5 ASD Sortie Generation Rates - CV Variant 4.0/3.0/1.0 1.8 ASD 4.0/3.0/1.0 1.8 ASD Sortie Generation Rates - STOVL Variant (USMC) 6.0/4.0/2.0 1.1 ASD 6.0/4.0/2.0 1.1 ASD 4.0/3.0/1.0 1.1 ASD CV Recovery Performance (Vpa) Vpa. Maximum approach Vpa at required carrier Vpa at required carrier speed (Vpa) at required landing weight (RCLW) landing weight (RCLW) carrier landing weight of less than 140 knots. of less than 145 knots. (RCLW) of less than 140 knots. Classified Performance information is provided in the classified annex to this submission. Requirements Reference Operational Requirements Document (ORD) Change 3 dated August 19, 2008 as modified by Joint Requirements Oversight Council Memorandum 040-12 dated March 16, 2012 UNCLASSIFIED 19 UNCLASSIFIED F-35 December 2016 SAR Change Explanations (Ch-1) Operational Requirements Document (ORD) Change 3 dated August 19, 2008 as modified by JROC Memorandum 040-12 dated March 16, 2012. For Demonstrated Performance, extensive flight test data was used to calibrate the aeroperformance model. The values listed herein as “Demonstrated Performance” are based on the final aero-performance model (up-and-away) for the F-35A and F-35B. Notes The F-35 Program is currently in developmental testing, and will provide demonstrated performance with the Block 3F full capability aircraft. Acronyms and Abbreviations ASD - Average Sortie Duration CTOL - Conventional Takeoff and Landing CU FT - Cubic Feet CV - Aircraft Carrier Suitable Variant JDAM - Joint Direct Attack Munitions KTS - Knots NM - Nautical Miles RCLW - Required Carrier Landing Weight SGR - Sortie Generation Rate ST - Short Tons STO - Short Takeoff STOVL - Short Takeoff and Vertical Landing Vpa - Max Approach Speed WOD - Wind Over the Deck UNCLASSIFIED 20 UNCLASSIFIED F-35 December 2016 SAR F-35 Engine Performance Characteristics SAR Baseline Development Estimate Current APB Development Objective/Threshold Demonstrated Performance Current Estimate See Note N/A N/A N/A TBD N/A Requirements Reference Operational Requirements Document (ORD) Change 3 dated August 19, 2008 as modified by Joint Requirements Oversight Council Memorandum 040-12 dated March 16, 2012 Change Explanations None Notes Performance characteristics for the F-35 Engine subprogram are captured as part of the system-level performance characteristics reflected in the F-35 Aircraft subprogram. UNCLASSIFIED 21 UNCLASSIFIED F-35 December 2016 SAR Track to Budget F-35 Aircraft General Notes F-35 is DoD's largest cooperative development program. In addition to DoD's funding lines, eight International Partners are providing funding in the System Development and Demonstration (SDD) Phase under a Memorandum of Understanding (MOU): United Kingdom, Italy, The Netherlands, Turkey, Canada, Australia, Denmark, and Norway. All but Turkey and Australia were partners in the prior phase. Associated financial contributions are reflected in the Annual Funding section as Appropriation 9999, RDT&E Non-Treasury Funds. RDT&E cost excludes Follow-on Modernization Funding; F-35B/C Sustainment/Capability Enhancements; F-35A Deployability and Suitability Enhancements; and F-35A Dual Capable Aircraft Enhancements. RDT&E Appn Navy Navy Navy Air Force Air Force BA PE 1319 04 Project 0603800N 2209 1319 05 Project RDT&E, Navy CDP 0604800M 2262 1319 05 Project Joint Strike Fighter - EMD 0604800N Name 2261 3194 3600 04 Project JT Strike Fighter - EMD RDT&E, Navy EMD/Joint Reprogramming Center 0603800F Name 2025 3600 05 Project RDT&E, Air Force CDP 0604800F Name 3831 Defense-Wide 0400 03 Project Name (Sunk) Name (Sunk) (Sunk) F-35 - EMD 0603800E Name RDT&E, DARPA Defense-Wide 9999 05 Project (Sunk) Name RDT&E, Non-Treasury Funds Procurement Appn Navy BA PE 1506 01 0204146N Line Item Name UNCLASSIFIED 22 UNCLASSIFIED F-35 December 2016 SAR Navy 0147 Joint Strike Fighter CV 1506 01 0204146M Line Item Name Navy 0152 JSF STOVL 1506 05 0204146M Line Item Name 0592 F-35 STOVL Series 1506 05 0204146N Line Item Name 0593 F-35 CV Series 1506 06 0204146N Line Item Name Navy Navy (Shared) Navy 0605 Spares and Repair Parts 1506 06 0204146M Line Item Name 0605 Spares and Repair Parts 3010 06 0207142F Line Item Name (Shared) Air Force (Shared) Air Force 000999 Initial Spares/Repair Parts 3010 01 0207142F Line Item Name Air Force ATA000 F-35 3010 05 0207142F Line Item F03500 Name F-35 Modifications MILCON Appn Navy Navy Navy Navy Navy BA 1205 01 Project 1205 01 Project 1205 01 Project 1205 01 Project 1205 01 Project PE 0202176M Name MILCON, USN 0212176N (Shared) Name MILCON, USN 0216496M (Shared) Name MILCON, USN 0703676N (Shared) Name MILCON, USN 0712876N (Shared) Name UNCLASSIFIED 23 UNCLASSIFIED F-35 December 2016 SAR Navy Air Force Air Force 1205 01 Project 3300 01 Project 3300 01 Project MILCON, USN 0805976N (Shared) Name MILCON, USN 0207142F (Shared) Name MILCON, AF 0207597F (Shared) Name MILCON, AF (Shared) F-35 Engine General Notes F-35 is DoD's largest cooperative development program. In addition to DoD's funding lines, eight International Partners are providing funding in the System Development and Demonstration (SDD) Phase under a Memorandum of Understanding (MOU): United Kingdom, Italy, The Netherlands, Turkey, Canada, Australia, Denmark, and Norway. All but Turkey and Australia were partners in the prior phase. Associated financial contributions are reflected in the Annual Funding section as Appropriation 9999, RDT&E Non-Treasury Funds. RDT&E cost excludes Follow-on Modernization funding; F-35B/C Sustainment/Capability Enhancements; F-35A Deployability and Suitability Enhancements; and F-35A Dual Capable Aircraft Enhancements. RDT&E Appn Navy BA PE 1319 04 Project 0603800N 2209 1319 05 Project RDT&E, Navy CDP 0604800M 2262 1319 05 Project RDT&E, Marine Corps 0604800N Name 2261 3194 Air Force 9999 3600 04 Project RDT&E, Navy EMD/JSF RDT&E, Navy EMD/Joint Reprogramming Center RDT&E, Navy EMD/Congressional Adds 0603800F Name Air Force 2025 3600 05 Project RDT&E, Air Force CDP 0604800F Name 3831 RDT&E, Air Force EMD/Joint Strike Fighter Quantity of RDT&E Articles 0603800E Navy Navy Defense-Wide 0400 03 Name (Sunk) Name UNCLASSIFIED (Sunk) (Sunk) (Sunk) 24 UNCLASSIFIED F-35 December 2016 SAR Project Name RDT&E, DARPA Defense-Wide 9999 05 Project (Sunk) Name RDT&E, Non-Treasury Funds Procurement Appn Navy Navy Navy Navy BA PE 1506 01 0204146N Line Item Name 0147 JSF (Navy) 1506 01 0204146M Line Item Name 0152 JSF (Marine Corps) 1506 06 0204146N Line Item Name 0605 Initial Spares (Navy) 1506 06 0204146M Line Item (Shared) Name (Shared) Air Force 0605 Initial Spares (Marine Corps) 3010 06 0207142F Line Item Name 000999 Initial Spares (Air Force) 3010 01 0207142F Line Item Name (Shared) Air Force Air Force ATA000 JSF (Air Force) 3010 05 0207142F Line Item F03500 Name Mods (Air Force) UNCLASSIFIED 25 UNCLASSIFIED F-35 December 2016 SAR Cost and Funding Cost Summary - Total Program Total Acquisition Cost - Total Program BY 2012 $M BY 2012 $M Appropriation RDT&E Procurement Flyaway Recurring Non Recurring Support Other Support Initial Spares MILCON Acq O&M Total SAR Baseline Current APB Development Development Estimate Objective/Threshold 59677.3 266665.8 ------4168.0 0.0 330511.1 59398.1 266665.8 ------4168.0 0.0 330231.9 ----------N/A Current Estimate 59810.7 260775.8 231020.3 206533.5 24486.8 29755.5 18572.8 11182.7 4034.1 0.0 324620.6 UNCLASSIFIED TY $M SAR Baseline Current APB Current Development Development Estimate Estimate Objective 55233.8 335680.7 ------4797.3 0.0 395711.8 55182.9 335680.7 ------4797.3 0.0 395660.9 55497.1 346190.4 310261.7 278468.6 31793.1 35928.7 22530.7 13398.0 4793.4 0.0 406480.9 26 UNCLASSIFIED F-35 December 2016 SAR Cost and Funding Cost Summary - F-35 Aircraft Total Acquisition Cost - F-35 Aircraft BY 2012 $M BY 2012 $M Appropriation RDT&E Procurement Flyaway Recurring Non Recurring Support Other Support Initial Spares MILCON Acq O&M Total SAR Baseline Current APB Development Development Estimate Objective/Threshold 47982.1 224332.9 ------4168.0 0.0 276483.0 46457.5 224332.9 ------4168.0 0.0 274958.4 51103.3 246766.2 ------4584.8 0.0 N/A Current Estimate 46685.6 220857.7 196277.1 174227.3 22049.8 24580.6 16664.8 7915.8 4034.1 0.0 271577.4 TY $M SAR Baseline Current APB Current Development Development Estimate Estimate Objective 44410.1 282647.8 ------4797.3 0.0 331855.2 43360.7 282647.8 ------4797.3 0.0 330805.8 43530.3 293758.2 264080.3 235363.0 28717.3 29677.9 20223.3 9454.6 4793.4 0.0 342081.9 Current APB Cost Estimate Reference Cost Assessment and Program Evaluation (CAPE) Independent Cost Estimate (ICE) dated March 09, 2012 Cost Notes In accordance with Section 842 of the National Defense Authorization Act for FY 2017, which amended title 10 U.S.C. § 2334, the Director of Cost Assessment and Program Evaluation, and the Secretary of the military department concerned or the head of the Defense Agency concerned, must issue guidance requiring a discussion of risk, the potential impacts of risk on program costs, and approaches to mitigate risk in cost estimates for MDAPs and major subprograms. The information required by the guidance is to be reported in each SAR. This guidance is not yet available; therefore, the information on cost risk is not contained in this SAR. UNCLASSIFIED 27 UNCLASSIFIED F-35 December 2016 SAR Quantity RDT&E Procurement Total Total Quantity - F-35 Aircraft SAR Baseline Current APB Development Development Estimate 14 2443 2457 Current Estimate 14 2443 2457 14 2456 2470 Quantity Notes The current estimate for F-35 total procurement quantity increased from 2443 to 2456. This is the result of an increase of 13 F-35B aircraft to be procured by the United States Marine Corps (USMC). The increase is reflected in both the aircraft and engine subprogram and results in a change from 680 to 693 in the Department of Navy Aircraft Procurement accounts. The USMC validated this requirement through the Marine Corps Requirements Oversight Council (MROC). The additional aircraft are fully funded and the funding is reflected in the FY 2018 President's Budget submission. The additional aircraft were added after the completion of the congressionally directed Department-wide fighter mix study. The strategic review will assess future tactical fighter force inventory requirements across the Department. UNCLASSIFIED 28 UNCLASSIFIED F-35 December 2016 SAR Cost Summary - F-35 Engine