# Project 3240 — CEC Increment II

**Program element:** 0607658N — Cooperative Engagement Capability  
**Project:** 3240  
**Component:** U.S. Navy  
**Appropriation:** 1319 — RDT&E, Navy  
**Budget Activity:** 7 — Operational System Development  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0607658N/3240  
**Parent:** https://hitchintel.com/programs/0607658N

## Summary

Project 3240 — CEC Increment II requests $62.1M in FY2027, 51% of the $120.8M requested for program element 0607658N, down 10% on FY2026. 8 R-2A activities decompose the request.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 47.7 |
| FY2026 | Enacted | 69.1 |
| FY2027 | Request | 62.1 |
| FY2028 | Outyear | 69.2 |
| FY2029 | Outyear | 68.7 |
| FY2030 | Outyear | 68.3 |
| FY2031 | Outyear | 69.6 |

> Estimate types are not summed. This project is one leaf of PE 0607658N; the PE total is the sum of its projects, never added to them.

## What project 3240 buys

The Cooperative Engagement Capability (CEC) Increment 2 (Inc 2) Capability Development Document (CDD) evolves legacy CEC capabilities by enhancing the current Naval air defense and sensor network system capabilities through extension of kill chains, extension of communications Beyond Line of Sight (BLOS), expansion of composite track management capability-Joint and Force Level, expansion of network capacity, as well as expansion into other warfare mission domains. The CEC Inc 2 CDD integrates new sensor types and track data sources into the network, such as surface search radars and passive detection sensors, as well as relevant data from other networks. The CEC Inc 2 CDD provides a more complete, robust, and resilient situational awareness picture, composite identification, and Integrated Fire Control. It also accommodates more Cooperating Units with assured communications for Integrated Air and Missile Defense, Surface Warfare, and Electronic Warfare domains. The CEC Inc 2 CDD was signed by Vice Chief of Naval Operations (VCNO) on 26 June 2019 and approved by the Joint Capabilities Board (JCB) on 18 March 2020. Although CEC BLK II is a Navy program, it does have joint force interest through potential inclusion in higher-level sensor-to-shooter networks like the Naval Tactical Grid (NTG), the Joint Tactical Grid (JTG), and Joint All Domain Command and Control (JADC2) concept and capability developments. New capability development designated in the CEC Inc 2 CDD will be realized through a series of Acquisition Category (ACAT) II Block (BLK) upgrades (BLK II-IV), with the first being enumerated as CEC BLK II. CEC BLK II is a software intesive capability insertion into the existing CEC ACAT IC Full Rate Production system. The new capability development within each BLK upgrade is further organized and phased into incrementally developed and delivered capability groups (CGs). Delivered CEC BLK II capability enabling features are grouped and integrated into CEC software baselines for fielding. The CEC Program has realigned RDT&E funding from PU 2039 COOP Engagement to PU 3240 CEC Increment 2 for the incremental development of CEC software and hardware improvements necessary to meet the requirements in the CEC Increment 2 CDD.

**R-3 lines of work:** Product Development.

## Activities (R-2A) — 8

| Activity | FY2025 | FY2026 | FY2027 | Move | Page |
|---|---|---|---|---|---|
| CEC SYSTEM HARDWARE MODERNIZATION | 0.0 | 12.2 | 18.9 | +55% | [a6](https://hitchintel.com/programs/0607658N/3240/a6) |
| CEC INC II HW & SW INTEGRATION | 0.0 | 10.1 | 15.0 | +48% | [a7](https://hitchintel.com/programs/0607658N/3240/a7) |
| BLK III SOFTWARE DEVELOPMENT | 0.0 | 15.2 | 14.9 | −2% | — |
| CRYPTO MODERNIZATION | 10.2 | 9.5 | 5.4 | −43% | — |
| NIFC Passive | 8.8 | 8.2 | 4.8 | −42% | — |
| NIFC HYPERSONIC | 5.3 | 5.0 | 3.1 | −38% | — |
| FIRECAPE | 8.7 | 8.9 | 0.0 | −100% | — |
| ELEKTRA | 14.7 | 0.0 | 0.0 | — | — |

> Activities carry the prior, current and budget year only — no five-year plan. In the request year they partition this project exactly; in earlier years they can under-cover it.

