UNCLASSIFIED

MO-1C Gray Eagle December 2019 SAR

Schedule

SAR Baseline Current Objective le APB Objective and Threshold • Current Estimate • Current Estimate (Breach)

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
.

MQ-1C Gray Eagle

Milestone B
SDD (EMD) Contract Award
Critical Design Review
Milestone C
10T&E
10T&E Start
10T&E Complete
IOC
FRP Decision
lot
FOT&E I
FOT&E II
1:1

FOT&E II

Schedule Events
AR Baseline Current APB
Current
Events ! Production Production
Estimate
Estimate Objective/Threshold
Milestone B Apr 2005 Apr 2005 Apr 2005 Apr 2005
SDD (EMD) Contract Award Apr 2005 Apr 2005 Apr 2005 Apr 2005
Critical Design Review Feb 2006 Feb 2006 Feb 2006 Feb 2006
Milestone C Mar 2011 Mar 2011 Mar 2011 Mar 2011
IOT&E
10T&E Start Sep 2011 Jul 2012 Jul 2012 Jul 2012
10T&E Complete Oct 2011 Aug 2012 Aug 2012 Aug 2012
IOC Jun 2012 Dec 2012 Dec 2012 Dec 2012
FRP Decision Apr 2012 Jul 2013 Jul 2013 Jun 2013
FOT&E 1 Aug 2012 Jun 2015 Jun 2015 Jun 2015
FOT&E II May 2013 N/A N/A N/A
FOT&E II N/A Mar 2018 Aug 2018 Aug 2018

None

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MO-1C Gray Eagle December 2019 SAR

Acronyms and Abbreviations

FOT&E - Follow-On Test and Evaluation
10T&E - Initial Operational Test and Evaluation
SDD - System Development and Demonstration

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MO-1C Gray Eagle December 2019 SAR

Performance

Performance Characteristics
Current A

r
SAR Baseline
Demonstrated Current
Production Production
Estimate Objective/Threshold
Performance g Estimate

Net Ready —=11111 —11=111MMINIIML_AMI

The system must The system must fully The system must fully Met threshold at The system must fully
fully support support execution of support execution of 10T&E; LINK-16 support execution of
execution of all all operational joint critical operational demonstrated all operational
operational activities activities identified in activities identified in at FOT&E. activities identified in
identified in the the applicable joint the applicable joint and the applicable joint
applicable joint and and system integrated system integrated and system integrated
system integrated architectures and the architectures and the architectures and the
architectures and the system must satisfy system must satisfy system must satisfy
system must satisfy the technical the technical the technical
the technical requirements for Net- requirements for requirements for Net-
requirements for Net- Centric military transition to Net- Centric military
Centric military operations to include Centric military operations to include
operations to include 1) DISR mandated operations to include 1) DISR mandated
1) DISR mandated GIG IT standards and 1) DISR mandated GIG IT standards and
GIG IT standards and profiles identified in GIG IT standards and profiles identified in
profiles identified in the TV-1, 2) DISR profiles identified in the the TV-1. 2) DISR
the TV-1, 2) DISR mandated GIG KIPs TV-1, 2) DISR mandated GIG KIPs
mandated GIG KIPs identified in the KIP mandated GIG KIPs identified in the KIP
identified in the KIP declaration table, 3) identified in the KIP declaration table, 3)
declaration table, 3) NCOW RM Enterprise declaration table, 3) NCOW RM Enterprise
NCOW RM Services 4) IA NCOW RM Enterprise Services 4) IA
Enterprise Services requirements Services 4) IA requirements
4) IA requirements including availability, requirements including including availability,
including availability, integrity, availability, integrity, integrity, authentica-
integrity, authentica- authentication, authentication, tion, confident-iality,
tion, confident-iality, confidentiality, and confidentiality, and non and non-repudiation,
and non-repudiation, non-repudiation, and -repudiation, and and issuance of an
and issuance of an issuance of an ATO issuance of an IATO ATO by the DAA, 5)
ATO by the DAA, and by the DAA. 5) by the DAA, 5) Operationally effective
5) Operationally Operationally effective Operationally effective information
effective information information information exchanges; and
exchanges; and exchanges: and exchanges; and mission critical
mission critical mission critical mission critical i performance and IA
performance and IA performance and IA performance and IA I attributes, data
attributes, data attributes, data attributes, data correctness, data
correctness, data correctness, data correctness, data availability, and
availability, and availability, and availability, and consistent data
consistent data consistent data consistent data processing specified
processing specified processing specified processing specified in the applicable joint
in the applicable joint in the applicable joint in the applicable joint and system integrated
and system and system integrated and system integrated architecture views.
integrated architecture views. architecture views.
architecture views.
The system must be

