GAO-02-772R Defense Space Activities

United States General Accounting Office

Washington, DC 20548

June 26, 2002

The Honorable Carl Levin

Chairman

The Honorable John Warner

Ranking Minority Member

Committee on Armed Services

United States Senate

The Honorable Bob Stump

Chairman

The Honorable Ike Skelton

Ranking Minority Member

Committee on Armed Services

House of Representatives

Subject: Defense Space Activities: Status of Reorganization

The United States depends on space technology for a variety of national security

activities as well as commercial operations. Space technology is integral to such

diverse activities as transportation, health, the environment, communications,

commerce, agriculture, and energy. However, the commercial, scientific, and military

importance of U.S. space assets creates vulnerabilities that potential adversaries

could exploit. Addressing these vulnerabilities presents challenges for the national

security space community. As you know, the Congress has had long-standing

concerns about the Department of Defense’s organization and management of

national security space activities, including the lack of a focal point for space policy,

inadequate department-level oversight, inadequate coordination between military and

intelligence organizations, lack of defined responsibilities for space programs, and

insufficient responsiveness to space systems users. The Congress chartered the

Commission to Assess United States National Security Space Management and

Organization to assess the organization and management of space activities that

support U.S. national security interests and make recommendations for

improvements. The present Secretary of Defense, prior to his assuming his current

position, led the commission, known as the Space Commission.

In January 2001, the Space Commission reported that the Department of Defense’s

organization and management needed to be changed to bring a more focused and
Page 2 GAO-02-772R Defense Space Activities

well-directed approach to national security space operations. The commission

concluded that the department lacked the senior-level focus and accountability to

provide guidance and oversight for space activities. Further, the commission noted

that within the department and the intelligence community, a number of

organizations (including the Office of Assistant Secretary of Defense for Command,

Control, Communications and Intelligence; the U.S. Space Command; the military

services; the National Reconnaissance Office; and the Director of Central

Intelligence) were involved in space programs but without an adequate interagency

coordination process. The Air Force is the Department of Defense’s primary

procurer and operator of space systems, while the Army controls a defense satellite

communications system and operates ground mobile terminals. The Navy operates

some space systems that contribute to surveillance and warning.

The commission made numerous recommendations, some of which called for

presidential action. For example, the commission recommended that the President

should consider establishing space as a national security priority. Most of the

commission’s recommendations, however, were applicable to the Department of

Defense. For example, the commission made 13 recommendations to address

organization and management problems, merge and realign space activities, enhance

interagency communication, better integrate the experience of those involved in

acquiring and operating space systems, encourage more innovative research and

development, and improve visibility over funding for space-related activities. It also

recommended that the Air Force be assigned statutory responsibility to organize,

train, and equip for space operations because no service had been formally assigned

this responsibility and the Air Force controls about 85 percent of space-related

funding within the Department of Defense.

In the National Defense Authorization Act for Fiscal Year 2002, the Congress

mandated that we assess the actions taken by the Secretary of Defense in

implementing the Space Commission’s recommendations and report in 2002 and

2003. In April 2002, we briefed your office on the status of the Department of

Defense’s efforts to implement the Space Commission recommendations that apply

to it. This report presents and updates information we provided at our briefings (see

encl. 1). As agreed, we expect to provide a second report further detailing the status

of the Department of Defense’s implementation efforts in early 2003.

Results in Brief

The Department of Defense has decided to take actions related to 10 of the

commission’s 13 recommendations to it to improve the organization and management

of national security space activities. These include several recommendations for

organizational changes aimed at consolidating some activities, changing chains of

command, opening lines of communications, and modifying policies to achieve

greater responsibility and accountability. Many changes have been implemented only
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within the last few months, and thus related processes and procedures (such as

setting organizational goals and defining specific roles and responsibilities) have not

been completed. As a result, it is too early to determine whether these changes will

enable the department to promote and protect U.S. interests in space more

effectively. Moreover, the department has not yet completed plans for achieving

some long-range goals, such as developing a cadre of space professionals and

integrating military and intelligence space activities. The Secretary of Defense chose

not to implement three of the commission’s recommendations and is instead

(1) opting to establish a focal point for space within the Air Force rather than an

under secretary of defense, (2) choosing to increase the Air Force’s responsibilities

for space activities by department directive rather than requesting legislative change,

and (3) deciding to direct existing organizations to conduct innovative space research

and development rather than create a new organization to do so.

The Department of Defense commented on a draft of this report, and its comments

have been incorporated where appropriate.

