General Atomics Aeronautical Systems, Inc. USAF MQ-9 Predator B Reaper Program

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1 I. PROGRAM OVERVIEW Organization Name/Program Name: Your Name/Position/Contact information , Phone Customer: Organization, Name, Position, Contact information. Program Category Program Background: What is this program all about? (No more than one page). Describe: The overarching need for this program History of the program The product that is created by this program Scope of work original & updated Expected deliverables Current status of the program MQ-9 History, Status and Projection: USAF Deliveries: 51 6 Other Customers: 29 Total Aircraft Delivered: 80 + Aircraft on Order: 30 Total to Date: Projected Orders (to 2016) 250 Total ( ) 360 General Atomics Aeronautical Systems, Inc. (GA-ASI) MQ-9 Predator B Reaper Program Michael V. Cannon Director, United States Air Force (USAF) Programs [email protected] (Office) (Cell) Christopher M. Coombs, Colonel, USAF 703rd Aeronautical Systems Group, (AESG) Wright-Patterson AFB, OH [email protected] Phone: System level Production/Sustainment program or project Overarching Need: Since the Bosnian conflict and all throughout Operations Iraqi Freedom and Enduring Freedom (OIF/OEF), U.S. Warfighters came to rely on the MQ-1B Predator for persistent intelligence, surveillance and reconnaissance (ISR). Predator s real-time, full motion video and ability to strike time-sensitive targets has been crucial in saving allied lives and in the overall execution of the war on terror. From this experience it was apparent that a larger, faster remotely piloted aircraft (RPA) with larger, more precise weapons, heavier payloads, higher resolution EO/IR sensors and a tactical radar would be significantly more effective in surveillance and target prosecution. The needs for these capabilities prompted GA-ASI to develop the Predator B RPA. Program History: Based on the success of MQ-1B Predator, GA-ASI began development of Predator B (USAF name: MQ-9 Reaper) in Two prototypes were built and Predator B first flew in February Predator B (referred to in this document as MQ-9) was designed from the outset as a persistent hunter-killer, able to locate and quickly strike emerging/fleeting targets. The USAF purchased the first two prototype RPAs in October In 2003 GA-ASI integrated the Lynx Synthetic Aperture Radar with Moving Target Indicator (SAR/GMTI) into the MQ- 9. The Lynx radar has laser ranging, laser designation and other targeting capabilities that significantly increase MQ-9 mission capabilities. MQ-9 was integrated with laser guided GBU-12s and Hellfire missiles and was deployed to combat by the USAF in Since inception, MQ-9 has flown more than 120,000 total hours - 76,000 hours in combat operations. In 2001 GA-ASI received the Shephard Press UAV Design Innovation Award for Predator B Development. Scope of Work: GA-ASI developed MQ-9 based on the success of the MQ-1B Predator and our understanding of Warfighter needs for greater endurance, larger and more diverse payloads and weapons with precision strike capabilities. MQ-9 provides significantly more payload capacity, improved flight systems reliability, including a high reliability Honeywell turboprop engine. GA-ASI subsequently developed a Stores Management System (SMS) that enabled MQ-9 to safely and effectively employ modern, precision-guided weapons from high altitude, including the GBU-38 JDAM. Current Status: At present, 80 MQ-9 RPAs have been delivered to the USAF and other customers, and 30 are on order (for multiple customers). The program has been so successful that six variants of MQ-9 have been delivered to seven different customers, including a maritime variant. GA-ASI provides full logistics support to MQ-9 and all variants globally, 24/7/365, including Predator-series GCSs and ground support equipment (GSE). In early 2013 the Block 5 MQ-9, with significantly increased capabilities, will be available for customers. In 2009 GA-ASI was awarded the USAF Association John B. Alison Award for Industrial Leadership and Innovation. 1

2 II. VALUE CREATION = 20 POINTS Value: What is the value, competitive positioning, advantage, and return created by this program to your: Customers National interests, war fighter Company Strength, bottom line, and shareholders Scientific/technical value (particularly for R&D programs) Excellence and Uniqueness: What makes this program unique? Why should this program be awarded the Program Excellence Award? In what ways is this a stellar program? Value to Customer: USAF valuation of MQ-9 Reaper is expressed in repeated aircraft orders and plans to increase the fleet to more than 300 aircraft by There is clear evidence of national value when MQ-9 and variant performance is examined. MQ-9 is now the hunter-killer weapons system of choice in OIF and OEF, based on proven capabilities. One customer recently demonstrated national value by protecting shipping in the Arabian Sea and off the Horn of Africa. Another customer has repeatedly demonstrated the value of MQ-9 in the execution of drug interdiction and illegal immigration missions. MQ-9 routinely detects surface and submerged drug smuggling vessels. A third customer accomplished aerial mapping of wildfires and post-storm aerial photography to assist in disaster relief. Other capabilities demonstrated to date are civil security, terrain mapping, and land/sea monitoring and a variety of national security tasks. Value to the Company: MQ-9 is now one of GA-ASI s dominant products. As MQ-1B Predator production ends in early 2011, MQ-9, along with the MQ-1C Army Sky Warrior, will become our primary RPA. In addition, GA-ASI