UNCLASSIFIED 13
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MO-1C Gray Eagle December 2019 SAR

able to enter and be

managed in the
network, and
exchange data in a
secure manner.
Multi Payload/Weight Capability
The aircraft is UA will be capable of UA will be capable of Met threshold at UA will be capable of
capable of simultan- simultaneously simultaneously 10T&E/FOT&E. simultaneously
eously carrying two carrying three or more carrying two payloads carrying three or more
payloads with a payloads with a with a combined payloads with a
combined minimum combined minimum minimum weight of combined minimum
weight of 300 lbs. weight of 300 lbs. 200 lbs. weight of 300 lbs.
Airframe Sensors Payload Capability
The aircraft will be MO-1C UA will be EO/IR/LD capable of Met objective, IMO-1C UA will be
capable of accepting capable of accepting providing: 90% PD of verified CSP capable of accepting
payloads that are: payloads that are: a military target, from during payloads that are:
E0/1R/LD capable of E0/1R/LD capable of the UA's operational Production EO/IR/LD capable of
providing a 90% PD providing: 90% PD of altitude out to a Prove-Out Test. providing: 90% PD of
of a military target a military target, from minimum of 25 km a military target. from
from the aircraft's the UA's operational slant range: 90% PR i the UA's operational
operational altitude altitude out to a of a military target, altitude out to a
out to a minimum of minimum of 30 km from the UA's minimum of 30 km
30km slant range. slant range; 90% PR operational altitude out slant range; 90% PR
E0/1R/LD capable of of a military target, to a minimum of 9 km of a military target,
providing a 90% PR from the UA's slant range. from the UA's
of a military target, operational altitude, operational altitude,
from the aircraft's out to a minimum of out to a minimum of
operational altitude, 10 km slant range; 10 km slant range;
out to a minimum of SAR/GMTI sensor SAR/GMTI sensor
10km slant range. capable of providing capable of providing
SAR/GMTI Sensor 85% PD of a military 85% PD of a military
capable of providing target, from the UA's target, from the UA's
85% PD of a military operational altitude, operational altitude,
target, from the out to a minimum of out to a minimum of
aircraft's operational 10 km slant range in 10 km slant range in
altitude, out to a clear weather. clear weather.
minimum 10km slant
range in clear
weather
Sustainment
The aircraft system MO-1C must maintain MO-1C must maintain Met updated The Gray Eagle
must maintain a a combat Ao of 90%. a combat Ao of 80%. threshold KPP maintained a Combat
combat Ao of 90%. at Ao of 93% for the 4th
10T&E/FOT&E. Quarter FY 2019. The
Gray Eagle
maintained a Combat
Ao of 92% for FY
2019.
Aircraft Propulsion
The aircraft engine UA engine will be UA engine will be Met objective at UA engine will be
will be powered by powered by powered by 10T&E/FOT&E powered by

UNCLASSIFIED 14
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MO-1C Gray Eagle December 2019 SAR

DoD/NATO standard DoD/NATO standard DoD/NATO standard DoD/NATO standard

heavy fuel (JP8 Fuel). heavy fuel (JP8 Fuel). heavy fuel (JP8 Fuel). heavy fuel (JP8).
Weapons Capable
The aircraft shall be MO-1C must be MO-1C must be Met threshold; MO-1C must be
capable of engaging capable of engaging capable of engaging (35) Hellfire 'capable of engaging
traditional and non- traditional and non- traditional and non- shots in DT/OT; traditional and non-
traditional ground traditional ground traditional ground (100+) Hellfire traditional ground
moving, stationary, moving and stationary moving and stationary shots in moving and stationary
and water borne and water borne targets with the AGM- 01F/OEF. and water borne
moving targets with moving and stationary 114P-4A and AGM- moving and stationary
the AGM-114P-4A targets with the AGM- 114N-4. targets with the AGM-
and AGM-114N-4 and 114P-4A and AGM- 114P-4A and AGM-
other AGM-114 114N-4 and other 114N-4 and other
variants or similar AGM-114 variants or AGM-114 variants or
future AGMs and similar future AGMs similar future AGMs
small light weight and small light weight and small light weight
precision munitions. precision munitions. precision munitions.
Survivability and Force Protection
The GCS-V3 will be The GCS will be The GCS will be Met threshold/ The GCS will be
mounted onto an mounted onto an mounted onto an Army objective at mounted onto an
Army standard Army standard tactical standard tactical 10T&E/FOT&E. Army standard tactical
tactical vehicle with vehicle with the ability vehicle with the ability vehicle with the ability
the ability to be up to be up armored. to be up armored. to be up armored.
armored.

Requirements Reference

CPD for Extended Range Multi-Purpose ERMP Unmanned Aircraft System MO-1C Increment: 1. version 8.6 dated April 30,
2015

Change Explanations
None

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MO-1C Gray Eagle December 2019 SAR

Acronyms and Abbreviations

% - Percent
AGMs - Air-to-Ground Missiles
Ao - Operational Availability
ATO - Approval to Operate
CPD - Capability Production Document
DAA - Designated Approval Authority
DISR - Department of Defense Information Technology Standards Registry
EO/IR/LD - Electro-Optical/lnfrared/Laser Designator
GCS-V3 - Ground Control Station Version Three
GIG IT - Global Information Grid Information Technology
IA - Information Assurance
IATO - Interim Approval to Operate
JROC - Joint Requirements Oversight Council
KIP - Key Interface Profile
km - Kilometers
KPP - Key Performance Parameter
lbs - Pounds
NATO - North Atlantic Treaty Organization
NCOW RM - Net Centric Operations Warfare Reference Model
PD - Probability of Detection
PR - Probability of Recognition
SAR/GMTI - Synthetic Aperature Radar/Ground Moving Target Indicator
TV - Technical View
UA - Unmanned Aircraft

UNCLASSIFIED 16
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MO-1C Gray Eagle December 2019 SAR

Track to Budget

RDT&E

Appn all.111.7 3E
Army 2040 07 0305204A
rn
'n jec IMr — Name
D09 Research, Development, Test (Sunk)
and Evaluation, Army
Notes: FY 2005 - FY 2010
Army 2040 07 0305219A
--Cis7irrcillMT
F — Name
M01 Research, Development, Test (Sunk)
and Evaluation, Army
Notes: FY 2011 - FY 2018

