Inc3 2FY18

UNCLASSIFIED//FOR OFFICIAL USE ONLY
Selected Acquisition Report (SAR)
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RCS: DD-A&T(Q&A)823-474
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F-22 Increment 3.2B Modernization (F-22 Inc 3.2B Mod)

As of FY 2018 President's Budget
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Defense Acquisition Management

Information Retrieval
(DAMIR)
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This document contains information that may be exempt from mandatory

disclosure under the FOIA.

F-22 Inc 3.2B Mod December 2016 SAR
Table of Contents
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(U//FOUO) Sensitivity Originator 3
Common Acronyms and Abbreviations for MDAP Programs 4
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Program Information 6
Responsible Office 6
References 7
Mission and Description 8
Executive Summary 9
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Threshold Breaches 11
Schedule 12
Performance 13
Track to Budget 14
Cost and Funding 15
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Cost and Funding 17
Low Rate Initial Production 23
Foreign Military Sales 24
Nuclear Costs 24
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Unit Cost 25
Cost Variance 28
Contracts 31
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Deliveries and Expenditures 35

Operating and Support Cost 36
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June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 2

(U//FOUO) Sensitivity Originator
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Name: Jerry T. Slaughter, NH-04, USAF
Email: jerry.slaughter.1@us.af.mil
Phone: 937-656-5238
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Organization: AFLCMC/WWU, F-22 Program Office
The Aggregate Report Sensitivity has been defined as (U//FOUO) with the following explanation: Technical risks are treated
as FOUO
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Common Acronyms and Abbreviations for MDAP Programs
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Acq O&M - Acquisition-Related Operations and Maintenance
ACAT - Acquisition Category
ADM - Acquisition Decision Memorandum
APB - Acquisition Program Baseline
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APPN - Appropriation
APUC - Average Procurement Unit Cost
$B - Billions of Dollars
BA - Budget Authority/Budget Activity
Blk - Block
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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
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CY - Calendar Year
DAB - Defense Acquisition Board
DAE - Defense Acquisition Executive
DAMIR - Defense Acquisition Management Information Retrieval
DoD - Department of Defense
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DSN - Defense Switched Network
EMD - Engineering and Manufacturing Development
EVM - Earned Value Management
FOC - Full Operational Capability
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FMS - Foreign Military Sales

FRP - Full Rate Production
FY - Fiscal Year
FYDP - Future Years Defense Program
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ICE - Independent Cost Estimate

IOC - Initial Operational Capability
Inc - Increment
JROC - Joint Requirements Oversight Council
$K - Thousands of Dollars
KPP - Key Performance Parameter
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LRIP - Low Rate Initial Production

$M - Millions of Dollars
MDA - Milestone Decision Authority
MDAP - Major Defense Acquisition Program
MILCON - Military Construction
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N/A - Not Applicable

O&M - Operations and Maintenance
ORD - Operational Requirements Document
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OSD - Office of the Secretary of Defense

O&S - Operating and Support
PAUC - Program Acquisition Unit Cost

PB - Presidents Budget
PE - Program Element
PEO - Program Executive Officer
PM - Program Manager
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POE - Program Office Estimate
RDT&E - Research, Development, Test, and Evaluation
SAR - Selected Acquisition Report
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SCP - Service Cost Position
TBD - To Be Determined
TY - Then Year
UCR - Unit Cost Reporting
U.S. - United States
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USD(AT&L) - Under Secretary of Defense (Acquisition, Technology and Logistics)
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Program Information
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Program Name
F-22 Increment 3.2B Modernization (F-22 Inc 3.2B Mod)
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DoD Component
Air Force
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Responsible Office
Col Anthony Genatempo Phone: 937-713-7001