provides global logistic support of MQ-9 and its derivatives 24/7/365. GA-ASI is a privately held company, there are no shareholders. In 2006 Frost and Sullivan presented its 2006 Business Development Strategy Leadership Award to GA-ASI for Gains in the UAS Market. Scientific/Technical Value: MQ-9 was GA-ASI s first venture into large unmanned aircraft. With a maximum gross takeoff weight (GTOW) of 10,500 lb, MQ-9 transitioned GA-ASI s technical capabilities from the MQ-1B Predator, with a GTOW of 2550 lb, to our most recent development, Predator C Avenger, with a current GTOW of 15,800 lb. Recently GA-ASI proposed a Sea Avenger concept aircraft to the U.S. Navy with at a catapult launch weight of 17,400 lb. The scientific and technical development of MQ-9 led us to these larger and more capable aircraft. One Government customer conducts scientific and atmospheric research with MQ-9. Integration of a variety of ISR and other mission-specific sensors enabled transition of these capabilities to MQ-9 variants and ultimately to Predator C Avenger and Sea Avenger. Our technical approach is evolution, not revolution, e.g., each successive RPA inherits legacy designs from predecessors. Frost and Sullivan gave its 2007 Industry Innovation and Advancement Award to GA-ASI for Participation and Advancement of the UAS Market. The American Institute for Aeronautics and Astronautics awarded its 2007 San Diego Section Awards: Outstanding Achievement by an Aerospace Organization for the Predator Family of UAV Systems. Excellence and Uniqueness: MQ-9 is now the world s foremost persistent surveillance and precision strike RPA. No other unmanned aircraft can claim the combination of long endurance, range, and high altitude ISR capabilities with precision strike firepower. In addition, a robust maritime search and surveillance centerline radar pod makes MQ-9 truly unique. Other evidence of a highly successful program is that more and more U.S. allies are requesting the acquisition of MQ-9 for military and civil service. Last, but not least: the first MQ-9s were developed on IRAD funding by GA-ASI. Our USAF and other customers recognize MQ-9 value and continue to make investments that give the aircraft the mission capabilities it has today. In June 2008, Air and Space Magazine named Predator one of the Top 10 Aircraft That Changed The World. The following factors justify this distinction: First UAV to be controlled via satellite communications, first to provide voice radio communications, first to support manned aircraft with laser designation, first to employ precision air-to-ground weapons and the first to employ air-to-air weapons. 2

3 III. ORGANIZATIONAL PROCESSES/BEST PRACTICES: (HOW DO YOU DO THINGS) = 30 POINTS Strategic: Describe how you developed your program strategy and competitive advantage in support of your company strategy, how you monitor progress toward achieving this strategy Strategic: Requirements Management How do you define, revise and control your requirements? Strategic: Systems Engineering Describe your systems engineering planning and management processes. Program Strategy Development: GA-ASI has historically invested and initiated IRAD programs to shorten development lead times and produce RPAs in anticipation of customer needs. Our culture is: get ahead of the curve. The MQ-9 Reaper is a prime example. This aircraft was developed on company IRAD, and was available for USAF deployment several years earlier than it would have been under a standard DoD acquisition process. GA-ASI proactively leaned forward with MQ-9 development, enabling us to push MQ-9 capability to Warfighters rather than wait for the acquisition system to pull the capability from industry. The success of our strategy was demonstrated with early fielding of Predator A, MQ-9, Sky Warrior, and Block 30 and Block 50 ground control systems, all developed in advance of requirements-driven, formal DoD acquisition programs. Our customers have embraced our products for the value added capabilities brought to their most critical missions. Additionally, our strategy is to remain agile so that we are able to respond to urgent customer requests for products and services. GA- ASI measures strategy success via the internally developed systems that are subsequently fielded by our customers. Requirements Management: An initial and key component of our Systems Engineering (SE) process is the development and management of requirements. At GA-ASI, this is accomplished using the Dynamic Object Oriented Requirement System (DOORS ) tool. The first step in the requirements management process is to capture all contractual and technical requirements in a requirements database. Each requirement is traced to the original source. In concert with our customer, we review each requirement and agree on descriptions that capture the needs of the Warfighter and can be properly verified during our test program. System requirements are decomposed and allocated to the aircraft or ground control subsystems where they are implemented through new design or modifications to existing, proven components. Subject matter experts in Aerodynamics, Propulsion, Weapons Systems, Sensors, and Communications are consulted to verify allocated requirements and create detailed specifications for line replaceable units (LRUs) and associated software. Revisions to requirements are sometimes needed as detailed design progresses and test plans are developed. These revisions are controlled through configuration management of the requirements database. Revisions are collected and reviewed with the customer, including impact to derived LRU specifications. When technical and contractual