Total Acquisition Cost - F-35 Engine BY 2012 $M BY 2012 $M Appropriation RDT&E Procurement Flyaway Recurring Non Recurring Support Other Support Initial Spares MILCON Acq O&M Total SAR Baseline Current APB Development Development Estimate Objective/Threshold 11695.2 42332.9 ------0.0 0.0 54028.1 12940.6 42332.9 ------0.0 0.0 55273.5 14234.7 46566.2 ------0.0 0.0 N/A Current Estimate 13125.1 39918.1 34743.2 32306.2 2437.0 5174.9 1908.0 3266.9 0.0 0.0 53043.2 TY $M SAR Baseline Current APB Current Development Development Estimate Estimate Objective 10823.7 53032.9 ------0.0 0.0 63856.6 11822.2 53032.9 ------0.0 0.0 64855.1 11966.8 52432.2 46181.4 43105.6 3075.8 6250.8 2307.4 3943.4 0.0 0.0 64399.0 Current APB Cost Estimate Reference Cost Assessment and Program Evaluation (CAPE) Independent Cost Estimate (ICE) dated March 09, 2012 Cost Notes In accordance with Section 842 of the National Defense Authorization Act for FY 2017, which amended title 10 U.S.C. § 2334, the Director of Cost Assessment and Program Evaluation, and the Secretary of the military department concerned or the head of the Defense Agency concerned, must issue guidance requiring a discussion of risk, the potential impacts of risk on program costs, and approaches to mitigate risk in cost estimates for MDAPs and major subprograms. The information required by the guidance is to be reported in each SAR. This guidance is not yet available; therefore, the information on cost risk is not contained in this SAR. UNCLASSIFIED 29 UNCLASSIFIED F-35 December 2016 SAR Quantity RDT&E Procurement Total Total Quantity - F-35 Engine SAR Baseline Current APB Development Development Estimate 14 2443 2457 Current Estimate 14 2443 2457 14 2456 2470 Quantity Notes The current estimate for F-35 total procurement quantity increased from 2443 to 2456. This is the result of an increase of 13 F-35B aircraft to be procured by the United States Marine Corps (USMC). The increase is reflected in both the aircraft and engine subprogram and results in a change from 680 to 693 in the Department of Navy Aircraft Procurement accounts. The USMC validated this requirement through the Marine Corps Requirements Oversight Council (MROC). The additional aircraft are fully funded and the funding is reflected in the FY 2018 President's Budget submission. The additional aircraft were added after the completion of the congressionally directed Department-wide fighter mix study. The strategic review will assess future tactical fighter force inventory requirements across the Department. UNCLASSIFIED 30 UNCLASSIFIED F-35 December 2016 SAR Cost and Funding Funding Summary - Total Program Appropriation Summary FY 2018 President's Budget / December 2016 SAR (TY$ M) Appropriation RDT&E Procurement MILCON Acq O&M PB 2018 Total PB 2017 Total Delta Prior 53326.9 55901.4 1740.3 0.0 110968.6 111219.4 -250.8 FY 2017 1436.9 9811.3 363.0 0.0 11611.2 10711.6 899.6 FY 2018 527.8 9659.9 269.3 0.0 10457.0 11032.3 -575.3 FY 2019 186.8 9297.9 334.7 0.0 9819.4 10600.5 -781.1 FY 2020 11.1 10928.2 104.4 0.0 11043.7 11425.5 -381.8 UNCLASSIFIED FY 2021 6.6 12610.8 0.0 0.0 12617.4 13232.6 -615.2 FY 2022 1.0 12195.7 27.2 0.0 12223.9 15223.2 -2999.3 To Complete Total 0.0 55497.1 225785.2 346190.4 1954.5 4793.4 0.0 0.0 227739.7 406480.9 195596.9 379042.0 32142.8 27438.9 31 UNCLASSIFIED F-35 December 2016 SAR Cost and Funding Funding Summary - F-35 Aircraft Appropriation Summary FY 2018 President's Budget / December 2016 SAR (TY$ M) Appropriation RDT&E Procurement MILCON Acq O&M PB 2018 Total PB 2017 Total Delta Prior FY 2017 41483.6 47883.0 1740.3 0.0 91106.9 91294.7 -187.8 FY 2018 1313.4 8194.8 363.0 0.0 9871.2 9146.4 724.8 FY 2019 527.8 7999.2 269.3 0.0 8796.3 9223.0 -426.7 186.8 7749.2 334.7 0.0 8270.7 8826.1 -555.4 FY 2020 11.1 9106.0 104.4 0.0 9221.5 9513.6 -292.1 FY 2021 FY 2022 6.6 10510.3 0.0 0.0 10516.9 10991.8 -474.9 To Complete 1.0 10151.1 27.2 0.0 10179.3 12736.8 -2557.5 Total 0.0 43530.3 192164.6 293758.2 1954.5 4793.4 0.0 0.0 194119.1 342081.9 166658.5 318390.9 27460.6 23691.0 Quantity Summary FY 2018 President's Budget / December 2016 SAR (TY$ M) Quantity Development Production PB 2018 Total PB 2017 Total Delta Undistributed 14 0 14 14 0 Prior 0 285 285 285 0 FY 2017 FY 2018 0 74 74 63 11 FY 2019 0 70 70 70 0 UNCLASSIFIED 0 77 77 80 -3 FY 2020 0 84 84 86 -2 FY 2021 0 99 99 105 -6 FY 2022 0 99 99 125 -26 To Complete 0 1668 1668 1629 39 Total 14 2456 2470 2457 13 32 UNCLASSIFIED F-35 December 2016 SAR Funding Summary - F-35 Engine Appropriation Summary FY 2018 President's Budget / December 2016 SAR (TY$ M) Appropriation RDT&E Procurement MILCON Acq O&M PB 2018 Total PB 2017 Total Delta Prior FY 2017 11843.3 8018.4 0.0 0.0 19861.7 19924.7 -63.0 FY 2018 123.5 1616.5 0.0 0.0 1740.0 1565.2 174.8 FY 2019 0.0 1660.7 0.0 0.0 1660.7 1809.3 -148.6 0.0 1548.7 0.0 0.0 1548.7 1774.4 -225.7 FY 2020 FY 2021 0.0 1822.2 0.0 0.0 1822.2 1911.9 -89.7 FY 2022 0.0 2100.5 0.0 0.0 2100.5 2240.8 -140.3 To Complete 0.0 2044.6 0.0 0.0 2044.6 2486.4 -441.8 Total 0.0 33620.6 0.0 0.0 33620.6 28938.4 4682.2 11966.8 52432.2 0.0 0.0 64399.0 60651.1 3747.9 To Complete Total Quantity Summary FY 2018 President's Budget / December 2016 SAR (TY$ M) Quantity Development Production PB 2018 Total PB 2017 Total Delta Undistributed 14 0 14 14 0 Prior 0 285 285 285 0 FY 2017 FY 2018 0 74 74 63 11 FY 2019 0 70 70 70 0 UNCLASSIFIED 0 77 77 80 -3 FY 2020 0 84 84 86 -2 FY 2021 0 99 99 105 -6 FY 2022 0 99 99 125 -26 0 1668 1668 1629 39 14 2456 2470 2457 13 33 UNCLASSIFIED F-35 December 2016 SAR Cost and Funding Annual Funding By Appropriation - F-35 Aircraft Annual Funding - F-35 Aircraft 0400 RDT&E Research, Development, Test, and Evaluation, Defense-Wide TY $M Fiscal Year 1996 1997 1998 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ----- ----- Non Recurring Flyaway ----- UNCLASSIFIED Total Flyaway ----- Total Support ----- Total Program ----- 23.2 54.8 16.9 94.9 34 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 0400 RDT&E Research, Development, Test, and Evaluation, Defense-Wide BY 2012 $M Fiscal Year 1996 1997 1998 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ----- ----- Non Recurring Flyaway ----- UNCLASSIFIED Total Flyaway ----- Total Support ----- Total Program ----- 30.1 70.2 21.5 121.8 35 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 3600 RDT&E Research, Development, Test, and Evaluation, Air Force TY $M Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ---------------------------5 ----------------------------- Non Recurring Flyaway ----------------------------- UNCLASSIFIED Total Flyaway ----------------------------- Total Support ----------------------------- Total Program ----------------------------- 67.5 65.4 202.3 357.2 366.5 200.3 274.3 302.6 1210.1 1584.1 1465.8 1678.6 1632.4 1359.0 1197.5 1567.4 715.4 1262.2 972.1 553.6 462.9 460.5 339.7 255.7 69.7 7.8 5.6 18636.2 36 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 3600 RDT&E Research, Development, Test, and Evaluation, Air Force BY 2012 $M Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ---------------------------5 ----------------------------- Non Recurring Flyaway ----------------------------- UNCLASSIFIED Total Flyaway ----------------------------- Total Support ----------------------------- Total Program ----------------------------- 89.1 84.9 259.5 454.5 460.9 248.3 335.4 366.3 1443.6 1838.4 1657.5 1840.8 1747.3 1428.6 1242.9 1602.8 714.5 1240.0 945.1 530.6 438.2 428.9 310.4 229.0 61.2 6.7 4.7 20010.1 37 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 1319 RDT&E Research, Development, Test, and Evaluation, Navy TY $M Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity -----------------------------9 ------------------------------- Non Recurring Flyaway ------------------------------- UNCLASSIFIED Total Flyaway ------------------------------- Total Support ------------------------------- Total Program ------------------------------- 23.7 78.7 64.6 195.6 360.4 378.9 191.7 274.3 370.8 1090.1 1548.2 1511.3 1657.3 1470.7 1285.0 1271.2 1440.5 987.9 960.1 1081.9 683.6 774.0 841.9 951.7 244.6 117.1 3.3 1.0 1.0 19861.1 38 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 1319 RDT&E Research, Development, Test, and Evaluation, Navy BY 2012 $M Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity -----------------------------9 ------------------------------- Non Recurring Flyaway ------------------------------- UNCLASSIFIED Total Flyaway ------------------------------- Total Support ------------------------------- Total Program ------------------------------- 31.9 103.9 83.9 250.9 458.6 476.5 237.6 335.4 448.8 1300.4 1796.8 1709.0 1817.4 1574.3 1350.8 1319.4 1473.0 986.6 943.2 1051.8 655.2 732.7 784.1 869.5 219.1 102.8 2.8 0.8 0.8 21118.0 39 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 9999 RDT&E Non Treasury Funds TY $M Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ------------------------- ------------------------- Non Recurring Flyaway ------------------------- UNCLASSIFIED Total Flyaway ------------------------- Total Support ------------------------- Total Program ------------------------- 11.3 67.1 72.1 49.0 25.2 9.5 255.8 298.7 486.7 734.8 801.3 635.3 574.0 236.0 133.2 169.4 126.8 148.5 21.9 15.0 17.0 22.0 27.5 4938.1 40 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 9999 RDT&E Non Treasury Funds BY 2012 $M Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ------------------------- ------------------------- Non Recurring Flyaway ------------------------- UNCLASSIFIED Total Flyaway ------------------------- Total Support ------------------------- Total Program ------------------------- 14.7 86.1 91.7 61.6 31.2 11.6 309.6 356.3 564.8 830.9 878.7 680.0 603.4 244.9 136.2 169.2 124.6 144.4 21.0 14.2 15.8 20.1 24.7 5435.7 41 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 3010 Procurement Aircraft Procurement, Air Force TY $M Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Subtotal Quantity -2 6 7 10 22 18 19 19 28 47 48 46 48 48 54 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 27 1763 End Item Recurring Flyaway 107.6 428.5 983.1 1009.2 1471.2 2751.2 2041.5 2074.6 2034.6 2715.8 4076.0 3761.0 3730.5 3351.3 3879.7 4116.5 3795.4 4906.8 4712.4 4273.2 4326.5 4792.7 5507.9 5143.9 4721.5 5024.0 5792.3 6756.5 6431.8 5868.0 5982.0 6548.8 7433.1 7121.9 6514.5 6647.7 7304.5 7296.9 4441.1 169875.7 Non End Item Recurring