2725 C Street Fax: 937-656-7511
Building 553
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Wright-Patterson Air Force Base, OH 45433 DSN Phone: 713-7001
DSN Fax: 986-7511
Date Assigned: July 19, 2014
anthony.genatempo@us.af.mil
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References
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SAR Baseline (Development Estimate)
Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated June 24, 2013
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Approved APB
Component Acquisition Executive (CAE) Approved Acquisition Program Baseline (APB) dated March 11, 2017
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Mission and Description
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The F-22s combination of stealth, supercruise, maneuverability, Intra-Flight Data Link (IFDL), sensor fusion coupled with
improved supportability provides an exponential leap in warfighting capabilities and allows full realization of operational
concepts vital to the 21st Century Air Force and joint warfighting anti-access area denial environment. As a critical
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component of the Global Strike Concept of Operations, the F-22 provides unmatched air-to-air and air-to-ground
capabilities.
F-22 Increment 3.2B Modernization (F-22 Inc 3.2B Mod) integrates the Air Intercept Missiles (AIM) AIM-9X and AIM-120D into
the F-22, adds Electronic Protection techniques, incorporates new hardware, enhances Geolocate capability, and expands
IFDL functionality.
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Executive Summary
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Program Highlights Since Last Report
The EMD effort is progressing and has resolved prior technical issues with displays and weapon bay door operations. Full
hardware qualification is complete. Developmental software coding is complete with minor clean-up activities on-going. All
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hardware modifications have completed on the three Developmental Test aircraft and the six Operational Test aircraft. The
last Operational Test aircraft completed modification in December 2016. Laboratory and flight tests are proceeding on
production representative hardware and with production software.
Significant Accomplishments:
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During development flight test in late CY 2015, significant display blanking and weapon bay door anomalies were
discovered. Government / industry team root cause analysis attributed these problems to software issues, and by the end
of summer 2016 the team completed corrective actions for both anomalies. The corrective actions for both the display and
weapon bay door anomalies successfully completed developmental flight testing in March 2017, and the associated watch
items and deficiency report are closed. Display stability is now better than fleet average.
Two successful Air Intercept Missile (AIM)-9X Block II Live Fire shots were completed on November 1 and 22, 2016 and a
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successful AIM-120D Live Fire Shot on February 8, 2017. The Capstone Live Fire event was successfully accomplished
with simultaneous AIM-9X and AIM-120D shots on April 19, 2017.
The production Operational Flight Program (OFP) was released for flight test on March 15, 2017. A final clean-up OFP is
currently in-work with a June 20, 2017 release to flight test in support of Initial Operational Test and Evaluation scheduled to
begin August 14, 2017.
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The Low Rate Initial Production I and II contracts were awarded February 28, 2017. The advance procurement option for
FRP was awarded March 28, 2017.
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Milestone C was briefed and approved by the Service Acquisition Executive on August 2, 2016. The program is on track for
a FRP decision review in July 2018.
There are no significant software-related issues with the program at this time.
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History of Significant Developments Since Program Initiation
History of Significant Developments Since Program Initiation
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Date Significant Development Description
December 2011 USD(AT&L) approved the Material Development Decision and designated F-22 Increment 3.2B
Modernization as a pre-MDAP for entry into the acquisition management system at Milestone B as
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an ACAT 1D program.
December 2012 USD(AT&L) approves the F-22 Increment 3.2B Modernization Acquisition Strategy.
June 2013 USD(AT&L) approves the Milestone B Decision and entry into EMD as an ACAT 1D program.
June 2013 The F-22 Program Office awarded the F-22 Increment 3.2B Modernization EMD contract.
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October 2014 F-22 Increment 3.2B Modernization Developmental Test and Evaluation flight testing began.
April 2015 USD(AT&L) delegated F-22 Increment 3.2B Modernization to the Secretary of the Air Force and
designated the program as ACAT IC.
July 2015 The F-22 Program Office awarded the LRIP Advance Procurement Contract.
1st Quarter FY 2016 Air Force Operational Test and Evaluation Center conducted an Operational Assessment for F-22
Increment 3.2B Modernization.
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September 2016 The SAE approved the F-22 Increment 3.2B Modernization Milestone C Decision and entry into the
Production and Deployment Phase.
December 2016 Modifications for the 9 aircraft needed to support Initial Operational Test and Evaluation completed.
February 2017 The F-22 Program Office awarded the LRIP I and II contracts.
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March 2017 The SAE approved F-22 Increment 3.2B Modernization Milestone C APB.
April 2017 The Capstone Live Fire Event was successfully accomplished.
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Threshold Breaches
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APB Breaches
Schedule
Performance
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Cost RDT&E
Procurement
MILCON
Acq O&M
O&S Cost
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Unit Cost PAUC
APUC
Nunn-McCurdy Breaches
Current UCR Baseline
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PAUC None
APUC None
Original UCR Baseline
PAUC None
APUC None
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Schedule
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Schedule Events
SAR Baseline Current APB
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Current
Events Development Production
Estimate
Estimate Objective/Threshold
Materiel Development Decision Dec 2011 Dec 2011 Dec 2011 Dec 2011
Milestone B Mar 2013 Jun 2013 Jun 2013 Jun 2013
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Milestone C Mar 2016 Aug 2016 Aug 2016 Jun 2016
Full Rate Production Jan 2018 Jul 2018 Jan 2019 Jul 2018
Required Assets Available (RAA) Mar 2019 Mar 2019 Sep 2019 Jul 2019 (Ch-1)
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Change Explanations
(Ch-1) The RAA current estimate changed from September 2019 to July 2019 due to schedule refinement as a result of
LRIP contract award in February 2017.
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Notes
RAA is defined as six aircraft and associated support equipment.
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Performance
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Performance Characteristics
SAR Baseline Current APB
Demonstrated Current
Development Production
Performance Estimate
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Estimate Objective/Threshold
Materiel Availability (Am)
Do not degrade aircraft Do not degrade aircraft (T=O) Do not degrade TBD Do not degrade aircraft
Am below current Am below current aircraft Am below Am below current
baseline performance. baseline performance. current baseline baseline performance.
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Baseline performance Baseline performance performance. Baseline Baseline performance
KPP: By the end of: FY KPP: By the end of: FY performance KPP: By KPP: By the end of: FY
2011: 61.2% FY 2012: 2011: 61.2% FY 2012: the end of: FY 2011: 2011: 61.2% FY 2012:
62.6% FY 2013: 65.8% 62.6% FY 2013: 65.8% 61.2% FY 2012: 62.6% 62.6% FY 2013: 65.8%
FY 2014: 67.6% FY FY 2014: 67.6% FY FY 2013: 65.8% FY FY 2014: 67.6% FY
2015: 70.6% 2015: 70.6% 2014: 67.6% FY 2015: 2015: 70.6%
70.6%
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Reliability, MTBCF
Do not degrade aircraft Do not degrade aircraft (T=O) Do not degrade TBD Do not degrade aircraft
MTBCF below current MTBCF below current aircraft MTBCF below MTBCF below current
baseline performance. baseline performance. current baseline baseline performance.
performance.
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Weapons Integration
The F-22A shall be The F-22A shall be (T=O) The F-22A shall TBD The F-22A shall be
modified as required to modified as required to be modified as required modified as required to
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enable employment of enable employment of to enable employment enable employment of