agreement is reached, revised requirements become part of our database and revisions are managed in the same manner as the original requirements. Requirements volatility is an important systems engineering metric we use to understand when the design baseline is stable and has low risk to production. Systems Engineering (SE): SE at GA-ASI is accomplished using industry standard practices that result in Capability Maturity Model Integration (CMMI) compliant documents and products with excellent performance and reliability. Elements of GA-ASI SE include requirements development and management, requirements validation, technical interchange meetings, creation of an architectural baseline, design reviews, verification and validation procedures, and demonstrations. System architecture and performance parameters are developed, documented, and monitored through a series of technical and program reviews, including System Requirements Review, Preliminary Design Review, and Critical Design Review. SE planning is a continuous process throughout the system/product development, production and support life cycle. SE planning is characterized by our ahead of the curve approach to the development of new products and capabilities. As one phase of performance upgrades are being developed and implemented for RPAs. We are working with customers to plan the next phase of enhancement or growth. Key enabling technologies are identified to create the desired capabilities, e.g., improvements to sensors, payloads, weapons, communication links, or aircraft 3

4 Strategic: Opportunity Management - Describe how your program identifies opportunity and manages this opportunity. Operational: Planning, Monitoring, and Controlling - Describe your planning and resource allocation processes. How do you monitor and review your program s progress and make corrections to keep the program on track control systems. Development timelines and resource requirements are defined for each of these enabling technologies. Key suppliers are engaged as an integral part of our development team. SE planning supports business decisions that fund system / product development projects. Significant research and development resources are invested in the next generation of capabilities envisioned by our technical leaders and our customers. SE is managed by senior systems engineers well-versed in U.S. Government and industry-standard hardware and software development, system integration, manufacturing and test processes. Coordination of our Aerodynamic, Propulsion, Mechanical, Electrical, and Software engineering teams is led by SE managers from beginning to end of the system life cycle. The GA-ASI SE team is also responsible for day-to-day management of system performance, including technical performance parameters, management of technical risk, and cost and schedule performance. System Engineering of advanced concepts and prototypes is a GA-ASI core competency. Opportunity Management: Our overriding strategic goal is to stay ahead of customer needs, i.e., we invest heavily in prototype aircraft and ground systems to demonstrate advanced capabilities and proof of concept. We have been very successful in pushing mission capabilities to our customers rather than waiting for acquisition processes to pull products from industry. We are successful at this because our products are evolutionary, robust and flexible in design. Examples are our RPA s, ground systems and our lightweight Lynx Synthetic Aperture Radar with Ground Moving Target Indicator (SAR/GMTI). In addition to market research, we routinely meet with our customers and industry partners to learn of current and projected needs. These meetings provide us the opportunity to listen to customer inputs and share our ideas. For short-term opportunities, we brief senior management and decide on an action plan. For long-term opportunities, we fold them into our annual operating planning process. We set aside funds each year for research and development based on anticipated customer needs. Planning, Monitoring and Controlling: Due to the dynamic nature of the RPA business, planning/re-planning is accomplished on a continuous basis with our Government customers, resulting in regular planning and re-planning for GA-ASI and our suppliers. Multiple levels of planning must be integrated, frequently on accelerated schedules: strategic, business base, specific program, tactical (for quick reaction, urgent services and deployment requirements) and departmental. GA-ASI uses a hybrid matrix organizational structure that allocates resources from home departments to programs and some resources are assigned to IRAD or short term projects. This fosters retention of skills for a program and the flexibility to rapidly shift resources to unanticipated high priority customer needs. Monitoring of program tasks is managed by both program and functional managers on a monthly basis, and more often if needed. GA-ASI has a documented policy, process and procedure for reporting on project/program performance based on planned goals for technical, cost and schedule progress. GA-ASI advocates advanced planning with customers well before proposal preparation and contract start to ensure realistic performance and resource plans. The MQ-9 RPA program began as an IRAD effort in anticipation of a customer need. Immediately after Sept. 11, 2001 MQ-9 became a USAF contracted program. GA-ASI and the USAF developed a roadmap for the program that then enabled accelerated company hiring and expansion. As the program (now the MQ-9 Reaper Program) has grown, this partnership continues with significant DoD Future Years Defense Plan (FYDP) and Program Objective Memorandum (POM) planning interaction. Cost and schedule on the MQ-9 Program is managed via our Earned Value Management System (EVMS). When EVMS data shows early variances in cost or schedule, cost account managers (CAMs) take ownership of their portions of the program and are required to brief management on cause and mitigation plans. CAMs are responsible for resolutions to cost, schedule or performance issues. 4

