propellants for spacecraft maneuvering, or perhaps placing on orbit more spacecraft of a simpler, lower cost design. The Shuttle capabilities offer the opportunity to achieve greater spacecraft modularization and standardization of subsystems while avoiding costly weight reduction programs.

The reliability projected for the Shuttle (.995) is substantially higher than we are experiencing today on our current expendable boosters (.88 to .98). This improved reliability will benefit us in terms of greater mission success and timely replenishment of priority DoD space systems. We anticipate that the Shuttle can be used routinely as a development test bed for various sensors and subsystems thereby reducing the development time for new space systems and enhancing our capability to respond rapidly to changing needs.

Initially we will use the Shuttle as we would a larger replacement launch vehicle. However, should the Shuttle arrive on orbit with a payload that did not check out properly, the payload can be returned to earth for adjustment or modification. In the future, we can design our payloads so that the Shuttle can retrieve them from low orbit when the mission is complete, and return them to earth for refurbishment and reuse, diagnostic purposes, or technological update. Another option which might be equally attractive in the Shuttle era is on-orbit servicing of payloads. Spacecraft designed for automated subsystem replacement could be serviced while at either high or low orbit depending on mission requirements.

The DoD is certainly not overlooking the potential advantages of military man in space which the Shuttle offers. For the future, we are exploring the contributions which man can make in space by using his unique capabilities for time critical observations, by assisting in the erection or assembly of large structures on orbit, and in subsystem development where the orbiter is used in its inevitable role—as a space laboratory.

When the Shuttle is operational we expect that the cost per launch will be much less than the cost per launch of current expendable boosters. This lower cost per launch will in time offset our substantial planned investment in using the Shuttle. When the Shuttle is fully operational we will be able to phase out our current space launch vehicles and their numerous, aging launch complexes. In the Shuttle era our space operations should become more effective, flexible, and productive in terms of operating costs.

During the past year we have worked closely with NASA to assist in assuring the timely procurement of an orbiter fleet that is adequate to meet national launch needs; and to establish a policy for reimbursement to NASA for a DoD Shuttle launch. Both of these issues are very important to DoD planning for Shuttle use. Major issues

The presently approved NASA Space Shuttle development and production program includes only three orbiters. Both DoD and NASA have long recognized that additional Shuttle orbiters would be needed to meet all projected national needs for space launch throughout the 1980s. In January 1976, DoD agreed to work closely with NASA to determine the total number of orbiters which would constitute a minimum viable fleet, and how these orbiters should be procured. In June 1976, the Office of Management and Budget provided additional guidelines for this joint study effort. While the major part of the study was conducted by NASA, substantive contributions were made by the Air Force. The study concluded that a fiscal year 1978 start on the procurement of additional orbiters will be required to maintain reasonable schedules and to avoid the severe cost penalties of a break in orbiter production. The Shuttle traffic projected by NASA for all users includes the latest DoD projections for our Shuttle traffic. The fleet size analysis shows that allowing for appropriate maintenance periods, turnaround times, acceptable scheduling performance, and potential attrition of an orbiter, a fleet of five orbiters is needed to meet the projected traffic. Both DoD and NASA agree that to insure the fiscal and technical integrity of the program, the funding responsibility for the additional orbiters must be placed where the responsibility for the management and performance of the overall Shuttle program rests-with

NASA.

A second issue of major importance is the matter of reimbursement to NASA for a DoD Shuttle launch. In June 1976 NASA provided for comment a preliminary proposed policy on reimbursement for Shuttle services to the DoD. This initial policy proposed considering all direct and indirect costs as a basis for establishing a price to DoD for a dedicated Shuttle flight. At the October 13, 1976 Aeronautics Coordinating Board (AACB) meeting the Co-Chairmen, Dr. Currie and Dr. Lovelace, agreed to explore simpler approaches to developing a fair, reasonable price for such services to DoD. An approach has now been

agreed upon which is simple and encourages efficient operations, early transition from expendable launch vehicles to the Space Shuttle, provides pricing stability, and establishes a mutually acceptable price. The DoD reimbursement to NASA will be based on the costs of materials and services, to be mutually agreed upon. The DoD will provide the Vandenberg Shuttle launch support for both DoD and non-DoD users in return for provision by NASA of all Shuttle launch support from Kennedy Space Center and Shuttle flight operations support for all DoD flights. These services are projected to be of approximately equal value to each agency. The DoD will be charged a fixed price for the first six years based on realistic average projected materials and services costs. For launches after the first six years, the price will be adjusted annually based on forecasted actual costs each year for materials and services. Details of the policy based on this approach will be negotiated within the next few months.

