Mr. MAHON. What is the relationship between these missiles and the F-111B aircraft in this year's proposed buy? Admiral CONNOLLY. These are missiles to be fired from the F-111B. I am fairly sure they will all be used in test and evaluation and verification. Mr. MAHON. What production rate are you proposing to achieve with this funding? Admiral ToWNSEND. PRESENT STATUS OF THE ARM MISSILE SYSTEM Mr. MAHON. What is the present status of the ARM system, the anti-radiation system? Admiral ToWNSEND. That one is on schedule. It is scheduled for fleet deployment in This has been a very fast development. We started this last July. We got final go ahead in December, and we plan deployment for We have met all our milestones within a few weeks. We have the final shot supposed to go today. Mr. MAHON. You think you will be prepared with the funds? Admiral TOWNSEND. We have already let a contract for long leadtime items with the 1967 funds. is the present plan for the Navy in fiscal year 1967. Mr. SANDERS. When the Air Force appeared before the committee, they had a large sum of money requested for the procurement of the SHRIKE missile system. The committee questioned them about the desirability of procuring the ARM missile. They replied ARM would not be available in time for their procurement in fiscal Are your production schedules such that the Air Force could use ARM? of which Admiral TOWNSEND. I don't understand that answer. The plan is to buy are for the Navy and for the Air Force. This has been a joint program. The schedule is still for the Navy to deploy them in I do not remember what the Air Force date for deployment is. Mr. SANDERS. Would you insert in the record a comparable unit cost of the ARM and the SHRIKE, please? Admiral ToWNSEND. Yes. (Information is classified and has been furnished to the committee.) Mr. MAHON. What mix of ARM-SHRIKE missiles are you proposing for fiscal year -? Admiral TOWNSEND. Initially the program was approved by OSD as a kind of joint program, by either ARM, SHRIKE, or a mixture of both. No mix was established. OSD just said "We will wait until the Joint Chiefs of Staff decide the requirements. The mix will be determined later." We still have no mix established, but it now looks as if we will maintain a procurement rate of SHRIKE of about In addition, we will buy ARM missiles. We have not been able, as yet, to resolve the relative funding within this total amount of money. As a matter of fact, it looks like we may not have enough there to do both of them. Mr. MAHON. What is the relative unit cost of the ARM and SHRIKE? Admiral TOWNSEND. The ARM is quite a bit more expensive. Initially, our tradeoff was about That is an estimate. Mr. MAHON. What would the unit cost be of an ARM missile? Mr. MAHON. I realize that. I want a rough estimate. I believe. Mr. MAHON. You can change that if necessary. PROCUREMENT OF THE STANDARD MISSILE SYSTEM The ARM and STANDARD missiles are on the same production line. What capability does this line have in terms of ARM missiles and its ability to satisfy the requirements for the STANDARD missile? Admiral SARVER. The STANDARD was a surface missile development. The production line was modified since about 60 percent of the items are common, and at the end of that line a split is made and it comes out with either the ARM-type head or the surface missile head. There is no interference in the production line. Mr. MAHON. Can you satisfy the proposed buy? Mr. MAHON. You recently awarded a multi-year contract for the STANDARD missile. How did the costs compare, first, with the Government estimates? Admiral SARVER. The estimate for the was The multiyear buy was by the Government Mr. MAHON. How does it compare with the cost used in compiling the fiscal 1968 budget? What figure did you use? Admiral SARVER. We used determining the total cost to get Mr. MAHON. If you use ment at a lesser figure of Admiral SARVER. Yes, sir. We are now in the process of and are able to make the procurethen you would be overfunded. PROCUREMENT OF AERIAL TARGETS Mr. MAHON. What items are included in your request for $53.4 million for aerial targets? Admiral CONNOLLY. Two recoverable targets and one nonrecover able. Mr. MAHON. What is the extent of the buy? Admiral CONNOLLY. We would buy the AQM-37A, for $5.5 million, the BQM-34A, of