Lockheed Martin Defends Joint Common Missile Program Amid Cuts Concerns

Lockheed Martin is fighting to preserve the Joint Common Missile (JCM) program, a potential $5 billion project that could provide a replacement for the Hellfire II, Longbow, and Maverick missiles. Despite efforts to save the program, Congress's proposed cuts have raised concerns about cost and schedule. Rick Edwards, Lockheed Martin director for Tactical Missiles, stated that the program is meeting its cost, schedule, and technical milestones.

Key Takeaways:

• The Joint Common Missile program has received no official termination notice and continues work despite the proposed cuts.
• Lockheed Martin received an initial $53 million system development and demonstration (SDD) contract, with a total program cost of approximately $5 billion.
• The Pentagon targeted JCM for cuts in a December DoD program budget decision (PBD), aiming to garner $30 billion for the department.
• The Alabama and Florida congressional delegations have written to Deputy Defense Secretary Paul Wolfowitz, opposing the termination of the future beyond line-of-sight missile.
• JCM is the first program to go through the joint capability integration and development process (JCIDS), which validated the need for the program to meet eight critical gaps.
• The United Kingdom has a memorandum of agreement on the program, involving low-level funding and some representation, with a potential entry into the U.K. market.
• Lockheed Martin estimates that the program would take seven years, but the company's SDD contract is for four years, with technology demonstration programs funded by the Army and Navy.
• The SDD contract is priced at fixed costs for the first two low-rate initial production builds, with the average unit production cost expected to be less than $80,000.
• The program is currently under contract with FY '05 money, with the completion of the Phase 1 risk reduction program scheduled for June.
• The company's master plan includes 2,000 milestones, with 1,500 completed as of the end of February.

Statistics:

• $53 million: The initial SDD contract award to Lockheed Martin.
• $5 billion: The total program cost of the Joint Common Missile project.
• $30 billion: The amount of funding proposed to be cut from the defense budget.
• $200,000+: The estimated cost per missile, which Edwards stated is a misconception.
• $120,000: The price per missile for the first low-rate initial production build.
• $94,000: The price per missile for the second low-rate initial production build.
• $80,000: The estimated average unit production cost for the program.
• 1,500: The number of milestones completed by Lockheed Martin as of the end of February.
• 2,000: The total number of milestones in the company's master plan.

Sources:

• Defense Daily, May 5, 6
• Defense Daily, Jan. 4
• Defense Daily, March 7
• [Copyright 2005 Access Intelligence, LLC. All rights reserved.]