the AIM-120D and the the AIM-120D and the of the AIM-120D and the the AIM-120D and the
AIM-9X Block II. AIM-9X Block II. AIM-9X Block II. AIM-9X Block II.
Classified Performance information is provided in the classified annex to this submission.

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Requirements Reference
CPD, dated January 4, 2007, as modified by JROC Memorandum 052-11 dated April 19, 2011
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Change Explanations
None
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Acronyms and Abbreviations

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AIM - Air Intercept Missile

Am - Materiel Availability
MTBCF - Mean Time Between Critical Failure

Track to Budget
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RDT&E
Appn BA PE
Air Force 3600 07 0207138F
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Project Name
674785 F-22 (Shared) (Sunk)
Air Force 3600 07 0207163F
Project Name
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673777 AIM-120D (Shared) (Sunk)
Air Force 3600 05 0605213F
Project Name
654785 F-22 Increment 3.2B (Shared)
Procurement
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Appn BA PE
Air Force 3010 06 0207138F
Line Item Name
000999 Initial Spares/Repair Parts (Shared)
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Air Force 3010 05 0207138F
Line Item Name
F2232B Increment 3.2B
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F2232B Advance Procurement (Sunk)

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Cost and Funding
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Cost Summary
Total Acquisition Cost
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BY 2016 $M BY 2016 $M TY $M
Appropriation SAR Baseline Current APB SAR Baseline Current APB

