Design-to-Cost Methodology for AIM-9X Missile Program

This technical report outlines the design-to-cost methodology implemented in the AIM-9X missile program, which is estimated to save $1.2 billion during development and procurement. The U.S. Navy's AIM-9X program aims to avoid previous cost overruns by incorporating contract incentives that require contractors to utilize reducibility metrics and risk management. Raytheon Systems and Galorath Incorporated developed software that enables engineers to evaluate design alternatives' costs and assess the risk of cost increases. The report details the development of a custom software tool, SEER-MFG™, which integrates risk analysis capabilities and allows for the incorporation of custom cost models. The software facilitates early cost considerations in the design process, promoting budget allocation among subsystems from the outset. The methodology has proven effective, with Navy program managers requesting updated model copies to monitor design-to-cost efforts. The report concludes that maintaining original cost estimates could lead to savings exceeding the projected $1.2 billion, establishing design-to-cost as a critical aspect of Raytheon's engineering process.