Flyaway Non Recurring Flyaway ----------------------------------------- UNCLASSIFIED -80.8 172.3 277.6 355.7 569.1 375.7 76.6 617.8 542.0 561.5 255.2 613.5 486.9 520.1 482.1 525.2 558.1 548.9 554.4 556.7 515.3 526.4 533.9 545.6 563.5 587.9 607.4 609.0 612.5 623.0 676.1 689.4 703.4 716.2 729.1 733.2 638.8 353.8 19694.7 Total Flyaway 107.6 509.3 1155.4 1286.8 1826.9 3320.3 2417.2 2151.2 2652.4 3257.8 4637.5 4016.2 4344.0 3838.2 4399.8 4598.6 4320.6 5464.9 5261.3 4827.6 4883.2 5308.0 6034.3 5677.8 5267.1 5587.5 6380.2 7363.9 7040.8 6480.5 6605.0 7224.9 8122.5 7825.3 7230.7 7376.8 8037.7 7935.7 4794.9 189570.4 Total Support -91.1 131.5 175.8 277.7 679.6 773.0 528.9 433.0 605.0 626.3 737.2 542.2 606.0 619.5 921.5 704.6 870.8 745.3 729.5 767.9 684.5 590.0 569.4 599.3 676.3 617.3 764.4 293.0 103.5 101.4 88.8 73.1 72.0 52.5 26.8 ---16878.7 Total Program 107.6 600.4 1286.9 1462.6 2104.6 3999.9 3190.2 2680.1 3085.4 3862.8 5263.8 4753.4 4886.2 4444.2 5019.3 5520.1 5025.2 6335.7 6006.6 5557.1 5651.1 5992.5 6624.3 6247.2 5866.4 6263.8 6997.5 8128.3 7333.8 6584.0 6706.4 7313.7 8195.6 7897.3 7283.2 7403.6 8037.7 7935.7 4794.9 206449.1 42 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 3010 Procurement Aircraft Procurement, Air Force BY 2012 $M Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Subtotal Quantity -2 6 7 10 22 18 19 19 28 47 48 46 48 48 54 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 27 1763 End Item Recurring Flyaway 116.8 452.5 1022.9 1035.7 1478.8 2711.6 1983.6 1994.3 1930.5 2538.3 3742.5 3386.7 3293.4 2900.6 3292.1 3424.6 3095.5 3923.5 3694.2 3284.2 3260.0 3540.4 3989.0 3652.3 3286.7 3428.7 3875.5 4432.0 4136.3 3699.7 3697.6 3968.6 4416.1 4148.3 3720.1 3721.7 4009.3 3926.5 2343.0 120554.1 Non End Item Recurring Flyaway Non Recurring Flyaway ----------------------------------------- UNCLASSIFIED -85.4 179.3 284.7 357.6 561.0 365.0 73.6 586.2 506.5 515.5 229.8 541.6 421.4 441.3 401.1 428.3 446.3 430.3 426.1 419.4 380.6 381.2 379.1 379.7 384.6 393.3 398.4 391.6 386.1 385.1 409.7 409.7 409.7 409.0 408.2 402.4 343.8 186.6 14539.2 Total Flyaway 116.8 537.9 1202.2 1320.4 1836.4 3272.6 2348.6 2067.9 2516.7 3044.8 4258.0 3616.5 3835.0 3322.0 3733.4 3825.7 3523.8 4369.8 4124.5 3710.3 3679.4 3921.0 4370.2 4031.4 3666.4 3813.3 4268.8 4830.4 4527.9 4085.8 4082.7 4378.3 4825.8 4558.0 4129.1 4129.9 4411.7 4270.3 2529.6 135093.3 Total Support -96.2 136.8 180.5 279.1 669.8 751.1 508.4 410.9 565.5 575.1 663.9 478.7 524.5 525.7 766.5 574.7 696.3 584.2 560.6 578.6 505.7 427.3 404.3 417.2 461.5 413.0 501.4 188.4 65.3 62.7 53.8 43.4 41.9 30.0 15.0 ---13758.0 Total Program 116.8 634.1 1339.0 1500.9 2115.5 3942.4 3099.7 2576.3 2927.6 3610.3 4833.1 4280.4 4313.7 3846.5 4259.1 4592.2 4098.5 5066.1 4708.7 4270.9 4258.0 4426.7 4797.5 4435.7 4083.6 4274.8 4681.8 5331.8 4716.3 4151.1 4145.4 4432.1 4869.2 4599.9 4159.1 4144.9 4411.7 4270.3 2529.6 148851.3 43 UNCLASSIFIED F-35 December 2016 SAR Cost Quantity Information - F-35 Aircraft 3010 Procurement Aircraft Procurement, Air Force End Item Recurring Fiscal Flyaway Quantity Year (Aligned With Quantity) BY 2012 $M 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 -2 6 7 10 22 18 19 19 28 47 48 46 48 48 54 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 27 UNCLASSIFIED -452.5 1022.9 1035.7 1478.8 2711.6 1983.6 1994.3 1930.5 2538.3 3742.5 3386.7 3293.4 2900.6 3292.1 3424.6 3095.5 3923.5 3694.2 3284.2 3260.0 3540.4 3989.0 3652.3 3286.7 3428.7 3875.5 4432.0 4136.3 3699.7 3697.6 3968.6 4416.1 4148.3 3720.1 3721.7 4009.3 3926.5 2459.8 44 UNCLASSIFIED F-35 December 2016 SAR Subtotal 1763 120554.1 UNCLASSIFIED 45 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 1506 Procurement Aircraft Procurement, Navy TY $M Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Subtotal Quantity -6 7 20 10 13 10 10 10 21 26 24 29 36 45 45 45 45 45 45 45 45 45 39 24 3 693 End Item Recurring Flyaway 96.9 923.2 1062.0 2681.2 1494.8 1477.7 1107.3 1205.5 1115.0 2130.3 2431.3 2287.3 2340.9 3064.8 3884.3 3955.9 4242.7 4078.9 3678.6 3678.1 4026.5 4358.2 4229.3 3457.7 2171.3 307.6 65487.3 Non End Item Recurring Flyaway Non Recurring Flyaway ---------------------------- UNCLASSIFIED -38.6 182.0 305.4 251.0 330.2 44.1 406.3 585.5 601.9 366.0 347.4 356.8 423.9 358.4 393.1 424.1 401.9 413.5 410.3 391.1 405.9 397.1 354.6 492.8 340.7 9022.6 Total Flyaway 96.9 961.8 1244.0 2986.6 1745.8 1807.9 1151.4 1611.8 1700.5 2732.2 2797.3 2634.7 2697.7 3488.7 4242.7 4349.0 4666.8 4480.8 4092.1 4088.4 4417.6 4764.1 4626.4 3812.3 2664.1 648.3 74509.9 Total Support -10.7 206.1 560.9 431.8 746.7 557.3 642.3 414.1 629.9 644.1 478.3 607.3 598.0 747.5 776.9 586.3 404.0 585.4 528.8 351.3 518.7 246.0 358.3 647.7 520.8 12799.2 Total Program 96.9 972.5 1450.1 3547.5 2177.6 2554.6 1708.7 2254.1 2114.6 3362.1 3441.4 3113.0 3305.0 4086.7 4990.2 5125.9 5253.1 4884.8 4677.5 4617.2 4768.9 5282.8 4872.4 4170.6 3311.8 1169.1 87309.1 46 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 1506 Procurement Aircraft Procurement, Navy BY 2012 $M Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Subtotal Quantity -6 7 20 10 13 10 10 10 21 26 24 29 36 45 45 45 45 45 45 45 45 45 39 24 3 693 End Item Recurring Flyaway 102.3 960.6 1089.8 2695.1 1473.3 1435.8 1064.4 1143.8 1042.1 1956.0 2189.4 2019.3 2026.1 2600.6 3231.4 3226.4 3392.5 3197.6 2827.2 2771.4 2974.4 3156.3 3002.9 2406.9 1481.8 205.8 53673.2 Non End Item Recurring Flyaway Non Recurring Flyaway ---------------------------- UNCLASSIFIED -40.2 186.8 307.0 247.4 320.8 42.4 385.5 547.3 552.7 329.6 306.6 308.8 359.7 298.2 320.6 339.0 315.0 317.8 309.1 288.9 294.0 282.0 246.9 336.3 228.0 7510.6 Total Flyaway 102.3 1000.8 1276.6 3002.1 1720.7 1756.6 1106.8 1529.3 1589.4 2508.7 2519.0 2325.9 2334.9 2960.3 3529.6 3547.0 3731.5 3512.6 3145.0 3080.5 3263.3 3450.3 3284.9 2653.8 1818.1 433.8 61183.8 Total Support -11.1 211.5 563.8 425.6 725.6 535.7 609.5 387.0 578.3 579.9 422.3 525.6 507.5 621.8 633.7 468.9 316.7 449.9 398.5 259.5 375.7 174.6 249.4 442.1 348.4 10822.6 Total Program 102.3 1011.9 1488.1 3565.9 2146.3 2482.2 1642.5 2138.8 1976.4 3087.0 3098.9 2748.2 2860.5 3467.8 4151.4 4180.7 4200.4 3829.3 3594.9 3479.0 3522.8 3826.0 3459.5 2903.2 2260.2 782.2 72006.4 47 UNCLASSIFIED F-35 December 2016 SAR Cost Quantity Information - F-35 Aircraft 1506 Procurement Aircraft Procurement, Navy End Item Recurring Fiscal Flyaway Quantity Year (Aligned With Quantity) BY 2012 $M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Subtotal -6 7 20 10 13 10 10 10 21 26 24 29 36 45 45 45 45 45 45 45 45 45 39 24 3 693 UNCLASSIFIED -960.6 1089.8 2695.1 1473.3 1435.8 1064.4 1143.8 1042.1 1956.0 2189.4 2019.3 2026.1 2600.6 3231.4 3226.4 3392.5 3197.6 2827.2 2771.4 2974.4 3156.3 3002.9 2406.9 1481.8 308.1 53673.2 48 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 1205 MILCON Military Construction, Navy and Marine Corps TY $M Fiscal Total Year Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Subtotal UNCLASSIFIED 24.4 -0.1 -0.2 0.7 34.1 377.9 172.2 94.9 1.2 118.4 64.7 26.7 15.7 152.5 --27.2 171.3 165.0 274.7 91.9 100.0 85.1 111.7 2110.6 49 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 1205 MILCON Military Construction, Navy and Marine Corps BY 2012 $M Fiscal Total Year Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Subtotal UNCLASSIFIED 27.8 -0.1 -0.2 0.7 34.1 369.3 165.8 90.1 1.1 108.0 57.9 23.4 13.5 128.5 --21.6 133.4 126.0 205.6 67.4 71.9 60.0 77.2 1783.6 50 UNCLASSIFIED F-35 December 2016 SAR All DoN MILCON funding is reflected in the Aircraft subprogram. UNCLASSIFIED 51 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 3300 MILCON Military Construction, Air Force TY $M Fiscal Total Year Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Subtotal UNCLASSIFIED 1.7 10.0 --100.3 116.0 125.1 139.6 24.3 13.5 56.0 66.7 198.3 336.3 253.6 182.2 104.4 --83.5 71.1 61.1 59.3 128.9 115.9 116.8 108.7 71.7 71.2 37.5 24.8 4.3 2682.8 52 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Aircraft 3300 MILCON Military Construction, Air Force BY 2012 $M Fiscal Total Year Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Subtotal UNCLASSIFIED 1.9 11.1 --104.1 118.8 125.0 136.4 23.4 12.8 52.4 60.8 177.4 294.9 218.0 153.6 86.3 --65.0 54.3 45.7 43.5 92.7 81.7 80.8 73.7 47.7 46.4 24.0 15.5 2.6 2250.5 53 UNCLASSIFIED F-35 December 2016 SAR All Air Force F-35 MILCON funding is reflected in the Aircraft subprogram. UNCLASSIFIED 54 UNCLASSIFIED F-35 December 2016 SAR Annual Funding By Appropriation - F-35 Engine Annual Funding - F-35 Engine 3600 RDT&E Research, Development, Test, and Evaluation, Air Force TY $M Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity -----------------------5 ------------------------- Non Recurring Flyaway ------------------------- UNCLASSIFIED Total Flyaway ------------------------- Total Support ------------------------- Total Program ------------------------- 16.4 15.9 49.3 87.1 89.4 48.8 66.9 409.8 400.5 435.8 614.3 586.3 441.6 596.0 544.6 466.1 216.2 101.8 143.6 52.0 53.7 36.5 63.8 5536.4 55 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 3600 RDT&E Research, Development, Test, and Evaluation, Air Force BY 2012 $M Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity -----------------------5 ------------------------- Non Recurring Flyaway ------------------------- UNCLASSIFIED Total Flyaway ------------------------- Total Support ------------------------- Total Program ------------------------- 21.7 20.6 63.2 110.8 112.4 60.5 81.8 496.0 477.8 505.8 694.7 643.0 472.7 626.5 565.2 476.6 215.9 100.0 139.6 49.8 50.8 34.0 58.3 6077.7 56 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 1319 RDT&E Research, Development, Test, and Evaluation, Navy TY $M Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ------------------------9 -------------------------- Non Recurring Flyaway -------------------------- UNCLASSIFIED Total Flyaway -------------------------- Total Support -------------------------- Total Program -------------------------- 5.8 19.3 15.8 47.7 87.8 92.4 46.7 66.9 350.4 550.8 533.2 572.5 528.1 639.1 563.9 433.1 445.7 252.9 187.6 199.2 116.1 172.9 100.7 59.7 6088.3 57 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 1319 RDT&E Research, Development, Test, and Evaluation, Navy BY 2012 $M Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ------------------------9 -------------------------- Non Recurring Flyaway -------------------------- UNCLASSIFIED