A bipartisan committee of the US House of Representatives has criticised the government’s policy for purchasing intelligence satellites, arguing that it is more focused on stabilising the space industrial base than achieving value for money.
The House…
A bipartisan committee of the US House of Representatives has criticised the government’s policy for purchasing intelligence satellites, arguing that it is more focused on stabilising the space industrial base than achieving value for money.
The House Permanent Select Committee on Intelligence (HPSCI) issued a report on improving the purchase process of satellites as part of a wider performance audit.
In it, the HPSCI states: “Currently the IC (intelligence community) buys satellites faster than necessary to meet mission needs due to concerns about ensuring the stability of the satellite production market.
“The report concludes that those concerns are not fully justified and result in the excess purchase of satellites at taxpayer expense.”
The HPSCI contends that, by changing its satellite acquisition practices, the National Reconnaissance Office (NRO) could save billions of dollars over the next decade.
The report calls on the NRO to include a variety of production paces in its requests for proposals on all new bulk purchases of satellites, including one based solely on actual mission need. This, it claims, will establish a baseline for cost comparisons so that the IC would know the cost of its efforts to protect the industrial base.
In a joint statement, HPSCI chairman Mike Rogers and ranking member Dutch Ruppersberger said: “It is critical that we find the right balance of capability and cost effectiveness. We must always be good stewards of taxpayer dollars and take a hard look at the way we purchase very expensive satellites systems.
“Our overhead capabilities are vital to America’s national security. This report pinpoints specific areas where the IC can improve its purchase of these important systems.”
The report, the result of an 18 month investigation, was delivered to the NRO on 31 July.
Its recommendations reflect a sharper focus on the US government’s space acquisition policy in recent months.
At the end of July, the US Air Force picked 14 companies to take part in a scheme to streamline the integration of hosted government payloads on to commercial satellites.
While back in April, SpaceX filed a legal challenge against the Air Force over its Evolved Expendable Launch Vehicle (EELV) block buy contract with United Launch Alliance (ULA). The privately-owned launch services provider argued that the long-term contract was awarded on a sole-source basis without any competition.
A federal judge has since determined that a mediation between the parties should take place. This includes the Air Force being required to provide SpaceX with documents identifying the missions that the Air Force has ordered, and sufficient technical information to enable SpaceX to determine whether and when it can perform those missions.
These documents must be provided by 8 August with SpaceX’s response due by 10 September.
