payloads to unique orbits, additional requirements may develop in the future.

Question. What payloads will the 13 Titan II's carry?

Answer. Converted Titan IIs will be used to launch classified payloads, the Defense Meteorological Satellite Program satellities, and experiments in the Space Test Program. The Department of Commerce has also expressed interest in using the Titan II to launch civil polar weather satellites, which currently use the nearly-depleted Air Force Atlas booster inventory; however, their requirements are not contained in the current plan to convert 13 Titan II's.

Question. What are the planned launch dates for the 13 Titan

II's?

Answer. The planned launch dates for our converted Titan IIs are one in fiscal 1988, one in 1989 and 11 between fiscal years 1990 and 1993.

Question. What is your latest estimate of the cost to modify 13 Titan ICBM's? Break out by airframe, engineering change orders, ground support equipment, production support, etc.

Answer. The Titan II conversion program consists of development of a space launch configuration, modification of surplus Titan II ICBMs and launch for several DoD payload programs. Presently, 13 conversions are on contract, and 3 are programmed for out-year procurement.

The Titan II program is funded through a combination of resources contained in the Space Boosters Program and from reimbursements by program users. The Boosters Program budget contains funds for 5 Titan II conversions in FY 88, and out-year resources for 3 additional modifications. All 8 vehicles will be used by the Air Force managed Defense Meteorological Satellite Program (DMSP).

Within the President's budget (Five Year Defense Plan), a total of is allocated for the Titan II program. Of this total, is in the Space Boosters Program. These funds are required for basic contract costs for the 8 vehicles, launch site modifications, contract incentives, propellants, ECO, and Test Range reimbursements.

A funding breakout for the Space Boosters Program, as included in the FY 88 President's Budget, is shown below:

User reimbursements amounting to $202.1 million are not divisible in this

manner.

[CLERK'S NOTE.-Column after FY 1989 was removed for classified information.

Question. What is the status of work being performed to modify eight Titan ICBM's under the contract negotiated last September? What obligations have been incurred to date under the contract? Provide the major details of the contract terms, with emphasis on warranties and incentives. Do you know of any reason why the initial launch capability of April 1988 may not be met?

Answer. Under the Titan II contract awarded last year, conversion work for the first eight launch vehicles has begun. These boosters have been shipped from storage at Norton AFB to the Martin Marietta factory in Denver. Activities to meet the initial launch capability date are underway. These tasks include structural modifications, rocket engine test and inspection, electrical, instrumentation and guidance subsystem refurbishment and procurement, booster integration, facility interface design, operations procedure development and launch pad modifications. $28.2 million of FY 87 RDT&E funds and $7 million in FY 87 O&M funds in the Space Boosters Program have been obligated on this contract. Since the contract began in FY 86, total obligations of $107.1 million have been incurred, which includes both Space Boosters Program and Titan II user funds. Contract terms are as follows:

Martin Marietta Corporation Denver division is the prime contractor. A fixed price incentive fee contract was issued as a letter contract on 16 Dec 85 and definitized 26 Sep 86. The contract directs refurbishment and launch of eight Titan II Space Launch Vehicles (SLV) with an option for five additional Titan II SLVs. The option for five additional Titan II SLVs target price is $76.5 million, provided the option is exercised by 1 Oct 87. Total term of contract runs from 16 Dec 85 to 30 Sep 95. All launches are planned from Space Launch Complex-4W at Vandenberg AFB, California. Initial launch capability is planned for April 1988.

Martin Marietta has total system performance responsibility for the Titan II SLV. All subcontractors are the management responsibility of Martin Marietta. The contract places great emphasis on mission success by way of the performance incentive plan. The contractor shall receive payments for successful performance or make payments to the government in accordance with this plan. This incentive plan includes the following provisions:

Incentive Measurement

For each T-II SLV which is scored a contractor success (provided there are no scored contractor failures under this Attachment).

In the event of one scored contractor failure.

In the event of two scored contractor failures.

Mission Success Incentive (MSI) $2,082,421.

No opportunity to earn any MSI. Return any collected MSI.

No opportunity to earn any MSI. Return collected MSIs. Reduce target profit by 50 percent.

Incentive Measurement

Mission Success Incentive (MSI)

In the event to three or more scored No opportunity to earn any MSI. Return contractor failures. collected MŠIs. Reduce target profit to

zero.

Eliminate any share the Contractor would otherwise be entitled to as the result of an underrun.

The contract is on schedule and the initial launch capability should be achieved as planned in April 1988.

