The goal of the NASA ACC High Energy Dynamic Impact Project is to determine the state of the art of dynamic fracture simulations for high velocity impact for composite fuselage shielding applications. Using a building block approach, several computational models considered under NASA ACC are being validated against test data, starting at unconfigured panels and progressing to configured panels under combined out-of-plane and in-plane loading due to ballistic impact. The computational models being evaluated in this project include MAT 162, MAT 213, MAT 261, SPG, and Peridynamics. In this paper, the simulation results using LS-Dyna Material MAT 261 are presented. In particular, a series of blind predictions for unconfigured panels were performed to determine the ballistic limit or V50 velocity. MAT 261 employs failure approach that is generally physically-based using fracture toughness criteria. The overall material model relies on typical ply-level stiffness properties, similar to MAT 162 and other composite continuum damage material models. The fracture toughness values are based on standard tests, and thus are not subject to extensive calibration. This approach is more efficient than performing extensive optimization studies for calibration of parameters. Also, this approach of relying on physical properties reduces the uncertainty of results, as questions concerning the quality and extent of the calibration studies is no longer relevant. However, it was found that carefully controlled coupon-level tests are needed to accurately obtain the required fracture toughness values. Additionally, it should be noted that there is one significant parameter in MAT 261 that does appear to require calibration, and that is the overall failure strain. This is the strain at which the element is deleted, and is not the same as the strain at which damage begins to accumulate. This failure strain is termed EFS (Effective Failure Strain), and is the maximum effective stain for element failure. Simulations have shown that this value will significantly affect impact response and failure. The paper presents the effect of this element failure strain parameter, along with possible uncertainties in fracture toughness values. With an adjusted appropriate value for EFS, it is seen that simulation results compare well with impact test data for predicted penetration velocity.