• Concept and Technology Development (CTD); 
• Systems Design and Demonstration (SDD); and 
• Production. 

The FCS LSI Team is partnering with Industry and the Government during each of these phases to provide the Army with the most effective and best value FCS solution for fielding in 2010. 

The Army uses the term, Initial Operational Capability (or IOC), which indicates that the systems have been provided to a fighting unit, tested (in a combat-like environment), and determined to be ready for use in a conflict/war.

Future Combat Systems is on a very fast development path--Initial Operational Capability is scheduled for 2010.

Having received approval from the Department of Defense Acquisition Board (known as the DAB -- the governing body that makes the decision to move the program ahead) or a “Milestone B” decision, the program can begin System Development and Demonstration (SDD) phase.

In this phase, the system will be developed and demonstrated (shown that the systems have the capabilities they were designed to provide). Prototypes will be built and tested.

During SDD, in late 2008, Initial Production (or IP) will begin, during which time a limited number of the platforms will be built. Before it can enter IP, the program will be reviewed by another DAB, which will make the initial production decision, known as Milestone C.

In order for the Army to proceed, though, the U.S. Congress must approve the continuation of the program and appropriate the necessary money to continue its testing and development.  Because the Future Combat Systems is designed as an integral system of systems, the cost is not broken out by either individual pieces or platforms. One of the most innovative and essential elements of the program is that all of the systems have been designed to work together. The SDD phase of the program is valued at: $14.92 billion, to be authorized by Congress over the next seven years..