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entitled 'Space Acquisitions: DOD Needs Additional Knowledge as it 
Embarks on a New Approach for Transformational Satellite Communications 
System' which was released on June 2, 2006. 

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Report to Congressional Committees: 

United States Government Accountability Office: 

GAO: 

May 2006: 

Space Acquisitions: 

DOD Needs Additional Knowledge as it Embarks on a New Approach for 
Transformational Satellite Communications System: 

Transformational Satellite Communications System: 

GAO-06-537: 

GAO Highlights: 

Highlights of GAO-06-537, a report to congressional committees. 

Why GAO Did This Study: 

The Department of Defense (DOD) wants to create a networked force where 
soldiers and systems are able to operate together seamlessly. To help 
facilitate this transformation, DOD began the Transformational 
Satellite Communications System (TSAT) program in January 2004. We 
reported in 2003 that TSAT was about to begin without sufficiently 
mature technology. In this report, at your request, we followed up with 
an assessment of (1) how the TSAT program is progressing, and (2) 
whether the program is using an acquisition approach that will provide 
the knowledge needed to enter product development. 

What GAO Found: 

The Department of Defense is not meeting original cost, schedule, and 
performance goals established for the TSAT program. When the program 
was initiated in 2004, DOD estimated TSAT’s total acquisition cost to 
be $15.5 billion and that it would launch the first satellite in April 
2011. TSAT’s current formal cost estimate is nearly $16 billion and the 
initial launch date has slipped to September 2014—a delay of over three 
years. Furthermore, while the performance goal of the full five-
satellite constellation has not changed, the initial delivery of 
capability will be less than what DOD originally planned. After DOD 
established initial goals for TSAT, Congress twice reduced the 
program’s funding due to concerns about technology maturity and the 
aggressiveness of the acquisition schedule. DOD developed the initial 
goals before it had sufficient knowledge about critical TSAT 
technologies. 

DOD is taking positive steps to lower risk in the TSAT program so it 
can enter the product development phase with greater chance of success. 
However, as DOD prepares to implement a new incremental development 
approach for the program, it faces gaps in knowledge that could hamper 
its success. An incremental development will mean reduced capabilities 
in the initial satellites and more advanced capabilities in the 
remaining satellites. Given this change, it will be important for DOD 
to update requirements in coordination with the TSAT user community. 
While senior DOD officials have agreed to these reduced capabilities to 
get the first satellite launched in 2014, DOD has yet to reevaluate its 
investment in TSAT in light of other DOD investments using the 
knowledge it has now gained. Using this new knowledge, DOD could be in 
a better position to set more realistic goals, before entering product 
development. 

What GAO Recommends: 

We are recommending that, before entering product development, DOD: (1) 
reassess the value of TSAT in broader context of other DOD investments, 
using updated knowledge on likely cost, schedule, technology, and 
initial capability; (2) update requirements in coordination with the 
TSAT user community; (3) demonstrate the maturity of all critical 
technologies; and (4) establish new cost, schedule, and performance 
goals. In commenting on the report, DOD agreed with the 
recommendations. 

[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-06-537]. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Mike Sullivan at (202) 
512-4841 or sullivanm@gao.gov. 

[End of Section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

DOD Not Meeting Original TSAT Goals: 

DOD Taking Steps to Lower Program Risk but Additional Knowledge Needed 
Before Product Development: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments: 

Appendix I: Scope and Methodology: 

Appendix II: Comments from the Department of Defense: 

Appendix III: Onboard Signal Processing Technology Heritage: 

Appendix IV: Networking Technology Heritage: 

Appendix V: Lasercom Technology Heritage: 

Appendix VI: Technology Readiness Levels: 

Tables: 

Table 1: Technology Readiness Levels of TSAT Critical Technologies: 

Table 2: TSAT Critical Technologies and Their Purposes: 

Figures: 

Figure 1: TSAT System Elements: 

Figure 2: Changes to Key Milestones in TSAT's Acquisition Schedule: 

Abbreviations: 

ABL: Airborne Laser: 

ACTS: Advanced Communications Technology Satellite: 

AEHF: Advanced Extremely High Frequency: 

AISR: airborne intelligence, surveillance, and reconnaissance: 

ALEX: Airborne Lasercom Experiment: 

CDR: critical design review: 

DBRA: dynamic bandwidth and resource allocation: 

DOD: Department of Defense: 

DT&E: developmental test and evaluation: 

EHF: extremely high frequency: 

GIG: Global Information Grid: 

HAIPE: High Assurance Internet Protocol Encryptor: 

IP: Internet protocol: 

LES: Lincoln Experimental Satellite: 

LITE: Laser Intersatellite Transmission Experiment: 

MDR: medium data rate: 

MIT: Massachusetts Institute of Technology: 

NASA: National Aeronautics and Space Administration: 

NGPR: next generation processor router: 

OSVS: Optical Standards Validations Suite: 

RF: radio frequency: 

SHF: super high frequency: 

SISR: space intelligence, surveillance, and reconnaissance: 

TCA: Transformational Communications Architecture: 

TMOS: TSAT Mission Operations System: 

TRANSEC: transmission security: 

TRL: technology readiness level: 

TSAT: Transformation Satellite Communications System: 

TSOC: TSAT Satellite Operations Center: 

TSOE: TSAT Satellite Operations Element: 

XDR+: extended data rate plus: 

[End of section] 

United States Government Accountability Office: 

Washington, DC 20548: 

May 24, 2006: 

The Honorable Jeff Sessions Chairman, 
Subcommittee on Strategic Forces: 
Committee on Armed Services: 
United States Senate: 