Total Flyaway -------------------------- Total Support -------------------------- Total Program -------------------------- 7.8 25.5 20.5 61.2 111.7 116.2 57.9 81.8 424.1 657.1 618.8 647.4 579.1 684.1 592.8 449.5 455.8 252.6 184.3 193.7 111.3 163.7 93.8 54.5 6645.2 58 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 0400 RDT&E Research, Development, Test, and Evaluation, Defense-Wide TY $M Fiscal Year 1994 1995 1996 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ----- ----- Non Recurring Flyaway ----- UNCLASSIFIED Total Flyaway ----- Total Support ----- Total Program ----- 5.7 13.4 4.0 23.1 59 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 0400 RDT&E Research, Development, Test, and Evaluation, Defense-Wide BY 2012 $M Fiscal Year 1994 1995 1996 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity ----- ----- Non Recurring Flyaway ----- UNCLASSIFIED Total Flyaway ----- Total Support ----- Total Program ----- 7.7 17.7 5.2 30.6 60 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 9999 RDT&E Non Treasury Funds TY $M Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity -------------------- -------------------- Non Recurring Flyaway -------------------- UNCLASSIFIED Total Flyaway -------------------- Total Support -------------------- Total Program -------------------- 2.7 3.9 5.1 5.7 1.8 0.5 43.3 124.8 54.1 0.3 -75.0 1.4 --0.1 -0.3 319.0 61 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 9999 RDT&E Non Treasury Funds BY 2012 $M Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Subtotal Non End Item Recurring Flyaway End Item Recurring Flyaway Quantity -------------------- -------------------- Non Recurring Flyaway -------------------- UNCLASSIFIED Total Flyaway -------------------- Total Support -------------------- Total Program -------------------- 3.5 5.0 6.5 7.2 2.2 0.6 52.4 148.9 62.8 0.3 -80.3 1.5 --0.1 -0.3 371.6 62 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 3010 Procurement Aircraft Procurement, Air Force TY $M Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Subtotal Quantity -2 6 7 10 22 18 19 19 28 47 48 46 48 48 54 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 27 1763 End Item Recurring Flyaway 9.8 47.5 123.6 127.0 176.7 353.2 275.3 262.5 282.1 386.7 606.1 621.9 646.6 585.5 685.4 735.4 672.1 866.7 845.5 766.0 773.6 847.4 963.0 915.2 832.7 856.7 950.3 1079.9 1023.8 933.2 950.3 1039.5 1178.2 1117.1 1018.9 1039.1 1140.1 1113.5 496.0 27344.1 Non End Item Recurring Flyaway Non Recurring Flyaway ----------------------------------------- UNCLASSIFIED -6.9 35.0 63.9 72.6 91.6 65.7 11.9 31.2 15.5 23.2 19.2 46.2 36.6 39.1 36.3 39.5 42.0 41.3 41.7 41.9 38.8 39.6 40.2 41.1 42.4 44.2 45.7 45.8 46.1 46.9 50.9 51.9 52.9 53.9 54.9 55.2 48.1 26.6 1626.5 Total Flyaway 9.8 54.4 158.6 190.9 249.3 444.8 341.0 274.4 313.3 402.2 629.3 641.1 692.8 622.1 724.5 771.7 711.6 908.7 886.8 807.7 815.5 886.2 1002.6 955.4 873.8 899.1 994.5 1125.6 1069.6 979.3 997.2 1090.4 1230.1 1170.0 1072.8 1094.0 1195.3 1161.6 522.6 28970.6 Total Support -27.7 30.9 33.3 59.1 136.6 123.0 89.6 47.5 116.2 126.7 166.6 135.1 141.8 166.1 195.6 170.3 248.6 170.4 198.8 199.1 137.0 127.1 125.8 132.8 141.6 135.8 154.1 81.6 11.5 11.3 9.9 8.1 8.0 5.8 3.0 ---3676.4 Total Program 9.8 82.1 189.5 224.2 308.4 581.4 464.0 364.0 360.8 518.4 756.0 807.7 827.9 763.9 890.6 967.3 881.9 1157.3 1057.2 1006.5 1014.6 1023.2 1129.7 1081.2 1006.6 1040.7 1130.3 1279.7 1151.2 990.8 1008.5 1100.3 1238.2 1178.0 1078.6 1097.0 1195.3 1161.6 522.6 32647.0 63 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 3010 Procurement Aircraft Procurement, Air Force BY 2012 $M Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Subtotal Quantity -2 6 7 10 22 18 19 19 28 47 48 46 48 48 54 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 27 1763 End Item Recurring Flyaway 10.6 50.2 128.6 130.3 177.6 348.1 267.5 252.3 267.7 361.4 556.5 560.0 570.8 506.8 581.6 599.8 543.5 693.0 662.8 588.7 582.9 626.0 697.4 649.8 579.6 584.7 635.8 708.4 658.4 588.4 587.4 629.9 700.0 650.7 581.8 581.7 625.8 599.2 261.7 19387.4 Non End Item Recurring Flyaway Non Recurring Flyaway ----------------------------------------- UNCLASSIFIED -7.3 36.4 65.6 73.0 90.3 63.8 11.4 29.5 14.5 21.3 17.3 40.8 31.7 33.2 29.6 31.9 33.6 32.4 32.0 31.6 28.7 28.7 28.5 28.6 28.9 29.6 30.0 29.5 29.0 29.0 30.9 30.8 30.7 30.8 30.8 30.3 25.9 14.0 1241.9 Total Flyaway 10.6 57.5 165.0 195.9 250.6 438.4 331.3 263.7 297.2 375.9 577.8 577.3 611.6 538.5 614.8 629.4 575.4 726.6 695.2 620.7 614.5 654.7 726.1 678.3 608.2 613.6 665.4 738.4 687.9 617.4 616.4 660.8 730.8 681.4 612.6 612.5 656.1 625.1 275.7 20629.3 Total Support -29.2 32.2 34.2 59.4 134.6 119.5 86.2 45.1 108.6 116.3 150.0 119.3 122.7 140.9 159.5 137.7 198.8 133.6 152.9 150.0 101.2 92.1 89.4 92.5 96.6 90.9 101.0 52.4 7.3 7.0 6.0 4.8 4.7 3.3 1.7 ---2981.6 Total Program 10.6 86.7 197.2 230.1 310.0 573.0 450.8 349.9 342.3 484.5 694.1 727.3 730.9 661.2 755.7 788.9 713.1 925.4 828.8 773.6 764.5 755.9 818.2 767.7 700.7 710.2 756.3 839.4 740.3 624.7 623.4 666.8 735.6 686.1 615.9 614.2 656.1 625.1 275.7 23610.9 64 UNCLASSIFIED F-35 December 2016 SAR Cost Quantity Information - F-35 Engine 3010 Procurement Aircraft Procurement, Air Force End Item Recurring Fiscal Flyaway Quantity Year (Aligned With Quantity) BY 2012 $M 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 -2 6 7 10 22 18 19 19 28 47 48 46 48 48 54 54 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 27 UNCLASSIFIED -50.2 128.6 130.3 177.6 348.1 267.5 252.3 267.7 361.4 556.5 560.0 570.8 506.8 581.6 599.8 543.5 693.0 662.8 588.7 582.9 626.0 697.4 649.8 579.6 584.7 635.8 708.4 658.4 588.4 587.4 629.9 700.0 650.7 581.8 581.7 625.8 599.2 272.3 65 UNCLASSIFIED F-35 December 2016 SAR Subtotal 1763 19387.4 UNCLASSIFIED 66 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 1506 Procurement Aircraft Procurement, Navy TY $M Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Subtotal Quantity -6 7 20 10 13 10 10 10 21 26 24 29 36 45 45 45 45 45 45 45 45 45 39 24 3 693 End Item Recurring Flyaway 27.4 246.1 298.0 599.0 400.5 191.4 236.9 227.1 259.5 362.7 648.6 704.2 650.3 779.2 938.8 964.6 1042.4 1021.8 927.7 935.6 1022.8 1092.0 1047.0 776.4 318.9 42.6 15761.5 Non End Item Recurring Flyaway Non Recurring Flyaway ---------------------------- UNCLASSIFIED -1.3 54.3 118.5 112.5 57.7 26.6 21.6 27.6 22.3 27.5 26.1 26.9 31.9 27.0 29.6 85.4 97.7 93.4 96.2 67.1 64.0 67.6 52.8 122.1 91.6 1449.3 Total Flyaway 27.4 247.4 352.3 717.5 513.0 249.1 263.5 248.7 287.1 385.0 676.1 730.3 677.2 811.1 965.8 994.2 1127.8 1119.5 1021.1 1031.8 1089.9 1156.0 1114.6 829.2 441.0 134.2 17210.8 Total Support -1.2 65.6 127.6 122.3 62.0 169.8 142.4 68.0 109.9 132.7 102.5 107.6 120.5 167.4 168.5 136.5 84.5 118.4 114.5 68.4 107.8 45.6 70.5 92.1 68.1 2574.4 Total Program 27.4 248.6 417.9 845.1 635.3 311.1 433.3 391.1 355.1 494.9 808.8 832.8 784.8 931.6 1133.2 1162.7 1264.3 1204.0 1139.5 1146.3 1158.3 1263.8 1160.2 899.7 533.1 202.3 19785.2 67 UNCLASSIFIED F-35 December 2016 SAR Annual Funding - F-35 Engine 1506 Procurement Aircraft Procurement, Navy BY 2012 $M Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Subtotal Quantity -6 7 20 10 13 10 10 10 21 26 24 29 36 45 45 45 45 45 45 45 45 45 39 24 3 693 End Item Recurring Flyaway 28.9 256.1 305.8 602.1 394.7 186.0 227.7 215.5 242.5 333.0 584.1 621.7 562.8 661.2 781.0 786.7 833.5 801.0 713.0 705.0 755.6 790.9 743.4 540.5 217.6 28.5 12918.8 Non End Item Recurring Flyaway Non Recurring Flyaway ---------------------------- UNCLASSIFIED -1.4 55.8 119.2 110.9 56.0 25.6 20.5 25.8 20.5 24.8 23.0 23.3 27.1 22.5 24.1 68.3 76.6 71.8 72.5 49.5 46.4 48.1 36.7 83.3 61.4 1195.1 Total Flyaway 28.9 257.5 361.6 721.3 505.6 242.0 253.3 236.0 268.3 353.5 608.9 644.7 586.1 688.3 803.5 810.8 901.8 877.6 784.8 777.5 805.1 837.3 791.5 577.2 300.9 89.9 14113.9 Total Support -1.2 67.3 128.2 120.6 60.3 163.2 135.1 63.6 100.9 119.4 90.5 93.2 102.2 139.2 137.5 109.1 66.2 91.0 86.2 50.6 78.0 32.3 49.1 62.9 45.5 2193.3 Total Program 28.9 258.7 428.9 849.5 626.2 302.3 416.5 371.1 331.9 454.4 728.3 735.2 679.3 790.5 942.7 948.3 1010.9 943.8 875.8 863.7 855.7 915.3 823.8 626.3 363.8 135.4 16307.2 68 UNCLASSIFIED F-35 December 2016 SAR Cost Quantity Information - F-35 Engine 1506 Procurement Aircraft Procurement, Navy End Item Recurring Fiscal Flyaway Quantity Year (Aligned With Quantity) BY 2012 $M 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Subtotal -6 7 20 10 13 10 10 10 21 26 24 29 36 45 45 45 45 45 45 45 45 45 39 24 3 693 UNCLASSIFIED -256.1 305.8 602.1 394.7 186.0 227.7 215.5 242.5 333.0 584.1 621.7 562.8 661.2 781.0 786.7 833.5 801.0 713.0 705.0 755.6 790.9 743.4 540.5 217.6 57.4 12918.8 69 UNCLASSIFIED F-35 December 2016 SAR Low Rate Initial Production F-35 Aircraft Item Initial LRIP Decision Current Total LRIP Approval Date 10/26/2001 5/23/2015 Approved Quantity 465 518 Reference Milestone B ADM LRIP Approval ADM Start Year 2006 2006 End Year 2015 2019 The Current Total LRIP Quantity is more than 10% of the total production quantity due to the necessity to prevent a break in production and to ramp up to FRP. F-35 Engine Item Initial LRIP Decision Current Total LRIP Approval Date 10/26/2001 5/23/2015 Approved Quantity 465 518 Reference Milestone B ADM LRIP Approval ADM Start Year 2006 2006 End Year 2015 2019 The Current Total LRIP Quantity is more than 10% of the total production quantity due to the necessity to prevent a break in production and to ramp up to FRP. UNCLASSIFIED 70 UNCLASSIFIED F-35 December 2016 SAR Foreign Military Sales F-35 Aircraft Country Date of Sale Total Cost $M Quantity Japan 9/14/2015 16 Israel 2/15/2015 33 Korea 9/14/2014 40 Description 3286.5 Japan signed an amendment to add 6 F-35A's in September 2015. Japan has an option to purchase 26 additional F-35A aircraft. 5792.7 Israel submitted an Letter of Request on November 29, 2016 to exercise their option to purchase an additional 17 F-35A aircraft. Letter of Acceptance Amendment signature expected In 2nd Quarter FY 2017. 