Current Current
Development Production Development Production
Estimate Estimate
Estimate Objective/Threshold Estimate Objective
RDT&E 1254.2 1181.2 1299.3 1172.2 1207.3 1139.7 1133.9
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Procurement 353.7 301.6 331.8 301.9 376.8 321.2 331.4
Flyaway -- -- -- 281.8 -- -- 309.2
Recurring -- -- -- 281.8 -- -- 309.2
Non Recurring -- -- -- 0.0 -- -- 0.0
Support -- -- -- 20.1 -- -- 22.2
Other Support -- -- -- 6.6 -- -- 7.3
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Initial Spares -- -- -- 13.5 -- -- 14.9
MILCON 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Acq O&M 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 1607.9 1482.8 N/A 1474.1 1584.1 1460.9 1465.3
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Current APB Cost Estimate Reference
F-22 Increment 3.2B SCP signed by SAF/FMC, dated July 29, 2016
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The Base Year for the program has been updated from FY 2013 to FY 2016 using the following deflators:
Appn Category Deflation Factor
RDT&E 1.04569696
Procurement 1.04569696
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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
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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.
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Total Quantity
SAR Baseline
Current APB
Quantity Development Current Estimate
Production
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Estimate
RDT&E 9 9 9
Procurement 143 143 143
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Total 152 152 152
Quantity Notes
The unit of measure is modified aircraft.
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Cost and Funding
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Funding Summary
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Appropriation Summary
FY 2018 President's Budget / December 2016 SAR (TY$ M)
To
Appropriation Prior FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total
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Complete
RDT&E 1050.0 70.3 13.6 0.0 0.0 0.0 0.0 0.0 1133.9
Procurement 95.6 82.8 113.5 13.1 20.4 6.0 0.0 0.0 331.4
MILCON 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Acq O&M 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
PB 2018 Total 1145.6 153.1 127.1 13.1 20.4 6.0 0.0 0.0 1465.3
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PB 2017 Total 1183.9 153.1 151.4 13.1 20.4 20.7 0.0 0.0 1542.6
Delta -38.3 0.0 -24.3 0.0 0.0 -14.7 0.0 0.0 -77.3
Quantity Summary
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FY 2018 President's Budget / December 2016 SAR (TY$ M)
FY FY FY FY FY FY To
Quantity Undistributed Prior Total
2017 2018 2019 2020 2021 2022 Complete
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Development 9 0 0 0 0 0 0 0 0 9
Production 0 35 36 72 0 0 0 0 0 143
PB 2018 Total 9 35 36 72 0 0 0 0 0 152
PB 2017 Total 9 35 36 72 0 0 0 0 0 152
Delta 0 0 0 0 0 0 0 0 0 0
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Cost and Funding
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Annual Funding By Appropriation
Annual Funding
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3600 | RDT&E | Research, Development, Test, and Evaluation, Air Force
TY $M
Fiscal Non End

Quantity End Item Non
Year Item Total Total Total
Recurring Recurring
Recurring Flyaway Support Program
Flyaway Flyaway
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Flyaway
2004 -- -- -- -- -- -- 6.4
2005 -- -- -- -- -- -- --
2006 -- -- -- -- -- -- 16.5
2007 -- -- -- -- -- -- 33.0
2008 -- -- -- -- -- -- 31.4
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2009 -- -- -- -- -- -- 40.8
2010 -- -- -- -- -- -- 131.0
2011 -- -- -- -- -- -- 129.5
2012 -- -- -- -- -- -- 127.5
2013 -- -- -- -- -- -- 129.0
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2014 -- -- -- -- -- -- 109.1
2015 -- -- -- -- -- -- 180.2
2016 -- -- -- -- -- -- 115.6
2017 -- -- -- -- -- -- 70.3
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2018 -- -- -- -- -- -- 13.6
Subtotal 9 -- -- -- -- -- 1133.9
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Annual Funding
3600 | RDT&E | Research, Development, Test, and Evaluation, Air Force
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BY 2016 $M
Fiscal Non End

Recurring Recurring
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Flyaway Flyaway
Flyaway
2004 -- -- -- -- -- -- 7.9
2005 -- -- -- -- -- -- --
2006 -- -- -- -- -- -- 19.2
2007 -- -- -- -- -- -- 37.4
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2008 -- -- -- -- -- -- 34.9
2009 -- -- -- -- -- -- 44.7
2010 -- -- -- -- -- -- 141.7
2011 -- -- -- -- -- -- 137.6
2012 -- -- -- -- -- -- 133.1
2013 -- -- -- -- -- -- 132.4
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2014 -- -- -- -- -- -- 110.5
2015 -- -- -- -- -- -- 180.7
2016 -- -- -- -- -- -- 114.2
2017 -- -- -- -- -- -- 65.5
2018 -- -- -- -- -- -- 12.4
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Subtotal 9 -- -- -- -- -- 1172.2
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Annual Funding
3010 | Procurement | Aircraft Procurement, Air Force
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TY $M
Fiscal Non End

Recurring Recurring
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Flyaway Flyaway
Flyaway
2015 -- 28.5 -- -- 28.5 -- 28.5
2016 35 62.1 -- -- 62.1 5.0 67.1
2017 36 76.8 -- -- 76.8 6.0 82.8
2018 72 102.8 -- -- 102.8 10.7 113.5
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2019 -- 13.0 -- -- 13.0 0.1 13.1
2020 -- 20.0 -- -- 20.0 0.4 20.4
2021 -- 6.0 -- -- 6.0 -- 6.0
Subtotal 143 309.2 -- -- 309.2 22.2 331.4
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Annual Funding
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BY 2016 $M
Fiscal Non End

