Name of Program: The Boeing Company / Apache 64 D Block III

Name of Program: The Boeing Company / Apache 64 D Block III Name of Program Leader: David Koopersmith Phone Number: (480) 891-9001 Email: david.m.koopersmith@boeing.com Postage Address: 5000 East McDowell Road Mesa, Arizona 85125 Name of Customer Representative: COL Shane Openshaw Phone Number: (256) 313-4200 Email: Shane.Openshaw@us.army.mil Bio for program leader: David Koopersmith is vice president of the AH-64D Apache and AH-6i Light Attack/Reconnaissance helicopter programs for The Boeing Company in Mesa, Ariz. The programs are part of Boeing s Global Strike organization within the Boeing Military Aircraft (BMA) business. Prior to this position, Koopersmith was vice president of Advanced Boeing Military Aircraft (Adv BMA), and was responsible for leading the Adv BMA business element of the Phantom Works business unit within Boeing Defense, Space & Security (BDS). Adv BMA is chartered with creating, shaping, capturing maturing and transitioning future capability solutions to the BMA business unit. Previously, Koopersmith was vice president and program manager of the Joint Unmanned Combat Air System (JUCAS program) for BDS, where he led Boeing s JUCAS team, managing all aspects of the X-45A and X-45C programs for the Defense Advanced Research Projects Agency (DARPA), U.S. Air Force and U.S. Navy customers and managing X-45N for the U.S. Navy. Koopersmith has more than 30 years of program management, engineering, business development and production experience on numerous military aircraft programs including the C-130 Avionics Modernization Program (AMP), the AV-8B Harrier II, proprietary efforts, and the F/A-18E/F Super Hornet. During his F/A-18E/F assignment, he received the Excellence in Acquisition Award by the United States Navy Program Executive Office for Tactical Aircraft (TACAIR). Koopersmith brings a combination of engineering experience and program management leadership to the Apache program. His diverse background enables him to quickly analyze information and drive the team to the best possible combination of product capability and positive business results. Koopersmith s leadership style encourages out of the box thinking coupled with prudent risk management. He has established a relationship with the Army customer that is built on trust and respect. This provides the foundation for success as Apache transitions to full rate production. 2012 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 1

Phase I Program Narrative - 1 Fulfilling the US Army s objective to achieve sustainment of the Apache as the premier attack helicopter and weapon of choice for the Soldier, the AH-64D Apache Block III helicopter is now beginning to deliver the required operational capabilities to battlefield commanders and the user community. The program's System Design and Development (SDD) phase continues with Low Rate Production of the AH-64D Apache Block III helicopter for the U.S. Army. Following a well-established roadmap of design, development and delivery of Apache helicopters since the first production AH-64A in January 1984, the AH-64D Apache Block III brings relevant technologies and proven capabilities that are ready today for soldiers that will utilize this attack helicopter in warfighting and peacekeeping missions around the globe. Key to the success of this technology insertion program has been on-time and on-cost implementation of innovative technologies that provide extended range sensors and weapons, cognitive decision aiding, and improved aircraft performance - all while reducing operations and support cost and sustaining aircraft relevance. Carefully conceived and efficiently executed, this new Apache brings evolutionary development and revolutionary technologies as per the established key performance parameters (net ready, performance, reliability, survivability, force protection) laid out by the Department of Defense and Army Aviation leadership and agreed to by The Boeing Company program leadership. Following a risk reduction effort in 2005 to prepare the program for Milestone B, Apache Block III achieved a successful Milestone B decision in July 2006 and was designated as an ACAT 1D program, (Major Defense Acquisition Program estimated by the Under Secretary of Defense, Acquisition and Technology to require eventual expenditure for research, development, test and evaluation of in excess of $365 million or procurement of more than $2.19 billion). The AH- 64D Apache Block III program then entered the System Development and Demonstration (SDD) phase and was awarded a development contract in July 2006. As result of achieving scheduled milestones on time and on cost (Milestone B June 2006; First Flight July 2008; Limited User Test November 2009; Milestone C September 2010; Low Rate Initial Production Contract award October 2010), the program delivered the first production AH-64D Apache Block III in October 2011. Successful systems integration involves synthesizing the functions of components, assemblies and subsystems to optimize performance at the system level. The Apache Block III is a highly integrated platform designed to reduce pilot workload and accelerate the timeline to target engagement. Integration is the very definition of the Apache Block III program. The formal delivery of the first AH-64D Apache Block III helicopter to the U.S. Army marked the culmination of a significant systems integration effort. This effort encompassed the initial insertion of seventeen new technologies based on research and development initiatives into the existing AH-64D Apache Longbow to improve its performance and enhance support of the ground combat soldiers. Moreover, it addresses several obsolescence issues. 2012 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 2