6277.0 All 40 aircraft will be the F-35A aircraft. Notes F-35 Engine Notes FMS information for the F-35 Engine subprogram are reflected in the F-35 Aircraft subprogram. Nuclear Costs F-35 Aircraft None F-35 Engine None UNCLASSIFIED 71 UNCLASSIFIED F-35 December 2016 SAR Unit Cost F-35 Aircraft Current UCR Baseline and Current Estimate (Base-Year Dollars) BY 2012 $M BY 2012 $M Item Program Acquisition Unit Cost Cost Quantity Unit Cost Average Procurement Unit Cost Cost Quantity Unit Cost Current UCR Baseline (Jun 2014 APB) Current Estimate (Dec 2016 SAR) % Change 274958.4 2457 111.908 271577.4 2470 109.950 -1.75 224332.9 2443 91.827 220857.7 2456 89.926 -2.07 Original UCR Baseline and Current Estimate (Base-Year Dollars) BY 2012 $M BY 2012 $M Item Program Acquisition Unit Cost Cost Quantity Unit Cost Average Procurement Unit Cost Cost Quantity Unit Cost Revised Original UCR Baseline (Mar 2012 APB) Current Estimate (Dec 2016 SAR) % Change 276482.2 2458 112.483 271577.4 2470 109.950 -2.25 224333.7 2443 91.827 220857.7 2456 89.926 -2.07 The DoD average F-35 Aircraft Unit Recurring Flyaway (URF) Cost consists of the Hardware (Airframe, Vehicle Systems, Mission Systems, and Engineering Change Order) costs over the life of the program. The URF assumes the quantity benefits of 132 FMS aircraft and 609 International Partner aircraft. The current estimate for F-35 total procurement quantity increased from 2443 to 2456. This is the result of an increase of 13 F-35B aircraft to be procured by the United States Marine Corps (USMC). The increase is reflected in both the aircraft and engine subprogram and results in a change from 680 to 693 in the Department of Navy Aircraft Procurement accounts. The USMC validated this requirement through the Marine Corps Requirements Oversight Council (MROC). The additional aircraft are fully funded and the funding is reflected in the FY 2018 President's Budget submission. The additional aircraft were added after the completion of the congressionally directed Department-wide fighter mix study. The strategic review will assess future tactical fighter force inventory requirements across the Department. F-35A (Conventional Take Off and Landing) URF - $67.7M (BY 2012) UNCLASSIFIED 72 UNCLASSIFIED F-35 December 2016 SAR F-35B (Short Takeoff and Vertical Landing) URF - $77.1M (BY 2012) F-35C (Carrier Variant) URF - $78.1M (BY 2012) UNCLASSIFIED 73 UNCLASSIFIED F-35 December 2016 SAR APB Unit Cost History BY 2012 $M Date PAUC APUC Item Original APB APB as of January 2006 Revised Original APB Prior APB Current APB Prior Annual SAR Current Estimate Oct 2001 Mar 2004 Mar 2012 Mar 2012 Jun 2014 Dec 2015 Dec 2016 74.567 94.837 112.529 112.529 111.908 106.537 109.950 60.632 73.845 91.827 91.827 91.827 86.488 89.926 TY $M PAUC 81.298 100.407 135.065 135.065 134.638 129.585 138.495 APUC 68.934 81.826 115.697 115.697 115.697 110.695 119.608 SAR Unit Cost History Current SAR Baseline to Current Estimate (TY $M) PAUC Development Estimate 135.065 Changes Econ 0.502 Qty Sch Eng Est Oth Spt -0.222 8.678 1.055 -3.947 0.000 -2.636 Total 3.430 PAUC Current Estimate 138.495 Current SAR Baseline to Current Estimate (TY $M) Initial APUC Development Estimate 115.697 Changes Econ 0.491 Qty Sch Eng Est Oth Spt -0.121 8.727 1.061 -3.596 0.000 -2.651 UNCLASSIFIED Total 3.911 APUC Current Estimate 119.608 74 UNCLASSIFIED F-35 December 2016 SAR SAR Baseline History Item Milestone I Milestone B Milestone C IOC Total Cost (TY $M) Total Quantity PAUC SAR Planning Estimate SAR Development Estimate N/A Mar 2001 TBD TBD 24800.0 N/A N/A Nov 1996 Mar 2012 Apr 2019 TBD 331855.2 2457 135.065 SAR Production Estimate Current Estimate N/A N/A N/A N/A N/A N/A N/A Nov 1996 Mar 2012 Apr 2019 Jul 2015 342081.9 2470 138.495 The Service IOC reflected in the above table is the U.S. Marine Corps Objective date. In addition, the U.S. Air Force IOC objective date was August 2016, and the U.S. Navy IOC objective date is August 2018. UNCLASSIFIED 75 UNCLASSIFIED F-35 December 2016 SAR F-35 Engine Current UCR Baseline and Current Estimate (Base-Year Dollars) BY 2012 $M BY 2012 $M Item Program Acquisition Unit Cost Cost Quantity Unit Cost Average Procurement Unit Cost Cost Quantity Unit Cost Current UCR Baseline (Jun 2014 APB) Current Estimate (Dec 2016 SAR) % Change 55273.5 2457 22.496 53043.2 2470 21.475 -4.54 42332.9 2443 17.328 39918.1 2456 16.253 -6.20 Original UCR Baseline and Current Estimate (Base-Year Dollars) BY 2012 $M BY 2012 $M Item Program Acquisition Unit Cost Cost Quantity Unit Cost Average Procurement Unit Cost Cost Quantity Unit Cost Original UCR Baseline (Mar 2012 APB) Current Estimate (Dec 2016 SAR) % Change 53916.4 2458 21.935 53043.2 2470 21.475 -2.10 42332.9 2443 17.328 39918.1 2456 16.253 -6.20 The DoD average F-35 Engine Unit Recurring Flyaway (URF) Cost consists of the Hardware (Propulsion and Engineering Change Order) costs over the life of the program. The URF assumes the quantity benefits of 132 FMS engines and 609 International Partner engines. The current estimate for F-35 total procurement quantity increased from 2443 to 2456. This is the result of an increase of 13 F-35B aircraft to be procured by the United States Marine Corps (USMC). The increase is reflected in both the aircraft and engine subprogram and results in a change from 680 to 693 in the Department of Navy Aircraft Procurement accounts. The USMC validated this requirement through the Marine Corps Requirements Oversight Council (MROC). The additional aircraft are fully funded and the funding is reflected in the FY 2018 President's Budget submission. The additional aircraft were added after the completion of the congressionally directed Department-wide fighter mix study. The strategic review will assess future tactical fighter force inventory requirements across the Department. F-35A (Conventional Take Off and Landing) URF - $10.9M (BY 2012) F-35B (Short Takeoff and Vertical Landing) URF - $26.7M (BY 2012) F-35C (Carrier Variant) URF - $11.0M (BY 2012) UNCLASSIFIED 76 UNCLASSIFIED F-35 December 2016 SAR APB Unit Cost History Item BY 2012 $M Date Original APB APB as of January 2006 Revised Original APB Prior APB Current APB Prior Annual SAR Current Estimate PAUC Mar 2012 N/A N/A Mar 2012 Jun 2014 Dec 2015 Dec 2016 21.989 N/A N/A 21.989 22.496 20.960 21.475 TY $M APUC PAUC 17.328 N/A N/A 17.328 17.328 15.709 16.253 APUC 25.990 N/A N/A 25.990 26.396 24.685 26.072 21.708 N/A N/A 21.708 21.708 19.930 21.349 SAR Unit Cost History Current SAR Baseline to Current Estimate (TY $M) PAUC Development Estimate 25.990 Changes Econ 0.083 Qty -0.047 Sch 0.961 Eng 0.000 Est Oth Spt 0.060 0.000 -0.975 Total 0.082 PAUC Current Estimate 26.072 Current SAR Baseline to Current Estimate (TY $M) Initial APUC Development Estimate 21.708 Changes Econ 0.077 Qty Sch -0.025 0.967 Eng 0.000 Est Oth Spt -0.398 0.000 -0.980 UNCLASSIFIED Total -0.359 APUC Current Estimate 21.349 77 UNCLASSIFIED F-35 December 2016 SAR SAR Baseline History Item Milestone A Milestone B Milestone C IOC Total Cost (TY $M) Total Quantity PAUC SAR Planning Estimate SAR Development Estimate N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 63856.6 2457 25.990 UNCLASSIFIED SAR Production Estimate Current Estimate N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 64399.0 2470 26.072 78 UNCLASSIFIED F-35 December 2016 SAR Cost Variance F-35 Aircraft Item SAR Baseline (Development Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Total Changes Current Estimate RDT&E Summary TY $M Procurement MILCON Total 44410.1 282647.8 4797.3 331855.2 -12.1 ----1227.9 ---1240.0 +1043.6 -+3912.7 +1826.8 -9221.5 --9781.9 -12220.3 +4.3 ----8.3 ---4.0 +1035.8 -+3912.7 +1826.8 -10457.7 --9781.9 -13464.3 +2.5 ---+357.7 --+360.2 -879.8 43530.3 +163.3 +1204.0 +17521.7 +779.8 +389.7 -+3272.2 +23330.7 +11110.4 293758.2 +39.0 ----38.9 --+0.1 -3.9 4793.4 +204.8 +1204.0 +17521.7 +779.8 +708.5 -+3272.2 +23691.0 +10226.7 342081.9 UNCLASSIFIED 79 UNCLASSIFIED F-35 December 2016 SAR Item SAR Baseline (Development Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Total Changes Current Estimate RDT&E Summary BY 2012 $M Procurement MILCON Total 47982.1 224332.9 4168.0 276483.0 -----1613.5 ---1613.5 ---+1346.4 -6467.3 --7921.1 -13042.0 -----66.6 ---66.6 ---+1346.4 -8147.4 --7921.1 -14722.1 ----+317.0 --+317.0 -1296.5 46685.6 -+817.9 +6387.1 +575.6 -624.3 -+2410.5 +9566.8 -3475.2 220857.7 -----67.3 ---67.3 -133.9 4034.1 -+817.9 +6387.1 +575.6 -374.6 -+2410.5 +9816.5 -4905.6 271577.4 Previous Estimate: December 2015 UNCLASSIFIED 80 UNCLASSIFIED F-35 December 2016 SAR RDT&E $M Current Change Explanations Revised escalation indices. (Economic) Adjustment for current and prior escalation. (Estimating) Revised estimate for Small Business Innovation Research (SBIR) in FY 2015 and FY 2016 (AF). (Estimating) Additional funding for the Air Vehicle and Test program as a result of realignment of Procurement funding to RDTE (AF). (Estimating) Revised estimate due to application of new outyear inflation indices (AF). (Estimating) Revised estimate for SBIR in FY 2016 (Navy). (Estimating) Additional funding for the Air Vehicle and Test program as a result of realigning close out System Development and Demonstration procurement funding to RDTE (Navy). (Estimating) Revised estimate due to application of new outyear inflation indices (Navy). (Estimating) Revised estimate due to application of new outyear inflation indices (Non-Treasury Funds). (Estimating) Realignment of cost between the Aircraft subprogram and the Engine subprogram (AF). (Estimating) Realignment of cost between the Aircraft subprogram and the Engine subprogram (Navy). (Estimating) Revised estimate due to realignment of program funding and actual funding investment (AF). (Estimating) RDT&E Subtotal Base Year N/A -1.9 -34.1 +2.5 -2.0 -36.2 +186.3 +209.4 -0.6 -29.0 +194.8 -0.7 -31.1 +219.7 +1.2 +0.5 0.0 +0.5 -23.8 -26.6 +23.6 +24.7 0.0 0.0 +317.0 +360.2 Procurement Current Change Explanations Revised escalation indices. (Economic) Total Quantity variance resulting from an increase of 13 F-35Bs from 680 to 693 (APN). (Subtotal) Quantity variance resulting from an increase of 13 F-35Bs from 680 to 693 (APN). (Quantity) Allocation to Schedule resulting from Quantity change. (Schedule) (QR) Allocation to Engineering resulting from Quantity change. (Engineering) (QR) Allocation to Estimating resulting from Quantity change. (Estimating) (QR) Stretch-out of procurement buy profile in FY 2017 to FY 2044 (Aircraft Procurement, AF) (APAF). (Schedule) Additional schedule variance for U.S. procurement quantity profile adjustments (APAF). (Schedule) Stretch-out of procurement buy profile in FY 2017 to FY 2032 (Aircraft Procurement, Navy) (APN). (Schedule) Additional schedule variance for