Some Recommended Actions Are Completed,

Others Are in Process, and Results Are Not Yet Clear

The Secretary of Defense agreed with the Space Commission’s findings that the

Department of Defense (DOD) needed a new and comprehensive national security

space management approach to promote and protect U.S. interests in space. In a May

8, 2001, letter to the leaders of the defense and intelligence oversight committees, the

Secretary informed the Congress that he would take actions to improve DOD’s

management structure and organization for national security space actions. In a

directive dated October 18, 2001, he instructed his staff to implement 10 of the

commission’s 13 recommendations directed to DOD.

As table 1 shows, DOD has implemented or is in the process of implementing these

10 recommendations to it. These recommendations largely represent organizational

changes that the commission deemed necessary to improve DOD’s focus on national

security space activities and better coordinate military and intelligence space

activities. To provide a focal point for the disparate space activities conducted

throughout the department, the commission recommended creating an under

secretary of defense for space, intelligence, and information to serve as the advocate

for space within the department, oversee research, coordinate military intelligence

activities, and work with the intelligence community on long-range requirements

planning. The commission also concluded that the Air Force was best suited to

organize, train, and equip space forces, and it recommended that DOD provide the Air

Force more leadership responsibility and authority for space operations. In addition,

the commission recommended actions to provide resources and direction for

innovative space-related research, development, and demonstration programs and

more clearly identify the levels and sources of funding and personnel involved in

space activities.
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Table 1: Status of Space Commission Recommendations

Space Commission recommendation

No action

intended

In

progress Completed

The Secretary of Defense and the Director of Central

Intelligence should meet regularly to address national security

space policy, objectives, and issues.

⌧

Secretary of Defense should establish an under secretary of

defense for space, intelligence, and information.a ⌧

Secretary of Air Force should assign responsibility for the

command of Air Force Space Command to a four-star officer

other than the commander, U.S. Space Command and North

American Aerospace Defense Command.

⌧

Secretary of Defense should end the practice of assigning only

Air Force flight-rated officers to position of commander, U.S.

Space Command and North American Aerospace Defense

Command.

⌧

Air Force should realign headquarters and field commands to

more effectively organize, train, and equip for prompt and

sustained space operations.

⌧

Air Force Space Command should be assigned responsibility

for providing resources to execute space research,

development, acquisition, and operations.

⌧

Amend Title 10 U.S.C. to assign the Air Force responsibility to

organize, train, and equip for air and space operations.b ⌧

Secretary of Defense should designate the Air Force as DOD’s

executive agentc for space. ⌧

Assign the Under Secretary of the Air Force as the Director of

the National Reconnaissance Office. ⌧

Designate the Under Secretary of the Air Force as the Air

Force acquisition executived

 for space. ⌧

Secretary of Defense and Director of Central Intelligence

should create a research, development, and demonstration

organization to focus on innovative space research and

development.e

⌧

Secretary of Defense should direct the Defense Advanced

Research Projects Agency and service laboratories to

undertake development and demonstration of innovative

space technologies.

⌧

Secretary of Defense should establish a Major Force Programf

for Space. ⌧
Page 5 GAO-02-772R Defense Space Activities

a

 Secretary of Defense opted to establish a focal point for space in the Under Secretary of the Air

Force.

b

 DOD opted to increase Air Force responsibility for organizing, training, and equipping for space

operations without requesting legislative change.

c

 The executive agent is a term used to indicate a delegation of authority by the Secretary of Defense to

a subordinate to act on the Secretary’s behalf. The exact nature and scope of the authority delegated

may vary. It may be limited to providing administration and support or coordinating certain functions

or extend to direction and control over specified resources for specified purposes.

d The acquisition executive is the individual charged with overall acquisition management

responsibilities within his or her organization.

e

 This organization was not established.

f A major force program is an aggregation of related budget items that can be used to track resources

that support a macro-level combat or support mission, such as strategic forces or general purpose

forces. Eleven major force programs comprise DOD’s budget. DOD identified and aggregated spacerelated budget items within the existing major force programs to create a “virtual” major force

program for space.

Source: GAO analysis.

It is too early to determine the full impact of these changes in promoting and

improving DOD’s management of space activities. DOD has only recently begun to

implement many of the commission’s recommendations, with several substantive

actions taking place since December 2001. For example, DOD assigned the command

of the Air Force Space Command to a four-star general other than the commander of

the U.S. Space Command/North American Aerospace Defense Command, and a new

commander took command only last April. Other actions have yet to be completed.

