UNCLASSIFIED Exhibit P-40, Budget Line Item Justification: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: 2035A: Other Procurement, Army / BA 03: Other Support Equipment / BSA 55: Rail M11101 / Army Watercraft Esp Float Containerization Equipment ID Code (A=Service Ready, B=Not Service Ready): Program Elements for Code B Items: N/A Other Related Program Elements: N/A Line Item MDAP/MAIS Code: N/A Prior FY 2018 FY 2018 FY 2018 To Resource Summary Years FY 2016 FY 2017 Base OCO Total FY 2019 FY 2020 FY 2021 FY 2022 Complete Total Procurement Quantity (Units in Each) - 2 2 2 - 2 4 4 6 4 Continuing Continuing Gross/Weapon System Cost ($ in Millions) 3.509 39.772 21.860 20.110 - 20.110 41.465 42.237 63.130 43.630 Continuing Continuing Less PY Advance Procurement ($ in Millions) ------Net Procurement (P-1) ($ in Millions) 3.509 39.772 21.860 20.110 - 20.110 41.465 42.237 63.130 43.630 Continuing Continuing Plus CY Advance Procurement ($ in Millions) ------Total Obligation Authority ($ in Millions) 3.509 39.772 21.860 20.110 - 20.110 41.465 42.237 63.130 43.630 Continuing Continuing (The following Resource Summary rows are for informational purposes only. The corresponding budget requests are documented elsewhere.) Initial Spares ($ in Millions) ------Flyaway Unit Cost ($ in Thousands) ------Gross/Weapon System Unit Cost ($ in Thousands) - 19,886.000 10,930.000 10,055.000 - 10,055.000 10,366.250 10,559.250 10,521.667 10,907.500 Continuing Continuing

Description: The Army Watercraft Extended Service Program (ESP) budget line funds the Service Life Extension Programs (SLEP) across the Army Watercraft Systems portfolio. During FY 2016 - FY 2025 specifically, the Army Watercraft ESP budget line will fund the Army Utility 2000 (LCU-2000), a globally dispersed fleet of 34 vessels, and will serve to extend the current Economic Useful Life (EUL) of this platform by 10 years; bridging the gap until the procurement of a replacement vessel. The LCU-2000 provides intra-theater movement of combat , equipment, and sustainment cargo, to include containerized, break-bulk, and roll-on roll-off (RO/RO) cargo, to improved and/or degraded ports, bare and austere beaches, and inland water terminals. The vessel is ideally suited for the discharge and back load of sea lift; the shallow draft, bow ramp, and associated systems providing for beaching and extraction. The vessel supports Joint Logistics Over the Shore (JLOTS), seaport opening, and delivers combat-configured elements or sustainment cargo during all phases of the campaign. The LCU-2000 was fielded from 1990-1993 and was designed and built specifically to the objective of a 25 year EUL. While new capability is not being added, some capabilities will be improved and modernized through the application of 11 Engineering Change Proposals (ECPs), such as Engine Repower, power generation, force protection and habitability. The LCU-2000 Technical Manuals and provisioning data effort covers development, re-write and publishing of the critical repower requirement along with all other subsystems effected by SLEP.

The Army Watercraft ESP budget line will also support future efforts to include the start of SLEP for the Modular Causeway System (MCS), specifically the Modular Warping Tug (MWT), one of four end items of the MCS. This line will include the future SLEP activities of fleet wide modifications consisting of: Landing Craft consist of 8 Logistic Support Vessels (LSV), 34 Landing Craft Utility 2000 (LCU-2000), 30 Landing Craft Mechanized 8 (LCM-8) MOD 1, and 6 LCM-8 MOD 2 (Watercraft Operations Support). Towing and Terminal Operations consist of 6 Large Tug 800 (LT-800), 16 Small Tug 900 (ST-900), and 4 Barge Derrick Crane 115-ton (BD-115). -to-Shore Enablers consist of 3 Modular Causeway Systems (MCS) [each MCS includes 2 Roll-On/Roll-Off Discharge Facilities (RRDF), 5 Modular Warping Tugs (MWT), 1 Causeway (CF), 1 Floating Causeway (FC)]. Landing Craft discharge combat equipment or troops to austere beaches, undeveloped coastlines and operate in a non-permissive environment. Towing and Terminal Operations and Ship-to-Shore Enablers support ocean and port/harbor towing/salvage operations. Both are critical in denied/degraded ports, Joint Logistics Over-the-Shore (JLOTS) operations, and operations throughout the littorals.