U.S. procurement quantity profile adjustments (APN). (Schedule) Added funding for Disruptive Technology Innovation Partnership (DTIP) requirements (APAF). (Engineering) Added funding for DTIP requirements (APN). (Engineering) UNCLASSIFIED Then Year $M Base Year Then Year N/A +777.7 +163.3 +1144.8 (+817.9) (+1204.0) (+13.7) (+6.4) (-60.3) 0.0 (+20.2) (+9.4) (-88.8) +6983.3 +5653.6 +9537.2 0.0 -19.3 +719.8 +1000.3 +405.2 +561.6 +164.0 +208.8 81 UNCLASSIFIED F-35 December 2016 SAR Adjustment for current and prior escalation. (Estimating) Revised estimate for International procurement quantity profile adjustments (APAF). (Estimating) (QR) Revised estimate for International procurement quantity profile adjustments (APN). (Estimating) (QR) Additional funding due to revised estimating assumptions (APAF). (Estimating) Additional funding due to revised estimating assumptions (APN). (Estimating) Revised estimate of Airframe cost due to the incorporation of the latest prime and subcontractor actuals and labor/exchange rates (APAF). (Estimating) Revised estimate of Airframe cost due to the incorporation of the latest prime and subcontractor actuals and labor/exchange rates (APN). (Estimating) Revised estimate of non-recurring costs due to Diminishing Manufacturing Sources (DMS) and Ancillary (APAF). (Estimating) Revised estimate of non-recurring costs due to DMS and Ancillary (APN). (Estimating) Update for fact of life changes for prior years/lots FY 2006-2016 (APAF). (Estimating) Update for fact of life changes for prior years/lots FY 2006-2016 (APN). (Estimating) Adjustment for current and prior escalation. (Support) Increase in Other Support due to Manpower Full Time Equivalent Heads (FTE) and associated rates updated (APAF). (Support) Increase in Other Support due to Manpower FTE and associated rates updated (APN). (Support) Increase in Initial Spares due to estimating methodology update to reflect the actual demand data from executed flight hours (APAF). (Support) Increase in Initial Spares due to estimating methodology update to reflect the actual demand data from executed flight hours (APN). (Support) Procurement Subtotal -19.2 -60.4 -21.0 -117.1 -15.5 -51.6 +1058.7 +445.8 -1893.5 +1491.2 +581.1 -1491.9 -1189.2 -1383.6 +863.6 +1132.8 +384.4 -77.5 -61.2 -3.2 +987.1 +487.1 -82.8 -65.7 -3.3 +1395.2 +1131.0 +1559.3 +149.9 +187.3 +145.7 +133.7 +9566.8 +23330.7 (QR) Quantity Related MILCON Current Change Explanations Revised escalation indices. (Economic) Adjustment for current and prior escalation. (Estimating) Revised estimate as a result of refined requirements (Navy). (Estimating) Refined estimate as a result of refined requirements (AF). (Estimating) MILCON Subtotal UNCLASSIFIED $M Base Year N/A -11.1 -68.9 +12.7 -67.3 Then Year +39.0 -12.4 -11.4 -15.1 +0.1 82 UNCLASSIFIED F-35 December 2016 SAR Cost Variance F-35 Engine Item SAR Baseline (Development Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Total Changes Current Estimate RDT&E Summary TY $M Procurement MILCON Total 10823.7 53032.9 -- 63856.6 +16.5 ---+1122.7 --+1139.2 +116.2 -+744.1 --2353.0 --2852.0 -4344.7 --------- +132.7 -+744.1 --1230.3 --2852.0 -3205.5 +0.1 ---+3.8 --+3.9 +1143.1 11966.8 +72.7 +221.3 +1630.3 -+1375.8 -+443.9 +3744.0 -600.7 52432.2 ----------- +72.8 +221.3 +1630.3 -+1379.6 -+443.9 +3747.9 +542.4 64399.0 UNCLASSIFIED 83 UNCLASSIFIED F-35 December 2016 SAR Item SAR Baseline (Development Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Total Changes Current Estimate RDT&E Summary BY 2012 $M Procurement MILCON Total 11695.2 42332.9 -- 54028.1 ----+1427.4 --+1427.4 -----1781.7 --2174.3 -3956.0 --------- -----354.3 --2174.3 -2528.6 ----+2.5 --+2.5 +1429.9 13125.1 -+150.3 +266.3 -+778.7 -+345.9 +1541.2 -2414.8 39918.1 ----------- -+150.3 +266.3 -+781.2 -+345.9 +1543.7 -984.9 53043.2 Previous Estimate: December 2015 UNCLASSIFIED 84 UNCLASSIFIED F-35 December 2016 SAR RDT&E $M Current Change Explanations Revised escalation indices. (Economic) Adjustment for current and prior escalation. (Estimating) Realignment of cost between the Aircraft subprogram and Engine subprogram (AF). (Estimating) Realignment of cost between the Aircraft subprogram and Engine subprogram (Navy). (Estimating) Revised estimate due to application of new outyear inflation indices (Non-Treasury Funds). (Estimating) RDT&E Subtotal Base Year N/A -0.1 +23.9 +0.1 -0.1 +26.6 -23.5 -24.7 +2.2 +2.0 +2.5 +3.9 Procurement Current Change Explanations Revised escalation indices. (Economic) Total Quantity variance resulting from an increase of 13 F-35Bs from 680 to 693 (APN). (Subtotal) Quantity variance resulting from an increase of 13 F-35Bs from 680 to 693 (APN). (Quantity) Allocation to Schedule resulting from Quantity change. (Schedule) (QR) Allocation to Estimating resulting from Quantity change. (Estimating) (QR) Stretch-out of procurement buy profile in FY 2017 to FY 2044 (Engine Procurement, AF) (APAF). (Schedule) Stretch-out of procurement buy profile in FY 2017 to FY 2044 (Engine Procurement, Navy) (APN). (Schedule) Additional schedule variance for U.S. procurement quantity profile adjustments (Engine Procurement, AF). (Schedule) Additional schedule variance for U.S. procurement quantity profile adjustments (Engine Procurement, Navy). (Schedule) Adjustment for current and prior escalation. (Estimating) Revised estimate for International procurement quantity adjustments (Engine Procurement, AF). (Estimating) (QR) Revised estimate for International procurement quantity adjustments (Engine Procurement, Navy). (Estimating) (QR) Additional funding due to revised estimating assumptions (Engine Procurement, AF). (Estimating) Additional funding due to revised estimating assumptions (Engine Procurement, Navy). (Estimating) Revised estimate due to the incorporation of the latest actuals (Engine Procurement, AF). (Estimating) Revised estimate due to the incorporation of the latest actuals (Engine Procurement, Navy). (Estimating) Update for fact of life changes for prior years/lots FY 2006-2016 (Engine Procurement, AF). (Estimating) Update for fact of life changes for prior years/lots FY 2006-2016 (Engine Procurement, UNCLASSIFIED Then Year $M Base Year Then Year N/A +140.5 +72.7 +206.8 (+150.3) (+221.3) (+4.6) (-14.4) 0.0 (+6.7) (-21.2) +1258.5 0.0 -3.1 +209.9 +302.4 +51.8 +65.8 -3.4 +1.0 -3.3 -2.3 +7.0 +5.7 +24.3 +30.5 +25.4 +31.6 +764.9 +1241.4 -26.1 +93.6 +0.1 -0.1 -0.1 -0.1 85 UNCLASSIFIED F-35 December 2016 SAR Navy). (Estimating) Adjustment for current and prior escalation. (Support) Increase in Other Support due to Manpower FTE and associated rates updated (APAF). (Support) Increase in Other Support. Manpower FTE and associated rates updated (APN). (Support) Increase in Initial Spares due to estimating methodology update to reflect the actual demand data from executed flight hours (APAF). (Support) Increase in Initial Spares due to estimating methodology update to reflect the actual demand data from executed flight hours (APN). (Support) Procurement Subtotal -0.9 +108.3 -1.3 +153.7 +125.6 +64.5 +173.7 +81.0 +48.4 +36.8 +1541.2 +3744.0 (QR) Quantity Related UNCLASSIFIED 86 UNCLASSIFIED F-35 December 2016 SAR Contracts General Notes The F135 LRIP 8 Engine contract no longer meets the threshold for the six largest contracts. Contract Identification Appropriation: Contract Name: Contractor: Procurement F-35 LRIP 6 Lockheed Martin Contractor Location: Contract Number: 1 Lockheed Boulevard Ft. Worth, TX 76108 N00019-11-C-0083 Contract Type: Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF) Award Date: Definitization Date: December 28, 2012 September 27, 2013 Initial Contract Price ($M) Contract Price Current Contract Price ($M) Target Target 4392.1 Ceiling N/A Qty 36 7270.5 Ceiling Estimated Price At Completion ($M) Qty N/A 36 Contractor Program Manager 7111.0 7270.5 Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of Production Non-Recurring, Annualized Sustainment, Non-Annualized Sustainment, Depot, and Spares scope. Item Contract Variance Cost Variance Cumulative Variances To Date (12/31/2016) Previous Cumulative Variances Net Change Schedule Variance -81.0 -131.2 +50.2 -182.0 -203.4 +21.4 Cost and Schedule Variance Explanations The favorable net change in the cost variance is due to underruns experienced by Lockheed Martin Rotary and Mission Systems in the areas of Autonomic Logistics Information Systems (ALIS) manpower, Support Equipment, and Training Systems. These underruns are due to multiple reasons: reduced staffing levels, favorable negotiations with suppliers, realized efficiencies, and bulk purchase strategies across the multiple ongoing Sustainment contracts. The favorable net change in the schedule variance is due to schedule recovery for previous tooling delays. UNCLASSIFIED 87 UNCLASSIFIED F-35 December 2016 SAR Notes As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling. This contract is more than 90% complete; therefore, this is the final report for this contract. UNCLASSIFIED 88 UNCLASSIFIED F-35 December 2016 SAR Contract Identification Appropriation: Contract Name: Contractor: Procurement F-35 LRIP 7 Lockheed Martin Contractor Location: Contract Number: 1 Lockheed Boulevard Ft. Worth, TX 76108 N00019-12-C-0004 Contract Type: Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF) Award Date: Definitization Date: September 27, 2013 September 27, 2013 Initial Contract Price ($M) Contract Price Current Contract Price ($M) Target Target 4447.1 Ceiling N/A Qty 35 5657.9 Ceiling Estimated Price At Completion ($M) Qty N/A 35 Contractor Program Manager 5533.1 5657.9 Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of Tech Assist, Non-Annualized Sustainment and Depot scope. Item Contract Variance Cost Variance Cumulative Variances To Date (12/31/2016) Previous Cumulative Variances Net Change Schedule Variance -14.0 -78.6 +64.6 -73.0 -84.8 +11.8 Cost and Schedule Variance Explanations The favorable net change in the cost variance is due to Repair or Replenishment (RoR) orders being negotiated at lower rates than preivoulsy anticipated by the Contractor. Along with this improved cost variance, there were also underruns experienced primarily due to Lockheed Martin Rotary & Mission Systems (RMS) on Support Equipment deliveries and Autonomic Logistics Information Systems (ALIS) manpower and kits. The favorable net change in the schedule variance is due to The unfavorable