The Honorable Ted Stevens: 
Chairman, 
Subcommittee on Defense: 
Committee on Appropriations: 
United States Senate: 

The Department of Defense (DOD) is seeking to transform its 
communication systems to achieve a networked force where soldiers and 
systems are able to operate together seamlessly. To help facilitate 
this transformation, DOD started a new program in January 2004--the 
Transformational Satellite Communications System (TSAT)--with an 
estimated cost of $15.5 billion. Plans call for TSAT to serve as the 
backbone for DOD's future communications system and to provide critical 
support to weapons systems. A key role envisioned for TSAT is to 
transfer information from DOD's planned ground-based Global Information 
Grid (GIG), a complex set of programs and initiatives intended to 
provide users with an Internet-like capability for sharing information 
among military and national security users around the world. Through 
the use of advanced technologies, TSAT is slated to transfer higher 
volumes of information to users at a faster rate than current systems, 
and allow interface with other U.S. national security agencies' 
satellite-based communications. 

At your request, we followed up our earlier work and assessed (1) the 
TSAT program's progress toward its cost, schedule, and performance 
goals, and (2) whether the program's acquisition approach will provide 
the knowledge needed to enter product development. 

To conduct our work, we interviewed DOD officials in the National 
Security Space Office, Office of the Director for Program Analysis and 
Evaluation, Office of the Under Secretary of the Air Force, Space and 
Missile Systems Center, and officials from the Massachusetts Institute 
of Technology (MIT) Lincoln Laboratory and the Aerospace Corporation. 
We reviewed and analyzed DOD documents related to capabilities, 
schedule, funding, and technology development efforts, and GAO studies 
that discuss acquisition problems and associated challenges, including 
our decade long body of work on best practices in weapon system 
development. We conducted our review from August 2005 to March 2006 in 
accordance with generally accepted government auditing standards. For 
more on our scope and methodology, see appendix I. 

Results in Brief: 

DOD is not meeting original cost, schedule, and performance goals 
established for the TSAT program. When the program was initiated in 
2004, DOD estimated TSAT's total acquisition cost to be $15.5 billion 
and that it would launch the first satellite in April 2011. TSAT's 
current official cost estimate is nearly $16 billion, and the initial 
launch date has slipped to September 2014--a delay of over 3 years. 
Furthermore, DOD has changed the TSAT program to an incremental 
development approach and under this approach, the initial delivery of 
capability will be less than what DOD originally planned but the 
performance goal of the full five-satellite constellation has not 
changed. After DOD established initial goals for TSAT, Congress reduced 
the program's funding in fiscal years 2005 and 2006 because of concerns 
about the maturity of critical technologies and an aggressive 
acquisition schedule. DOD developed the original goals before it had 
sufficient knowledge about critical TSAT technologies, rendering the 
goals unreliable. In early 2004, when DOD initiated the TSAT 
acquisition, only one of seven critical technologies was mature. 

* DOD is taking positive steps to lower risk in the TSAT program before 
entering the product development phase but as DOD prepares to implement 
a new incremental development approach for the program, it faces gaps 
in knowledge that could hamper the program's success. To lower risk, 
DOD has separated technology development efforts from product 
development and is conducting detailed reviews of the TSAT program at 
critical milestones. Second, DOD has reduced program complexity and is 
incorporating software development best practices for the software- 
intensive ground network that is to interface with DOD's other planned 
ground networks, such as GIG, to deliver enhanced capabilities. Third, 
DOD plans to demonstrate critical technologies' maturity during key 
integration tests in fiscal year 2007, before initiating product 
development. Despite these efforts, DOD could improve the likelihood of 
program success by gaining additional knowledge. In 2006, DOD directed 
the TSAT program to follow an incremental development approach--a 
strategy that calls for reduced capabilities in the initial satellites 
and more advanced capabilities in the remaining satellites. This 
approach will likely reduce risks by introducing less new content and 
technology in the first two satellites. In light of this change, it 
will be important for DOD to update requirements in coordination with 
the TSAT user community. While senior DOD officials have agreed to 
reduced capabilities up front to increase the confidence in launching 
the first satellite in 2014, DOD has yet to justify the TSAT investment 
in light of other DOD investments using the knowledge it has now 
gained. Using this new knowledge, DOD could be in a better position to 
establish realistic goals for the TSAT program before initiating 
product development. 

* To improve DOD's transition to transformational communications and 
gain the additional knowledge needed before initiating TSAT product 
development efforts, we are recommending that DOD (1) reassess the 
value of TSAT in the broader context of other DOD investments, using 
updated knowledge on likely cost, schedule, technology, and initial 
capability; (2) update requirements in coordination with the TSAT user 
community; (3) demonstrate the maturity of all critical technologies; 
and (4) establish new cost, schedule, and performance goals. In written 
comments on a draft of this report, DOD concurred with our 
recommendations, and we have incorporated detailed comments where 
appropriate (DOD's letter is reprinted in app. II). 

Background: 

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). 

Figure 1: TSAT System Elements: 

[See PDF for image] 

[End of figure] 

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 Not Meeting Original TSAT Goals: 

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. 

Initial Goals for TSAT Were Based on Limited Knowledge: 

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.[Footnote 
1] 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[Footnote 2]. However, as of April 2006, DOD had yet to develop 
this new estimate. 

Figure 2: Changes to Key Milestones in TSAT's Acquisition Schedule: 

[See PDF for image] 

[End of figure] 

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.[Footnote 3] 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.[Footnote 4] 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. 