Recurring Recurring
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Flyaway Flyaway
Flyaway
2015 -- 27.9 -- -- 27.9 -- 27.9
2016 35 59.6 -- -- 59.6 4.8 64.4
2017 36 69.6 -- -- 69.6 5.4 75.0
2018 72 91.3 -- -- 91.3 9.5 100.8
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2019 -- 11.3 -- -- 11.3 0.1 11.4
2020 -- 17.1 -- -- 17.1 0.3 17.4
2021 -- 5.0 -- -- 5.0 -- 5.0
Subtotal 143 281.8 -- -- 281.8 20.1 301.9
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Cost Quantity Information

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End Item
Recurring
Fiscal Flyaway
Quantity
Year (Aligned With
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Quantity)
BY 2016 $M
2015 -- --
2016 35 69.0
2017 36 70.9
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2018 72 141.9
2019 -- --
2020 -- --
2021 -- --
Subtotal 143 281.8
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Low Rate Initial Production
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Item Initial LRIP Decision Current Total LRIP
Approval Date 6/26/2013 6/26/2013
Approved Quantity 71 71
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Reference Milestone B ADM Milestone B ADM
Start Year 2016 2016
End Year 2017 2017
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The Current Total LRIP Quantity is more than 10% of the total production quantity due to an opportunity to capture economic
order quantity efficiencies. This strategy was approved as part of the Milestone B review.
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Foreign Military Sales
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None
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Nuclear Costs
None
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Unit Cost
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Current UCR Baseline and Current Estimate (Base-Year Dollars)
BY 2016 $M BY 2016 $M
Item Current UCR % Change

Current Estimate
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Baseline
(Dec 2016 SAR)
(Mar 2017 APB)
Program Acquisition Unit Cost
Cost 1482.8 1474.1
Quantity 152 152
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Unit Cost 9.755 9.698 -0.58
Average Procurement Unit Cost
Cost 301.6 301.9
Quantity 143 143
Unit Cost 2.109 2.111 +0.09
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Original UCR Baseline and Current Estimate (Base-Year Dollars)
BY 2016 $M BY 2016 $M
Item Original UCR % Change

Current Estimate
Baseline
(Dec 2016 SAR)
(Jun 2013 APB)
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Program Acquisition Unit Cost
Cost 1607.9 1474.1
Quantity 152 152
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Unit Cost 10.578 9.698 -8.32

Average Procurement Unit Cost
Cost 353.7 301.9
Quantity 143 143
Unit Cost 2.473 2.111 -14.64
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APB Unit Cost History
BY 2016 $M TY $M
Item Date
PAUC APUC PAUC APUC
Original APB Jun 2013 10.651 2.490 10.422 2.635
APB as of January 2006 N/A N/A N/A N/A N/A
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Revised Original APB N/A N/A N/A N/A N/A
Prior APB Jun 2013 10.651 2.490 10.422 2.635
Current APB Mar 2017 9.755 2.109 9.611 2.246
Prior Annual SAR Dec 2015 10.401 2.543 10.149 2.685
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Current Estimate Dec 2016 9.698 2.111 9.640 2.317

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SAR Unit Cost History
Current SAR Baseline to Current Estimate (TY $M)

PAUC Changes PAUC
Development Current
Estimate Econ Qty Sch Eng Est Oth Spt Total Estimate
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10.422 0.136 0.000 0.000 0.000 -0.908 0.000 -0.010 -0.782 9.640
Current SAR Baseline to Current Estimate (TY $M)

Initial APUC Changes APUC
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Development Current
Estimate Econ Qty Sch Eng Est Oth Spt Total Estimate
2.635 0.094 0.000 0.000 0.000 -0.401 0.000 -0.010 -0.317 2.317
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SAR Baseline History

SAR SAR SAR
Current
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Item Planning Development Production
Estimate
Estimate Estimate Estimate
Milestone A N/A N/A N/A N/A
Milestone B N/A Mar 2013 N/A Jun 2013
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Milestone C N/A Mar 2016 N/A Jun 2016
RAA N/A Mar 2019 N/A Jul 2019
Total Cost (TY $M) N/A 1584.1 N/A 1465.3
Total Quantity N/A 152 N/A 152
PAUC N/A 10.422 N/A 9.640
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Cost Variance
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Summary TY $M
Item RDT&E Procurement MILCON Total
SAR Baseline (Development 1207.3 376.8 -- 1584.1
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Estimate)
Previous Changes
Economic -4.0 -1.5 -- -5.5
Quantity -- -- -- --
Schedule -- -- -- --
Engineering -- -- -- --
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Estimating -44.7 +9.4 -- -35.3
Other -- -- -- --
Support -- -0.7 -- -0.7
Subtotal -48.7 +7.2 -- -41.5
Current Changes
Economic +11.3 +14.9 -- +26.2
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Estimating -36.0 -66.7 -- -102.7
Other -- -- -- --
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Support -- -0.8 -- -0.8
Subtotal -24.7 -52.6 -- -77.3
Adjustments -- -- -- --
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Total Changes -73.4 -45.4 -- -118.8