Comments: In accordance with section 1815 of the FY 2008 National Defense Authorization Act (P.L. 110-181), this item is necessary for use by the active and reserve components of the Armed Forces for homeland defense missions, domestics emergency responses, and providing military support to civil authorities. FY 2018 FY 2018 FY 2018 Secondary Distribution FY 2016 FY 2017 Base OCO Total FY 2019 FY 2020 FY 2021 FY 2022 Army Quantity 1 1 2 - 2 4 4 6 4 Total Obligation Authority 19.886 10.930 20.110 - 20.110 41.465 42.237 63.130 43.630

LI M11101 - Army Watercraft Esp UNCLASSIFIED 178 Army Page 1 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-40, Budget Line Item Justification: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: 2035A: Other Procurement, Army / BA 03: Other Support Equipment / BSA 55: Rail M11101 / Army Watercraft Esp Float Containerization Equipment ID Code (A=Service Ready, B=Not Service Ready): Program Elements for Code B Items: N/A Other Related Program Elements: N/A Line Item MDAP/MAIS Code: N/A FY 2018 FY 2018 FY 2018 Secondary Distribution FY 2016 FY 2017 Base OCO Total FY 2019 FY 2020 FY 2021 FY 2022 AR Quantity 1 1 ------Total Obligation Authority 19.886 10.930 ------Total: Quantity 2 2 2 - 2 4 4 6 4 Secondary Distribution Total Obligation Authority 39.772 21.860 20.110 - 20.110 41.465 42.237 63.130 43.630

LI M11101 - Army Watercraft Esp UNCLASSIFIED 179 Army Page 2 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-40, Budget Line Item Justification: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: 2035A: Other Procurement, Army / BA 03: Other Support Equipment / BSA 55: Rail M11101 / Army Watercraft Esp Float Containerization Equipment ID Code (A=Service Ready, B=Not Service Ready): Program Elements for Code B Items: N/A Other Related Program Elements: N/A Line Item MDAP/MAIS Code: N/A Exhibits Schedule Prior Years FY 2016 FY 2017 FY 2018 Base FY 2018 OCO FY 2018 Total MDAP/ Exhibit ID MAIS Quantity / Total Cost Quantity / Total Cost Quantity / Total Cost Quantity / Total Cost Quantity / Total Cost Quantity / Total Cost Type Title* Subexhibits CD Code (Each) / ($ M) (Each) / ($ M) (Each) / ($ M) (Each) / ($ M) (Each) / ($ M) (Each) / ($ M) P-5 M11101 / Army Watercraft Esp P-5a, P-21 - / 3.509 2 / 39.772 2 / 21.860 2 / 20.110 - / - 2 / 20.110 P-40 Total Gross/Weapon System Cost - / 3.509 2 / 39.772 2 / 21.860 2 / 20.110 - / - 2 / 20.110 *Title represents 1) the Number / Title for Items; 2) the Number / Title [DODIC] for Ammunition; and/or 3) the Number / Title (Modification Type) for Modifications. Note: Totals in this Exhibit P-40 set may not be exact or sum exactly due to rounding.

