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fixed or final architecture for the system. Rather, it empha-sizes improving the effectiveness of defensive capabilities over time as resources allow. The spiral development ap- proach allows planning for these incremental improvements in capability and focuses on integration activities. MDA uses knowledge-based decision making to implement capability-based acquisition. Knowledge-based decisions allow for incremental financial commitment to a develop- ment effort based on achieving planned knowledge points. Each added commitment of funding hinges on knowledge gained from a specifically demonstrated event (rather than analysis or review), and the Agency maintains flexibility to make adjustments when planned knowledge points or program milestones are not achieved. Planned knowledge points allow the Agency to manage risk systematically and get the most out of research and development efforts. The benefit of this approach, called knowledge-based fund- ing, is the ability to pursue multiple promising programs, assess progress towards achieving development goals, and retain flexibility to make decisions to redirect, stop, or accelerate any one program based on actual performance. Knowledge-based funding allows MDA to use budgetary resources efficiently and responsibly. Systems Engineering MDA’s Systems Engineering Directorate defines, manages, and integrates all engineering development for the BMDS. A comprehensive and collaborative systems engineering process defines required system-wide behavior, validates element system designs, and assesses and verifies system capabilities. Success for the single, integrated system depends not only on developing the right technologies to perform numerous missile defense functions (e.g., target detection, discrimina-tion, and acquisition), but also on achieving a high level of synergy among multiple geographically dispersed sensor and weapon components. Systems Engineering provides an integrated and layered architecture; writes technical defini- tions; and develops element and/or component require- ments, schedules, verification strategies, and other products required to execute the missile defense program. Engagement Sequences MDA identifies desired BMDS capabilities, architectures, and element contributions to counter specified threats and then organizes them by Engagement Sequence Groups (ESG). These Engagement Sequence Groups describe a combination of sensors, weapons, and Command and Con-trol, Battle Management, and Communications capabilities that must work together to detect, track, and intercept an enemy missile or its payload. ESGs enhance functional and engineering analysis, simplify allocation of system capabili-ties, provide a structure to assess system performance, and assist the warfighters in developing concepts of operations (CONOPS). BMDS Capability Through 2007 Over the past few years, the United States has fielded an initial BMDS and is enhancing the system with additional capabilities in the form of deployed sensors, interceptors, and enhanced command and control. Current system archi- tecture consists of the following: • 24 GBI emplaced in silos in Alaska and California • 21 SM-3 sea-based interceptors • Three Navy Aegis BMD Cruisers and seven Destroyers capable of engaging short- to intermediate-range missiles and able to perform the Long-Range Surveillance & Track (LRS&T) mission. • 505 PAC-3 missiles. • A Sea-Based X-Band (SBX) radar capable of providing robust discrimination to the system. • Active Upgraded Early Warning Radar (UEWRs) in Cali- fornia and the United Kingdom and an upgraded Cobra Dane radar in Alaska • Two Forward-Based X-Band Radars (AN/TPY-2) deliv- ered (one deployed to Shariki, Japan) • Initial Global Integrated Fire Control (GIFC) capability• A C2BMC system on line at three COCOMs with situ- ational nodes within the National Capital Region and the UK.