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PEPE came about as a result of predictions of the sorts of [[ICBM]] forces that would be expected in the event of an all-out Soviet attack during the 1970s. Missile fleets of both the US and USSR were growing through the 1960s, but a bigger issue was the rapid increase in the number of warheads as a result of the move to [[multiple independently targetable reentry vehicle]]s (MIRV). Computers designed for the [[Nike-X]] system were largely similar to systems like the [[IBM 7030]], and would have been able to handle attacks of perhaps a dozen warheads arriving simultaneously. With MIRV, hundreds of targets, both warheads and decoys, would arrive at the same time, and the CPUs being used simply did not have the performance needed to analyze their trajectories quickly enough to leave time to attack them.<ref name=silogic/>
[[Bell Labs]], which had been the primary industry partner in previous ABM systems, proposed development of a new system able to track 200 to 300 missiles at a time. The program officially started in 1969. Development was led by [[System Development Corporation]] (SDC)
An initial testbed system, the "IC model", was built with 16 processors consisting of individual [[integrated circuit]]s and connected to an [[IBM 360]]/65 host. This was completed in 1971. This proved successful, and
The system was eventually sent to [[McDonnell Douglas]] in [[Huntington Beach, CA]].{{efn|It was previously believed to have gone to [[Kwajalein Island]], home of the Army's ballistic missile testing range.<ref name=silogic/>}} After it was retired, it was sent to [[Auburn University]], which scrapped the system some time in the late 1980s or early 1990s.<ref name=silogic/>
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