Justification: FY 2018 Base procurement dollars in the amount of $20.110 million supports the Landing Craft Utility 2000 (LCU-2000) Service Life Extension Programs (SLEP) vessels and Program Management/Matrix Support for the fiscal year. The SLEP modification package will make improvements to all engines, power generators and the application of 11 select Engineering Change Proposals (ECPs) which focus on modernization and technology insertion; these efforts are not covered under the Modification of In-Service Equipment appropriation. Furthermore, the LCU-2000 Technical Manuals and provisioning data effort covers development, re-write and publishing of the critical repower requirement along with all other subsystems effected by SLEP. Program Management/Matrix Support includes the Program Management, Logistics and System Engineering oversight required to manage the program and provide contractor oversight. Salaries, benefits, travel, personnel training and other Government costs are included for retaining a professional acquisition workforce.

The LCU-2000 SLEP is performed in conjunction with the vessels' statutorily required On-Condition Cyclic Maintenance (OCCM), which is funded with Operations and Maintenance, Army (OMA) dollars.

LI M11101 - Army Watercraft Esp UNCLASSIFIED 180 Army Page 3 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-5, Cost Analysis: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp ID Code (A=Service Ready, B=Not Service Ready) : MDAP/MAIS Code: Resource Summary Prior Years FY 2016 FY 2017 FY 2018 Base FY 2018 OCO FY 2018 Total Procurement Quantity (Units in Each) - 2 2 2 - 2 Gross/Weapon System Cost ($ in Millions) 3.509 39.772 21.860 20.110 - 20.110 Less PY Advance Procurement ($ in Millions) ------Net Procurement (P-1) ($ in Millions) 3.509 39.772 21.860 20.110 - 20.110 Plus CY Advance Procurement ($ in Millions) ------Total Obligation Authority ($ in Millions) 3.509 39.772 21.860 20.110 - 20.110 (The following Resource Summary rows are for informational purposes only. The corresponding budget requests are documented elsewhere.) Initial Spares ($ in Millions) ------Gross/Weapon System Unit Cost ($ in Thousands) - 19,886.000 10,930.000 10,055.000 - 10,055.000

Note: Subtotals or Totals in this Exhibit P-5 may not be exact or sum exactly due to rounding. Prior Years FY 2016 FY 2017 FY 2018 Base FY 2018 OCO FY 2018 Total Total Total Total Total Total Total Unit Cost Qty Cost Unit Cost Qty Cost Unit Cost Qty Cost Unit Cost Qty Cost Unit Cost Qty Cost Unit Cost Qty Cost Cost Elements ($ K) (Each) ($ M) ($ K) (Each) ($ M) ($ K) (Each) ($ M) ($ K) (Each) ($ M) ($ K) (Each) ($ M) ($ K) (Each) ($ M) Flyaway Cost Recurring Cost SLEP Vessels - - - 11,308.000 2 22.616 9,362.500 2 18.725 8,577.500 2 17.155 - - - 8,577.500 2 17.155 (LCU-2000)(†) New Equipment - - - - - 0.530 - - 0.530 - - 0.545 - - - - - 0.545 Training (NET) Technical Data - - - - - 6.369 ------Package Technical Manuals - - - - - 6.397 - - 0.320 - - 0.300 - - - - - 0.300 Program Management/Matrix - - 3.509 - - 2.200 - - 2.285 - - 2.110 - - - - - 2.110 Support Training Assets - - - - - 1.660 ------Subtotal: Recurring Cost - - 3.509 - - 39.772 - - 21.860 - - 20.110 - - - - - 20.110 Subtotal: Flyaway Cost - - 3.509 - - 39.772 - - 21.860 - - 20.110 - - - - - 20.110 Gross/Weapon System - - 3.509 19,886.000 2 39.772 10,930.000 2 21.860 10,055.000 2 20.110 - - - 10,055.000 2 20.110 Cost

FY 2018 FY 2018 FY 2018 Secondary Distribution FY 2016 FY 2017 Base OCO Total Army Quantity 1 1 2 - 2 Total Obligation Authority 19.886 10.930 20.110 - 20.110 AR Quantity 1 1 - - - Total Obligation Authority 19.886 10.930 - - -

