UNCLASSIFIED BUDGET ITEM JUSTIFICATION (EXHIBIT P-40) P-1 LINE ITEM NOMENCLATURE: C-12

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1 APPROPRIATION/BUDGET ACTIVITY: AIRCRAFT PROCUREMENT-AIR FORCE/AIRCRAFT Modifications BUDGET ITEM JUSTIFICATION (EXHIBIT P-40) P-1 LINE ITEM NOMENCLATURE: C-12 DATE: February 2011 FY-10 FY-11 OCO Total FY-13 FY-14 FY-15 FY-16 COST (In Mil) $0.470 $7.645 $1.777 $0.000 $1.777 $1.876 $1.876 $1.979 $2.014 This line item funds low-cost modifications and service bulletins for the C-12 aircraft, commercial equivalent to the Beech Craft Super King Air. The C-12 is a twin-turboprop, support-airlift aircraft used to transport cargo and passengers. Service bulletins are necessary for continuing FAA certification while improving flight safety, reliability, and maintainability. CLASS MOD NR MODIFICATION TITLE FY-10 FY-11 OCO Total FY-13 FY-14 FY-15 FY-16 COST TO GO TOTAL PROG P 6160 DEFENSIVE SYSTEMS S SERVICE BULLETINS X LOW COST MODIFICATIONS TOTAL FOR CLASS P Z88888 ADJUSTMENTS TOTAL FOR CLASS TOTAL FOR WEAPON SYSTEM C-12 Totals may not add due to rounding TOTAL PROG includes Prior Year and Cost To Go Dollars P-1 SHOPP LIST ITEM NO. 58 PAGE NO. 1 PAGE

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3 APPROPRIATION/BUDGET ACTIVITY: AIRCRAFT PROCUREMENT-AIR FORCE/AIRCRAFT Modifications BUDGET ITEM JUSTIFICATION (EXHIBIT P-40) P-1 LINE ITEM NOMENCLATURE: MC-12W DATE: February 2011 FY-10 FY-11 OCO Total FY-13 FY-14 FY-15 FY-16 COST (In Mil) $ $ $ $ $ $ $ $ $ FY 2010 funding totals include $114.0M appropriated for two separate initiatives ($29.0M and $85.0M) for Overseas Contingency Operations (OCO). FY 2012 funding totals include $17.3M requested for Overseas Contingency Operations (OCO). FY 2010 funding totals include $63.0M appropriated for High Definition (HD) sensors. The contract for this initiative was awarded on 20 January Majority of this contract goes towards the purchase of the long lead item, the EO/IR sensor balls. The $29.0M that was appropriated via OCO Supplemental will be used to retrofit two of the Phase 1 aircraft to the Phase 2 configuration. That contract was awarded on 8 November Finally, the $85.0M received per the OCO Surge supplemental was requested to modify the five additional Hawker Beechcraft King Air 350ER aircraft to the Phase 2 configuration that were purchased with FY 2010 OCO Surge aircraft procurement funding. The modification contract was awarded to L-3Communications (L-3Com), Greenville, TX on 21 December These five aircraft are projected to deliver from Hawker Beechcraft Corporation, Wichita, KS to L-3Com in February through June FY 2011 and FY 2012 funding totals, including the $17.3M requested via the FY 2010 OCO Supplemental, will be used to fund user requested modifications (Form 1067s) and service bulletins for the MC-12W fielded aircraft. Prioritization of these user requested modifications will be as a result of the Air Combat Command's Requirements Working Group recommendations. CLASS MOD NR MODIFICATION TITLE FY-10 FY-11 OCO Total FY-13 FY-14 FY-15 FY-16 COST TO GO TOTAL PROG P 9144 C-12 ISR Modifications Z88888 ADJUSTMENTS TOTAL FOR CLASS P TOTAL FOR WEAPON SYSTEM MC-12W Totals may not add due to rounding TOTAL PROG includes Prior Year and Cost To Go Dollars P-1 SHOPP LIST ITEM NO. 59 PAGE NO. 1 PAGE