5 Operational: Supply Chain Management -- What processes, tools and relationship-building methods have you used to develop, refine and improve supply chain and stakeholder integration? This is one of the most imperative needs of our industry please provide specific details and data that assisted you in gauging the effectiveness. Operational: System Integration, Testing & Reviews - Describe the activities and processes used to succeed in your system design, integration, and testing. How did you conduct system design and technical reviews? Operational: Risk Management Describe the processes used to identify risk and avoid future/potential issues or risks. Supply Chain Management: At GA-ASI we believe a strong supplier base that can deliver quality products, on-time, at a reasonable cost is essential. We have several processes to facilitate management of our supplier base and the ordering parts: 1) Supplier Rating System. This system enables monitoring and measurement of our supplier s on a quarterly basis. We require root cause analysis and corrective action when quality or delivery ratings fall below 98% (quality) or 95% (on-time delivery). We have a team, including Purchasing, Supplier Quality and Engineering that reviews all ratings monthly, searching for adverse trends. We take positive action to mitigate detected risk. Such actions include supplier visits, supplier counseling and we may remove a supplier for sub-standard performance. 2) Supplier Portal. This is a web-based system that suppliers log onto weekly to record status on open purchase orders, within a specific time window. This provides continuous communication with our suppliers. 3) Subcontract Management. Subcontract Administrators develop a specific plan for each subcontract, in conjunction with other stakeholders. Once the plan is established, the Subcontract Administrator and team manage the subcontract to the plan, and document required actions. 4) Long Term Agreements and Supplier-Managed Inventory. We use Long Term Agreements and Vendor Managed Inventory, when appropriate. This reduces lead-time, helps controls cost, improves productivity and mitigates risk. 5) Common Inventory. We buy most products to a common inventory account and transfer to projects, as required, for maximum material management flexibility. 6) Planned, Scheduled Monitoring and Review. We have monthly Senior Management reviews of all critical subcontractors and issues, if they exist. Performance metrics are reviewed as a part of monthly Program Management Reviews. Buyers are assigned to specific programs/projects. Supply Chain Management is a core competency. System Integration: System integration begins with high-level requirements and we launch the design in parallel with documenting detailed requirements. This reduces product time to fielding and identifies/resolves risk early. We use a robust suite of System Integration Laboratories (SILs) to significantly improve our ability to integrate subsystems into the RPA products, e.g., MQ-1B Predator, MQ-9 Reaper, MQ-1C Sky Warrior and the Block 30 and Block 50 GCSs. Testing: Lead engineers have extensive authority to prototype components and subsystems to reduce risk. We have extensive system development assets, including a complete, vertically integrated prototype manufacturing facility in addition to airports, flight test facilities and company-owned aircraft. We typically have a prototype flying as an 80% solution before receiving customer funding. This accelerates fielding of the product. We then use planned spiral development. The net result is shorter development cycles and reduced cost to the customer. Reviews: We conduct regular internal and formal customer reviews. Internal reviews are focused and conducted with key staff. Formal reviews by technical leaders are the foundation of our rigorous review process. Design reviews focus on requirements, verification methods, affordable flyaway cost and how quickly we can build and field the system. Our review process has a follow-up fix process, therefore we require the use of Action Item checklists to rectify problems revealed during reviews. Action item closure is shared with the customer, when appropriate. Risk Management: GA-ASI has a formal, documented risk management process and uses the Risk Radar tool to identify, assess, quantify and qualify risks and formulate mitigation actions for eliminating, if possible, or controlling/managing all manner of risk, e.g., technical, cost and schedule. Risks are examined with respect to probability and consequence. All major programs have a risk management process that is managed in concert with the customer. Three factors significantly reduce risk to production: 1) GA-ASI has a high Make to Buy ratio, reducing supplier risk. GA- ASI manages the supply chain through careful, detailed make vs. buy decisions and has as a result developed an extensive production facility for lower level detailed parts. By manufacturing unique and often complex electronic subsystems in-house 5