Table 1: Technology Readiness Levels of TSAT Critical Technologies: 

Critical technology: Communication-on-the move antenna; 
TRL level at development start[A]: 4; 
TRL level as of March 2006: 6; 
Expected maturity date[B]: N/A. 

Critical technology: Packet Processing Payload; 
TRL level at development start[A]: 6; 
TRL level as of March 2006: 6; 
Expected maturity date[B]: N/A. 

Critical technology: Bandwidth Efficient Modulation (XDR+); 
TRL level at development start[A]: 3; 
TRL level as of March 2006: 5; 
Expected maturity date[B]: 2007. 

Critical technology: Dynamic Bandwidth Resource Allocation (DBRA); 
TRL level at development start[A]: 3; 
TRL level as of March 2006: 5; 
Expected maturity date[B]: 2007. 

Critical technology: Information Assurance - TRANSEC; 
TRL level at development start[A]: 3; 
TRL level as of March 2006: 6; 
Expected maturity date[B]: N/A. 

Critical technology: Information Assurance - HAIPE; 
TRL level at development start[A]: 4; 
TRL level as of March 2006: 6; 
Expected maturity date[B]: N/A. 

Critical technology: Single-Access Lasercom; 
TRL level at development start[A]: 5; 
TRL level as of March 2006: 5; 
Expected maturity date[B]: 2007. 

Critical technology: Multi-Access Lasercom[C]; 
Narrow field of view; 
Wide field of view; 
TRL level at development start[A]: 2; 
TRL level as of March 2006: 2; 
Expected maturity date[B]: to be determined. 

Source: Air Force (data); GAO (analysis). 

N/A: not applicable: 

[A] TRL levels might vary in maturity among the viable suppliers. 

[B] These dates might vary depending on the viable supplier and refer 
to the original acquisition approach; they could be different for an 
incremental approach, as resources are restructured. 

[C] Multi-Access Lasercom is shown here for context only. The TSAT 
program is being restructured and this technology is no longer part of 
the baseline TSAT program. 

[End of table] 

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. 

DOD Taking Steps to Lower Program Risk but Additional Knowledge Needed 
Before Product Development: 

DOD is taking positive steps to lower TSAT program risk, but additional 
knowledge is needed before entering product development. DOD is 
separating its technology development efforts from product development, 
continuing to conduct program reviews before making key decisions, 
reducing program complexity by staggering the awards on its ground and 
space segment contracts, and incorporating knowledge-based metrics in 
software development. Additionally, DOD is reducing risks in technology 
development efforts by leveraging decades of knowledge on heritage 
systems and using independent integration tests to demonstrate the 
maturity of critical technologies. Despite these efforts, DOD faces 
gaps in knowledge that could hamper successful outcomes. As DOD 
implements an incremental approach for the TSAT program, it has yet to 
justify the TSAT investment in light of other DOD investments using the 
knowledge it has now gained. 

Efforts Under-Way Reduce Program Risk: 

DOD is reducing TSAT program risk in the following ways: 

* Separating technology and product development--DOD is separating 
technology development from product development and plans to prove that 
all critical technologies will work as intended before the TSAT program 
enters product development in 2007. In the past, DOD has not 
successfully implemented acquisition best practices in its space 
programs to reduce risks and increase the likelihood of better 
outcomes, particularly in some of its larger and more complex programs. 
We previously reported that DOD could curb its tendency to over-promise 
the capabilities of a new system and to rely on immature technologies 
in part by separating technology development from product development 
(system integration and system demonstration).[Footnote 5] According to 
program officials, the TSAT program will not start building the TSAT 
system until all critical technologies needed for the system to satisfy 
user requirements are mature, ensuring a clear demarcation between the 
two phases of system development. This approach better enables decision 
makers to determine if a match exists between TSAT requirements and 
available resources (time, technology, capacity, and funding). 

* Conducting program reviews--DOD plans to continue conducting reviews 
of the TSAT program at key milestones to reduce program risk. DOD's 
space acquisition policy requires that program managers hold milestone 
reviews or independent program assessments as a program is nearing key 
decision points. Following this guidance, the TSAT program's 
acquisition schedule requires the program manager to assess program 
knowledge at specific points. The next major milestone is scheduled for 
the fourth quarter of fiscal year 2007, when the program will hold an 
interim program review to assess the program's readiness to proceed 
into the product development phase. Importantly, this review will 
include an assessment of the maturity levels of the critical 
technologies. Part of this review will involve the use of independent 
cost estimators as a way to develop an unbiased, consistent, and 
objective total cost estimate for the program. 

* Reducing ground and space segment complexity--DOD has lessened the 
likelihood of problems in development by reducing the complexity of the 
program. Specifically, according to program officials, the contract for 
ground-based network operations was awarded before the space segment 
contract so that the competing space segment contractors could work 
toward a stable and more mature network design. In January 2006, DOD 
awarded a TMOS contract worth $2 billion to Lockheed Martin Integrated 
Systems and Solutions to start developing the overall network 
architecture and TMOS. Awarding this contract first will allow the 
competing space contractors to focus their satellite designs on a 
single architecture and mission operations system, thereby reducing 
program complexity. 