Interim upper stage

DOD PROGRAM FOR SHUTTLE USE

DoD is planning to transition all of its spacecraft from launch on current expendable boosters to launch on the NASA developed Space Shuttle during the period from fiscal year 1980 through fiscal year 1985. Initially, DoD will begin using the Shuttle when its capabilities are fully demonstrated and it becomes operational at Kennedy Space Center (KSC) in mid 1980. All of our launches from KSC require high altitude orbits which cannot be achieved by the Shuttle alone. To achieve the required orbital altitudes an upper stage must be used. We have undertaken the development of a low cost solid motor stage to meet our unique defense needs. This stage, which is called the Interim Upper Stage (IUS), will be available concurrently with the Shuttle in mid 1980. DoD will be the primary user of the IUS, although NASA plans to use this stage for certain launches. With modifications, which NASA will fund, the IUS can also meet NASA planetary orbiter requirements.

The IUS validation phase has been initiated and trade studies are underway which will optimize the stage design based on technical and cost considerations. Solid motor component and full scale firings, avionics prototype tests, and software and redundancy management demonstrations will be conducted during this phase. Our validation phase emphasizes early testing which will minimize risk during full scale development. Full scale development begins early in fiscal year 1978. In fiscal year 1977 we are spending $21.7 million and in fiscal year 1978 we are requesting $54.1 million for the DoD Interim Upper Stage development. Vandenberg shuttle facility

Vandenberg Air Force Base located on the West Coast is used now for all high inclination launches. Launches into sun synchronous, polar, or near polar orbits cannot be conducted from KSC without unacceptable overflight of populated land areas during launch. To assure that we have a continuing capability to achieve these essential orbits in the Shuttle era, we are planning to add a Shuttle launch, landing, and refurbishment capability at Vandenberg to be operational by December 1982.

The baseline Shuttle facility concept at Vandenberg is now defined. In fiscal year 1978 all design criteria and support equipment specifications will be completed and design work will continue to support fiscal year 1979 and fiscal year 1980 construction. In fiscal year 1978 we are requesting $54.8 million for design and initial procurement of ground support, launch processing system, and communications equipment for Vandenberg.

Kennedy Space Center

In preparation for launching our payloads on the Shuttle from KSC we have defined most of our detailed ground processing and orbital control procedures. Planning for the orbiter flight with a DoD payload and actual control of the orbiter during launch will be handled through the NASA Johnson Mission Control Center (MMC). On-orbit control of the IUS and the payload after separation from the orbiter will be accomplished by the Satellite Control Facility (SCF) at Sunnyvale, CA. This year we are beginning the design and development of common payload support equipment, development of on-orbit control software and hardware, as well as continuing systems engineering associated with using the Shuttle. A major problem which will be resolved this year is the provision for proper security for DoD payloads not only at the KSC launch site but also at the Johnson MCC. We are now working closely with NASA on a number of feasible alternatives which will adequately protect our payloads while retaining necessary free access to the MCC for civil, foreign and commercial Shuttle users.

Payload security is important to the survivability of our space systems. Lack of proper security during mission planning could divulge spacecraft design details and operating modes and facilitate electronic interference, attack, or other hostile action against our space systems by unfriendly nations.

In transitioning to Shuttle use, one objective is to enhance our space system survivability in both a natural and hostile space environment. The high reliability and rapid turnaround time of the Shuttle can improve the availability and maintainability of our systems; and, the added payload weight and volume capability of the Shuttle can be used to improve spacecraft survivability on orbit. We believe that with an adequate fleet of orbiters, the Shuttle will enhance space system survivability.

In fiscal year 1978 we are requesting $47.2 million for development of payload ground processing and orbital control procedures, support equipment design, payload integration on the orbiter, and payload security procedure implementation. Our total fiscal year 1978 request for the Interim Upper Stage, Vandenberg Shuttle Facility, and Kennedy Space Center activity is $156.1 million.

Supporting research and development

The cornerstone of U.S. defense R&D strategy is technological superiority which provides qualitative superiority in deployed systems and permits us to respond to changing threats.

We have active and aggressive programs in materials, electronics, space sciences, propulsion, warning and surveillance, and space defense. These space related research and development programs total $302.5 million in fiscal year 1978. Let me summarize our efforts in space surveillance.

The resumption by the Soviets of their antisatellite development program after a hiatus of more than four years is a matter of serious concern to us. This may be an indication that space is no longer a sanctuary and we must, therefore, be prepared to prevent the Soviets from gaining a significant military advantage through space encounter. This encounter could involve a physical, electronic, or even laser attack against our space systems.

