DOD has a long history of troubled space systems acquisitions. Over the past decade, most of the large DOD space systems acquisition programs collectively experienced billions of dollars in cost increases and delayed schedules. In particular, a long-standing problem in DOD space systems acquisitions is that program costs have tended to go up significantly from initial cost estimates. As shown in figure 1, estimated costs for selected major space systems acquisition programs have increased by about $22.6 billion—nearly 230 percent—from fiscal years 2012 through 2017. The gap between original and current estimates shows that DOD has fewer dollars available to invest in new programs or add to existing ones. DOD’s overall level of investment over the five year period decreases until fiscal year 2014, at which point it levels off. The declining investment in the later years is the result of mature programs that have planned lower out-year funding, cancellation of a major space system acquisition program and several development efforts, and the exclusion of several space systems acquisition efforts for which total cost data were unavailable. These efforts include the Joint Space Operations Center Mission System (JMS), Space Fence, Space Based Space Surveillance (SBSS) Follow-on, Precision Tracking Space System (PTSS), and Weather Satellite Follow-on. We have previously reported that programs have experienced cost increases and schedule delays that have resulted in potential capability gaps in missile warning, military communications, and weather monitoring. For instance, unit costs for one of the most troubled programs, the Space Based Infrared System (SBIRS) have climbed about 230 percent to over $3 billion per satellite, with the launch of the first satellite about 9 years later than predicted. Similarly, 8 years after a development contract for the National Polar-orbiting Operational Environmental Satellite System (NPOESS) program was awarded in 2002, the cost estimate had more than doubled—to about $15 billion, launch dates had been delayed by over 5 years, significant functionality had been removed from the program, and the program’s tri-agency management structure had proven to be ineffective. In February 2010, it was announced that the National Oceanic and Atmospheric Agency (NOAA) and DOD would no longer jointly procure the NPOESS satellite system and, instead, each agency would undertake separate acquisitions. Consequently, the risks of gaps in weather satellite monitoring data have increased. Other programs, such as the Transformational Satellite Communications System, were canceled several years earlier because they were found to be too ambitious and not affordable at a time when the DOD was struggling to address critical acquisition problems elsewhere in the space systems portfolio. Our past work has identified a number of causes of acquisition problems, but several consistently stand out. At a higher level, DOD tended to start more weapon programs than was affordable, creating a competition for funding that focused on advocacy at the expense of realism and sound management. DOD also tended to start its space systems programs before it had the assurance that the capabilities it was pursuing could be achieved within available resources and time constraints. For example, when critical technologies planned for a satellite system are still in relatively early stages of discovery and invention, there is no way to accurately estimate how long it would take to design, develop, and build the system. Finally, programs typically attempted to satisfy all requirements in a single step, regardless of the design challenges or the maturity of the technologies necessary to achieve the full capability. DOD’s preference to make larger, complex satellites that perform a multitude of missions stretched technology challenges beyond current capabilities in some cases. In the past, funding instability, poor contractor oversight, and relaxed quality standards have also contributed to acquisition problems. We have also reported that fragmented leadership and lack of a single authority in overseeing the acquisition of space programs have created challenges for optimally acquiring, developing, and deploying new space systems. Past studies and reviews have found that responsibilities for acquiring space systems are diffused across various DOD organizations, even though many of the larger programs, such as the Global Positioning System (GPS) and those to acquire imagery and environmental satellites, are integral to the execution of multiple agencies’ missions. We reported that with multiagency space programs, success is often only possible with cooperation and coordination; however, successful and productive coordination appears to be the exception and not the rule. This fragmentation is problematic not only because of a lack of coordination that has led to delays in fielding systems, but also because no one person or organization is held accountable for balancing governmentwide needs against wants, resolving conflicts and ensuring coordination among the many organizations involved with space systems acquisitions, and ensuring that resources are directed where they are most needed. Over the past 5 years, our work has recommended numerous actions that can be taken to address the problems we identified. Generally, we have recommended that DOD