them. for $25.9 million, the MQM 36A/74A, of them for $10.3 million. Mr. MAHON. Admiral Sarver, where would you produce this STANDARD missile? Admiral SARVER. The STANDARD development is a follow-on to the basic TERRIER series which has been in use in the fleet from 6 to 15 years. The STANDARD series is entirely compatible with the ships we have now in the fleet. Mr. MAHON. Where will you produce them? Admiral SARVER. At General Dynamics, Pomona. It is a Navy industrial reserve plant. PROCUREMENT OF MISSILE INDUSTRIAL FACILITIES Mr. MAHON. Will you list for the record your program for missile industrial facilities, together with examples of savings to be incurred. from the replacement of machine tools? Admiral SARVER. Yes, sir. (Information follows:) The FY 1968 program for missile industrial facilities includes the following items: Replacement/restoration of machine tools and other related production equipment---. Capital maintenance, emergency repair, and fire protection improvements New production manufacturing and test facilities_. Total_____. $6,000,000 2,751,000 2, 049, 000 10, 800, 000 Following are illustrative examples of savings that result from the replacement of old machine tools with new machine tools: 1. Naval Industrial Reserve Ordnance Plant, Pittsfield, Mass.-During FY 1967 a modern turret lathe will replace four (4) lathes and one (1) cylindrical grinder that have an average age of thirteen (13) years. This modern turret lathe, with an acquisition cost of $81,000, will reduce yearly net operating costs by $44,955. Therefore, the Government will recoup the acquisition cost in less than two (2) years. 2. Naval Industrial Reserve Ordnance Plant, Sunnyvale, Calif.-During FY 1967 two (2) 4-axis, numerically controlled turret lathes, costing $440,000, will replace six (6) lathes which have an average age of fourteen and one half years (14%). The modern lathes will generate a net operating cost saving of $197,959 per year, thus permitting the Government to recover the acquisition cost of the new lathes in slightly more than two (2) years. 3. Naval Industrial Reserve Ordnance Plant, Sunnyvale, Calif.-During 1967 a numerically controlled engined lathe will replace two (2) machines that have an average age of fourteen (14) years. This new machine has an acquisition cost of $143,000. The net reduction of $72,242 in annual operating costs returns the acquisition cost to the Government in less than two (2) years. Mr. MAHON. What are you proposing to procure with your request for $9.5 million for astronautics? Admiral TOWNSEND. We have taining cost of $0.6 million. We have for a total of 5.6, plus sus satellites for a total of $3.3 million. That is a total satellite program. of $9.5 million. This is the Mr. MAHON. Are there any further questions with respect to these matters? Mr. LIPSCOMB. I have no questions, Mr. Chairman. Mr. MAHON. Gentlemen, we thank you very much for your testimony and your appearance. Admiral CONNOLLY. Thank you, sir. Admiral TOWNSEND. Thank you, Mr. Chairman. OTHER PROCUREMENT, NAVY WITNESSES VICE ADM. LOT ENSEY, U.S. NAVY, DEPUTY CHIEF OF NAVAL OPERATIONS (LOGISTICS) REAR ADM. E. E. GRIMM, U.S. NAVY, DIRECTOR OF BUDGET AND REPORTS REAR ADM. E. E. CHRISTENSEN, U.S. NAVY, DEPUTY COMMANDER FOR PLANS AND PROGRAMS, COMPTROLLER, NAVAL AIR SYSTEMS COMMAND REAR ADM. C. A. KARABERIS, U.S. NAVY, MANAGER, ASW SYSTEMS PROJECT OFFICE REAR ADM. HARRY MASON, U.S. NAVY, VICE COMMANDER, NAVAL ELECTRONICS SYSTEMS COMMAND CAPT. D. H. JAY, U.S. NAVY, PROJECT MANAGER AIRBORNE ORDNANCE (NAVAIR) CAPT. C. N. PAYNE, U.S. NAVY, COMPTROLLER (NAVSHIPS) CAPT. T. J. DOYLE, U.S. NAVY, DEPUTY COMMANDER FOR MANAGEMENT (NAVFAC) CAPT. R. W. CARTER, SC, U.S. NAVY, ASSISTANT CHIEF OF FINANCE (BUPERS) CAPT. G. L. GRIFFIN, SC, U.S. NAVY, DEPUTY COMMANDER, PROGRAMING AND FINANCIAL MANAGEMENT, NAVAL SUPPLY SYSTEMS COMMAND CAPT. JOSEPH MCDOWELL, U.S. NAVY CAPT. W. M. NICHOLSON, U.S. NAVY, DIRECTOR, DEEP SUBMERGENCE SYSTEMS PROJECT OFFICE CAPT. H. P. LYON, U.S. NAVY, ASSISTANT DIRECTOR, NAVAL INTELLIGENCE FOR ADMINISTRATION CAPT. P. K. TREADWELL, U.S. NAVY, SPECIAL ASSISTANT FOR OCEANOGRAPHY (OPNAV) COMDR. R. W. LOOMIS, CEC, U.S. NAVY, EXECUTIVE ASSISTANT TO THE ASSISTANT COMMANDER FOR MILITARY READINESS (NAVFAC) G. J. OATES, COMPTROLLER, OFFICE OF NAVAL COMMUNICATIONS |