Therefore,
assuming the various customers actually purchase according to their stated and signaled needs, we get the following yearly production needs for PAC-3 MSE:
698-1696 per year
We can also estimate what this would do to the cost. The current cost per MSE is $3.8M per, $4.1M per when including things like advanced procurement, obsolescence, and other fixed costs. Assuming a 15% reduction in costs if the upper bound of that production target is reached (1600-1700 per year) and assuming improved amortization of fixed costs, we could see the cost per AUR decrease to as low as
$3.3M marginal, $3.5M total when including fixed/ancillary costs.
Army spend on PAC-3 MSE might then look like this:
- 320 per year, $1.3B total, $4.1M per (current actual)
- 548 per year, $2.1B total, $3.8M per
- 1096 per year, $3.8B total $3.5M per