CE - Cost Variance 1133.9 331.4 -- 1465.3
CE - Cost & Funding 1133.9 331.4 -- 1465.3
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Summary BY 2016 $M
Item RDT&E Procurement MILCON Total
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SAR Baseline (Development 1254.2 353.7 -- 1607.9
Estimate)
Previous Changes
Economic -- -- -- --
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Estimating -45.2 +7.7 -- -37.5
Other -- -- -- --
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Support -- -0.3 -- -0.3
Subtotal -45.2 +7.4 -- -37.8
Current Changes
Economic -- -- -- --
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Estimating -36.8 -58.3 -- -95.1
Other -- -- -- --
Support -- -0.9 -- -0.9
Subtotal -36.8 -59.2 -- -96.0
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Adjustments -- -- -- --
Total Changes -82.0 -51.8 -- -133.8
CE - Cost Variance 1172.2 301.9 -- 1474.1
CE - Cost & Funding 1172.2 301.9 -- 1474.1
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Previous Estimate: December 2015

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RDT&E $M
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Base Then
Current Change Explanations
Year Year
Revised escalation indices. (Economic) N/A +11.3
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Revised estimate to align to the Milestone C SCP dated August 2016 which decreased the -19.8 -18.9
estimate from the Milestone B SCP due to unrealized test risk. (Estimating)
Adjustment for current and prior escalation. (Estimating) -11.3 -11.3
Revised estimate due to the inadvertent addition of funding in FY 2016. (Estimating) -5.7 -5.8
RDT&E Subtotal -36.8 -24.7
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Procurement $M
Base Then
Current Change Explanations
Year Year
Revised escalation indices. (Economic) N/A +14.9
Revised estimate to align to the Milestone C SCP dated August 2016 which decreased the -54.3 -62.3
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estimate from the Milestone B SCP due to unrealized program risk. (Estimating)
Adjustment for current and prior escalation. (Estimating) -4.0 -4.4
Adjustment for current and prior escalation. (Support) -0.3 -0.3
Decrease in Other Support due to application of new outyear inflation indices. (Support) -0.2 -0.1
Decrease in Initial Spares due to application of new outyear inflation indices. (Support) -0.4 -0.4
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Procurement Subtotal -59.2 -52.6
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Contracts
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Contract Identification
Appropriation: RDT&E
Contract Name: F-22 Mod, DO 0004 REDI II, Incr 3.2B Ph C&D
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Contractor: Lockheed Martin Aeronautics
Contractor Location: 1 Lockheed Blvd
Ft. Worth, TX 76108-3619
Contract Number: FA8611-13-D-2850/3
Contract Type: Cost Plus Incentive Fee (CPIF), Cost Plus Fixed Fee (CPFF)
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Award Date: June 26, 2013
Definitization Date: June 26, 2013
Contract Price
Initial Contract Price ($M) Current Contract Price ($M) Estimated Price At Completion ($M)
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Target Ceiling Qty Target Ceiling Qty Contractor Program Manager
328.8 N/A 9 344.9 N/A 9 290.3 328.9
Target Price Change Explanation

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The difference between the Initial Contract Price Target and the Current Contract Price Target is due to the addition of one
Engineering Change Proposal (ECP) and four Contract Change Proposals (CCPs) in CY 2016:
Contract Modification 000412 added ECP 0661 - Addition of 7th Dual Computing Engine (DuCE) and Global Inertial
Navigation System (GINS) 09 to Increment 3.2B; as a result, the Delivery Order (DO) 0004 price increased by $.9M.
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Contract Modification 000417 added CCP 438 - Credit for stop work of maintenance training courseware activities; as a
result, the DO 0004 price decreased by $.3M.
Contract Modification 000419 added CCP 0452 - Partial stop work and addition of new work due to Air Force Operational
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Test and Evaluation Center (AFOTEC) providing new threat model requirements beyond the scope of DO 0004 and deleted
threat model requirements previously identified; as a result, the DO 0004 price increased by $3.1M.
Contract Modification 000432 increases the price of CLIN 0201 by $12.4M.
The total net value of DO 0004 contract changes in CY2016 amount to $16.1M.
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Contract Variance
Item Cost Variance Schedule Variance
Cumulative Variances To Date (2/28/2017) -27.1 -3.1
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Previous Cumulative Variances -3.6 -4.3