Procurement

BA PE
Army 2031 01 9670005A
Line Item Name
A00005 MO-1 UAV
Notes: FY 2010- FY 2021
Army 2031 02 0023010A

A00020 MO-1 Payload (Sunk)

Notes: FY2015 - FY2018
Army 2031 02 0313400A

A01001 MO-1 Payload (Shared)

Army 2031 02 0023015A

A01005 CSP FMV (Shared)

Army 2035 02 0030500A

00305000 Other Procurement. Army (Sunk)

Notes: FY 2007 - FY 2009
Notes
The MO-1C Gray Eagle program baseline includes the Common Sensor Payload (CSP) procurement, which is part of
the MO-1 Payloads Aircraft Procurement, Army budget line. The funding line is shared with the CSP. Synthetic Aperture
Radar/Ground Moving Target Indicator and the Tactical Signals Intelligence Payload.

MILCON

UNCLASSIFIED 17
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Army 2050 02 0202096A

069830 Military Construction, Army

Acq O&M

Army 2020 04 0702806A

Subactivity
Name
EGroup j
070 Acquisition O&M Support MO-1C (Shared)

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MO-1C Gray Eagle December 2019 SAR

Cost and Funding

Cost Summary

Total Acquisition Cost

BY 2010 $M "PM $M TV $M

ppropriation SAR Baseline Current APB SAR Baseline Current APB

Current Current
Production Production Production Production
Estimate i
Estimatell Objective/Threshold Estimate ObjectiveAlEstimate
RDT&E 895.3 969.0 1065.9 969.3 896.3 984.3 984.6
Procurement 3364.7 4131.0 4544.1 3994.5 3572.0 4510.3 4338.7
Flyaway 2864.9 3120.2
Recurring 2853.4 3108.0
Non Recurring 11.5 12.2
Support 1129.6 1218.5
Other Support 916.9 988.4
Initial Spares 212.7 230.1
MILCON 992.0 633.4 696.7 633.5 1080.7 697.2 697.2
Acq O&M 0.0 5.6 6.2 5.6 0.0 6.1 6.1
Total 5252.0 5739.0 N/A 5602.9 5549.0 6197.9 6026.6

Current APB Cost Estimate Reference

Deputy Assistant Secretary of the Army for Cost and Economics sufficiency review of the MO-1C Gray Eagle POE
dated August 24, 2017

Cost Notes
No cost estimate was completed in the past year for the MO-1C UAS Program.

UNCLASSIFIED 19
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Total Quantity
SAR Baseline
;UC u rrent APB
Quantity Production Current Estimate
produ ction
Estimate
RDT&E 2 2 2
Procurement 29 43 43
Total 31 45 45

Quantity Notes

The MO-1C Gray Eagle Unit of Measure is a Platoon. The Combat Aviation Brigade (CAB) platoon equipment set consists
of: four aircraft, two Universal Ground Control Stations (UGCS), two Universal Ground Data Terminals (UGDT), one Satellite
Communication (SATCOM) Ground Data Terminal (SGDT), four Satellite Airborne Data Terminals (SADT), one Automatic
Take-off and Landing Systems (ATLS), Government Furnished Equipment (GFE) and Ground Support Equipment (GSE).
The USASOC and INSCOM Platoon equipment sets consists of: four aircraft, two UGCS, one Mobile Ground Control Station
(MGCS), three UGDTs, one SGDT, four SADTs, one ATLS set, GEE and GSE.

MO-1C Gray Eagle shows 45 Platoon Sets procured prior to FY 2018 given all units received at least a portion of the total
required. FY 2018 and FY 2019 procurements fulfill the total requirement of 12 aircraft per company.

On May 4, 2017, the Army approved an Army Acquisition Objective adjustment to bring the total requirement to 204 MO-1C
Gray Eagle aircraft, increasing the Platoon Sets to 45. Of the 204 MO-1C Gray Eagle aircraft, a total of 101 will be in the
Extended Range configuration.

UNCLASSIFIED 20
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Cost and Funding

Funding Summary

Appropriation Summary
FY 2021 President's Budget / December 2019 SAR (TY$ M)
To
Appropriation Prior FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Total
Complete
RDT&E 984.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 984.6
Procurement 4338.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4338.7
MILCON 697.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 697.2
Acq O&M 5.5 0.1 0.1 0.2 0.2 0.0 0.0 0.0 6.1
PB 2021 Total 6026.0 0.1 0.1 0.2 0.2 0.0 0.0 0.0 6026.6
PB 2020 Total 6086.0 54.1 0.1 0.2 0.2 0.0 0.0 0.0 6140.6
Delta -60.0 -54.0 0.0 0.0 0.0 0.0 0.0 0.0 -114.0

Funding Notes
Funding reflects FY 2021 PB, less Wartime Replacement Aircraft funding.

Funding for Wartime Replacement Aircraft are not accounted in the APB and have no impact to the PAUC and APUC.
Therefore, they are not included in this report.