* Incorporating software best-practices--Our review of the development 
plans for the software-intensive TMOS segment that is to interface with 
other networks like the GIG shows that DOD is also incorporating best 
practices in this area to mitigate program risks. Our previous work has 
identified and reported on three fundamental management strategies that 
are best practices for software development: (1) implementing an 
evolutionary approach, (2) following disciplined development processes, 
and (3) collecting and analyzing meaningful metrics to measure 
progress.[Footnote 6] First, the evolutionary approach includes setting 
requirements, establishing a stable design, writing code, and testing. 
Second, successful acquisitions require that developers demonstrate 
they have acquired the right knowledge before proceeding to the next 
development phase. Finally, metrics such as costs, schedule, size of a 
project, performance requirements, testing, defects, and quality 
provide evidence that the developer has acquired appropriate knowledge 
in moving from one phase to another. Although DOD's software 
acquisition plans may incorporate these best practices, the potential 
for cost and schedule increases because of unforeseen software 
complexity is inherent in the development of a large quantity of 
software, as is needed for TSAT. To manage this risk, program officials 
stated that extensive and fully funded mitigation plans are in place 
and that the network contractor will be held to the best practices 
through program oversight and reporting. 

Heritage Technologies and Independent Tests Reduce Program Risk: 

To reduce risk while developing the critical technologies for TSAT, DOD 
is leveraging decades of existing knowledge from heritage systems. For 
TSAT to be successful, DOD will have to integrate technologies that 
have been proven to work in other space systems, but now must be 
integrated into a single communication system. Officials at MIT's 
Lincoln Laboratory, who are responsible for the independent testing and 
verification of TSAT technologies, stated that there are no fundamental 
discoveries or breakthroughs involved with developing TSAT. Rather, the 
enabling technologies build upon architectures and technologies 
developed across decades of space programs or experiments. However, 
officials at the Aerospace Corporation who are working closely with the 
TSAT program stated that there are risks involved in using heritage 
technologies--primarily integration risks--because the technologies 
must still be tested and evaluated to determine if they will work 
together as intended. The three main TSAT enabling technologies are 
onboard signal processing, networking, and laser communications. See 
table 2 below for a list of the critical technologies and a description 
of their purposes. 

Table 2: TSAT Critical Technologies and Their Purposes: 

Critical technology: Communication-on-the move antenna; 
Purpose: Provide satellite to ground link using a 1-foot antenna for 
mobile assets. 

Critical technology: Packet Processing Payload; 
Purpose: Convert incoming analog radio signals into an Internet-like 
packet of digital data and then interpret the header on the data and 
pick the correct Internet-like address that is to receive the data 
packet. 

Critical technology: Bandwidth Efficient Modulation (extended data rate 
plus: XDR+); 
Purpose: Provide a set of radio frequency waveforms to transfer data 
from the satellite. 

Critical technology: Dynamic Bandwidth and Resource Allocation; 
Purpose: Algorithm used to choose which radio frequency waveform (XDR+) 
to use, depending on what speed the data need to be sent; 
determined by such factors as environmental conditions on the ground 
(e.g., urban, desert, trees, etc.) 

Critical technology: Information Assurance (transmission security: 
TRANSEC); 
Purpose: TRANSEC algorithms and keys that provide transmitted signal 
cover to avoid detection, identification, and exploitation (such as 
traffic analyses.) 

Critical technology: Information Assurance (high-assurance IP 
encryptor: HAIPE); 
Purpose: Inline Network Encryptor devices to protect user data. 

Critical technology: Single-access lasercom; 
Purpose: Use of a single telescope, optical module, high-power optical 
power amplifier, and modem to transport data along a laser carrier from 
one location to another. 

Source: Air Force (data); GAO (presentation). 

[End of table] 

TSAT is building upon the onboard signal processing developments in 
military satellite communications that started in the mid-1970s. These 
developments initially focused on providing highly robust 
communications, but over time have evolved to increased capacity and 
bandwidth, as well as enhanced efficiency. For example, the Lincoln 
Experimental Satellites (LES) 8 and 9, Milstar I and II, and Advanced 
Extremely High Frequency (AEHF) system have verified the onboard 
processing capabilities that will be used in TSAT. 

According to officials at the Lincoln Laboratory, much of the required 
technology for the network services for TSAT comes directly from the 
ground-based Internet. Further, TSAT is building on the successful 
achievements of previous space programs like DOD's Milstar and AEHF 
satellites, the National Aeronautics and Space Administration's (NASA) 
Advanced Communications Technology Satellite (ACTS), and the Spaceway 
and Astrolink satellites from the commercial sector.[Footnote 7] In 
addition to space-based signal processing, the TSAT satellites will use 
packet routing in space, faster data transmission, and Internet-like 
data transmission formats to produce the networking capability to 
extend worldwide network services to the user. 

TSAT will use high-rate laser communications to connect TSAT satellites 
into a global network and to provide readout from other space-and air- 
borne intelligence, surveillance, and reconnaissance (SISR/AISR) 
assets. According to Lincoln Laboratory officials, many of the needed 
components for TSAT's laser communications are versions from commercial 
optical networking. A series of three systems developed by Lincoln 
Laboratory (Lincoln Experimental Satellites (LES) 8 and 9, Laser 
Intersatellite Transmission Experiment (LITE) and LITE-2, and GeoLITE) 
have and continue to demonstrate laser capabilities needed for TSAT. 
Moreover, recent programs like Lincoln Laboratory's Airborne Lasercom 
Experiment (ALEX) are providing knowledge about how TSAT's laser 
communications can be used to support AISR assets, and DOD's Airborne 
Laser (ABL) is helping scientist to characterize certain limits of 
laser capabilities in atmospheric conditions, according to the 
officials. Appendixes III through V further highlight the history of 
the technology heritage being applied to TSAT. 