4 02/05/2011 FY 2012 PB Individual Modification Exhibit P3A Congressional Appropriation: Aircraft Procurement, Air Force Modification Title and No. C-12 ISR Modifications MN CLC: MC-12W Class: P Models of Systems Affected: MC-12W Center: ASC - Wright Patterson AFB, OH PE F Team Unassigned Description/Justification Liberty Project Aircraft (LPA), military designation MC-12W, is the Air Force's multi-role, medium altitude, manned aircraft system performing an intelligence, surveillance, and reconnaissance (ISR) mission coupled with a target acquisition (TA) capability. LPA was initiated through the SECDEF-directed ISR Task Force to address the ever-increasing Combatant Commander's requirements to satisfy ISR capabilities shortfalls in on-going Overseas Contingency Operations (OCO). Program management is the responsibility of the 645th Aeronautical Systems Group (AESG, a.k.a. BIG SAFARI Program Office) and L-3Communications (L-3Com) is on contract as the prime integrator for the MC-12W system. L-3Com modified seven Hawker Beechcraft Corporation (HBC) King Air 350 aircraft to the MC-12W Phase 1 configuration (LPA #1 through #7) which included: full motion video (FMV) line-of-sight (LOS) data link for Remote Video Terminals (RVTs, a.k.a. Remote Operations Video Enhanced Receiver {ROVER} and One System Remote Video Terminal {OSRVT} receivers); limited signals intelligence (SIGINT) collection capability; and narrowband INMARSAT data link for beyond line-of-sight (BLOS) connectivity. L-3Com has modified 30 HBC King Air 350 extended range (ER) aircraft to the MC-12W Phase 2 configuration (LPA #8 through #37) to include: enhanced FMV with laser designator capability; a more robust SIGINT capability; and a Ku-band spread spectrum (KuSS) data link with increased bandwidth for BLOS connectivity. FY 2010 funding totals also include $63.0M of baseline funding to procure and integrate a high definition (HD) enhanced Electro-Optical/Infrared (EO/IR) sensor ball capability. Long lead items are on contract and the integration effort is projected to commence in 3rd Quarter of FY In addition, $29.0M of FY2010 OCO Supplemental funding was appropriated to retrofit two MC-12W Phase 1 aircraft to the Phase 2 configuration. The seven month retrofit effort is scheduled to begin in 2nd Quarter FY Also, $85.0M of OCO Surge Supplemental funding was provided for the modification of the five additional Hawker Beechcraft King Air 350ER aircraft to the MC-12W Phase 2 configuration purchased with FY 2010 OCO Surge funding. The FY10 OCO surge funding included all equipment and installation costs, which are not broken out separately. FY 2012 funding includes $17.3M requested via an OCO submission as an aircrew safety of flight initiative to upgrade the MC-12W's autopilot system. The upgrade provides a manual roll and bank capability that allows for enhanced situation awareness for the pilots operating in a task saturated environment and addresses a potential dangerous situation as defined by the operational user. Additionally, the $16.7M in FY 2012 base funding is for upgrades to include, but not limited to, airframe components, SIGINT sensors systems, data links, EO/IR sensors, and the mission management system as prioritized provided by Air Combat Command (user) to respond to mission requirements changes in a rapidly evolving operational environment. MC-12W Fleet Breakout: - 5 King Air 350 aircraft are modified to the MC-12W Phase 1 configuration - 2 King Air 350 aircraft modified to the MC-12W Phase 1 configuration aircraft are being retrofitted to the MC-12W Phase 2 configuration; estimated completion date is 4th Quarter FY King Air 350ER aircraft are modified to the MC-12W Phase 2 configuration - 5 King Air 350ER aircraft are entering modification in the 2nd Quarter of FY 2011 to become MC-12W Phase 2 configured aircraft; estimated completion date is 4th Quarter of FY 2011 A total of 42 King Air 350 class aircraft (5 Phase 1 aircraft, 37 Phase 2 aircraft) will be the MC-12W LPA program of record. Note: This modification is accomplished under P-1 Line No. 57, "C-12" prior to FY Aircraft Breakdown: ACTIVE 42, RESERVE 0, ANG 0, TOTAL 42 Development Status 645 AESG selected L-3Communications (L-3Com), Greenville, TX as their prime contractor for the integration and modification of Hawker Beechcraft Corporation (HBC) King Air 350/350ER aircraft into MC-12W Liberty Project Aircraft (LPA) intelligence, surveillance and reconnaissance (ISR) platforms. L-3Com completed and delivered the 37th (Phase 2) MC-12W LPA to the Air Force on 18 August L-3Com was awarded a contract on 21 December 2010 to modify five additional King Air 350ER aircraft to the MC-12W LPA Phase 2 configuration (LPA #38 through #42). The projected completion of this contract is in the 1st Quarter of FY 2012 and this effort will complete the MC-12W LPA fleet at 42 aircraft in the program of record. The manual roll bank upgrade to the aircraft autopilot system is a commercially available system that does not require additional development to install on the MC-12W. Additionally, L-3Com is on contract to retrofit two MC-12W LPA Phase 1 aircraft to the MC-12W LPA Phase 2 configuration. This effort is projected to be completed in the 4th Quarter of FY MC-12W LPA are currently deployed to the USCENTCOM area of responsibility (AOR) to support Overseas Contigency Operations (OCO). Five MC-12W LPA are currently utilized as dedicated training assets operated by the 186th Air Refueling Wing (ANG), Key Field, Meridian, MS. And as mentioned above, L-3Com is on contract and has or will be shortly in possession of two MC-12W LPA Phase 1 aircraft (retrofitting to the Phase 2 configuration) and five King Air 350ER aircraft for modification to MC-12W LPA Phase 2 configuration. That is the distribution of the 42 MC-12W LPA fleet. 2 PAGE *