### CEC SYSTEM HARDWARE MODERNIZATION

Develop and mature prototype CEC system antenna waveform and communications technologies and architectures to be incorporated into future CEC system hardware including the Signal Data Processor and antenna. CEC system hardware modernization is required to provide increased waveform and communications technologies that support data rates…

Full year-by-year narrative: https://hitchintel.com/programs/0607658N/3240/a6

### CEC INC II HW & SW INTEGRATION

Continue CEC system hardware and software integration efforts. As incremental CEC Increment 2 software capabilities and system signal data processor and antenna technologies evolve, conduct the necessary integration efforts to meet requirements in the CEC Increment 2 CDD.

Full year-by-year narrative: https://hitchintel.com/programs/0607658N/3240/a7

### BLK III SOFTWARE DEVELOPMENT

**FY2027 planned work.** Continue CEC BLK III software development efforts for CEC capability improvements outlined in the CEC Increment 2 CDD. Conduct CEC BLK III SRR and SFR.

**FY2026 to FY2027 change.** Decrease is due to minor pricing differences.

**FY2026 plans — current year.** Transition CEC Increment 2 development efforts from the BLK II program to the follow on CEC BLK III program to develop expanded CEC capability improvements outlined in the CEC Increment 2 CDD. Prepare for CEC BLK III SRR and SFR.

### CRYPTO MODERNIZATION

**FY2027 planned work.** Begin transition to CEC BLK III capability feature development. Continue a cryptographic modernization effort for the Signal Data Processor (SDP), to include the continued development of a new Programmable Cryptographic Module (PCM), in support of the significant increase in cryptographic performance, to include a subset of Cryptographic Modernization 2 (CM2) requirements, that is required to enable more resilient networks and add additional protections to the CEC network.

**FY2026 to FY2027 change.** Decrease is due to ramp down of CEC BLK II efforts and beginning of transition to CEC BLK III development efforts.

**FY2026 plans — current year.** Complete System Integration Testing (SIT). Continue a cryptographic modernization effort for the Signal Data Processor (SDP), to include the continued development of a new Programmable Cryptographic Module (PCM), in support of the significant increase in cryptographic performance, to include a subset of Cryptographic Modernization 2 (CM2) requirements, that is required to enable more resilient networks and add additional protections to the CEC network.

### NIFC Passive

**FY2027 planned work.** Begin transition to CEC BLK III capability feature development. Begin follow-on CEC BLK III CEP and DDS software development efforts to expand the use of EW data within the CEC system, DDS network, and Composite ID processing.

**FY2026 to FY2027 change.** Decrease is due to ramp down of CEC BLK II efforts and beginning of transition to CEC BLK III development efforts.

**FY2026 plans — current year.** Complete System Integration Testing (SIT). Complete integration of Electronic Warfare (EW) capabilities in CEC support of developing a SLQ-32(V)6 adaptive layer interface. Complete robust systems engineering efforts for CEP and DDS software development to route EW data via the CEC DDS network, ingest EW data into the CEP track picture, and use EW data to enhance Composite ID recommendations to Combat Systems.

### NIFC HYPERSONIC

**FY2027 planned work.** Begin transition to CEC BLK III capability feature development. Begin follow-on CEC BLK III software development efforts to expand CEC speed, acceleration, and altitude attributes for inclusion in the CEC Composite Tracking environment to address advanced and more stressing threats (hypersonics).

**FY2026 to FY2027 change.** Decrease is due to ramp down of CEC BLK II efforts and beginning of transition to CEC BLK III development efforts.

**FY2026 plans — current year.** Complete System Integration Testing (SIT). Complete software development efforts to expand CEC speed, acceleration, and altitude attributes for inclusion in the CEC Composite Tracking environment to address advanced and more stressing threats (hypersonics). Validate NIFC Hypersonics system network performance requirements to support system hardware improvements.

### FIRECAPE

**FY2026 to FY2027 change.** Decrease is due to completion of associated BLK II development efforts and transition to CEC BLK III software and hardware development efforts.

**FY2026 plans — current year.** Complete System Integration Testing (SIT). Complete integration and development of 'Patterns of Life' algorithms for inclusion in the CEC track picture to assist with identification of anomalies and events of interest.

## What is NOT on this page

Congressional marks, the R-2 mission description and acquisition strategy, the industry vs government split of the whole request, and related program elements are recorded at **program-element** grain — an NDAA mark lands on a PE, never on a project. They are at https://hitchintel.com/programs/0607658N.

## Source & machine access

- **Source:** FY2027 Department of the Navy RDT&E Budget Justification, Exhibits R-2/R-2A/R-3, PE 0607658N project 3240 (PB PB2027).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0607658N")`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*