separate technology discovery from acquisition, follow an incremental path toward meeting user needs, match resources and requirements at program start, and use quantifiable data and demonstrable knowledge to make decisions to move to next phases. We have also identified practices related to cost estimating, program manager tenure, quality assurance, technology transition, and an array of other aspects of acquisition program management that could benefit space programs. DOD has generally concurred with our recommendations, and has undertaken a number of actions to establish a better foundation for acquisition success. For newer satellite acquisition efforts, DOD has attempted to incorporate lessons learned from its experiences with earlier efforts. For example, the GPS III program, which began product development in 2008, is using a “back to basics” approach, emphasizing rigorous systems engineering, use of military specifications and standards, and an incremental approach to providing capability. Thus far, the work performed on the development of the first two satellites is costing more than expected—but not on the scale of earlier programs— and its schedule remains on track. Our prior testimonies have cited an array of actions as well. the Office of the Secretary of Defense created a new office under the Undersecretary of Defense for Acquisition, Technology and Logistics to oversee all major DOD space and intelligence related acquisitions and it began applying its broader weapon system acquisition policy (DOD Instruction 5000.02, Operation of the Defense Acquisition System (Dec. 8, 2008)) to space systems, instead of allowing a tailored policy for space that enabled DOD to commit to major investments before knowing what resources will be required to deliver promised capability. Among other initiatives, the Air Force undertook efforts to improve cost estimating and revitalize its acquisition workforce and program management assistance programs. Further, in 2009, for major weapons programs, Congress enacted the Weapon Systems Acquisition Reform Act of 2009, which required greater emphasis on front-end planning and, for example, refining concepts through early systems engineering, strengthening cost estimating, building prototypes, holding early milestone reviews, and developing preliminary designs before starting system development. Most of DOD’s major satellite programs are in mature phases of acquisition and cost and schedule growth is not as widespread as it was in prior years. However, the satellites, ground systems, and user terminals are not optimally aligned and the cost of launching satellites continues to be expensive. GAO, Space Acquisitions: DOD Faces Challenges in Fully Realizing Benefits of Satellite Acquisition Improvements, GAO-12-563T (Washington, D.C.: Mar. 21, 2012); and Space Acquisitions: DOD Delivering New Generations of Satellites, but Space System Acquisition Challenges Remain, GAO-11-590T (Washington, D.C.: May 11, 2011). Most of DOD’s major satellite programs are in mature phases of acquisition, that is, the initial satellites have been designed, fabricated and launched into orbit while additional satellites of the same design are being produced. Only two major satellite programs are in earlier phases of acquisition—the GPS III program and the PTSS program. For the portfolio of major satellite programs, new cost and schedule growth is not as widespread as it was in prior years, but DOD is still experiencing problems in these programs. For example, though the first two SBIRS satellites have launched, program officials are predicting a 14 month delay on the production of the third and fourth geosynchronous earth orbit (GEO) satellites due in part to technical challenges, parts obsolescence, and test failures. As we reported in March 2013, program officials are predicting about a $440 million cost overrun for these satellites. Also, the work performed to date for development of the first two GPS III satellites continues to cost more than DOD expected. Since the program entered system development, total program costs have increased approximately $180 million. The GPS III program office has attributed this to a variety of factors, such as inefficiencies in the development of the satellite bus and the navigation payload. Program officials stated that the cost growth was partially due to the program’s use of a back to basics approach, which they stated shifted costs to earlier in the acquisition as a result of more stringent parts and materials requirements. They anticipate these requirements will result in fewer problems later in the acquisition. Table 1 describes the status of the satellite programs we have been tracking in more detail. Though satellite programs are not experiencing cost and schedule problems as widespread as in years past, we have reported that ground control systems and user terminals in most of DOD’s major space systems acquisitions are not optimally aligned, leading to underutilized on-orbit satellite resources and limited capability provided to the warfighter. For example: Over 90 percent of the MUOS’s planned capability is dependent on the development of compatible user terminals. Although the first MUOS satellite was launched over a year ago, operational testing of MUOS with production-representative user terminals is not expected to occur until the second quarter of fiscal year 2014.