Remaining Gaps in Knowledge Could Hamper Successful Outcomes: 

Despite these positive steps to lower program risks, DOD faces gaps in 
knowledge, as it begins to implement its new development approach, that 
could impede TSAT's success. In 2006, DOD directed the program to 
follow an incremental development approach, changing the contents of 
the program. Under this approach, the program will deliver less 
capability in the first two satellites, and then more advanced 
capabilities as technologies mature and are incorporated into the 
remaining satellites. DOD has not fully assessed the value of the TSAT 
investment in light of major changes to the program. 

Historically, many new development programs in DOD have sought to 
quickly gain the latest capabilities,[Footnote 8] but because the 
technologies were not mature enough to make such leaps, programs were 
often in development for years while engineers continued to develop and 
mature the needed technologies. This increased both the time and cost 
required to develop the systems. An incremental approach, on the other 
hand, reduces risks by introducing less new content and technology into 
a design and development effort. The incremental approach for TSAT 
allows more time for the development of higher-performing capabilities, 
thereby potentially increasing the level of confidence in the launch 
date of the first satellite, planned for 2014. High-level DOD officials 
have agreed to these reduced capabilities up front, so the TSAT program 
now plans to deliver satellites that meet user requirements in an 
evolutionary manner. 

Notwithstanding the approval for the revised TSAT program from senior 
DOD officials, DOD has yet to justify the TSAT investment in light of 
other DOD investments using the knowledge it has now gained on cost, 
schedule, and initial capabilities to be delivered. For example, TSAT's 
cost estimate has increased and the initial satellites will be less 
capable than originally expected. Furthermore, it is imperative, given 
the recent changes to the program, that DOD work with the TSAT user 
community to update requirements to ensure the timely delivery of 
promised capabilities. Finally, it does not appear that DOD has 
completely addressed all the unknowns concerning the relationship 
between TSAT and two of DOD's other expensive and complex systems, 
namely the GIG and Space Radar. For example, work still remains in 
finalizing the requirements for these systems and understanding how the 
incrementally developed TSAT will satisfy the needs. 

Conclusions: 

DOD has taken action to put itself in position to prove out critical 
technologies before initiating satellite development--an approach not 
typically seen in DOD's space programs. DOD has taken further action to 
reduce program risk by changing to an incremental development approach. 
While this approach will reduce the capability of the first two 
satellites, it is a positive step in reducing program risk because the 
program will gain additional technical knowledge before integrating the 
more advanced technologies into the satellites. Even though DOD is 
taking such positive steps, TSAT is still expected to be one of the 
most ambitious, expensive, and complex space systems ever built. TSAT 
is being designed to transform military communication using Internet- 
like and laser capabilities--key integrations risks. Other weapon 
systems are to interface with it and will be highly dependent on it for 
their own success. While DOD is planning to undertake new systems, such 
as TSAT, broader analyses of the nation's fiscal future indicate that 
spending for weapon systems may need to be reduced, rather than 
increased, given the constrained fiscal environment. Given these 
challenges and fiscal realities, it is prudent for DOD to reexamine the 
value and progress of TSAT before committing to building the full 
constellation of communication satellites. 

Recommendations for Executive Action: 

* To improve DOD's transition to transformational communications by 
gaining the additional knowledge it needs before TSAT enters product 
development, we recommend that the Secretary of Defense direct the 
Under Secretary of the Air Force to take the following four actions: 

* Reassess the value of TSAT in the broader context of other DOD 
investments, using updated knowledge on likely cost, schedule, 
technology, and initial capability; 

* Update requirements in coordination with the TSAT user community; 

* Prove that all critical technologies will work as intended; and: 

* Establish new cost, schedule, and performance goals for the program 
once the above knowledge has been gained. 

Agency Comments: 

* We provided a draft of this report to DOD for review and comment. DOD 
concurred with our recommendations and provided detail comments, which 
we have incorporated where appropriate. DOD's letter is reprinted as 
appendix II. 

We plan to provide copies of this report to the Secretary of Defense, 
the Secretary of the Air Force, and interested congressional 
committees. We will also provide copies to others on request. In 
addition, the report will be available on the GAO website at 
[Hyperlink, http://www.gao.gov]. 

If you or your staff has any questions concerning this report, please 
contact me at (202) 512-4841 or sullivanm@gao.gov. Contact points for 
our Offices of Congressional Relations and Public Affairs may be found 
on the last page of this report. Key contributors to the report are 
Arthur Gallegos, Assistant Director, Tony Beckham, Noah B. Bleicher, G. 
Martin Campbell, Sharron Candon, Claire Cyrnak, Maria Durant, and Hai 
V. Tran. 

Signed by: 

Michael J. Sullivan: 
Director, Acquisition and Sourcing Management: 

[End of section] 

Appendix I: Scope and Methodology: 

To assess the Department of Defense's (DOD) progress toward achieving 
cost, schedule and performance goals for the Transformational Satellite 
Communications System (TSAT), we collected and reviewed (1) budget and 
expenditure plans, (2) acquisition planning documents, and (3) 
technology and readiness information to determine if the program was 
meeting its original goals. We compared changes in cost and schedule to 
original estimates and evaluated DOD's plans for maturing the critical 
technologies against best practice standards to determine if they will 
sufficiently mature when DOD plans to start product development. We 
discussed this information with DOD officials in the Office of the 
Secretary of Defense, Program Analysis and Evaluation, Crystal City, 
Virginia; National Security Space Office, Chantilly, Virginia; Space 
and Missiles Systems Center, Los Angeles Air Force Base, California; 
and with officials at the Massachusetts Institute of Technology (MIT) 
Lincoln Laboratory, Boston, Massachusetts; and the Aerospace 
Corporation, El Segundo, California. 