COMMERCIAL ELV CAPABILITY

Question. How would the Air Force describe the health of the Expendable Launch Vehicle industry for commercial launches today? Shouldn't the surge in commercial orders for ELV's have a beneficial impact on the price the government pays for its expendables? When would you expect to see the results of this activity reflected in your ELV contracts?

Answer. The health of the Expendable Launch Vehicle industry has dramatically improved over the last year, largely in response to the nation's realization that we need an assured access to space. With the robustness planned for expendable launch vehicle programs and new orders for the Titan IV and Delta II boosters, production lines are up and running. More importantly, however, is the fact that our need for expendable boosters in the future is attracting qualified people to the work force and bringing back the technical expertise which left as expendables were being phasedout. With recognition that space launch vehicle production is not a limited, dead-end industry, it will be much easier to attract good people and produce quality products.

As the private sector expands into the commercial space launch business, the quantity of procurement and production generated by civil needs will help lower our own procurement costs through greater efficiencies. The first step to realizing more economy will be a successful commercial launch. As the industry picks up, we should see savings through our procurement contracts, but real cost benefits will not be available until commercial launches have a significant annual rate. Based on our projections this could occur in the 1990 timeframe.

Question. What is the status of the contract developed by the Air Force, the National Aeronautics and Space Administration, and the Department of Transportation detailing what government facilities at what cost will be provided for commercial launches? What is the Air Force involvement in commercial launches? What Air Force facilities may be used in commercial launches?

Answer. The Air Force is developing a model agreement to define commercial launch vehicle support to private enterprise. This agreement provides for use of our facilities and production resources by private industry engaged in commercial space launch activities. At the present time we are reviewing a final draft of the document which incorporates comments from the Department of Transportation and the space launch industry. To continue progress in this important area, we have developed a separate "mini-agreement" which allows our test centers to start processing

commercial user requirements and provide them with range cost estimates now. At least one corporation is already in this stage.

In accordance with the Commercial Space Launch Act and the President's policy, commercial enterprise will be able to use available government resources on a direct cost basis. Since the majority of space launches in this country are from Cape Canveral Air Force Station in Florida or Vandenberg Air Force Base in California and all current launches use tracking resources on our national test ranges, the Air Force will be quite involved with commercial launch activities. Resources that may be applicable to commercial use range from space booster production tooling, to launch pads, launch base services, tracking stations, telemetry processing and range safety control.

ELV LAUNCH SCHEDULES AND FYDP COSTS

Question. For the record, provide the total FY 88-92 President's Budget defense plan costs (by fiscal year and appropriation account) for the Titan II, Titan IV and Delta II launch vehicles. Also provide the projected launch schedule and payload for all Expendable Launch Vehicles funded in the Five Year Defense Plan. Answer. The FY 88-92 President's Budget for these boosters is shown below:

The projected launch schedule for all expendables in our budget is as follows:

[CLERK'S NOTE.-Column after FY 1989 was removed for classified information.]

[End of questions submitted for the record.]

WEDNESDAY, MARCH 18, 1987.

ACCESS TO SPACE

WITNESS

RICHARD H. TRULY, UNITED STATES NAVY, ASSOCIATE ADMINISTRATOR, OFFICE OF SPACE FLIGHT, NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

INTRODUCTION

Mr. CHAPPELL. The Committee will please come to order.

This afternoon is a continuation of this morning's Access to Space Launch hearing. The Committee will now hear testimony from the National Aeronautics and Space Administration.

The topics to be covered at this portion of today's hearing include:

The outlook for the resumption of shuttle flights;

Future shuttle launch costs;

The impact the space station launch requirements may have on the U.S. Government's overall future launch requirements; and

NASA's views on the launch requirements and potential launch capabilities of the heavy lift launch vehicle, and the National AeroSpace Plane.

The Committee welcomes Admiral Richard H. Truly, United States Navy, Associate Administrator, Office of Space Flight, and a former astronaut.

This hearing will be closed pursuant to a vote taken Monday, March 16, 1987.

Admiral, although your testimony is unclassified, there may be some Members who want to ask you some classified questions.

We are pleased to have you with us, Admiral. This is your first appearance and we will put your biographical sketch and your statement in the record and ask that you proceed as you see fit.

SUMMARY STATEMENT OF ADMIRAL TRULY

Admiral TRULY. I would like to enter my statement for the record.

I came to this job three weeks after the Challenger accident last year from my previous assignment as Commander of the Naval Space Command, and as such, I was a component Commander of the U.S. Space Command, so I am familiar with the importance and the details of DoD requirements, which I know are of interest to this subcommittee.

I am joined here by Dr. Raymond Colladay, who will later be discussing the Aero-Space Plane program with you.