Quantity Summary
FY 2021 President's Budget / December 2019 SAR (TY$ M)
FY FY FY FY FY FY To
Quantity Undistributed Prior Total
2020 2021 2022 2023 2024 2025 Complete
Development 2 0 2
Production 0 43 0 43
PB 2021 Total 2 43 0 45
PB 2020 Total 2 43 0 45
Delta 0 0 0 0

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MO-1C Gray Eagle December 2019 SAR

Cost and Funding

Annual Funding By Appropriation

Annual Funding
2040 I RDT&E I Research, Development, Test, and Evaluation, Army

Fiscal
Year

1
11.111111111
INNI-
Quantity End Item
Recurring
Flyaway
1

Recurring
Flyaway
1111Mr Ty sly!
Non End 1
Item
Non
Recurring
Flyaway
1

Total
Flyaway
111

r Total
Support
Total
Program

2005 54.3
2006 90.6
2007 123.7
2008 103.4
2009 61.8
2010 135.1
2011 119.2
2012 121.9
2013 68.7
2014 13.1
2015 46.5
2016 22.3
2017 13.5
2018 10.5
Subtotal 2 984.6

UNCLASSIFIED 22
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Annual Funding
2040 I RDT&E I Research, Development, Test, and Evaluation, Army
BY 2010 $N1

Fiscal Non End

Quantity End Item 1 Non
Year Item Total Total Total
Recurring Recurring
Recurring Flyaway Support Program
Flyaway Flyaway
Flyaway
2005 58.8
2006 95.5
2007 127.3
2008 104.4
2009 61.6
2010 132.7
2011 114.8
2012 115.6
2013 64.1
2014 12.0
2015 41.8
2016 19.9
2017 11.8
2018 9.0
Subtotal 2 969.3

UNCLASSIFIED 23
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Annual Funding
2031 Procurement I Aircraft Procurement, Army
TY $1V1 IMF

Fiscal Non End

Quantity End Item Non
Year Item Total Total Total
Recurring Recurring
Recurring Flyaway Support Program
Flyaway Flyaway
Flyaway
2010 6 283.4 78.5 361.9 126.2 488.1
2011 7 277.5 76.8 3.5 357.8 146.3 504.1
2012 7 236.2 118.3 8.7 363.2 249.0 612.2
2013 3 171.4 133.5 304.9 145.6 450.5
2014 5 274.0 118.6 392.6 167.6 560.2
2015 5 122.9 58.2 181.1 65.3 246.4
2016 4 221.7 88.3 310.0 72.8 382.8
2017 5 236.7 86.3 323.0 118.3 441.3
2018 224.5 224.5 50.0 274.5
2019 103.3 103.3 103.3
Subtotal 42 1823.8 1086.3 12.2 2922.3 1141.1 4063.4

UNCLASSIFIED 24
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MO-1C Gray Eagle December 2019 SAR

Annual Funding
2031 I Procurement I Aircraft Procurement, Army
BY 2010 $M 111

Fiscal Non End

Quantity End Item Non
Year Item Total Total Total
Recurring Recurring
Recurring Flyaway Support Program
Flyaway Flyaway
Flyaway
2010 6 276.0 76.5 352.5 122.9 475.4
2011 7 265.4 73.5 3.3 342.2 140.0 482.2
2012 7 222.2 111.3 8.2 341.7 234.1 575.8
2013 3 158.4 123.2 281.6 134.6 416.2
2014 5 249.3 107.9 357.2 152.5 509.7
2015 5 110.1 52.1 162.2 58.6 220.8
2016 4 196.0 78.1 274.1 64.3 338.4
2017 5 205.1 74.8 279.9 102.5 382.4
2018 190.6 190.6 42.5 233.1
2019 85.9 85.9 85.9
Subtotal 42 1682.5 973.9 11.5 2667.9 1052.0 3719.9

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MO-1C Gray Eagle December 2019 SAR

Common Sensor Payload (TY$M):

FY 2010 ($48.5M)
FY 2011 ($48.2M)
FY 2012 ($61.5M)
FY 2013 ($73.6M)
FY 2014 ($29.2M)
FY 2015 ($8.4M)
FY 2016 ($68.5M)
FY 2017 ($37.7M)
FY 2018 ($50.0M)

Note: FY 2018 CSP funding includes a $10.0M reprogramming action.

UNCLASSIFIED 26
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Annual Funding
2035 I Procurement I Other Procurement, Army
-1 111.11=F TY $1V1

Fiscal End Item

Non End - L Non
Quantity Item Total Total Total
Year Recurring Recurring
Recurring Flyaway Support Program
Flyaway Flyaway
Flyaway
2007 9.7 9.7
2008 31.4 31.4 24.3 55.7
2009 1 151.2 15.3 166.5 43.4 209.9
Subtotal 1 151.2 46.7 197.9 77.4 275.3

UNCLASSIFIED 27
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MO-1C Gray Eagle December 2019 SAR

Annual Funding
2035 I Procurement I Other Procurement, Army
-1 1111PF BY 2010 $M

Fiscal Non Endl

Quantity End Item Non
Year Item Total Total Total
Recurring Recurring
Recurring Flyaway Support Program
Flyaway Flyaway
Flyaway
2007 9.9 9.9
2008 31.6 31.6 24.5 56.1
2009 1 150.2 15.2 165.4 43.2 208.6
Subtotal 1 150.2 46.8 197.0 77.6 274.6

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MO-1C Gray Eagle December 2019 SAR

Annual Funding
2050 MILCON Military Construction, Army
TY $141- 1
Fis1111
Year Total
Et Program-1" El
2011 102.0
2012 228.0
2013 107.2
2014 36.0
2015 124.0
2016
2017 47.0
2018 53.0
Subtotal 697.2

UNCLASSIFIED 29
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MO-1C Gray Eagle December 2019 SAR

Annual Funding
2050 MILCON Military Construction, Army
BY 2014111
tisca
Year Total
Program
2011 96.6
2012 213.1
2013 98.8
2014 32.2
2015 109.1
2016
2017 39.8
2018 43.9
Subtotal 633.5