LI M11101 - Army Watercraft Esp UNCLASSIFIED 181 Army Page 4 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-5, Cost Analysis: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp ID Code (A=Service Ready, B=Not Service Ready) : MDAP/MAIS Code: FY 2018 FY 2018 FY 2018 Secondary Distribution FY 2016 FY 2017 Base OCO Total Total: Quantity 2 2 2 - 2 Secondary Distribution Total Obligation Authority 39.772 21.860 20.110 - 20.110

(†) indicates the presence of a P-5a

LI M11101 - Army Watercraft Esp UNCLASSIFIED 182 Army Page 5 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-5a, Procurement History and Planning: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp O Method/Type Date Specs Date C or Award of First Qty Unit Cost Avail Revision RFP Issue Cost Elements O FY Contractor and Location Funding Location of PCO Date Delivery (Each) ($ K) Now? Available Date (†) Alion Science and SLEP Vessels (LCU-2000) 2016 C / FFP WARREN, MI Sep 2016 Sep 2017 2 11,308.000 Y Sep 2015 Technology / Burr Ridge, IL (†) Alion Science and SLEP Vessels (LCU-2000) 2017 C / FFP WARREN, MI Apr 2017 Oct 2017 2 9,362.500 Y Technology / Burr Ridge, IL (†) Alion Science and SLEP Vessels (LCU-2000) 2018 C / FFP WARREN, MI Jan 2018 Jun 2018 1 8,577.500 N Technology / Burr Ridge, IL

SLEP Vessels (LCU-2000)(†) 2018 TBD 2 / TBD C / FFP WARREN, MI Jun 2019 Dec 2019 1 8,577.500 N Oct 2018

(†) indicates the presence of a P-21

Remarks: Due to delay of LCU-2000 SLEP Phase I contract award to September 2016, TDP development to inform phase II has been delayed. As a result, the initial contract award for LCU-2000 SLEP Phase II is currently projected for 3rd quarter FY 2019. The Landing Craft Utility 2000 (LCU-2000) Service Life Extension Program (SLEP) is planned to be conducted in two phases. The first phase (Phase I) will consist of up to 2 Low Rate Initial Production (LRIP) vessels, and 2 option vessels. LRIP during FY 2016-2018 will be used for SLEP, Engineering Change Proposal (ECP), Technical Data Package (TDP), New Equipment Training (NET) development, Test, Evaluation, Technical Manual (TM) Validation, and TM Verification. The second phase (Phase II) will consist of Full Rate Production (FRP) of LCU-2000 vessels in FY 2019-2025. The SLEP activities will update Main Propulsion, Bow Thruster, and Service and Emergency Diesel Generator engines; upgrade Force Protection Equipment (new gun mounts and ballistic protection), and upgrade various engineering systems (e.g. Air Conditioning System). Lead times are based on previous SLEP contracts for other vessels.

LI M11101 - Army Watercraft Esp UNCLASSIFIED 183 Army Page 6 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-21, Production Schedule: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp Cost Elements B (Units in Each) Fiscal Year 2016 Fiscal Year 2017 A ACCEPT Calendar Year 2016 Calendar Year 2017 L M PRIOR BAL A O F TO 1 DUE O N D J F M A M J J A S O N D J F M A M J J A S N C R PROC OCT AS OF C O E A E A P A U U U E C O E A E A P A U U U E C O # FY SERVICE QTY 2015 1 OCT T V C N B R R Y N L G P T V C N B R R Y N L G P E SLEP Vessels (LCU-2000) 1 2016 ARMY 2 0 2 A ------1 1 1 2017 ARMY 2 0 2 A ------2 1 2018 ARMY 1 0 1 1 2 2018 ARMY 1 0 1 1 O N D J F M A M J J A S O N D J F M A M J J A S C O E A E A P A U U U E C O E A E A P A U U U E T V C N B R R Y N L G P T V C N B R R Y N L G P

