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Release No: 186-95
April 07, 1995


The Department of Defense's Advanced Research Projects Agency (ARPA) announced today that four industry teams have been selected for the Affordable Multi-Missile Manufacturing Program (AM3). Awards totaling $32 million will be negotiated with the four teams. The teams selected are:

. Loral Vought Systems, Dallas, Texas (lead), with Loral Aeronautronic, Rancho Santa Margarita, Calif.; McDonnell Douglas Aerospace, St. Louis, Mo.; Northrop Corp., Hawthorne, Calif.; Rockwell International, Duluth, Ga.; Honeywell, Clearwater, Fla.; LORAL Fairchild Systems, Syosset, N.Y.; Loral Infrared Imaging Systems, Lexington, Mass.; Lucas Aerospace Power Systems, Aurora, Ohio; Eastman Kodak Company, Rochester, N.Y.; Westinghouse Electronic Systems, Baltimore, Md.; Automation and Robotics Research Institute, Ft. Worth, Texas; CTA Incorporated, Englewood, Colo.

. Martin Marietta, Orlando, Fla. (lead), with Martin Marietta Laboratories, Moorestown, N.J.; Alliant Techsystems, Hopkins, Minn.; Loral Infrared Imaging Systems, Lexington, Mass.; Lockheed Artificial Intelligence, Palo Alto, Calif.; General Electric Corporate Research & Development, Schenectady, N.Y.; Hewlett-Packard Company, Orlando, Fla.; Enterprise Integration Technologies, Menlo Park, Calif.

. Raytheon, Tewksbury, Mass. (lead), with Amber Engineering, Goleta, Calif.; Carnegie Mellon University, Pittsburgh, Penn.; Deneb Robotics, Auburn Hills, Mich.; Kearfott, Black Mountain, N.C.; Motorola University, Mesa, Ariz.; Photronics, Hauppauge, N.Y.; Rockwell Collins, Cedar Rapids, Iowa; SRT Electro-Optics, Birmingham, Ala.; STEP Tools, Troy, N.Y.

. Texas Instruments/Hughes Missile Systems Company, Lewisville, Texas (lead), with Motorola, Scottsdale, Ariz.; National Center of Manufacturing Sciences, Ann Arbor, Mich.; Parametric Technology Corp., Newport Beach, Calif.; Science Applications International Corp., McLean, Va.; Stanford University, Stanford, Calif.; Mentor Graphics, Wilsonville, Ore.; Merkle & Mears, Stratford, Conn.; American Competitiveness Institute, Wyncote, Penn.; Arizona State University, Tempe, Ariz.; Texas A&M, Ft. Worth, Texas.

The goal of the AM3 program is to demonstrate the feasibility of reducing the unit cost of ongoing missile production programs by 25 percent and reducing the development and production cost for new missiles and major upgrades by 50 percent. A major theme in the program is to optimize cost across a mix of missiles to compensate for the loss of economies of scale as individual missile procurement quantities decrease.

The program challenges industry to demonstrate innovative cost-reducing concepts that will achieve the kind of cost and time savings in the tactical missile sector that world class commercial manufacturers have realized in other sectors. To make acquisition innovations possible, the program will use a special authority given to ARPA to conduct prototype development and acquisition experiments outside the normal constraints of the Federal Acquisition Regulations.

The four teams selected today have identified missile portfolios which collectively span the entire range of tactical missiles planned for development and procurement in DoD's Future Year Defense Plan. The proposals identify advances in design and manufacturing processes and systems which, in combination with acquisition reform initiatives, are expected to achieve the AM3 cost savings goals.

Phase one (Concept Definition) of the program will be a nine-month study to accomplish detailed design of the enterprise processes and systems defined in the proposal, and provide detailed analysis of the impact on target missile mix cost.

Phase two (Concept Validation) will be a 15-month demonstration program involving simulation and modeling, business practice demonstrations, design exercises, component level manufacturing and qualification tests to show the feasibility of innovative concepts and links to program goals. At the end of Phase two, two of the four teams will be selected for continuation into Phase three, which involves implementation of pilot manufacturing enterprise systems and demonstrations in manufacturing of tactical missiles for delivery to DoD.

The program will be managed by an integrated team of ARPA and tri-Service representatives. End-of-phase reports, open industry meetings, and commercialization of resulting tools and software will facilitate technology transfer to other manufacturing sectors.

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