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MO-1C Gray Eagle December 2019 SAR

Annual Funding
2020 I Acq O&M I Operation and Maintenance, Army
TY $M
Fiscal
Year Total
Program
2016 2.3
2017 2.0
2018 0.9
2019 0.3
2020 0.1
2021 0.1
2022 0.2
2023 0.2
Subtotal 6.1

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MO-1C Gray Eagle December 2019 SAR

Annual Funding
2020 I Acq O&M I Operation and Maintenance, Army
20141111
BY
It Fisca
Year Total'
Mirrogram
2016 2.1
2017 1.8
2018 0.8
2019 0.3
2020 0.1
2021 0.1
2022 0.2
2023 0.2
Subtotal 5.6

UNCLASSIFIED 32
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MO-1C Gray Eagle December 2019 SAR

Charts

MO-1C Gray Eagle first began SAR reporting in December 2009

Program Acquisition Cost - MO-1C Gray Eagle

Base Year 2010 $M

2300

2011 2012 2013 2014 2015 2016 2017 2019 2319

MR Submission Date

Aoq Cost (TYS) —e— Acq Cost (BYS) — Percent Delivered — Percent Expended

Quantity - MQ-1C Gray Eagle

7.
50

40-

4, 30

3 20-

10-

. .
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SAR Submission Date

Development QTY Production QTY — Total QTY

UNCLASSIFIED 33
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MO-1C Gray Eagle December 2019 SAR

Unit Cost - MQ-1C Gray Eagle

Base Year 2010 $M

400
5
300- 10
15
E 200 -
20
*
100 - •
25
7=-4
30
35
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SAR Submission Date

• PAUC BYS PAUC UCRB % Chg PAUC Original % Chg APUC Original % Chg
APUC BYS —0— APUC UCRB % Chg

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MO-1C Gray Eagle December 2019 SAR

Risks

Significant Schedule and Technical Risks

Significant Schedule and Technical Risks

Current Estimate (December 2019
1. Propulsion
2. System Reliability
3. Cybersecurity

UNCLASSIFIED 35
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MO-1C Gray Eagle December 2019 SAR

Risks

Risk and Sensitivity Analysis

Risks and Sensitivity Analysis

Current Baseline Estimate (December 2017) =11 11.1111
1. Propulsion reliability may negatively impact mission effectiveness, safety, and cost.
Original Baseline Estimate (March 2011)
1. The MO-1C aircraft may have interoperability issues with other rotary wing aircraft via Manned-Unmanned
Teaming. This potential issue from March 2011 has since been mitigated.
2. The MO-1C aircraft may need to initiate redesign efforts in order to meet performance requirements. This
potential issue from March 2011 has since been mitigated.
Revised Original Estimate (N/A)
None
Current Procurement Cost (December 2019)
1. Planned procurement funding currently sufficient to cover planned procurement costs.

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MO-1C Gray Eagle December 2019 SAR

Low Rate Initial Production

Item BMW Initial LRIP Decision Current Total LRIP

Approval Date 3/29/2010 7/3/2012
Approved Quantity 2 6
Reference Milestone C ADM LRIP III ADM
Start Year 2010 2012
End Year 2011 2017

The Current Total LRIP Quantity is more than 10% of the total production quantity due to MDA directed quantities to facilitate
rapid entrance of the MO-1C Gray Eagle capability into theater.

Notes
Initial LRIP Decision
The original LRIP quantity was two MO-1C Gray Eagle systems which equates to six platoon sets (24 aircraft).

Current Total LRIP

The Current Total LRIP quantity is six MO-1C Gray Eagle systems which equates to 18 platoon sets and includes LRIP I
(24 aircraft and two attrition aircraft), LRIP 11 (24 aircraft and five attrition aircraft) and LRIP III (29 aircraft).

UNCLASSIFIED 37
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MO-1C Gray Eagle December 2019 SAR

Foreign Military Sales

None

UNCLASSIFIED 38
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Nuclear Costs

None.

UNCLASSIFIED 39
 UNCLASSIFIED
MO-1C Gray Eagle December 2019 SAR

Unit Cost

Current UCR Baseline and Current Estimate (Base-Year Dollars)

Current UCR % Change

'Current Estimate
Baseline
(Dec 2019 SAR)
(Dec 2017 APB)
Program Acquisition Unit Cost
Cost 5739.0 5602.9
Quantity 45 45
Unit Cost 127.533 124.509 -2.37
Average Procurement Unit Cost
Cost 4131.0 3994.5
Quantity 43 43
Unit Cost 96.070 92.895 -3.30

Original UCR Baseline and Current Estimate (Base-Year Dollars)

I BY 2010 $M BY 2010 $M 101
Original UCR % Change
Current Estimate 1
I Baseline
(Mar 2011 APB).
(Dec 2019 SAR)

Program Acquisition Unit Cost

Cost 5252.0 5602.9
Quantity 31 45
Unit Cost 169.419 124.509 -26.51
Average Procurement Unit Cost
Cost 3364.7 3994.5
Quantity 29 43
Unit Cost 116.024 92.895 -19.93

UNCLASSIFIED 40
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MO-1C Gray Eagle December 2019 SAR

APB Unit Cost History

RAUC
.APUC

e .y..ezt
# ,--
0
ec.,- ..1.
Q.
v-

Original APB Mar 2011 169.419 116.024 179.000 123.172

APB as of January 2006 N/A N/A N/A N/A N/A
Revised Original APB N/A N/A N/A N/A N/A
Prior APB Sep 2013 145.103 103.034 154.929 110.941
Current APB Dec 2017 127.533 96.070 137.731 104.891
Prior Annual SAR Dec 2018 126.578 95.063 136.458 103.551
Current Estimate Dec 2019 124.509 92.895 133.924 100.900