To determine if the TSAT program is using an acquisition approach that 
will provide the knowledge it needs to proceed to product development, 
we collected and reviewed documents that described the TSAT program's 
plans to build knowledge and to mitigate risks. We reviewed detailed 
documents related to capabilities, schedule, funding, and technology 
development for the revised acquisition strategy. We considered DOD's 
current knowledge-building activities against DOD and GAO studies that 
discuss acquisition problems and associated challenges with acquisition 
programs--including work on best practices in weapon system development 
that we have conducted over the past decade. We analyzed the extent to 
which the TSAT program is using a knowledge-based approach to 
technology and product development. To do this, we focused on the 
whether the new acquisition approach will meet user requirements and 
match those needs to resources. We discussed DOD plans and efforts to 
meet user's needs with DOD officials in the Military Satellite 
Communication Joint Program Office, Los Angeles Air Force Base, 
California; Directorate of Space Acquisition, Office of the Under 
Secretary of the Air Force, Arlington, Virginia; and Office of the 
Assistant Secretary of Defense (Networks and Information Integration), 
Arlington, Virginia. 

We performed our work from August 2005 through March 2006 in accordance 
with generally accepted government auditing standards. 

[End of section] 

Appendix II: Comments from the Department of Defense: 

Office Of The Assistant Secretary Of Defense: 
6000 Defense Pentagon: 
Washington, DC 20301-6000: 

May 16, 2006: 

Networks And Information Integration: 

Michael J. Sullivan: 
Director, Acquisition and Sourcing Management: 
U. S. Government Accountability Office: 
Washington, D.C. 20548: 

Dear Mr. Sullivan, 

Thank you for the opportunity to respond to the Government 
Accountability Office (GAO) draft report, GAO-06-537, "DOD Needs 
Additional Knowledge as it Embarks on a New Approach for 
Transformational Satellite Communications (TSAT) System," dated April 
24, 2006 (GAO Code 120478). The attached enclosure addresses some 
specific comments and observations made in the report. Below is our 
response to the GAO recommendations. 

The Department agrees with all four GAO recommendations. The GAO report 
and recommendations are consistent with the measures taken by the 
Department to restructure the TSAT Program subsequent to the department-
wide review during the 2005 Quadrennial Defense Review (QDR). The lower 
risk Block strategy that resulted from the QDR assessment and close 
scrutiny of TSAT is consistent with the GAO review and recommendations, 
and in a broad sense, uses the GAO knowledge point model continually 
along the life of a program. 

As part of the TSAT program requirements and acquisition oversight, and 
in preparation for the next acquisition Key Decision Point (KDP), the 
DOD will update requirements in coordination with the TSAT user 
community, demonstrate the maturity of all critical technologies, and 
establish new cost, schedule, and performance goals-GAO recommendations 
two, three and four respectively. These measures are an inherent part 
of the requirements of National Security Space Acquisition Policy 03- 
01. 

With regards to GAO's first recommendation, to "reassess the value of 
TSAT using updated knowledge on likely cost, schedule, technology and 
initial capability," the Department completed a thorough assessment as 
part of 2005 QDR. The QDR deliberative processes that resulted in the 
TSAT Block Build approach reasserted the value of TSAT. The block 
strategy was vetted through and ultimately approved by all DOD 
stakeholders including all Services, the Combatant Commanders, and the 
Intelligence Community. It included a thorough review of military 
satellite communications capability with particular emphasis on the 
TSAT program and leveraged: 

multiple, independent, in-depth reviews. The QDR assessed the TSAT 
program in terms of cost, schedule, risk and capabilities and validated 
the restructured program as the best way to meet warfighter 
requirements. Another in-depth review will be accomplished prior to KDP-
B, currently scheduled for September 2007. In addition to the in- depth 
program assessment, the KDP-B decision will incorporate the knowledge 
gained from the System Design Review, completion of technology 
maturity, and incorporate any other new knowledge gained post-QDR 
before establishing the program baseline. 

One of the findings during QDR and a key element of the Block strategy 
included rescinding the January 2004 KDP decision to enter into the 
Preliminary Design Phase (Phase B). Although the TSAT program continues 
to proceed according to plan, when viewed in conjunction with the 2004 
revised space acquisition framework, which is consistent with the GAO 
knowledge point model, TSAT's current activities fall squarely within 
the Concept Development phase (Phase A). This adjustment included 
rescinding the previously established baseline. The new baseline will 
be established once the appropriate knowledge is gained per space 
acquisition policy. 

A final comment regarding the GAO report merits visibility. The overall 
system performance goals of TSAT were not changed during the 
restructure and new block strategy. Although the initial two satellites 
(Block 1) may have less capability, the latter satellites (Block 2) 
will have more capability, for an overall constellation that meets the 
original warfighter requirements. Block 1 should not be viewed as a 
stand alone system; Block 1 is a stepping stone to the full TSAT 
capability that reduces program risk while increasing delivery schedule 
confidence. TSAT is still meeting the performance goals as originally 
set, and the Block strategy will include continual involvement of the 
user community. 

Thank you for the opportunity to respond to the GAO draft report. We 
look forward to working with you again. 

Sincerely, 

Signed by:  

Ronald C. Jost: 
Deputy Assistant Secretary of Defense: 
(C3, Space and Spectrum): 

Enclosure: 
As stated: 

GAO Draft Report 06-537: 

"DOD Needs Additional Knowledge as it Embarks on a New Approach for 
Transformational Satellite Communications System" (U): 

Department Of Defense Detailed Comments (U): 

(U) The following is a detailed review of the GAO report on TSAT, with 
specific explanations of DoD's concerns. 

