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GAO-05-570R 1 (2005-06-23)

handle is hein.gao/gaocrptarqn0001 and id is 1 raw text is: A ... nabiity * Integrty' Reliability Washington, DC 20548 June 23, 2005 The Honorable C.W. Bill Young Chairman, Subcommittee on Defense Committee on Appropriations House of Representatives Subject: Defense Acquisitions: Incentives and Pressures That Drive Problems Affecting Satellite and Related Acquisitions Dear Mr. Chairman: In fiscal year 2006, the Department of Defense (DOD) expects to spend more than $23 billion to develop, acquire, and operate satellites and other space-related systems. These systems are becoming increasingly critical to every facet of military operations as well as the U.S. economy and homeland security. Satellite systems collect information on the capabilities and intentions of potential adversaries. They enable U.S. military forces to be warned of missile attacks and to communicate and navigate while avoiding hostile actions. They provide information that allows forces to precisely attack targets in ways that minimize collateral damage and loss of life. DOD's satellites also enable global communications; television broadcasts; weather forecasting; disaster planning; navigation of ships, planes, trucks, and cars; and synchronization of computers, communications, and electric power grids. DOD's introduction of these desirable capabilities over time has not come without difficulties. Space system acquisitions have experienced problems over the past several decades that have driven up costs by hundreds of millions, even billions of dollars, stretched schedules by years, and increased performance risks. In some cases, capabilities have not been delivered to the warfighter after decades of development. As a result of these problems, DOD is now contending with important trade-off decisions, such as the following. Whether to keep striving to build its Space-Based Infrared System (SBIRS) High as intended or cut back on capabilities. This system is intended to replace and upgrade an older generation of missile-warning satellites, but its cost has already more than doubled and continues to increase, and its schedule has stretched for years. GAO-05-570R Space System Acquisitions Page I

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