SAR Unit Cost History

Initial SAR Baseline to Current SAR Baseline (TY $M)

Initial PAUC Changes PAUC
Development Production
Estimate Econ Qty 1111 Sch 11- Eng Est 11 0th ilipt Total Estimate
401.600 0.094 -242.537 -7.813 13.968 13.152 0.000 0.536 -222.600 179.000

Current SAR Baseline to Current Estimate (TY $M)

PAUC Changes PAUC
Production Current
Estimate Econ Qty Sch Eng Est 111111110th Sptiriotal Estimate
179.000 0.798 -39.623 -0.049 2.536 -14.489 0.000 5.751 -45.076 133.924

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MO-1C Gray Eagle December 2019 SAR

Initial SAR Baseline to Current SAR Baseline (TY $M)

hanges
Qty ILSch EngAIL Est 01
285.100 0.141 -177.121 0.000 14.931 -0.452 0.000 0.573 -161.928 123.172

Current SAR Baseline to Current Estimate (TY $M)

APUC 1 1.11.11Mi rChange ii APUC
Production Current
Estimate _ Econ Qty Sch Eng Est r Oth Spt IP Total Estimate
123.172 0.593 -23.289 -0.051 0.919 -6.463 0.000 6.019 -22.272 100.900

SAR Baseline History

• SAR 1111111Mr SAR SAR
Planning Development Production Current
Estimate Estimate Estimate Estimate
Milestone A N/A N/A N/A N/A
Milestone B N/A Apr 2005 Apr 2005 Apr 2005
Milestone C N/A Feb 2010 Mar 2011 Mar 2011
IOC N/A Feb 2012 Jun 2012 Dec 2012
Total Cost (TY $M) N/A 5322.6 5549.0 6026.6
Total Quantity N/A 13 31 45
PAUC N/A 409.431 179.000 133.924

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MO-1C Gray Eagle December 2019 SAR

Cost Variance

SAR Baseline (Production 896.3 3572.0 1080.7 5549.0

Estimate)
Previous Changes
Economic +4.2 +26.1 +6.3 +36.6
Quantity +723.0 +723.0
Schedule -2.2 -2.2
Engineering +74.6 +39.5 +114.1
Estimating +9.5 -164.4 -389.8 +6.1 -538.6
Other
Support +258.7 +258.7
Subtotal +88.3 +880.7 -383.5 +6.1 +591.6
Current Changes
Economic -0.6 -0.1 -0.7
Quantity
Schedule
Engineering
Estimating -113.5 +0.1 -113.4
Other
Support +0.1 +0.1
Subtotal -114.0 -114.0
Total Changes +88.3 +766.7 -383.5 +6.1 +477.6
Current Estimate 984.6 4338.7 697.2 6.1 6026.6

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MO-1C Gray Eagle December 2019 SAR

Summary BY 2010 $M
Item RDT&E Procurement MILCON Acq O&M Total
SAR Baseline (Production 895.3 3364.7 992.0 5252.0
Estimate)
Previous Changes
Economic
Quantity +635.2 +635.2
Schedule +0.6 +0.6
Engineering +63.7 +29.9 +93.6
Estimating +10.3 -162.8 -358.6 +5.6 -505.5
Other
Support +220.1 +220.1
Subtotal +74.0 +723.0 -358.6 +5.6 +444.0
Current Changes
Economic
Quantity
Schedule
Engineering
Estimating -93.5 +0.1 -93.4
Other
Support +0.3 +0.3
Subtotal -93.2 +0.1 -93.1
Total Changes +74.0 +629.8 -358.5 +5.6 +350.9
Current Estimate 969.3 3994.5 633.5 5.6 5602.9

Previous Estimate: December 2018

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MO-1C Gray Eagle December 2019 SAR

Procurement $M

Current Change Explanations

Revised escalation indices. (Economic)

JIM Base
Year
N/A
Then
Yea
-0.6
Revised estimate to reflect Congressional action to transfer Service Life Extension -49.8 -60.0
Program funding to modernization program. (Estimating)
Revised estimate to reflect funding associated with Wartime Replacement Aircraft, not -44.0 -54.0
with baseline program. (Estimating)
Adjustment for current and prior escalation. (Estimating) +0.3 +0.4
Revised estimate to reflect new 2021 PB indices. (Estimating) 0.0 +0.1
Adjustment for current and prior escalation. (Support) +0.3 +0.2
Revised estimate to reflect new 2021 PB indices. (Support) 0.0 -0.1
Procurement Subtotal -93.2 -114.0

MILCON $M
Base Then
Current Change Explanations
Year Year
Revised escalation indices. (Economic) N/A -0.1
Adjustment for current and prior escalation. (Estimating) +0.1 +0.1
MILCON Subtotal +0.1 0.0

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MO-1C Gray Eagle December 2019 SAR

Contracts

General Notes

Contracts W58RGZ-12-C-0075 and W58RGZ-17-C-0018, Performance Based Logistics (PBL), are not included in the
December 2019 SAR. These contracts are for PBL support to fielded systems and are O&M. Army funded.