LI M11101 - Army Watercraft Esp UNCLASSIFIED 184 Army Page 7 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-21, Production Schedule: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp Cost Elements B (Units in Each) Fiscal Year 2018 Fiscal Year 2019 A ACCEPT Calendar Year 2018 Calendar Year 2019 L M PRIOR BAL A O F TO 1 DUE O N D J F M A M J J A S O N D J F M A M J J A S N C R PROC OCT AS OF C O E A E A P A U U U E C O E A E A P A U U U E C O # FY SERVICE QTY 2017 1 OCT T V C N B R R Y N L G P T V C N B R R Y N L G P E SLEP Vessels (LCU-2000) 1 2016 ARMY 2 1 1 - - 1 0 1 2017 ARMY 2 0 2 1 - - 1 0 1 2018 ARMY 1 0 1 A - - - - - 1 0 2 2018 ARMY 1 0 1 A - - - - 1 O N D J F M A M J J A S O N D J F M A M J J A S C O E A E A P A U U U E C O E A E A P A U U U E T V C N B R R Y N L G P T V C N B R R Y N L G P

LI M11101 - Army Watercraft Esp UNCLASSIFIED 185 Army Page 8 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-21, Production Schedule: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp Cost Elements B (Units in Each) Fiscal Year 2020 Fiscal Year 2021 A ACCEPT Calendar Year 2020 Calendar Year 2021 L M PRIOR BAL A O F TO 1 DUE O N D J F M A M J J A S O N D J F M A M J J A S N C R PROC OCT AS OF C O E A E A P A U U U E C O E A E A P A U U U E C O # FY SERVICE QTY 2019 1 OCT T V C N B R R Y N L G P T V C N B R R Y N L G P E SLEP Vessels (LCU-2000) 1 2016 ARMY 2 2 0 0 1 2017 ARMY 2 2 0 0 1 2018 ARMY 1 1 0 0 2 2018 ARMY 1 0 1 - - 1 0 O N D J F M A M J J A S O N D J F M A M J J A S C O E A E A P A U U U E C O E A E A P A U U U E T V C N B R R Y N L G P T V C N B R R Y N L G P

LI M11101 - Army Watercraft Esp UNCLASSIFIED 186 Army Page 9 of 10 P-1 Line #164 UNCLASSIFIED Exhibit P-21, Production Schedule: FY 2018 Army Date: May 2017 Appropriation / Budget Activity / Budget Sub Activity: P-1 Line Item Number / Title: Item Number / Title [DODIC]: 2035A / 03 / 55 M11101 / Army Watercraft Esp M11101 / Army Watercraft Esp Production Rates (Each / Month) Procurement Leadtime (Months)

MFR Initial Reorder Ref Manufacturer ALT ALT Manufacturing Total ALT ALT Manufacturing Total # Name - Location MSR For 2018 1-8-5 For 2018 MAX For 2018 Prior to Oct 1 After Oct 1 PLT After Oct 1 Prior to Oct 1 After Oct 1 PLT After Oct 1 1 Alion Science and 1 1 1 0 12 12 24 0 7 6 13 Technology - Burr Ridge, IL 2 TBD 2 - TBD 1 1 1 0 21 6 27 0 7 6 13

Remarks: Service Life Extension Program (SLEP) modifications are completed at commercial shipyards.

"A" in the Delivery Schedule indicates the Contract Award Date. Note: Due to space limitations, quantities in the Exhibit P-21 delivery calendar are truncated and rounded based on the maximum quantity in the calendar as follows. If the maximum quantity is less than or equal to than 9,999, all quantities are shown as each. If the maximum quantity is between 10,000 and 999,999 all quantities are shown in thousands. If the maximum quantity is between 1,000,000 and 999,999,999 all quantities are shown in millions (rounded to the nearest thousand).If the maximum quantity is equal or greater than 1,000,000,000 all quantities are shown in billions (rounded to the nearest million).

LI M11101 - Army Watercraft Esp UNCLASSIFIED 187 Army Page 10 of 10 P-1 Line #164