Net Change -23.5 +1.2
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Cost and Schedule Variance Explanations

The unfavorable net change in the cost variance is due to a pending upward target cost adjustment as a result of the
resolution of Request for Equitable Adjustment for late Government Furnished Equipment and additional costs for the Air
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Combat Simulator threat data base. The value is still to be negotiated.
The favorable net change in the schedule variance is due to the pending target cost adjustment to reflect the new Budget at
Completion.
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Appropriation: RDT&E
Contract Name: D.O. 009 Test Execution CLIN 0301
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Contractor: Lockheed Martin (Aeronautics)
Ft. Worth, TX 76108-3619
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Contract Type: Cost Plus Fixed Fee (CPFF)
Award Date: January 01, 2015
Definitization Date: January 01, 2015
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Contract Price
54.6 N/A N/A 57.1 N/A N/A 54.6 54.6
ide
The difference between the Initial Contract Price Target and the Current Contract Price Target is due to Modification 25
increasing the ceiling of CLIN 0301 in the amount of $2.5M.
Contract Variance
ns
Item Cost Variance Schedule Variance
Cumulative Variances To Date (12/27/2015) +2.2 -0.5
Previous Cumulative Variances +2.2 -0.5
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Net Change +0.0 +0.0

None
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Notes
This effort is for 3.2B System Integration and Test efforts only; there are no quantities to be delivered
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This contract is more than 90% complete; therefore, this is the final report for this contract.
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Appropriation: Procurement
Contract Name: Increment 3.2B Production
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Contractor: Lockheed Martin Corporation
Fort Worth, TX 76108-3619
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Contract Type: Firm Fixed Price (FFP)
Award Date: July 22, 2015
Definitization Date: July 22, 2015
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Contract Price
20.4 N/A 0 145.7 N/A 71 145.7 145.7
ide
The difference between the Initial Contract Price Target and the Current Contract Price Target is due to to multiple
modifications for Advance Procurement for EMD, Diminishing Manufacturing Sources, and Processor Interface Control and
Communication 3 for $7.6M, the awards on February 28, 2017 of 3.2B Production and Deployment LRIPs I and II in the
amount of $114.3M, and the award on March 28, 2017 of Advance Procurement for Production in the amount of $3.4M.
ns
Cost and Schedule Variance reporting is not required on this (FFP) contract.
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Notes
This is the first time this contract is being reported.
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Deliveries and Expenditures
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Deliveries
Percent
Delivered to Date Planned to Date Actual to Date Total Quantity
Delivered
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Development 9 9 9 100.00%
Production 0 0 143 0.00%
Total Program Quantity Delivered 9 9 152 5.92%
Expended and Appropriated (TY $M)
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Total Acquisition Cost 1465.3 Years Appropriated 14
Expended to Date 1073.5 Percent Years Appropriated 77.78%
Percent Expended 73.26% Appropriated to Date 1298.7
Total Funding Years 18 Percent Appropriated 88.63%
The above data is current as of May 23, 2017.
ide
Total funding years reflect development executed in support of the F-22 Inc 3.2B Mod program. Beginning in FY 2011 the
program was rescoped into smaller increments of capability (e.g. 3.2A, 3.2B) to adjust to financial constraints, facilitate
improved baseline control/management, and meet capability delivery needs. F-22 Inc 3.2B Mod officially started in FY 2013
with approval of Milestone B.
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LRIP I deliveries are expected to begin in April 2019.
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Operating and Support Cost
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Cost Estimate Details
Date of Estimate: July 29, 2016
Source of Estimate: SCP
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Quantity to Sustain: 149
Unit of Measure: Modified Aircraft
Service Life per Unit: 33.00 Years
Fiscal Years in Service: FY 2018 - FY 2051
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The F-22 Inc 3.2B Mod is a capability upgrade modification program. The program will modify 152 F-22A aircraft (9
RDT&E and 143 Procurement). Of the 152 aircraft, 3 are development test assets, and 149 will be sustained with O&S
funds.
Sustainment Strategy
Given the low hardware risk of the F-22 Inc 3.2B Mod upgrade, sustainment requirements will be managed within the
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baseline F-22 sustainment concept with minimal impact on O&S cost estimates or achievement of materiel availability
goals. The F-22 sustainment strategy is to sustain F-22 readiness and availability at the lowest cost over the life of the
weapon system. The F-22 sustainment strategy employs Performance-Based Logistics contracts with Public/Private
Partnering for depot repair capabilities to meet Air Force Core requirements.
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Antecedent Information
No Antecedent
Annual O&S Costs BY2016 $K