Contract Identification
Appropriation: Procurement
Contract Name: FRP
Contractor: General Atomics Corporation
Contractor Location: 14200 Kirkham Way
Poway, CA 92064
Contract Number: W58RGZ-13-C-0109
Contract Type: Firm Fixed Price (FFP)
Award Date: September 13, 2013
Definitization Date: December 06, 2013

Contract Price
Initial Contract Price ($M) Current Contract Price ($M) I Estimated Price At Completion ($M)
Target Ceiling Qty Target Ceiling Qty IF Contractor Program Manager
199.7 N/A 15 1053.7 N/A 106 1053.7 1053.7

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to additional hardware
requirements.

Cost and Schedule Variance Explanations

Cost and Schedule Variance reporting is not required on this (FFP) contract.

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MO-1C Gray Eagle December 2019 SAR

Notes

Contract W58RGZ-13-C-0109, Full Rate Production (FRP) is Firm Fixed Price. The reported modification through month
end August is P00191. with $1.053,734.867.00 cumulatively obligated for the entire contract.

FRP I was awarded September 2013 (options awarded December 2013) for 19 MQ-1C Gray Eagle aircraft and associated
ground equipment.

The FRP II aircraft section was awarded March 2015; the ground equipment section was awarded April 2015. The effort
included 19 MO-1C Gray Eagle aircraft and associated ground equipment. Mod P00075 added four additional war
replacement aircraft for a total of 23 MO-1C Gray Eagle aircraft and associated ground equipment.

The FRP III was awarded June 2015 for 19 aircraft. The MO-1C Gray Eagle Extended Range Engineering Change Proposal
(ECP) 714 was awarded September 2015 and definitized on February 8,2017. (Note: Originally, the Extended Range
aircraft was named Improved Gray Eagle.

The FRP IV contract was awarded May 2017 for 20 MO-1C Gray Eagle Extended Range aircraft.

A supplemental contract was awarded September 2017 for 20 MO-1C Gray Eagle Extended Range aircraft. An option for
five Extended Range Aircraft was awarded October 2017.

FRP 5 awarded July 2019.

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MO-1C Gray Eagle December 2019 SAR

Contract Identification
Appropriation: RDT&E
Contract Name: Engineering Services II
Contractor: General Atomics - Aeronautical Systems, Inc.
Contractor Location: 14200 Kirkham Way
Poway, CA 92064-7103
Contract Number: W58RGZ-13-C-0110
Contract Type: Cost Plus Fixed Fee (CPFF)
Award Date: September 30, 2013
Definitization Date: September 30, 2013

Contract Price
Initial Contract Price ($N1) Current Contract nce ) Estimated Price At Completion ($M)
Target Ceiling Qty Target Ceiling Qty Contractor Program Manager
38.5 N/A N/A 279.7 N/A N/A 278.8 278.8

Target Price Change Explanation

The difference between the Initial Contract Price Target and the Current Contract Price Target is due to increased
Engineering Change Proposals to support: 1) Increased fielding and operational tempo 2) Army requirements (Operational
Needs Statement, Automatic Dependent Surveillance. and Mode 5), and 3) Establishment of Engineering requirements in
support of the Gray Eagle Modification line FY 2017- present.

Cumulative Variances To Date (4/29/2019) +2.5 -8.1

Previous Cumulative Variances +5.5 -2.8
Net Change -3.0 -5.3

Cost and Schedule Variance Explanations

The unfavorable net change in the cost variance is due to 4.3.5 Maintenance Build, GFE Maintenance, Global Positioning
System denied, and Small Glide Munitions cost growth.

The unfavorable net change in the schedule variance is due to Global Positioning System denied, RCM Mission Control
Module Re-Architecture, and 4.3.5 Maintenance Build schedule slip.

Notes

FY 2018 Fifth Year Option was awarded with modification P00108, January 17, 2018. The total contract value is currently
is $279.7M as of April 2020.

Contract W58RGZ-13-C-0110 is 91.8 percent complete as of 4/30/2019. The cumulative Cost Performance Index is 1.011
and the Schedule Performance Index is 0.967 The Contractor is performing as expected. The contractor has not submitted
an Integrated Performance Management Review (IPMR) since month end April 2019.

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MO-1C Gray Eagle December 2019 SAR

Contract Identification
Appropriation: Procurement
Contract Name: FRP V
Contractor: General Atomics Corporation
Contractor Location: 14200 Kirkham Way
Poway, CA 92064-7103
Contract Number: W58RGZ-19-C-0022
Contract Type: Firm Fixed Price (FFP)
Award Date: July 15, 2019
Definitization Date: July 15, 2019

Initial Contract Price ($M) Current Contract Price ($M) Estimated Price At Completion ($M)
Target Ceiling Qty Target Ceiling Qty Contractor Program Manager
275.0 N/A 30 275.0 N/A 30 275.0 275.0
-
Cost and Schedule Variance Explanations -
Cost and Schedule Variance reporting is not required on this (FFP) contract.

Notes

This Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) contract is a result of solicitation W58RGZ-18-R-0133 for Full
Rate Production (FRP) 5 of the MO-1C Gray Eagle Extended Range Unmanned Aircraft System (UAS) in accordance with
the Statement of Work, entitled UNMANNED AIRCRAFT SYSTEMS (UAS) MO-1C Gray Eagle Extended Range Full Rate
Production, dated 10 July 2019. The negotiated settlement amount of this contract is $275,000,000.