5 Fact Sheet: MC-12W MN 9144 C-12 ISR Modifications Projected Financial Plan Continued (Continued) RDT & E (3600) (Active) RDT & E (3600) (Guard) RDT & E (3600) (Reserve) Total RDT & E (3600) PROCUREMENT (3010) INSTALL KITS Group A (Active) [5] INSTALL KITS Group A (Guard) INSTALL KITS Group A (Reserve) TOTAL: INSTALL KITS [5] KITS NONRECUR Group A (Active) KITS NONRECUR Group A (Guard) KITS NONRECUR Group A (Reserve) TOTAL: KITS NONRECUR EQUIPMENT Group B (Active) [40] EQUIPMENT Group B (Guard) EQUIPMENT Group B (Reserve) TOTAL: EQUIPMENT [40] EQUIP NONREC Group B (Active) [0] EQUIP NONREC Group B (Guard) EQUIP NONREC Group B (Reserve) TOTAL: EQUIP NONREC [0] CHANGE ORDERS DATA SIM/TRAINER SUPPORT- EQUIP RETROFIT [2] PRIOR FY-10 FY-11 OCO FY-13 QTY COST QTY COST QTY COST QTY COST QTY COST QTY COST UPDATES INSTALLATION OF HARDWARE FY-10 (Active) 0 KITS [0] TOTAL INSTALL 0 TOTAL COST (BP-1100) (Totals may not add due to rounding) INSTALLATION QTY PAGE *

6 Fact Sheet: MC-12W MN 9144 C-12 ISR Modifications (Continued) Continued RDT & E (3600) (Active) RDT & E (3600) (Guard) RDT & E (3600) (Reserve) Total RDT & E (3600) PROCUREMENT (3010) FY-14 FY-15 FY-16 TO COMP TOTAL QTY COST QTY COST QTY COST QTY COST QTY COST INSTALL KITS Group A (Active) [5] INSTALL KITS Group A (Guard) INSTALL KITS Group A (Reserve) TOTAL: INSTALL KITS [5] KITS NONRECUR Group A (Active) KITS NONRECUR Group A (Guard) KITS NONRECUR Group A (Reserve) TOTAL: KITS NONRECUR EQUIPMENT Group B (Active) [40] EQUIPMENT Group B (Guard) EQUIPMENT Group B (Reserve) TOTAL: EQUIPMENT [40] EQUIP NONREC Group B (Active) [0] EQUIP NONREC Group B (Guard) EQUIP NONREC Group B (Reserve) TOTAL: EQUIP NONREC [0] CHANGE ORDERS DATA SIM/TRAINER SUPPORT- EQUIP RETROFIT [2] UPDATES INSTALLATION OF HARDWARE FY-10 (Active) 0 KITS [0] TOTAL INSTALL 0 TOTAL COST (BP-1100) (Totals may not add due to rounding) INSTALLATION QTY 5 4 PAGE *

7 Fact Sheet: MC-12W MN 9144 C-12 ISR Modifications (Continued) Method of Implementation: Contractor Facility Initial Lead Time: 9 Months Milestones FY-09 FY-10 Contract Date (Month/CY) 12/10 Delivery Date (Month/CY) 09/11 Follow-On Lead Time: 9 Months Installation Schedule FY-09 FY-10 FY-11 OCO Quarter Input 3 2 Output PAGE *

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