Present and evolving threats highlight the need to design, operate, and defend military communication networks to ensure continuity of joint operations. However, current systems lack the connectivity, capacity, interoperability, control, adaptability, availability, and coverage to support military action. To address these shortcomings, DOD is moving toward network-centric communication systems to facilitate critical communication. A key system in this concept is TSAT—one of DOD’s most complex and expensive space programs involving the integration of multiple, complex technologies never before integrated in a single space system. As early as 2001, DOD had developed a new Transformation Communications Architecture (TCA) to guide the implementation of emerging communications technologies. The TCA is an element of a broader global information network or grid, DOD’s overarching vision to provide authorized users with a secure and interconnected information environment. The performance parameters for the GIG define the fundamental requirements for the systems to be interconnected through the TCA. The TCA is designed to realize the benefits of an Internet protocol (IP) environment, as it will provide instant accessibility to the military and intelligence communities. The goal of the TCA is to provide accessibility to all users while removing communications constraints related to capacity, control, and responsiveness. It is composed of elements in ground stations, aboard tactical vehicles, and in space. TSAT is the space-based network component of the TCA that is expected to provide survivable, jam-resistant, global, secure, and general purpose radio frequency and laser cross-links with air and other space systems. Some of the satellite technologies TSAT will employ have been evolving for over 25 years. TSAT is building on these heritage technologies in three primary areas: onboard signal processing for protection and connectivity, networking, and space laser communication. Through these advanced technologies, TSAT will improve communications to DOD, intelligence community, and homeland defense users by transmitting large amounts of data at a faster rate. Further, TSAT is designed to vastly improve satellite communications by extending the GIG to users without ground connections and making it possible for users to travel with small terminals and communicate while on the move. The TSAT system will consist of a five-satellite constellation (with a sixth satellite for backup), the TSAT satellite operations element (TSOE) which includes a primary TSAT satellite operations center (TSOC) for on-orbit satellite control, a backup TSOC, and a set of transportable units, a TSAT Mission Operations System (TMOS) to provide network management, and ground gateways (see fig. 1). DOD has awarded four TSAT contracts through separate bidding processes. In 2003 DOD awarded a contract to Booz Allen Hamilton for overall systems engineering and integration. DOD also awarded two separate contracts to competing contractor teams—Lockheed Martin Space Systems/Northrop Grumman Space Technology and Boeing Satellite Systems—to conduct risk reduction efforts and present development plans for the TSAT satellites. DOD expects to award a contract to one of these contractor teams in 2007 to design and build the satellites. Finally, in January 2006 DOD awarded a $2 billion contract to Lockheed Martin Integrated Systems and Solutions to develop TMOS and the overall network architecture. This network development contractor is responsible for negotiating the interfaces between the TSAT network and the space segment, user terminals, and other external networks. Recently, DOD changed the TSAT acquisition strategy to an incremental development approach. This approach establishes time-phased development of new products in increments. The first increment incorporates technology that is already mature or can be matured quickly. As new technologies become mature, they are incorporated into subsequent increments so that the product’s capability evolves over time. This approach also reduces risks by introducing less new content and technology into a design and development effort, an approach intended to enable developers to deliver a series of interim capabilities to the customer more quickly. As such, incremental development is considered a best practice for successful DOD and commercial development programs because it allows these programs to make cost and schedule estimates that are based on mature technologies. Recognizing the benefits of evolving space systems, DOD included the incremental development of space systems in its revised National Security Space acquisition policy. DOD is not meeting its original cost, schedule, and performance goals for the TSAT program. TSAT’s cost has increased by over $420 million, the planned launch date for the first satellite has slipped more than 3 years, and the satellites will be less capable than originally planned. Since DOD established initial goals for the program, Congress has twice reduced the program’s annual budget and directed DOD to spend more time developing and proving critical technologies. DOD developed the initial goals with limited knowledge, when almost all of the critical technologies had yet to be proven to work as intended. As a result, the goals were developed without a high level of reliability. When DOD started the TSAT program in January 2004, it estimated the total acquisition cost to be about $15.5 