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MO-1C Gray Eagle December 2019 SAR

Deliveries and Expenditures

Deliveries
Planned to Percent
Delivered to Date Actual to Date Total Quantity
Date Delivered
Development 2 2 2 100.00%
Production 43 43 43 100.00%
Total Program Quantity Delivered 45 45 45 100.00%

Expended and Appropriated (TV $M)

Total Acquisition Cost 6026.6 Years Appropriated 16
Expended to Date 5616.4 Percent Years Appropriated 84.21%
Percent Expended 93.19% Appropriated to Date 6026.1
Total Funding Years 19 Percent Appropriated 99.99%

The above data is current as of February 10, 2020.

Notes

The calculation in the Percent Delivered table above is based on a quantity of 45 Platoon Sets for initial fielding. Remaining
procurement activity is focused on increasing the number of aircraft delivered to each platoon.

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MO-1C Gray Eagle December 2019 SAR

Operating and Support Cost

Cost Estimate Details

Date of Estimate: September 20, 2017
Source of Estimate: POE
Quantity to Sustain: 45
Unit of Measure: Platoons
Service Life per Unit: 20.00 Years
Fiscal Years in Service: FY 2011 - FY 2038

The 2017 POE assumes an Army Acquisition Objective (AAO) of 204 aircraft across 15 Companies (45 Platoon Sets).
The Companies are 11 Combat Aviation Brigades (CAB), two Army Intelligence and Security Command (INSCOM)
Companies, and two U.S. Army Special Operations Command (USASOC) Companies. The estimate includes one
training battalion Company.

On May 4, 2017 the Army issued a memorandum for the adjustment to the MO-1C Gray Eagle UAS AAO. The
memorandum increased the AAO from 167 to 204 Air Vehicles. The air vehicles are 12 per Company for 15 Companies
or 180 Aircraft. Additionally, the system includes 11 Training Base Aircraft and 13 Operational Readiness Float Aircraft for
a total AAO of 204 Aircraft.

The Gray Eagle Unit of Measure is a Platoon. The CAB platoon equipment set consists of: four aircraft, two Universal
Ground Control Stations (UGCS), two Universal Ground Data Terminals (UGDT), one Satellite Communication
(SATCOM) Ground Data Terminal (SGDT), four Satellite Airborne Data Terminals (SADT), one Automatic Take-off and
Landing Systems (ATLS), Government Furnished Equipment (GFE) and Ground Support Equipment (GSE). The
USASOC and INSCOM platoon equipment sets consists of: four aircraft, two UGCS, one Mobile Ground Control Station
(MGCS), three UGDT, one SGDT, four SADT, one ATLS set, GFE and GSE. The O&S Cost Estimate includes the
training company which is not a fully-equipped platoon with a lower annual operating tempo (OPTEMPO).

The O&S Cost estimating methodology is based on historical Cost Performance Report actual data, logistics headcount
actual experience, actual mishap cost, engineering software estimates, SATCOM actual historical cost, and the Army
Manpower Cost System to estimate military manpower requirements by Military Occupational Specialty and grade.

Sustainment Strategy

The Sustainment Strategy includes a Performance Based Logistics (PBL) contract. Soldiers operate systems and
perform 93-percent of the basic field maintenance. Field Service Representatives support the remaining seven percent
of basic field maintenance through PBL efforts. Some of the Depot Level Reparables will be performed by organic depots
through a Public Private Partnership (PPP) arrangement. Further PPP with organic depot efforts will be determined
through cost-benefit analysis and application of section 2466 of title 10, U.S. Code and the 50-50 rule.

Antecedent Information
No Antecedent

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MO-1C Gray Eagle December 2019 SAR

Annual O&S Costs BY2010 $M

MO-1C Gray Eagle
I No Antecedent (Antecedent)
Cost Element Average Annual Cost Per A O
No Antecedent

Unit-Level Manpower
Platoons
_
3.902
A
0.000
Unit Operations 0.181 0.000
Maintenance 3.847 0.000
Sustaining Support 3.556 0.000
Continuing System Improvements 0.009 0.000
Indirect Support 0.000 0.000
Other 0.000 0.000
Total 11.495

Total O&S Cost $M

MO-1C Gray Eagle 111 1-
No Antecedent
I tem! Current Production APB (Antecedent)
1 eil
Objective/Threshold Current Estimat
Base Year 10655.5 11721.1 10655.5 N/A
Then Year 14235.0 N/A 14235.0 0.0

Equation to Translate Annual Cost to Total Cost

Total O&S Cost is $10,655.5M allocated over 927 Operational Platoon Systems. The Operational Platoon System
consists of 15 Operational Companies with three platoons per company for a total of 45 Operational Platoons with an
expected system life of 20-years which results in 900 Operational Platoon Systems. Additionally. MO-1C Gray Eagle has
one training base platoon with a system life of 27-years. This results a total of 927 total Operational Platoon Systems.
The total O&S Cost $10,655.5M divided by 927 Operational Platoon Systems equals 11.495 Average Annual Cost per
Platoon.

M
.
Category
mir O&S Cost Variance
BY 2010 1111M
Change Explanations

Prior SAR Total O&S Estimates - Dec 10655.5

2018 SAR
Programmatic/Planning Factors 0.0
Cost Estimating Methodology 0.0
Cost Data Update 0.0
Labor Rate 0.0
Energy Rate 0.0
Technical Input 0.0
Other 0.0
Total Changes 0.0
Current Estimate 10655.5

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MO-1C Gray Eagle December 2019 SAR

Disposal Estimate Details

Date of Estimate: September 20, 2017
Source of Estimate: POE
Disposal/Demilitarization Total Cost (BY 2010 $M): 158.5

The disposal cost estimate was revised to include the U.S. Army Environmental Estimate.

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