We believe it is essential to accelerate our defensive capabilities in space. We are providing our ground based space surveillance system with electro-optical sensors that can provide rapid and complete coverage to synchronous altitude, and developing satellite-borne sensors which, when successfully demonstrated and deployed, can satisfy our space surveillance needs independent of foreign basing. We are now conducting an extensive study to assess the vulnerability of our military space systems to various forms of attack and developing options for enhancing their survivability.

Introduction

DOD AERONAUTICAL ACTIVITIES

The DOD Aeronautical Research and Development program for fiscal year 1978 provides technology for reducing acquisition and support costs, for achieving new operational concepts and capabilities, and for replacement and modernization of the operational aircraft inventory.

Program highlights

We are requesting $2,532.7 million in fiscal year 1978 for our aeronautical research and development activities. This is an increase of $287.5 million over the $2,245.2 million in RDT&E funds appropriated in fiscal year 1977. The principal influence on increased funding is the engineering development program for the Navy Air Combat Fighter, the F-18.

The modernization program achieved significant progress this past year with first flights of the YC-14, a prototype for the Air Force Advanced Medium STOL Transport (AMST) and the first production configuration of the Air Force F-16A, and selection of the winning designs for the Army's Attack and Utility Transport helicopters. Development continued on the Airborne Warning and Control Airraft (AWACS) and the EF-111A support jammer aircraft.

w operational concepts and capabilities are exemplified by the Navy/ X" wing program combining rotary wing vertical takeoff and landing advantages with high subsonic fixed wing flight capability, and the Air rol Configured Vehicle program which enables the aircraft to be controlled moves in directions independent of aircraft attitude. The Navy is nearing on of the XFV-12, a technology demonstration aircraft for the Thrust nted Wing (TAW) concept. We expect to conduct ground tests with the to explore its VTOL characteristics before actual flight this year. In

fiscal year 1978 the Navy will initiate preliminary design and analysis by up to four contractors of a subsonic multimission V/STOL aircraft concept which has been termed the V/STOL "A." We forsee this type of aircraft becoming operational in the early 1990s.

Key technologies which we expect to lead to lower acquisition and support costs are composite structural materials, which will reduce weight and number of parts, fiber optics for transmission of command and control data which will reduce weight, and Circulation Control Rotor which will reduce the complexity of helicopter control systems.

We continue our coordinated effort with NASA in support of the Aircraft Energy Efficiency Program prepared at your request and submitted to you in September 1975. All our future military aircraft will benefit from the Engine Component Improvement and Composite Primary Structures elements of this program and our transport, cargo, and patrol aircraft can benefit from other elements of the program that emphasize improved cruise efficiency. We have instituted a program to obtain full-scale flight demonstration on a KC-135 of winglets, an aerodynamic drag reduction device developed by NASA. We are developing a program to demonstrate benefits from inflight computation of best mission range and endurance based on actual air mass temperatures and wind conditions and airplane fuel consumption.

Programs in electronics are not only directed at improving technical performance, but also to achieve increased compactness, lower weight, higher reliability, and reduced life-cycle costs. The latter factor is particularly important because electronics now comprise nearly one-third of the total aircraft cost. Some examples of electronics directed to these four goals are infrared imaging systems, the ring laser gyro, fiber optics, flat displays, microwave tubes, solid-state microwave components, and microprocessors.

Remotely piloted vehicle (RPV) development has continued for high personnel risk missions and for long endurance observations. We have categorized RPVs by size for convenient reference: RPVs up to 300 pounds gross weight are termed "mini," from 300 to 3,000 pounds gross weight are termed "midi" and 3,000 pounds and up in gross weight are termed "maxi." The Army and Navy are developing the mini-class of RPVs for combat surveillance and targeting missions. The Army AQUILA RPV will be used to evaluate the utility of mini-RPVs for artillery designation and correction. The Navy mini-RPV is intended to provide an autonomous targeting capability to the smaller ships equipped with HARPOON missiles.

The Air Force Compass Cope maxi-RPV is continuing in development as a high altitude long endurance platform for a Side Looking Airborne Radar (SLAR). The Air Force midi RPV program continues to improve operational utility of chaff laying and photo reconnaissance RPVs by shortening turnaround time and providing ground launch and recovery methods versus the present air launch and helicopter recovery.