6 Team Leadership: Team Spirit and Motivation Describe how you created your team spirit and culture, and accomplished full team integration and team member motivation. Team Leadership: Lessons Learned and Knowledge Management Describe how you collect lessons learned and best practices, and how they are shared with your team and company to improve performance. we are able to identify risk areas quickly and control mitigating factors. For purchased parts, risk reduction is maintained through diligent supplier selection consisting of an extensive supplier survey and audit process. 2) The second vehicle GA-ASI uses to reduce risk to the production line is the purchase of long-lead parts on forecast. Contractual demand often starts well within the lead-time of long lead items, therefore the company orders these items on forecast company funds so that when the customer demand is established there is no schedule risk to the production flow. To maintain production continuity GA-ASI spends company funds to lead demand. 3) We have a rigorous system engineering process that attacks component obsolescence, diminishing suppliers, sole-source supplier and limited supplier problems. Over the past two years the company has acquired several new facilities (more than 1 million sq. ft. for a total of 2.2 million sq. ft.) to expand production line capacity before the production demand could bottleneck the line and become a risk to delivery schedule. One of our most effective risk reduction methods is to develop, fly and test prototype aircraft well in advance of anticipated customer need dates. This was done with Predator, MQ-9, Sky Warrior, Block 30 and Block 50 GCS. The advanced development of prototype aircraft and GCSs demonstrates that proactively managing risk is a core GA-ASI competency. Team Spirit and Motivation: GA-ASI has a heritage of strong team spirit and motivation created by a combination of management and workforce continuity, and close collaboration with customers and long-term suppliers in all phases from development through sustainment. From the company s inception in 1993, and throughout our successes and tremendous growth each year since, employees are quickly trained on the company s mission to enhance national security by providing what our Warfighters need. This developed a company culture that places high value on customer responsiveness, teamwork and pride in supporting U.S. military and national security missions. A day almost never goes by that the success of MQ- 1B Predator or MQ-9 Reaper is not documented in the media. Employees continually witness the success of our RPAs and this is a constant motivating factor. GA-ASI has an intranet newsletter that encourages employees to ask questions of senior management. The company also holds a holiday luncheon to honor people and organizations that have demonstrated excellent performance. Proof of our success is that our employee retention rate consistently exceeds the industry average by 4-7%. Frost and Sullivan awarded the 2008 North American UAS Company of the Year to GA-ASI - presented for Exceptional Display of Leadership and Innovation. Lessons Learned and Knowledge Management: Maintaining continuity of leadership, management and a stable workforce has been a key element of the company s ability to retain and expand knowledge. GA-ASI s Business Process Improvement system produced a formal Lessons Learned process. This methodology and the results it produces are accessible on the GA-ASI intranet. Use of the process is required for a program at least three times during its life cycle and results are briefed to all levels of management. MQ-9 successful development and transition to production was enabled by personnel who gained knowledge and lessons learned on the MQ-1B RPA. These employees were chosen to lead early design, tooling and production efforts, providing a direct application of RPA experience for the MQ-9 system and expanding company UAS system management capabilities. This is a standard practice when we develop new products and is in effect on advanced systems now in development. In the past two years GA-ASI leaders received the following awards: 2009: CONNECT Entrepreneur Hall of Fame Inductees: Neal Blue, Chairman and Linden S. Blue, Vice Chairman of General Atomics 2010: The Engineer s Council Clarence L. Kelly Johnson Skunk Works Award: Thomas J. Cassidy, President, GA-ASI 6

7 Team Leadership: Leadership Development How do you develop team s skills and build future leaders Best (& Next) Practices: Identify your program s specific Best Practices that you believe are unique, and could be shared with others and become industry s Next Practices. Leadership Development: GA-ASI s practice is to promote from within, when possible. The company has a dual track leadership development program consisting of on-the-job training and tailored courses. GA-ASI selects personnel with demonstrated leadership capabilities and provides mentored task responsibility before assigning candidates to management responsibilities. This provides potential managers with hands-on experience in a dynamic work environment, promotes teamwork and provides first-hand exposure to our culture. A combination of handson mentoring by management, training, and lessons learned feedback supports the development of leadership skills. Due to the rapid rate of GA-ASI growth (from 182 employees in 1995 to over 4200 at present), there are numerous leadership opportunities as new programs and projects are frequently initiated. The company also offers formal training with courses provided by designated GA-ASI trainers, and scheduled courses delivered by suppliers, including Franklin-Covey and independent consultants. Formal training is specifically tailored to the needs of individuals and teams in cooperation with management and Human Resources. When able, we nominate middle managers with growth potential to attend