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F-22 Inc 3.2B Mod

Cost Element Average Annual Cost Per Modified No Antecedent (Antecedent)
Aircraft
Unit-Level Manpower 0.000 0.000
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Unit Operations 0.000 0.000

Maintenance 7.100 0.000
Sustaining Support 0.000 0.000
Continuing System Improvements 26.400 0.000
Indirect Support 0.000 0.000
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Other 0.000 0.000

Total 33.500 --
Average Primary Aircraft Assigned (PAA): 163 (entire F-22 fleet)

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Total O&S Cost $M

F-22 Inc 3.2B Mod
Item
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No Antecedent
Current Production APB (Antecedent)
Current Estimate
Objective/Threshold
Base Year 180.0 198.0 180.0 N/A
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Then Year 260.9 N/A 0.0 N/A
The F-22 Inc 3.2B Mod O&S costs will not be tracked separately as directed by the June 26, 2013 ADM.
F-22A Modernization Increment 3.2B O&S cost estimate from the Milestone C SCP is $180M (BY 2016), $260.9M (TY).
The total life cycle cost estimate for the F-22A system is $96.3B (BY 2016$). The service life of the F-22 system was
increased from 15 years to 33 years per modified aircraft.
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The Air Force expects F-22 Inc 3.2B Mod O&S costs to be budgeted in the baseline F-22 PE (27138F) and expended
along with baseline program O&S funds, so the PAA value used in the calculation includes all F-22s, not just the aircraft
receiving the Inc 3.2B modification.
Costs are applied for the years 2018 (1st modified aircraft is fielded) through 2051 (33 years).
Equation to Translate Annual Cost to Total Cost

ide
ns
Unitized cost estimate is calculated:
Total O&S / estimated service life / Average PAA; ($180.0M/33/163) = $33.5K
The average annual cost per modified aircraft represents the additional O&S cost of the 149 modified aircraft spread over
the entire fleet of F-22 aircraft (163 PAA). This is necessary since the modified aircraft will be reported as part of the
overall F-22 baseline program.
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O&S Cost Variance

BY 2016
Category Change Explanations
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$M
Prior SAR Total O&S Estimates - Dec 80.9
2015 SAR
Programmatic/Planning Factors 99.1 The service life of the F-22A system was increased from
15 years to 33 years per modified aircraft.
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Cost Estimating Methodology 0.0

Cost Data Update 0.0
Labor Rate 0.0
Energy Rate 0.0
Technical Input 0.0
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Other 0.0
Total Changes 99.1
Current Estimate 180.0
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Disposal Estimate Details

Date of Estimate:
Source of Estimate:
Disposal/Demilitarization Total Cost (BY 2016 $M):
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Disposal costs for this modification are included in the F-22 platform.
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UNCLASSIFIED//FOR OFFICIAL USE ONLY

Selected Acquisition Report (SAR)

F-22 Increment 3.2B Modernization (F-22 Inc 3.2B Mod)

Defense Acquisition Management

This document contains information that may be exempt from mandatory

UNCLASSIFIED//FOR OFFICIAL USE ONLY

Deliveries and Expenditures 35

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 2

(U//FOUO) Sensitivity Originator

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 3

Common Acronyms and Abbreviations for MDAP Programs

FMS - Foreign Military Sales

ICE - Independent Cost Estimate

LRIP - Low Rate Initial Production

N/A - Not Applicable

OSD - Office of the Secretary of Defense

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 4

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 5

Col Anthony Genatempo Phone: 937-713-7001

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 6

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 7

Mission and Description

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 8

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 9

History of Significant Developments Since Program Initiation

History of Significant Developments Since Program Initiation

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 10

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 11

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 12

enable employment of enable employment of to enable employment enable employment of

Classified Performance information is provided in the classified annex to this submission.

Acronyms and Abbreviations

AIM - Air Intercept Missile

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 13

F2232B Advance Procurement (Sunk)

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 14

Cost and Funding

Total Acquisition Cost

Appropriation SAR Baseline Current APB SAR Baseline Current APB

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 15

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 16

Cost and Funding

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 17

Cost and Funding

Fiscal Non End

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 18

Fiscal Non End

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 19

Fiscal Non End

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 20

Fiscal Non End

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 21

Cost Quantity Information

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 22

Low Rate Initial Production

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 23

Foreign Military Sales

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 24

Item Current UCR % Change

Item Original UCR % Change

Unit Cost 10.578 9.698 -8.32

June 21, 2017 14:29:16 UNCLASSIFIED//FOR OFFICIAL USE ONLY 25

Current Estimate Dec 2016 9.698 2.111 9.640 2.317