net change in the schedule variance is due to Support Equipment deliveries not completing within the Section F Period of Performance end date November 2016. Notes As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling. This contract is more than 90% complete; therefore, this is the final report for this contract. UNCLASSIFIED 89 UNCLASSIFIED F-35 December 2016 SAR Contract Identification Appropriation: Contract Name: Contractor: Procurement F-35 LRIP 8 Lockheed Martin Contractor Location: Contract Number: 1 Lockheed Boulevard Ft Worth, TX 76108 N00019-13-C-0008 Contract Type: Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF) Award Date: Definitization Date: February 28, 2013 November 21, 2014 Initial Contract Price ($M) Contract Price Current Contract Price ($M) Target Target 5153.5 Ceiling N/A Qty 43 5201.1 Ceiling Estimated Price At Completion ($M) Qty N/A 43 Contractor Program Manager 5187.9 5201.1 Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to authorization of Reprogramming Center West Prime Mission Equipment. Item Contract Variance Cost Variance Cumulative Variances To Date (12/31/2016) Previous Cumulative Variances Net Change Schedule Variance -85.0 -65.0 -20.0 -239.0 -136.1 -102.9 Cost and Schedule Variance Explanations The unfavorable net change in the cost variance is due to part shortages driving out-of-station work and assembly labor inefficiencies as well as overruns within quality labor and material allocations. The unfavorable net change in the schedule variance is due to late spares and Mission Systems tool deliveries. Notes As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling. To date, 42 of 43 aircraft have been delivered. The final jet is projected to deliver in June 2017. This contract is more than 90% complete; therefore, this is the final report for this contract. UNCLASSIFIED 90 UNCLASSIFIED F-35 December 2016 SAR Contract Identification Appropriation: Contract Name: Contractor: Procurement FY15 Annualized Sustainment Lockheed Martin Contractor Location: Contract Number: 1 Lockheed Boulevard Ft Worth, TX 76108 N00019-15-C-0031 Contract Type: Cost Plus Incentive Fee (CPIF) Award Date: Definitization Date: October 28, 2014 November 01, 2014 Initial Contract Price ($M) Contract Price Current Contract Price ($M) Target Target 704.0 Ceiling N/A Qty N/A 1810.6 Ceiling Qty N/A N/A Estimated Price At Completion ($M) Contractor Program Manager 1537.8 1810.6 Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of nonannualized Sustainment effort and extension of FY 2015 annualized Sustainment Period of Performance. Item Contract Variance Cost Variance Cumulative Variances To Date (12/31/2016) Previous Cumulative Variances Net Change Schedule Variance +90.0 -65.0 +155.0 -68.0 -136.1 +68.1 Cost and Schedule Variance Explanations The favorable net change in the cost variance is due to correction to the Repair or Replenishment (RoR) activities so that appropriate performance could be taken. Along with this improved cost variance, there were also underruns experienced primarily due to Lockheed Martin Rotary & Mission Systems (RMS) (reduced staffing levels, favorable negotiations with suppliers, realized efficiencies, and bulk purchase strategies across the multiple ongoing Sustainment contracts). The favorable net change in the schedule variance is due to correction to the RoR activities so that appropriate performance could be taken. This is partially offset by delays to Autonomic Logistics Information Systems 2.0.2 software release activites. Notes As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling. UNCLASSIFIED 91 UNCLASSIFIED F-35 December 2016 SAR Contract Identification Appropriation: Contract Name: Contractor: Procurement F-35 LRIP 9 Lockheed Martin Contractor Location: Contract Number: 1 Lockheed Boulevard Fort Worth, TX 76101 N00019-14-C-0002 Contract Type: Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF) Award Date: Definitization Date: November 29, 2013 November 02, 2016 Initial Contract Price ($M) Contract Price Current Contract Price ($M) Target Target 738.0 Ceiling N/A Qty 57 6650.5 Ceiling Estimated Price At Completion ($M) Qty N/A 57 Contractor Program Manager 6847.8 6650.5 Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of the LRIP 9 Production effort. Initial Contract Price consisted primarily of Long Lead material and Non-Recurring Tooling. Item Contract Variance Cost Variance Cumulative Variances To Date (12/31/2016) Previous Cumulative Variances Net Change Schedule Variance -51.0 --51.0 -118.0 --118.0 Cost and Schedule Variance Explanations The unfavorable cumulative cost variance is due to unbudgeted long lead hardware driving false variances. The unfavorable cumulative schedule variance is due to Mission Systems tooling delays and Radar performing behind schedule due to late supplier turn on. Notes As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling. The first Undefinitized Contract Action Integrated Program Management Report submittal was received in month-end May 2016. To date, 17 of 57 aircraft have been delivered. The final jet is projected to deliver in December 2017. UNCLASSIFIED 92 UNCLASSIFIED F-35 December 2016 SAR Contract Identification Appropriation: Contract Name: Contractor: Procurement F135 LRIP 10 Pratt & Whitney Contractor Location: Contract Number: 400 Aircraft Road Middletown, CT 06457 N00019-15-C-0004 Contract Type: Fixed Price Incentive(Firm Target) (FPIF), Cost Plus Incentive Fee (CPIF) Award Date: Definitization Date: January 06, 2012 February 15, 2013 Initial Contract Price ($M) Contract Price Current Contract Price ($M) Target Target 370.6 Ceiling N/A Qty 102 2136.3 Ceiling Qty N/A 102 Estimated Price At Completion ($M) Contractor Program Manager 2123.0 2136.3 Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to definitization of the production effort and Sustainment work scope. Item Contract Variance Cost Variance Cumulative Variances To Date (12/31/2016) Previous Cumulative Variances Net Change Schedule Variance -43.0 --43.0 -51.0 --51.0 Cost and Schedule Variance Explanations The unfavorable cumulative cost variance is due to the engine hardware is costing more than planned due primarily to the contractor agreeing to engine cost targets based on their original cost curve commitment that is not achievable today due to delays with incorporating enough engineering changes and affordability initiatives to lower the manufacturing costs; and the supply chain team being unable to negotiate lower pricing from the supply base. Additionally, re-work required with Autonomic Logistic Information System (ALIS) software and additional planning & management resources in Fleet Management Services; and a retroactive rate adjustment for the 2016 General and Administrative rates. The unfavorable cumulative schedule variance is due to late Fan engine hardware deliveries being managed by supply chain buyers who are managing on-hand inventory levels, late Turbine Exhaust Cases due to part complexity and Nozzle divergent flaps due to quality non-conformances, suppliers yield issues and coating operations delays. Notes As a whole, the CLIN consist of multiple contract types including Fixed Price Incentive Fee as well as Cost Plus Incentive Fee and Cost Plus Fixed-Fee. For this reason, the overall contract type is mixed and there is not a true contract ceiling. UNCLASSIFIED 93 UNCLASSIFIED F-35 December 2016 SAR Deliveries and Expenditures F-35 Aircraft Deliveries Delivered to Date Planned to Date Development Production Total Program Quantity Delivered Actual to Date 14 192 206 Total Quantity 14 187 201 14 2456 2470 Percent Delivered 100.00% 7.61% 8.14% Expended and Appropriated (TY $M) Total Acquisition Cost Expended to Date Percent Expended Total Funding Years 342081.9 75460.8 22.06% 51 Years Appropriated Percent Years Appropriated Appropriated to Date Percent Appropriated 24 47.06% 100978.1 29.52% The above data is current as of May 23, 2016. Totals reflect U.S. aircraft only-no International Partner aircraft. F-35 Engine Deliveries Delivered to Date Planned to Date Development Production Total Program Quantity Delivered Actual to Date 14 192 206 Total Quantity 14 187 201 14 2456 2470 Percent Delivered 100.00% 7.61% 8.14% Expended and Appropriated (TY $M) Total Acquisition Cost Expended to Date Percent Expended Total Funding Years 64399.0 18158.5 28.20% 51 Years Appropriated Percent Years Appropriated Appropriated to Date Percent Appropriated 24 47.06% 21601.7 33.54% The above data is current as of May 23, 2016. Engines planned and actual to date only include production installs. UNCLASSIFIED 94 UNCLASSIFIED F-35 December 2016 SAR Operating and Support Cost F-35 Aircraft Cost Estimate Details Date of Estimate: Source of Estimate: Quantity to Sustain: Unit of Measure: Service Life per Unit: Fiscal Years in Service: March 07, 2016 CAPE ICE 2443 Flying Hour 30.00 Years FY 2011 - FY 2070 The 14 developmental aircraft will not be sustained. The CAPE ICE does not include the 13 US Marine Corps F-35B aircraft added in the FY 2018 PB. Sustainment Strategy The F-35 Product Support Manager (PSM) has developed and is executing a Sustainment Strategy that is consistent with warfighter requirements, technical specifications, extant contracts, government policies, and best practices. The F-35 Sustainment Strategy expressly states that the F-35 Program will: - Design, develop, deliver and sustain a single, integrated, and global system of sustainment products, processes, and business practices. These actions will enable the F-35 Air System to achieve a high degree of effectiveness at an affordable cost. - Tailor the global system to meet warfighter-defined and PSM-supported readiness and cost objectives. This action will ensure that the global system is responsive and flexible as operational needs vary over time. - Maintain life-cycle focus, including the reduction of costs. This action will provide critical affordability benefits and further supports a high degree of effectiveness as Air System maturity grows. - Create a mutually-beneficial enterprise that – with relevant metrics and incentives – operates, manages, and supports the global system. This action further improves responsiveness and enhances affordability. - Leverage the global resource base – government and commercial – to take advantage of stakeholder capabilities, human