advanced Defense Acquisition University (DAU) leadership courses, in residence. In 2008, Frank Pace, then Executive Vice President and now President of GA- ASI, was awarded the American Institute of Aeronautics and Astronautics, San Diego Section, Lifetime Achievement in Aerospace Engineering Best/Next Practices: GA-ASI s best practices are: lean forward stay ahead of the curve; focus on Warfighter needs; nurture positive customer relationships; hire highcaliber, adaptable employees; reward can-do actions; promote internally; comprehensive engineering capabilities; internally initiated and funded development; calculated use of fly-fix-fly; initially field an 80% solution and spiral develop enhancements; vertically integrate manufacturing/flight test facilities; excess manufacturing capacity; excellent industry partnerships; creative planning and use of company resources to provide internal workforce and supply chain stability. Our CMMI initiative has significantly improved the consistency and repeatability of our business processes, as evidenced by the number of new and improved company policy and process documents, modern business tools, databases and increased automation. We have a solid foundation for agile implementation of advanced levels of process maturity and continuous improvement. IV. ADAPTING TO COMPLEXITY: (HOW DO YOU DEAL WITH YOUR PROGRAM S UNIQUE COMPLEXITIES) = 20 POINTS Identify the Program s Market Uncertainty level How new is your product to your market and users, based on the definitions below. Then describe how you deal and address this specific uncertainty: - Platform a new generation in an existing product line. - New to the Market a product or system adopted from another market - Breakthrough - new to the world product or system. Platform: MQ-9 is a tailored combination of best features from our past and present product lines with added capability and reliability enhancements. We launched the design and development of MQ-9 well in advance of a customer requirement. In parallel, we continuously presented our design concepts to potential customers, Warfighters and major industry partners to solicit input. Given this input, our entrepreneurial management team balanced the potential enhancements with low fly-away cost and fast time to market. Our management team challenged employees to create technically superior components and subsystems, considering size, weight, power, computing capacity requirements and total cost of ownership, while focusing on cost and schedule goals. If suppliers could not provide what we needed, we designed and built our own components. We focused the whole team on first flight and invited our potential customers to witness this important event. Although MQ-9 evolved as a platform, subsequent developments have made it a breakthrough product that has not been equaled. GCS: In the MQ-9 system, the GCS is integral to aircraft operations; essentially, the GCS is the cockpit of the RPA. As such, it shares similar technological challenges as the aircraft and payloads with components of medium and high technology. To manage this uncertainty we used an evolutionally approach with continual updates as aircraft, weapons, or sensors systems/requirements evolve. We employ a systems engineering approach to ensure system level requirements are met though 7

8 Identify the Program s Technological Uncertainty using the definitions below. Then describe how you deal and address this uncertainty: - Medium Technology: existing technology modified to meet new design requirements - High-Technology: recently developed new technology Identify the level of your System Complexity using the definitions below. Then explain how you are dealing with this level of complexity: - A System a collection of subsystems performing multiple functions. Identify the Pace and Urgency of your team s effort using the definitions below. Then describe how you deal with the program s pace requirements: - Fast/Competitive time to market is important for competitiveness. - Time Critical there is an absolute and criticalto-success deadlines decomposition with traceability to subsystem and hardware and software components. Each system is thoroughly checked to reduce technical and programmatic risk through peer reviews, component test, system integration test, ground test and finally flight test using a building block approach. Recently we combined planned upgrades into blocks to streamline the development process. We are working to re-architect the Block 50 GCS to make it more ergonometric and intuitive for users. We are designing a modular and open architecture, including best of breed components, and segregating the aircraft command path from payload control to manage processor and software development. Our GCSs have very high Commercial Off-The-Shelf content. Our open, modular architecture and Obsolescence Management Process keep the GCS robust and enable us to make needed breakthroughs. Medium Technology System: Our MQ-9 system is a compilation of medium technology subsystems customized for specific applications. Early in the concept development phase we broke the system down into subsystems and identified technologies that had potential risk. Once a risk was identified as to consequence and probability, we modified the system architecture to eliminate or mitigate the risk. If the risk could not be designed out, we broke down the subject subsystem into its logical elements to isolate the root cause of the risk. We then focused key resources on reducing the risk early in the design process. Risk management is integral to our core processes. High Technology Sensors and Integration: MQ-9 mission sensors