1. (U) Highlights, paragraph l, and Results in Brief, paragraph 3, 
state: "We are recommending that DOD: (I) reassess the value of TSAT 
using updated knowledge on likely cost, schedule, technology, and 
initial capability. " And Recommendations, paragraph 1, states: ".we 
recommend that the Secretary of Defense direct the Under Secretary of 
the Air Force to: Reassess the value of TSAT using updated knowledge on 
likely cost, schedule, technology, and initial capability,-. " 

(U) DOD seniors scrutinized the TSAT program during the 2005 
Quadrennial Defense Review (QDR). They reassessed TSAT's value using 
the latest cost, schedule, and technology data. QDR membership included 
the Deputy Secretary of Defense and Service Vice Chiefs (who also serve 
on the Joint Requirements Oversight Council). Additionally, the TSAT 
Users Forum, with all COCOMS and Services represented, accepted the 
block TSAT acquisition approach. The TSAT Program Office and the TSAT 
Users Forum are now performing detailed trades to settle on the 
specific performance capabilities of the block TSATs. 

2. (U) What GAO Found, paragraph l, and Results in Brief, page 2, 
paragraph 1, both state: "The Department is not meeting original cost, 
schedule and performance goals. " and DOD Not Meeting Original TSAT 
Goals, page 5, paragraph 1, states, "DOD is not meeting its original 
cost, schedule, and performance goals for the TSAT program. " 

(U) As noted on Page 6, "After DOD set its initial goals for TSAT, 
Congress twice funded the program at levels below DOD's request . 
because ofconcerns about the state oftechnical maturity for key 
subsystems and an aggressive schedule for acquisition." Per 
Congressional direction, the TSAT Program Office lengthened the TSAT 
schedule. As a direct result, program completion costs increased. The 
Program Office also completed studies on cost, schedule, and 
performance goals during the fall of 2005. Mr. Thomas Young and Gen 
(ret) Tom Moorman, who served on the 2003 Young Panel to assess the 
"Acquisition of National Security Space Programs" also completed an 
independent assessment of the program and provided constructive 
feedback. Congressional guidance and these analyses led the Program 
Office to baseline the QDR-approved block build cost, schedule, and 
incremental performance goals. With respect to the performance goals, 
the full, five-satellite constellation's goals have not changed; they 
remain the same as originally captured in the warfighter's Key 
Performance Parameters. 

3. (U) What GAO Found, paragraph 2, states: ".DOD has yet to reevaluate 
its investment in light of the knowledge it has now gained. " Results 
in Brief, paragraph 2, states: ".DOD has yet to justify the TSAT 
investment in light of the knowledge it has now gained. " And DOD 
Taking Steps to Lower Program Risk but Additional Knowledge Needed 
Before Product Development, page 9, paragraph 1, states: "As DOD 
implements an incremental approach for the TSAT program, it has yet to 
justify the TSAT investment in light of the knowledge it has now 
gained." And Remaining Gaps in Knowledge Could Hamper Successful 
Outcomes, page 13, paragraph 3, states: "DOD has not fully assessed the 
value of the TSAT investment in light of major changes to the program." 

(U) As stated in (1) above, DOD reevaluated its investment in TSAT 
during the fall 2005 QDR process. That said, we acknowledge we will 
incorporate additional knowledge gained through continued technology 
development. For example, this will include the findings collected 
during the Optical Standards Validation Suite Demonstration 2 (OSVS-2) 
and Next Generation Processor Router Demonstration 2 (NGPR-2), 
scheduled to run from November 2006 through February 2007. 

4. (U) DOD Not Meeting Original TSAT Goals, page 5, paragraph 1, 
states: "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 unreliable." And Initial Goals 
for TSAT Were Based on Limited Knowledge, page 7, paragraph 2, states: 
".DOD started the program with only one of the seven critical 
technologies mature." 

(U) The original TSAT goals were not unreliable; they were developed 
based on the confident expectation that the critical technologies would 
mature on a reasonable schedule. As previously noted, Page 6 of the GAO 
report states, "After DOD set its initial goals for TSAT, Congress 
twice funded the program at levels below DOD's request. because of 
concerns about the state of technical maturity for key subsystems and 
an aggressive schedule for acquisition." Within the program's 
Congressionally-directed budget reductions, the driving TSAT 
technologies continue to make solid progress. In traditional space 
acquisitions, critical technologies are expected to achieve Technical 
Readiness Level (TRL) 6 by system preliminary design review (FY09 for 
TSAT). For the TSAT program, all critical technologies are currently at 
no less than TRL 5, and all are projected to be at TRL 6 by system 
design review in FY07, nearly two years ahead of typical programs. 

5. (U) Initial Goals for TSAT Were Based on Limited Knowledge, page 6, 
paragraph 1, states: "The program recently was directed to develop a 
new total acquisition cost estimate at a higher level of confidence- 
which could further increase the estimated cost to complete the 
program." 

(U) While the use of a higher confidence cost estimate does increase 
the estimated cost of a program, it is important to note that use of 
such an estimate has no negative impact on actual cost of the program. 
In fact, use of a. higher confidence cost estimate, as recommended to 
Congress by the Young Panel, is aimed at decreasing actual program 
cost, risk, and schedule by affording DOD the flexibility to 
proactively address potential and incipient problems through a priori 
planning for the timely application of management reserve. 

