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IMMEDIATE RELEASE

Release No: 361-96
June 17, 1996

AIR FORCE SELECTS MISSILE CONTRACTORS

Assistant Secretary of the Air Force for Acquisition Arthur Money announced today that Lockheed-Martin Integrated Systems, Orlando, Fla.; and McDonnell Douglas Aerospace, St. Louis, Mo., have been selected to compete in the Program Definition and Risk Reduction (PDRR) phase of the Joint Air-to-Surface Standoff Missile (JASSM) program.

Lockheed-Martin Integrated Systems and McDonnell Douglas Aerospace were awarded cost plus fixed fee contracts totaling $237.4 million, and will compete in head to head competition over the next 24 months. At the end of this phase, the Department of Defense will select a single winning contractor to complete development and production of at least 2,400 JASSMs at a total program cost of approximately $3 billion.

JASSM is a joint Air Force and Navy program to provide an autonomous, long range conventional air-to-ground precision missile. The Air Force is lead service for the program, which is managed by an Air Force and Navy joint program office located at Eglin Air Force Base, Fla.

The Air Force and Navy developed an aggressive acquisition approach that reflects the intent to develop, produce, and initially deploy JASSMs within the next five years. To minimize overall program risk, JASSM leverages off existing technologies, readily available components, and previous weapon system developments to the maximum extent possible.

JASSM's acquisition approach is based on precepts of Acquisition Reform and the concept of Cost as an Independent Variable. Instead of mandating requirements supported by countless military specifications, the JASSM program has only three key performance parameters: range, missile mission effectiveness and carrier operability. All other requirements are tradable to obtain a missile below the threshold average unit price of $700,000 per missile. The JASSM requirements and cost goals evolved over the past year in an unprecedented partnership with industry, the joint warfighters, and the Department of Defense Acquisition Community.

The JASSM program director is Mr. Terry R. Little at Eglin AFB, Fla. Additional information on the JASSM can be obtained from the Office of Public Affairs at Eglin AFB, Fla., (904) 882- 3931.

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