We continue to see significant spinoffs to civilian applications from several of our military aeronautics programs. NASA has instrumented our AMST prototypes, the YC-14 and YC-15, to obtain actual flight data on the powered lift systems designed for short takeoff and landing (STŎL) capabilities for these aircraft. Data from these flight tests will assist in eventual development and certification of civil STOL systems. Major helicopter manufacturers are offering new civil models which incorporate features such as elastomeric bearings and reduced drag rotor masts derived from our military advanced technology programs. These features will improve maintainability and reduce fuel consumption for these new helicopters.

Terrestrial microwave communications systems are being reconfigured to incorporate devices based on the DoD development of highly reliable Gunn effect solid-state sources and Impatt diodes. There is increasing civil application of miniature television cameras employing charge coupled devices derived from DoD sponsored research. These cameras are able to demonstrate significant size reduction and reliability improvement through elimination of vacuum tube vidicon, electron beams, high voltage supply, and filament.

COORDINATION AND COOPERATION WITH NASA

Aeronautics and Astronautics Coordinating Board

The Aeronautics and Astornautics Coordinating Board (AACB) is a highly effective means of maximizing benefits to be derived from NASA programs for Defense use, and in turn, assuring that technology developed in military programs

is available for civil applications. The Director, Defense Research and Engineering, DoD, and the Deputy Administrator, NASA, Co-Chair the Board, providing broad policy guidance on major problems of concern to both agencies in aeronautics and space areas. Selected issues treated by the Board are discussed below. National aeronautical facilities program

In its final form as defined by the DoD and NASA, the National Aeronautical Facilities Program (NAFP) contains three large facilities which we are convinced are necessary to continue the efficient development of aeronautical technology and systems through the end of this century. The facilities contained in the NAFP are:

Aeropropulsion systems test facility (ASTF).-sponsored by the Air Force to support the economical development of advanced engines for fighter, large strategic transport, and bomber aircraft.

National transonic facility (NTF).-sponsored by NASA to permit research and development testing at high Reynolds number in the transonic Mach number range (combines the requirements of the earlier High Reynolds Number Tunnel, sponsored by USAF and Transonic Research Tunnel sponsored by NASA). 40 x 80 subsonic tunnel modification.-sponsored by NASA to meet subsonic research needs for the study of rotor craft and large powered lift vehicles.

With the support of the 94th Congress through its appropriations for fiscal year we have moved these facilities from the definition phase into preliminary and detail design and construction. NASA is employing an incremental funding profile to support construction of NTF and the 40 x 80 foot subsonic tunnel modification. Space shuttle

Earlier in this statement I discussed two major issues which have been at least partially resolved over the past year. These are the procurement of additional orbiters and a policy for reimbursement to NASA for DoD Shuttle launches. In addition, the basic Memorandum of Understanding (MOU) on Management and Operations of the Space Transportation System has recently been updated to portray our current understanding of DoD participation in the NASA national Space Transportation System (STS). The STS consists of the Space Shuttle upper stages, and ground support facilities. In summary, the MOU states that that NASA will serve as the overall financial manager of the STS responsible for developing the Shuttle, providing an operational launch facility at Kennedy Space Center in 1980, and providing for management, integration, flight operations, and control for all Shuttle flights. DoD will use the Shuttle and be responsible for developing the Interim Upper Stage, providing an operational launch facility at Vandenberg AFB in 1982, and providing DoD payload mission planning and on-orbit control. The Deputy Secretary of Defense and Administrator, NASA signed the updated MOU in January 1977.

Cooperative programs

The jointly funded Army and NASA Rotor Systems Research Aircraft has reached the flight test stage. This program will provide data on advanced helicopter rotors and control systems.

The Tilt Rotor Research Aircraft which is another joint Army and NASA program will enter flight testing early this year providing proof of concept and full scale flight data.

The Super-Critical Wing Technology effort has achieved more than 90 flights providing the first demonstration of a super-critical airfoil at speeds greater than Mach 2.0. NASA conducts these tests using an F-111 with new outer wing panels furnished by the Air Force.

The alternate fuels is part of a long term coordinated effort with the Military Services, NASA and EDA to assure that acceptabie aviation jet fuel will be obtainable at minimum cost from domestic sources such as oil shale, tar sands and coal. The next phase of the program will be to refine in a commercial refinery, 100,000 barrels of shale crude into military specification fuels. Problems of production and refining will be analyzed. Joint agency testing will investigate medical, chemical and material interactions, storage and handling questions. The overall program will be managed by the Navy with the support of the Army and Air Force.

Test facility support

The DoD Advanced Range Instrumented Aircraft provide NASA with telemetry reception and data relay support in areas where land station instrumentation is not available. The Air Force Flight Test Center provides tracking and data