For example, roles and responsibilities and staffing for the new national security

space team within the Air Force have not been agreed upon and documented.

Likewise, DOD is in the process of realigning the National Security Space Architect to

report directly to the Under Secretary of the Air Force/Director, National

Reconnaissance Office, but the guidance defining the architect’s roles and

responsibilities under the realignment has not been finalized. In addition, some of

the desired results (such as creating and sustaining a cadre of space professionals

and integrating DOD and intelligence space activities) will require ongoing

management attention.

DOD will not implement 3 of the Space Commission’s 13 recommendations to it.

First, it did not accept the commission’s recommendation to assign responsibility for

space activities to an under secretary of defense to provide policy, guidance, and

oversight for space and ensure that space-related issues are addressed at the

departmental level. Instead of creating this position, the Secretary of Defense

established a focal point for space within the Air Force by (1) assigning the Under

Secretary of the Air Force as both the Director of the National Reconnaissance Office

and the Air Force acquisition executive for space and (2) delegating the Under
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Secretary as the milestone decision authority1 for DOD space major defense

acquisition programs. However, some DOD and service officials we spoke with

expressed concerns about how well the Air Force will balance its interests with the

needs and requirements of the other services in developing and managing space

assets. Air Force officials are in the process of developing mechanisms to involve

and coordinate with the other services and believe the Air Force should be given an

opportunity to provide effective leadership.

Second, DOD did not seek legislative changes to amend Title 10 U.S.C. to assign the

Air Force responsibility to organize, train, and equip forces for space operations in

addition to its stated responsibilities for air operations. Rather, the department

determined it could address the intent of the recommendation by assigning the Air

Force that responsibility without legislative change. Finally, no new research,

development, and demonstration organization has been created to focus on

innovative space research and development. The Secretary did direct the Defense

Advanced Research Projects Agency and service laboratories to undertake

development and demonstration of innovative space technologies.

Scope and Methodology

To assess the status of DOD’s implementation of the Space Commission

recommendations, we discussed the implementation actions with officials in the

Office of the Secretary of Defense; the Departments of the Army, the Navy, and the

Air Force; the Marine Corps Headquarters; the Air Force’s Space Command and

Space and Missile Systems Center; the Army Space Command; the Naval Space

Command; the National Security Space Architect; and the U.S. Space

Command/North American Aerospace Defense Command. We also discussed space

management issues with experts outside the government. We reviewed and analyzed

documentation related to DOD’s efforts to implement the Space Commission’s

recommendations.

Agency Comments and Our Evaluation

DOD provided oral comments on a draft of this report, and its comments are included

where appropriate. DOD generally agreed with the report, but it disagreed with our

assessment that the Commission’s recommendation that the Air Force reorganize its

headquarters and field commands to more effectively organize, train, and equip for

prompt and sustained space operations is in progress. DOD asserted that actions

taken to date represent completion of the recommended realignment of headquarters

and field commands. While we recognize that the Air Force has made major

organizational changes that address the intent of the recommendation, we believe

that details of the organizational realignment must also be finalized before the

recommendation can be considered fully implemented. For example, although the

 1

 The milestone decision authority is the individual designated to approve entry of an acquisition

program into the next phase of the acquisition process.
Page 7 GAO-02-772R Defense Space Activities

Air Force has moved its Space and Missile Systems Center from its Materiel

Command to its Space Command, the memoranda of agreement that support the

organizational change have not been completed. In addition, the Air Force is in the

process of updating its policy directives to reflect the greater role of the Under

Secretary of the Air Force and the commander of the Air Force Space Command in

prioritizing space science and technology projects.

We conducted our review between November 2001 and May 2002 in accordance with

generally accepted government auditing standards.

_ _ _ _

We are sending copies of this report to the Under Secretary of Defense/Acquisition,

Technology and Logistics; the Secretaries of the Army, the Navy, and the Air Force;

the Commandant of the Marine Corps; the Under Secretary of the Air Force; and the

Director, Office of Management and Budget. In addition, the report is available at no

charge on GAO’s home page at http://www.gao.gov.

If you have any questions on this letter, please call me on (202) 512-3958. Principal

contributors to this letter were Janet St. Laurent, Margaret Morgan, MaeWanda

Jackson, Robert Poetta, James Angell, and James Reynolds.