billion. TSAT’s acquisition cost had increased to nearly $16 billion by the end of 2004. DOD also originally scheduled critical design review (CDR) for April 2008 and the first TSAT satellite launch in April 2011. CDR is now scheduled for September 2010 and the first launch in September 2014—delays of approximately 29 and 41 months, respectively. In addition, DOD recently changed its TSAT acquisition strategy to an incremental approach by deciding to build the first two satellites with fewer capabilities and delaying the more advanced capabilities for the later satellites in the program. While the initial two satellites will not perform as originally planned, the full five-satellite system will still meet the original user requirements, according to program officials. According to program officials, the original goals for TSAT have been revised several times as a result of reductions in program funding. After DOD set its initial goals for TSAT, Congress twice funded the program at levels below DOD’s request (in fiscal years 2005 and 2006) because of concerns about the state of technical maturity for key subsystems and an aggressive schedule for acquisition. During this time, Congress also directed the program to focus on the challenges of integrating the technologies needed for the system. Figure 2 shows the changes to key milestones dates in TSAT’s acquisition schedules. The program recently was directed to develop a new total acquisition cost estimate at a higher level of confidence—which could further increase the amount of funding requested in the near term for the program. However, as of April 2006, DOD had yet to develop this new estimate. When DOD established initial goals for the TSAT program, it lacked sufficient knowledge about key critical technologies. Our past work has shown that a knowledge-based model leads to better acquisition outcomes. This model can be broken down into three cumulative knowledge points for technology maturity, design maturity, and production maturity. At the first knowledge point, a match is made between a customer’s requirements and the product developer’s available resources in terms of technical knowledge, time, money, and capacity. We have also reported that starting a complex program like TSAT with immature technologies can lead to poor program performance and outcomes. In early December 2003, we reported that the Air Force would have difficulty establishing goals when starting the TSAT program because critical technologies were underdeveloped and early design studies had not been started. At that time, we recommended that the Air Force delay the start of the TSAT program until technologies had been demonstrated to be at an acceptable level of maturity and to consider alternative investments to TSAT. One month later DOD started the program with only one of the seven critical technologies mature, and could not have known with any certainty what resources would be needed to eventually meet users’ requirements, despite having confidence in its technology development schedule. For the TSAT program, the Next Generation Processor Router (NGPR) and laser communications are the highest-risk areas. Program officials reported that three of the critical technologies in the NGPR are involved with the transmission of data: (1) packet processing payloads, (2) dynamic bandwidth and resource allocation (DBRA), and (3) protected bandwidth efficient modulation using high data rates. The use of these Internet-like processes will provide unprecedented connectivity for all TSAT users by moving from an older circuit-based network (similar to telephone) to the newer IP-based network (similar to the Internet). Additionally, DOD continues to develop the technologies that are needed for laser communications. Table 1 identifies the level of maturity of TSAT critical technologies at program start and their expected maturity dates. To minimize the potential for technology development problems after the start of product development, DOD uses an analytical tool to assess technology maturity. This tool associates technology readiness levels (TRL) with different levels of demonstrated performance, ranging from paper studies to actual application of the technology in its final form. For TSAT, the space segment contractors are using a series of events to demonstrate and integrate the critical technologies into subsystems and then testing to determine the extent the components function properly together. The maturity levels of the critical technologies for TSAT currently range from TRL 5 to 6, with the remaining technologies needing integration testing to demonstrate maturity. (See app. VI for a description of the TRL levels.) According to program officials, these technologies will be demonstrated at TRL 6 when key integration tests are completed in fiscal year 2007. The two main tests facing the program are the second series of integration testing on the Next Generation Processor Router and Optical Standards Validation Suite (NGPR-2 and OSVS-2). Program officials said that the program is using these independent tests to reduce risk by uncovering technical problems before awarding the space segment contract for the design and assembly of the satellites. The results of the tests are to be assessed at the second interim program review before DOD makes a decision to enter the product development phase of the program. At the time of this report, results from the first series of integration tests were unavailable.