Phase I Program Narrative - 2 The major systems integration efforts included: Unmanned Aircraft Systems Control (UAS), Open Systems Avionics architecture based on the highly advanced Block III Mission Processor, and significantly improved air vehicle operating performance due to the new Split Torque, Face Gear main transmission design and the new Composite Main Rotor Blades. The integration effort provided unrivaled capabilities and enhanced the overall aircraft performance in terms of being the only multi-role combat helicopter with the computing processing power to control UAS, with an open system architecture that will allow the future integration of new subsystems onto the aircraft much more efficiently, with a more powerful engine and drive train, and composite rotor blades that provide more lift and a combat speeds faster than the Apaches currently in service. This systems integration effort posed numerous challenges. While the technology integration was tremendously challenging, the biggest integration challenge the program faced was the re-definition of the Engineering, Manufacturing, and Development (EMD) Phase of the acquisition cycle. Army leadership determined the aircraft were needed to support the soldier as quickly as possible and transitioned the program directly from System Development and Demonstration (SDD) Phase to the Low Rate Initial Production (LRIP) Phase. This meant that the two major efforts of EMD: (1) Integrated System Design and System Capability and (2) Manufacturing Process Demonstration were split between the SDD Phase and the LRIP Phase. The integrated system design and system capability demonstrations were focused in the SDD phase and required an aggressive component and flight test program to ensure the technology insertions met performance requirements. The manufacturing process demonstration was focused in the LRIP Phase. This meant there was not an opportunity to produce production prototype articles which drove additional risk into the production process, supplier management and engineering processes. In essence, the first production aircraft was the demonstration of the team s ability to produce the Apache Block III aircraft. The contraction of the EMD Phase drove the program to intensively manage lab and flight test operations to ensure test data was validated and concurrently reviewed with the customer to validate that the technology insertions performed as planned and requirements were met. Additionally, manufacturing planning and supplier management were constantly managed to make sure parts and manufacturing processes were ready when required to exacting production standards. The challenges continued as the first production aircraft moved down the manufacturing line where close teamwork between manufacturing, engineering, supplier management and program management working 24 hours a day, 7 days a week ultimately enabled delivery of the first LRIP aircraft ahead of schedule. These challenges solidified systems integration as a best practice within the Apache Block III program and demonstrates the dedication to the principles of systems engineering and systems integration within the Apache Block III leadership team. 2012 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 3