and payload integration generates UAS technological challenges. Whether the sensor is provided by the customer or produced internally, we co-locate and integrate sensor experts into all facets of RPA design, build and test. We mandate that our system architecture be open and modular so that we can quickly field an 80% solution. Our key philosophy is to ensure the 80% solution has field retrofit flexibility so that incorporation of spiral enhancements are low cost and minimal impact to design. Rapidly advancing UAS state of the art is a core GA-ASI competency. System: The MQ-9 system is a collection of carefully integrated subsystems. We use continuous, detailed planning, requirements-based design, disciplined configuration management, internal training and home-grown customer service experts to ensure that complexity is clearly understood by the user. As problems arise we adjust our process and tools for resolution. We use critical thinking to guide our fact-based decisions and promote a culture of lean manufacturing and process improvement. We passionately avoid processes that do not add value. When a process is needed, we make sure it is intuitive and efficient. We empower employees to improve processes and make it easy for them to implement revisions. We rely on high Technology Readiness Level components, high Integration Readiness Level architectures and high Manufacturing Readiness Level processes to control system complexity. Time Critical: Most GA-ASI efforts are time critical as the USAF builds to an aggressively scheduled 65 CAP capability. We operate by anticipating, front-loading resources and implementing accelerated measures in advance of requirements. To increase our workforce we use campus recruiting, job fairs, employee referrals, subcontracting and industry partnerships. We have had great success increasing our composite manufacturing staff by hiring and training local golf club industry employees with transferable skills. To address increased end item demand we maintain excess manufacturing capacity, expand facilities in advance of orders and fund long lead items. Responding to urgent customer needs is a core GA-ASI competency, as we have repeatedly demonstrated during Operations OEF and OIF. 8

9 Other Complexities & Uncertainties - Describe other complexities and unknown factors faced by this program and how you address them. Other Complexities and Uncertainties: The MQ-9 is vital tool of the Warfighter. Due to our adversaries constantly changing methods and tactics, there is a similar ongoing change in MQ-9 UAS mission requirements and capabilities. We now mandate a modular, open architecture system design (e.g., Block 50 GCS) so that our products can be easily and quickly updated, modified and grown. We ensure that initially fielded products have significant flexibility and growth potential. We manage change by working with customers to leverage innovative contracting strategies. To deal successfully with complexity and uncertainty, our foremost business goal is agility. Our customers give us direct access to Warfighters (our product users ) and we include users in all phases of requirements definition and design. Numerous employees are deployed to operational sites, working alongside customers and learning first hand what the customer needs to succeed. We rely heavily on the use of industry standards and interfaces to make our designs as adaptable as possible and responsive to change. V. METRICS (HOW DO YOU MEASURE PROGRAM S PERFORMANCE) = 30 POINTS Customer - How do you Customer: We use multiple indicators of customer satisfaction, e.g., repeat measure the impact of business, numbers of new customers, routine communications at all levels of your program on your customer and your management with customer counterparts, monthly customer status meetings customer s satisfaction? (CPARs) where numerous metrics are reviewed, e.g., actual 3600 funding expended Include a description of vs. forecast, user feedback, annual Program Reviews, customer press releases and your metrics, as well as Contractor Performance Assessment Reports. For MQ-9, we ve added 6 new numerical evidence. customers in the past 8 years and increased sales from the original USAF order of 3 Performance - How do you measure your program s performance in traditional terms such as schedule, budget, requirements, and business results? aircraft to a current total of 110. Performance: GA-ASI measures program performance using a variety of structured metrics, some traditional and some tailored to provide timely feedback on specific and overall effectiveness. The company s ISO 9001:2008 system includes a set of quality and schedule metrics designed to measure GA-ASI and supplier performance on each program/project. These are reviewed monthly with senior management. For development programs, cost and schedule performance are measured using the EVMS to provide performance indices and trend data. Each program must establish a set of milestones that are measured against planned goals and objectives, and to implement metrics that accurately reflect contract and system performance. Logistics/product support programs are measured using a variety of customerdirected metrics including Mission Readiness, Availability, Reliability, etc. and turnaround times for depot actions. These metrics are monitored continuously as they reflect bottom line product performance on specific missions. Another measure of business effectiveness is customer-provided CPARs. We use these to make improve performance in accordance with our Quality System requirement for continuous product and process improvement. GA-ASI reviews hiring against the annual staffing