Carol R. Schuster

Director, Defense Capabilities and Management

Enclosure
Enclosure 1

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1

Implementation Status by

Recommendation

The Secretary of Defense and the Director of Central Intelligence

should meet regularly to address national security space policy,

objectives and issues.

Actions taken

• The Secretary of Defense and the

Director of Central Intelligence

requested the National

Reconnaissance Office to examine

how to establish an Office of Space

Reconnaissance.

Status: Action Completed

In a May 8, 2001, letter to congressional defense and intelligence

oversight committee leadership, the Secretary of Defense reported that he

and the Director of Central Intelligence meet regularly on intelligence

matters.
Enclosure 1

Page 9 GAO-02-772R Defense Space Activities

2

Implementation Status by 

Recommendation

Secretary of Defense should establish an Under Secretary of 

Defense for Space, Intelligence, and Information.

Alternative actions taken

• Secretary of Defense established 

the Under Secretary of the Air Force 

as the focal point for space activities 

with the responsibility for space 

planning and architecture, 

integration, and acquisition.

• Assigned Under Secretary of Air 

Force as Director of National 

Reconnaissance Office.

Actions/issues remaining

• Whether the Under Secretary of the 

Air Force is the proper organization 

within the Department of Defense to 

provide department-level oversight, 

resolve inter-service issues, and be 

the advocate for space.

• How space fits into broader 

organizational changes, such as 

creation of Northern Command.

• Realignment of National Security 

Space Architect to Under Secretary 

of the Air Force/Director of National 

Reconnaissance Office and 

definition of roles, responsibilities, 

and joint staffing plan.

Status: Action not intended
Enclosure 1

Page 10 GAO-02-772R Defense Space Activities

3

Implementation Status by

Recommendation

Secretary of the Air Force should assign responsibility for the

command of Air Force Space Command to a four-star officer other

than CINCSPACE/CINCNORAD.

Actions taken

• DOD created four-star billet for

commander of the Air Force Space

Command.

• Air Force separated command of Air

Force Space Command from

command of U.S. Space Command

and North American Aerospace

Defense Command.

• General Lance Lord assumed

command of Air Force Space

Command on April 19, 2002.

Action/issue remaining

• Manpower and cost implications of

staffing independent headquarters

for Air Force Space Command that

had shared staff resources with U.S.

Space Command/North American

Aerospace Defense Command.

Status: Action completed
Enclosure 1

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4

Implementation Status by

Recommendation

Secretary of Defense should end practice of assigning only Air Force

flight-rated officers to position of CINCSPACE/CINCNORAD.

Action taken

• Secretary of Defense responded to

the Congress that the practice of

assigning only flight-rated officers to

the positions will be discontinued,

but no action item for this

recommendation was included in the

Secretary’s directive on space

reorganization.

Actions/issues remaining

• Currently, the position of

commander, U.S. Space

Command/North American

Aerospace Defense Command, is

occupied by a flight-rated officer.

• Subsequent assignments will show

whether the practice is discontinued.

Status: Action in progress
Enclosure 1

Page 12 GAO-02-772R Defense Space Activities

5

Implementation Status by 

Recommendation

Air Force should realign headquarters and field commands to more

effectively organize, train, and equip for prompt and sustained space 

operations.

Actions taken

• Under Secretary of the Air Force 

assigned as Director of the National 

Reconnaissance Office; some 

functions realigned to support the 

Under Secretary of the Air Force as the 

focal point for national security space.

• Space and Missile Systems Center 

realigned to Air Force Space 

Command; commander of Space and 

Missile Systems Center designated 

program executive officer for space.

Actions/issues remaining

• Whether integrating requirements 

and acquisitions functions will 

improve efficiency and effectiveness 

of space operations.

• Agreements and roles have not 

been finalized (support agreements 

between Air Force’s Space 

Command and Material Command, 

update to Air Force policy directive 

governing space and technology 

policy, staffing for organizations).

Status: Action in progress

Framework of new organization in place; however, details of implementing 

new organization are not finalized.
Enclosure 1

Page 13 GAO-02-772R Defense Space Activities

6

Implementation Status by

Recommendation

Air Force Space Command should be assigned responsibility for

providing resources to execute space research, development,

acquisition, and operations.

Action taken

• Space and Missile Systems Center

realigned to Air Force Space

Command from Air Force Materiel

Command.

Actions/issues remaining

• Air Force vision for the overall space

program and how activities will fit

into the program has not emerged.

• Goals and measurable objectives

have not been developed.

• Funding sources for new space

activities and process for directing

research and development funding

remain to be identified.