capital, best practices, and similar critical contributions. This action increases robustness and scalability as the F -35 fleet grows and matures. Antecedent Information The F-35 family of aircraft variants will replace the following current aircraft: F-16C/D, A-10, F/A-18C/D, and AV-8B. The F-35 O&S estimate is based on legacy fleet history only when F-35 specific data is not available. Comparing the costs of the 5th Generation F-35 to legacy aircraft is challenging. The cost table compares an adjusted F16C/D Cost per Flying Hour (CPFH) to a forecast of the CPFH for the F-35A variant. The F-35A CPFH figure is based on the Conventional Takeoff and Landing (CTOL) variant only. The F-35A CTOL variant will make up the majority of the DoD F-35 aircraft procurement, accounting for 1,763 of 2,457 total aircraft currently planned for U.S. forces. The F-16C/D CPFH figures were developed in a joint effort between CAPE and the Air Force Cost Analysis Agency. The UNCLASSIFIED 95 UNCLASSIFIED F-35 December 2016 SAR figures have been normalized for comparison to the F-35A CPFH forecast. The starting point for the F-16C/D CPFH is an average of actual cost incurred for this fleet during FY 2008 through FY 2010. In order to enable the direct comparison of the CPFH figures, the actual F-16C/D CPFH is adjusted to reflect the cost of fuel, the number of flight hours forecast for the F-35A, and FY 2013 inflation indices. The F-16C/D figures include costs that F-16 shares with other Air Force platforms: Systems Engineering/Program Management (SEPM), maintenance training costs, certain software development efforts, and information systems. Costs for mission planning are included in the F-35A CPFH figure, but equivalent costs for the F-16C/D are not available, and no adjustment was made for this element of cost. Finally, the F16C/D figures assume full funding of requirements consistent with the F-35A CPFH figures. Annual O&S Costs BY2012 $K F-35 Aircraft Average Annual Cost Per Flying Hour Cost Element Unit-Level Manpower Unit Operations Maintenance Sustaining Support Continuing System Improvements Indirect Support Other Total F-16C/D (Antecedent) Cost Per Flying Hour ($) 8.470 4.923 11.126 3.179 2.108 0.000 0.000 29.806 10.042 5.632 5.501 2.075 2.291 0.000 0.000 25.541 The F-35 CAPE ICE is unchanged from the December 2015 SAR. Given the significant increase in military capabilities provided, it is reasonable to expect F-35A to cost more to operate and sustain than 4th generation legacy aircraft. Total O&S Cost $M F-35 Aircraft Item Current Development APB Objective/Threshold Current Estimate F-16C/D (Antecedent) Base Year 617000.0 678700.0 620805.4 N/A Then Year 1113272.6 N/A 1123844.0 N/A The Total O&S Cost figures reflect the CAPE ICE. The O&S cost estimate includes all three U.S. aircraft variants, is based on a forecast 30-year service-life, and is based on planned usage rates provided by each relevant military service. The planned F-35 usage rates, in terms of aircraft flight hours per year, are as follows: F-35A CTOL @ 250 hrs./yr.; F35B STOVL @ 302 hrs./yr.; and F-35C CV @ 316 hrs./yr. The O&S cost estimate is not a simple extrapolation of the F35A flying hour cost shown in the unitized O&S cost table. The CAPE ICE uses FY 2015 inflation indices, and includes revised forecasts of labor escalation rates for military, civilian, and contractor personnel. A comparable total cost figure for the antecedent system (i.e., F-16C/D) is not available. Not included in the CAPE ICE are the intermediate maintenance costs for the Marine Corps as observed with the operational squadron at Marine Corps Air Station Yuma. Although the program of record (POR) acknowledges only unit and depot levels of maintenance, it appears that the Department of Navy (DoN) is moving towards incorporating some form of intermediate maintenance for its squadrons. However, the DoN has not made the decision to change the POR at this point. While the extent of the additional maintenance level is currently unclear, a change in F-35 maintenance UNCLASSIFIED 96 UNCLASSIFIED F-35 December 2016 SAR strategy appears to be likely for at least the DoN. CAPE recommends that the Services develop business case analyses to determine the impact of intermediate maintenance levels on the respective F-35 variants, in terms of both cost and readiness. The CAPE ICE O&S cost estimate incorporates actual information on component reliabilities obtained from the ongoing F -35 flight operations, including flight test and field operations. This program information is provided from the DoD test community, through Director, Operational Test and Evaluation, and includes actual reliability information on many F-35 components based on data collected during approximately 31,000 hours of flight operations. The data include all variants and flight operations through May 2015. The reliability information has been compared to expected reliabilities for this stage of the program, for all variants, based on reliability growth curves. The CAPE ICE O&S estimate continues to reflect the increased DLR costs present in the 2014 SAR estimate, because component reliability information obtained from actual flight operations data remains inconsistent with expectations. CAPE will continue to work with the DoD operational test community to improve the processes and methods used to incorporate actual data and information on component reliabilities and removal rates, obtained from ongoing flight operations, into the CAPE life-cycle O&S cost estimate for the F-35 program. This information will be used, together with reliability improvement forecasts, to update the O&S cost estimates as the program proceeds to and beyond IOC. In the future, the use of actual flight operations information could result in substantial changes in forecasts of DLR costs in CAPE O&S estimates. Affordability remains the F-35 program office number one priority. As such, the F-35 program team is focused on reducing sustainment costs across the program. The program continues to target O&S cost avoidance through the Cost War Room (CWR) and Reliability and Maintainability Improvement Program (RMIP). Concurrent to CWR activity, the program office has taken strides to transition from analogy and parametric estimating approaches toward contracted values to improve the O&S cost estimate’s accuracy. As a result of CWR affordability initiatives, requirement refinement, and improved cost data quality, the program has reduced the program’s annual cost per flight hour. The O&S POE is captured in the 2016 Annual Cost Estimate (ACE) of $602.3B BY 2012$ ($1.061 Trillion TY$) and has been updated to reflect the latest technical baseline for the program and incorporates revised stakeholder requirements. Primary updates to the 2016 POE include service requirements, JP-5 and JP-8 fuel prices and consumption, and depotlevel repairable (DLR) costs. The CAPE estimate does not incorporate the program office updates to the 2016 ACE. The program office does not support the CAPE’s use of actual reliability data from ongoing flight operations. The reliability data used in the CAPE estimate is based on a mix of aircraft configurations and represent only 9% of the hours required to reach Reliability and Maintainability maturity of the F-35 fleet. The CAPE estimate accounted for the real price change of military personnel compensation. The program office does not have a position on military personnel real price change and will incorporate once it becomes DoD guidance. The F-35 PEO believes that the inherent differences between the F-35 and the F-16 estimates, such as mission planning costs being included in F-35 but not F-16 and the fact that the F-16 is a mature weapons system with many reliability and maintenance costs “leaned out” over the years, result in an overstating of the differences in cost per flying hour between the two. Regardless of the difference, the F-35 program office is committed to, and has enacted multiple programs to drive the O&S costs of the F-35 down. Equation to Translate Annual Cost to Total Cost The F-35 steady state cost per flying hour reflected in the annual O&S cost section does not easily translate to the Total O&S value for the program because the total O&S costs reflect costs for all three variants of the F-35 for the U.S. Air Force, U.S. Marine Corps, and U.S. Navy, whereas the CPFH reflects the U.S. Air Force F-35A only. UNCLASSIFIED 97 UNCLASSIFIED F-35 December 2016 SAR O&S Cost Variance Category Prior SAR Total O&S Estimates - Dec 2015 SAR Programmatic/Planning Factors Cost Estimating Methodology Cost Data Update Labor Rate Energy Rate Technical Input Other Total Changes Current Estimate BY 2012 $M Change Explanations 620805.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 620805.4 Disposal Estimate Details Date of Estimate: Source of Estimate: Disposal/Demilitarization Total Cost (BY 2012 $M): Program maturity is not at a point where disposal costs can be estimated within an acceptable margin of error. UNCLASSIFIED 98 UNCLASSIFIED F-35 December 2016 SAR F-35 Engine Cost Estimate Details Date of Estimate: Source of Estimate: Quantity to Sustain: Unit of Measure: Service Life per Unit: Fiscal Years in Service: O&S costs for the engine subprogram are included in the overall program costs that are shown in the F-35 Aircraft subprogram. Sustainment Strategy . Antecedent Information . Annual O&S Costs BY2012 $K Cost Element F-35 Engine Unit-Level Manpower Unit Operations Maintenance Sustaining Support Continuing System Improvements Indirect Support Other Total No Antecedent (Antecedent) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 -- 0.000 0.000 0.000 0.000 0.000 0.000 0.000 -- Total O&S Cost $M F-35 Engine Item Current Development APB Objective/Threshold No Antecedent (Antecedent) Current Estimate Base Year N/A N/A N/A N/A Then Year N/A N/A N/A 0.0 O&S Cost Variance Category Prior SAR Total O&S Estimates - Dec 2015 SAR BY 2012 $M Change Explanations 0.0 UNCLASSIFIED 99 UNCLASSIFIED F-35 Programmatic/Planning Factors Cost Estimating Methodology Cost Data Update Labor Rate Energy Rate Technical Input Other Total Changes Current Estimate December 2016 SAR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Disposal Estimate Details Date of Estimate: Source of Estimate: Disposal/Demilitarization Total Cost (BY 2012 $M): UNCLASSIFIED 100