plan to ensure resources are acquired to meet business needs. We track the following metrics to measure Performance to Plan: Quality: ISO 9001: 2008 Standards, Quality Assurance and Quality Control metrics, designated for each product and/or process, as applicable, i.e., scrap and rework per man-hour for both electrical and mechanical manufacturing, We track all Corrective Action Reports and metrics associated with completed action. For the period June 2009 to end of May 2010 the percentage of acceptance for mechanical items exceeded 99.9% for every category except servos where the acceptance rate was 99.8+%. During the same period electrical acceptance was 99.0% for electrical and 98.2+% for cable assemblies. System Engineering: Technical Performance Measures, specific to each system/ product development, are our principal metrics, including company initiated research and development projects. We track requirements and changes, engineering changes and the effects of engineering/design on cost and schedule. We document and track component obsolescence, diminishing suppliers, and sole source suppliers. EVMS: EVMS metrics for Cost Plus Developmental Programs include: Budgeted 9

10 Preparing the Future - How do you measure and assess the long-term contribution of your program to the corporation/organization? Team - How do you measure and assess the impact of your program on your team development and employee satisfaction? Unique Metrics - Describe any unique metrics you are using to measure your program s progress and focus it for outstanding success. Cost of Work Performed Actual Cost of Work Performed, Budgeted Cost of Work Scheduled Cost and Schedule Variance, Cost Performance Index, Schedule Performance Index, Estimate at Complete, Estimate to Complete, Budget at Complete, and To Complete Performance Index. Logistics/Support: We track standard maintenance metrics required by our support contracts. In our depot repair work we track Failure Rates and Cause, Repair Turnaround Time, etc. Good examples of our performance on fielded RPAs are a Mission Capable Rate for MQ-9 (87.7) has exceeded the USAF requirement (86 Min) since in 2007 and in June 2010 our MQ-1 and MQ-9 Maintenance Man Hour per Flying Hour Rate were the two lowest of all aircraft possessed by USAF s Air Combat Command. Preparing for the Future: The most important measure of the MQ-9 RPA program s contribution to our company is direct feedback from users of how the products/systems have helped them succeed with their missions. These testimonies come from senior military and national security authorities and Warfighters who accomplished their missions because of our product s capabilities. The feedback measures where we are successful and where we need improvement. The other measure of long-term success is the significant growth of manufacturing, flight operations and research and development facilities. One of our goals is to maintain leadership in the RPA industry. Recently GA-ASI added 7 buildings with more than one million sq ft of space, additional tooling and continued hiring to stay ahead of projected demand for our products, which has grown very significantly over the past 10 years. The fact that the USAF plans to transition to the MQ-9 Reaper system as their primary combat RPA over the next 5 years clearly speaks to GA-ASI s continued leadership in the market. The program is continuing to grow and succeed, supporting company goals of excellent Warfighter support, customer satisfaction, expansion of RPA system industrial capacity, and employee satisfaction. Team Development: Technical and non-technical training at GA-ASI is managed through the Training and Development Center (TDC). The TDC is a learning management system housing all learning activities; classroom or on-line training, external work-shops or conferences. TDC automatically tracks employee training. Employees, supervisors and managers see their training development plans and training records on personalized pages. Managers have access to employee training plans and accomplishments, for annual performance reviews. Individual and department reports ensure that the manager s team has completed required training. Employee Satisfaction: Employee satisfaction is reflected in the following figures. The very significant growth and retention of our workforce (185 to over 4200 between 1995 and 2010) speaks for itself. Employees are pleased with pay and benefits, and they like their working environment, evidenced by retention rates and surveys conducted by Aviation Week for annual top employer awards. Since 2004 GA-ASI has received the following awards from Aviation Week: 2004: 3 rd Best U.S. Aerospace/Defense Employer 2005: 4 th Best U.S. Aerospace/Defense Employer 2006: Top U.S. Aerospace/Defense Employer 2008: Employer of Choice Finalist, Valuing People 2009: Employer of Choice Finalist, Technological Challenge Unique Metrics: Two examples of unique metrics are flight test facility throughput and software manpower. Flight Test Facility Throughput: Due to rapidly expanding development and production test volume, our Gray Butte Flight Test Facility was identified as a potential bottleneck. Metrics that show planned vs. actual time periods for each phase of integration and test are tracked to measure the success of over 31 initiatives put in place to remove potential throughput issues. Software Manpower: Software development capacity continues to grow at an everincreasing pace. To match proposed Basis of Estimate hours for software development, software manning must continue to expand. Metrics specific to software manning have been put in place to track planned vs. actual hiring. 10