Status: Action completed

Air Force Space Command now responsible for directing and integrating

space research, development, acquisitions, and operations.
Enclosure 1

Page 14 GAO-02-772R Defense Space Activities

7

Implementation Status by

Recommendation

Amend Title 10 U.S.C. to assign the Air Force responsibility to

organize, train, and equip for air and space operations.

Alternative actions taken Actions/issues remaining

• Update DOD Directive 5100.1

(Functions of DOD Components).

• Air Force and other service still

drafting plans for space career field;

clarification of Air Force role in

directing and/or providing space

training to other services’ personnel.

• Concerns about whether Air Force

will treat all services’ requirements

fairly and the strength of Air Force’s

advocacy for space remain.

Status: Action not intended

DOD opted to increase Air Force responsibility for organizing, training, and

equipping for space operations without requesting legislative change.

• Centralized responsibility for space

activities in office of Under Secretary

of Air Force.

• Moved the Air Force’s Space and

Missiles Systems Center to Air

Force Space Command.

• Air Force, Army, and Navy are

examining space career field issues.
Enclosure 1

Page 15 GAO-02-772R Defense Space Activities

8

Implementation Status by 

Recommendation

Secretary of Defense should designate the Air Force as DOD’s 

executive agent for space.

Action taken

• The Secretary of Defense has not 

officially designated the Air Force as 

executive agent for DOD space, 

although he has announced his 

intention to do so. 

• In anticipation of this delegation, the 

Air Force has designated the Under 

Secretary of the Air Force as 

executive agent for space.

Actions/issues remaining

• Formal designation of the Air Force 

as executive agent for DOD space.

• Directive to set out roles and 

responsibilities of Air Force as 

executive agent for DOD space 

under discussion.

• Comptroller memo detailing 

responsibilities for national security 

space plan and program 

assessments being drafted.

Status: Action in process

The Under Secretary of the Air Force to be designated as executive agent 

for space, but roles and responsibilities of executive agent and other 

organizations not yet agreed upon.
Enclosure 1

Page 16 GAO-02-772R Defense Space Activities

9

Implementation Status by 

Recommendation

Assign Under Secretary of the Air Force as the Director of the 

National Reconnaissance Office

Action taken

• Secretary of Defense assigned the 

Under Secretary of the Air Force as 

the Director of the National 

Reconnaissance Office on 

December 13, 2001.

Actions/issues remaining

• How to align Air Force and National 

Reconnaissance Office programs 

using each other’s best practices.

• How the Under Secretary of the Air 

Force will integrate classified and 

unclassified programs in his new 

role as the Director of National 

Reconnaissance Office.

Status: Action completed
Enclosure 1

Page 17 GAO-02-772R Defense Space Activities

10

Designate the Under Secretary of the Air Force as the Air Force

acquisition executive for space.

Action taken

• Designation effective February 7, 2002.

Status: Action completed

Implementation Status by

Recommendation
Enclosure 1

Page 18 GAO-02-772R Defense Space Activities

11

Implementation Status by

Recommendation

Secretary of Defense and Director of Central Intelligence should

create a research, development, and demonstration organization to

focus on innovative space research and development.

Status: Action not intended
Enclosure 1

Page 19 GAO-02-772R Defense Space Activities

12

Implementation Status by

Recommendation

Secretary of Defense should direct Defense Advanced Research

Projects Agency and service laboratories to undertake development

and demonstration of innovative space technologies.

Action taken

• Under Secretary of Defense

(Acquisition, Technology, and

Logistics) directed Defense

Advanced Research Projects

Agency and military laboratories to

develop and demonstrate innovative

space technologies.

Actions/issues remaining

• Questions remain about how efforts

will be coordinated.

Status: Action in process
Enclosure 1

Page 20 GAO-02-772R Defense Space Activities

(350226)

13

Implementation Status by

Recommendation

Secretary of Defense should establish a major force program for

space.

Actions taken

• Space program elements in existing

major programs identified.

• DOD’s fiscal year 2003-2007 Future

Years Defense Program identified

$143 billion in planned space

programs.

Actions/issues remaining

• Incorporating space into budget

planning and programming.

• Program elements may be added or

deleted from the major force

program to reflect changes in the

space program.

Status: Action completed

The Under Secretary of Defense (Comptroller/Chief Financial Officer)

established a cross-cutting major force program (called a “virtual major

force program”) by identifying space-related program elements in existing

major force programs.