Phase I Program Narrative - 3 The purpose of a value chain is to get the required product or services to the consumer in the most efficient way, on time, with minimum inventory, and within the available budget. During the LRIP phase, there were several issues with suppliers which were addressed. Boeing s Program Management Best Practices (PMBP) tools provided guidelines to sort through complex affordability and producibility issues, resulting in decisions that enabled the program to remain on cost and schedule performance parameters. In fact, on 24 November, 2011, a key US Army customer gave high praise to Boeing for its performance delivering the first Block III aircraft early, with the tremendous capability and upgraded technology that went into the aircraft. MG Anthony Crutchfield stated about the Block III aircraft, What s behind the curtain, however, represents tomorrow. That chapter hasn t been written, but it will but it will, and it will be a chapter in history like no other chapter. I know that. I m convinced of that, because of the work that you, the Boeing soldiers, do every day. The Apache Block III program had to overcome affordability issues from day one. In the current defense budget environment, programs must perform. One of the key areas of optimization was in the concept of how to produce the remanufactured aircraft. To deliver a Block III aircraft, the previous model of the aircraft must be depopulated, completely stripped down to the data plate, and then rebuilt with the new technologies added into the aircraft. Previously, the effort to depopulate the aircraft was done in Boeing s Mesa, AZ, facility. Boeing determined that if the work was outsourced, the program could realize a cost savings. Through a competition, Systems Engineering and Services Incorporated (SESI) was selected to perform this function. SESI is a small, emerging company co-located with the Army customer in Huntsville, AL. SESI quickly demonstrated they could depopulate the aircraft, resulting in lower remanufacturing costs and freeing up valuable square footage at the Boeing plant previously used for this effort. Later, the program also successfully challenged the supplier of the Extended Forward Avionics Bays (EFABS), Fokker Aerospace, to significantly reduce the recurring ship set price, making them affordable. Another challenge for the supply chain was the newly designed, more reliable Block III main transmission. The Block III split torque, face gear (STFG) main transmission design provides for a 25% increase in power throughput in comparison to a traditional transmission that does not use this revolutionary technology. In addition, this design results in significant improvements in reliability with an expected 50% reduction in main transmission related O&S cost. The manufacturing of the STFG required using new materials which were difficult to work with. The tools and technology are leading edge and the manufacturing process would prove to be hard to manage, even with the most proficient processes. It became apparent that the supplier was managing many issues in their own regard and were not able to control the numerous complexities of manufacturing the transmission. Again, applying PMBP tools and principals, Boeing manufacturing experts were sent to the main facility in Toronto. They were quickly able to assess production limitations and implement appropriate corrective action. A closely monitored hands on approach of daily communication and weekly program updates allowed for the confident transition of the transmission build process from development into production. 2012 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 4

Phase I Program Narrative - 4 As LRIP continues through December 2013 and the initial development phase approaches completion, the Apache Block III program is anticipating conclusion of the Army s Initial Operational Test & Evaluation (IOT&E) in 2Q2012, a contract modification for continued development, and entry into the next phase of activities with a Full Rate Production decision in July 2012. The SDD phase of the program has shown strong cost performance since inception. Earned value performance consistently hovers in the.98/.99 range for both cost and schedule (CPI/SPI). An initial cost under-run was declared in December 2010 and increased through 2011. Current under-run is projected to be $6.8M - ~1% of the contract value. This outstanding performance was achieved through detailed up front planning, strict adherence to contractual requirements, close teaming between Boeing and US Government engineering counterparts, and via application of the tools and principles of the Boeing Program Management Best Practices. While still in the SDD phase of the program, Boeing is producing (under LRIP) 51 remanufactured AH-64D Apache Block III aircraft for delivery to the US Army through December 2013 while also producing and delivering new-build Apache Block III helicopters for the program s first international customer. The contract award for Full Rate Production (FRP) is anticipated for October 2012, prior to the completion of LRIP aircraft production. Each phase of the Apache Block III program was planned in numerous joint strategy sessions as the US Army and Boeing negotiated in advance of the initial contract award. Additionally, prior to contract award with the Army, Boeing and industry reviewed operational requirement and settled on the 26 technologies that will ultimately be included in the configuration designated as the AH-64D Apache Block III. As today s Army aviators are currently flying the Apache Block III and working through the demonstration and test objectives outlined for the aircraft, word is getting out about the enhanced operational effectiveness of the aircraft with its new performance and avionic capabilities. The completion of IOT&E will lead to the Army s achievement in November 2012 of the First Unit Equipped a full battalion of 24 AH-64D Apache Block III helicopters. On the occasion of the first flight as Army, Boeing and industry leaders acknowledged the successful first steps of the program s transition through phases, Al Winn, (then) Boeing vice president of Apache Programs said Achieving this (first flight) milestone proves that success can be achieved when visionaries face the unknown, embrace risks, accept challenges and overcome obstacles. With the vision afforded by hindsight, it s evident that the Apache Block III is doing just as the seasoned Apache aviator and (now retired) Vice Chief of Staff of the Army, Gen. Dick Cody foresaw, Block III is going to change the face of battle, giving us fully integrated ground and air battlefields. The enemy won t know what s coming. 2012 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 5