We will have three major system integration flight tests, the first of which is a largescale integration event that tests C2BM and communications during multiple element intercept tests. We plan to demonstrate C2 capabilities and communications among C2 and battle management nodes, weapons, and sensors and to continue work with the Services, Combatant Commands, and the Office of the Secretary of Defense to ensure BMD system interoperability with legacy and planned Department systems and standards.

We are requesting $3.2 billion in FY 2004 to support RDT&E for fielding Block 2004. Our estimated expenditure for Block 2004 activities across the FYDP is $6.2 billion (see Table 1).

Table 1: Block 2004 Funding FY02-09 (SM Then-year)*

TOTALS

FY02-09

295

46

37

174

547

3018

3161

2492

1296

TOTALS

11065

*Numbers may not add exactly due to rounding.

phase intercept capabilities to create a defense layer near the hostile missile's launch

point. We require quick reaction times, high confidence decision-making, and redundant

engagement capabilities to counter ballistic missiles in this phase.

R

ABL is currently under development to acquire, track, and kill ballistic missiles in boost phase using speed-of-light technology. ABL integrates three major subsystems (Laser; Beam Control; and Battle Management, Command, Control, Communications, Computers and Intelligence (BM/C1I)) into a modified commercial Boeing 747-400F

aircraft. We will continue major subsystem integration and testing activities. Block 2004 activities involve completion of ground-testing, to include first light on the test bed aircraft, first flight of the complete weapons system, and the successful track and highenergy laser engagement of a missile-shaped target board dropped from high-altitude. In FY 2005, we will deliver one aircraft for BMD system integration and testing and demonstrate a missile shoot-down against a boosting threat-representative target.

Midcourse Elements. Midcourse defense elements engage ballistic missiles in space after booster burnout and before the warhead re-enters the atmosphere. The GMD element defends against long-range ballistic missile attacks, and Aegis BMD will counter from the sea medium- and short-range ballistic missiles.

The Department's plans are to add by the end of FY 2004 one more Ground-Based Interceptor (GBI) at Fort Greely in Alaska for a total of six GBIs at that site, and four interceptors at Vandenberg, Air Force Base, for a total of up to 10 interceptors at both sites. The decision to develop two interceptor sites is consistent with our layered approach and operational concept and will allow us to work through critical integration, battle management, and command and control issues early on.

There are a number of other activities we need to undertake in FY 2005. We are asking for appropriations to produce up to ten additional GBIs for fielding at the Fort

Greely site, for a total of sixteen interceptors in Alaska and four in California. We also plan to produce by the end of 2005 between ten and twenty SM-3 missiles for deployment on three Aegis ships converted to the missile defense mission. Because we are starting from a base of zero, each interceptor we field between now and 2005, up to the full complement of twenty ground-based and twenty sea-based interceptors, will increase significantly our overall capability to defend this country, our troops, and friendly countries against long- and medium-range threats.

Included in the Test Bed and as part of the initial missile defense architecture are plans for integrating Early Warning Radars (EWR) at Eareckson AS (the Cobra Dane radar at Shemya, Alaska) and Beale AFB (Upgraded EWR). We will add to this infrastructure multiple fire control nodes and improved lines of communications connecting sites in Alaska and the continental United States using fiber optics and satellites. As you know, the Administration is working to secure allied approval to upgrade and integrate into the BMD system early warning radars currently located in the United Kingdom and Thule, Greenland to view threat missiles launched out of the Middle East. The United Kingdom already has approved the use of the Fylingdales radar. We also plan to build by September 30, 2005 a Sea-Based X-Band Radar (SBX) to improve the testing regime and enhance initial missile defense system performance.

We have made dramatic progress in recent months with the GMD element, including in the areas of silo construction, development of a nationwide communications network, and integrated flight-testing. We have excavated six silos at Fort Greely, seven

weeks ahead of schedule, and we are in the process of constructing and establishing appropriate security for multiple Test Bed facilities at Fort Greely and Eareckson.

By the end of 2005, we will upgrade SPY-1 radars on fifteen Aegis warships for enhanced surveillance and track capability. Three prototype surveillance and track Aegis destroyers will be available starting in 2003; we will modernize additional destroyers for surveillance and track and BMD engagement capability. Two Aegis cruisers in addition to the USS LAKE ERIE, our test cruiser, will receive BMD engagement modifications. The next SM-3 flight test, scheduled for later this year, will use a reengineered Monolithic Divert and Attitude Control System (MDACS) for the first time in the interceptor's kinetic warhead. MDACS has proved to be more reliable than the previous model, faster to build, and less expensive. Five at-sea flight tests and numerous tracking exercises, including participation in GMD integrated flight-tests, are planned through 2005. Our cooperative research with Japan will continue to enhance the capabilities of the SM-3 interceptor. The focus of that research is on four components: sensor, advanced kinetic warhead, second stage propulsion, and lightweight nosecone.

Terminal Elements. THAAD is designed to be rapidly deployable and protect forward-deployed U.S. and friendly troops, broadly dispersed assets, population centers, and sites in the United States by engaging short- to medium-range ballistic missiles or their payloads at endo- and exo-atmospheric altitudes. THAAD could have more than one intercept opportunity against a target, a layering potential that makes it more difficult for an adversary to employ countermeasures effectively. This terminal defense capability will help mitigate the effects of a WMD payload.

This year we will complete missile and launcher designs, initiate manufacturing of missile and launcher ground test units, and begin testing the first completed radar

antenna. We will continue fabrication of the second radar and building the battle

manager and launcher test beds. A total of four exo-atmospheric flight tests at the White Sands Missile Range, New Mexico are planned for FY 2004-05.

PAC-3 provides terminal missile defense capability against short- and mediumrange ballistic missiles, anti-radiation missiles, and aircraft with a low radar cross-section employing advanced countermeasures. PAC-3 successfully completed initial operational testing last year, intercepting ballistic missiles, aircraft, and cruise missiles. The tests uncovered problems that we have since corrected in collaboration with the Army. We have completed development of the PAC-3 missile and made C2BM modifications to enable PAC-3's integration into the BMD system. We will continue to conduct PAC-3 tests this year. Later in Block 2004 we will demonstrate PAC-3's integration with other BMD system elements.

With the support of Congress, the Department already has accelerated PAC-3 missile production and currently has a plan to increase that production rate to 20 missiles per month in 2005. Given current production plans, by the end of 2005 the PAC-3 inventory will stand at 332 missiles.

The Department has transferred PAC-3 procurement and RDT&E funding to the Army, which is reflected in the Army's FY 2004 budget request. The MDA will retain

responsibility for defining and testing BMD system interoperability and continue to work with the Army on PAC-3 engineering, development, and testing. The Department