6. (U) Remaining Gaps in Knowledge Could Hamper Successful Outcomes, 
page 14, paragraph 2, states: "Finally, it does not appear that DOD has 
completely addressed important questions about how DoD's other systems 
and programs, including such expensive and complex systems as the GIG 
and Space Radar, will be affected by an initially less capable TSAT 
system. 

(U) The TSAT block build approach still meets all user Key Performance 
Parameters. It is true that there are unknowns concerning the 
relationship between TSAT and the terrestrial portion of the GIG and 
TSAT and Space Radar; as one would expect with programs at the early 
stages of development. However, the issues that exist now are the same 
ones that existed prior to the TSAT block build restructure. Both the 
GIG and Space Radar are still working through their requirements, to 
better establish their communications needs. In each program, the TSAT 
community is completely engaged, participating in forums such as the 
GIG Net Centric Implementation Documents development activities, the 
Transformational Communications Architecture version 2.0 update, and a 
National Security Space Office (LASSO)-led study of Space Radar 
communications solutions. Work remains in fleshing out the requirements 
and understanding how the TSAT block build contributes towards their 
satisfaction. The: 

TSAT MJPO remains committed to supporting these efforts, and OASD/NII 
is engaged to ensure this cross program communication remains robust. 

[End of section] 

Appendix III: Onboard Signal Processing Technology Heritage: 

Time frame: Mid-1970s; 
Program title: Lincoln Experimental Satellites (LES) 8 and 9; 
Purpose/mission: First satellites to use onboard signal processing, 
spread spectrum techniques (frequency hopping) to demonstrate protected 
military satellite communications, and radio frequency (RF) crosslink 
capability; 
Relevance to TSAT: Onboard signal processing; spread spectrum satellite 
communications; and satellite- to-satellite crosslinks. 

Time frame: Mid-Late 1980s; 
Program title: Fleet Satellite Communications System (FLTSATCOM) EHF 
Packages: FEP; 
Purpose/mission: Built by MIT Lincoln Laboratory and hosted on the 
operational FLTSATCOM satellites 7 and 8 (built by TRW). These packages 
provided the first satellite communications at extremely high frequency 
(EHF) on the uplink and super high frequency (SHF) on the downlink; 
Relevance to TSAT: Multichannel onboard signal processing; EHF/SHF 
spread spectrum satellite communications; and onboard control for 
circuit switching. 

Time frame: Early 1990s; 
Program title: Milstar I; 
Purpose/mission: Satellites provided the first strategic/tactical 
operational satellite using the EHF/SHF. Satellites also provided 
narrower spot beam coverage and electronically agile beam coverage to 
provide enhanced service to small, dispersed user terminals; 
Relevance to TSAT: Combined strategic/tactical service at EHF, narrow 
beam antenna coverage, electronically steered antenna coverage; 
and intersatellite crosslinks. 

Time frame: Late 1990s; 
Program title: Milstar II; 
Purpose/mission: Satellites provided enhanced capacity and protection 
through the addition of a medium data rate (MDR) payload through narrow 
spot beam antennas. Satellite capacity was more than 10 times greater 
than Milstar I; 
Relevance to TSAT: Extension of EHF waveform to higher rates. improved 
protection via active antenna discrimination (nulling). 

Time frame: 2005; 
Program title: Advanced EHF (AEHF); 
Purpose/mission: The Advanced EHF (AEHF) system provides a further 
increase in the capability of EHF satellite communications by 
increasing both the total satellite throughput by another factor of 10 
and by increasing the data rate available to individual terminals. The 
extended data rate (XDR) waveform supports data rates from 75 to 
8,192,000 bytes per second for individual terminals; 
Relevance to TSAT: Binary bandwidth efficient waveforms for EHF, 
improved support for small terminals, and onboard processing 
technologies for increased satellite throughput. 

Source: MIT Lincoln Laboratory. 

[End of table] 

[End of section] 

Appendix IV: Networking Technology Heritage: 

Time frame: 1980s; 
Program title: Milstar and AEHF; 
Purpose/mission: The Milstar satellites were the first satellite 
payloads to use onboard processing and onboard switching of user 
signals. The AEHF system further developed space-based signal 
processing technology, providing more capacity and higher data rates; 
Relevance to TSAT: Space-based signal processing; 
quickly reconfigurable circuit setup, teardown, and switching; 
packet-over-circuit transmission to/from geosynchronous orbit. 

Time frame: 1990s; 
Program title: NASA Advanced Communications Technology Satellite 
(ACTS); 
Purpose/mission: This satellite produced many important studies of 
networking protocol behavior (such as Transmission Control 
Protocol/Internet Protocol: TCP/IP) in a combined space and terrestrial 
environment; 
Relevance to TSAT: Provided performance measurements for IP, and 
increased the class payload processing rate to more than 100 megabytes 
per second. 

Time frame: 2000s; 
Program title: Spaceway and Astrolink; 
Purpose/ mission: These are the first satellites designed to perform 
packet switching in space. The Astrolink system was never launched 
because of a sudden market downturn in the telecommunications industry. 
However, the first payload was essentially completed before market 
conditions caused cancellation of the deployment. The first Spaceway 
satellite is now onorbit and operational, and launch of the second is 
planned in the near future; 
Relevance to TSAT: Lessons include how to build packet processing and 
routing hardware and software for use in space in the gigabytes per 
second data rate class. 

Source: MIT Lincoln Laboratory. 

[End of table] 

[End of section] 

Appendix V: Lasercom Technology Heritage: 

Time frame: 1975; 
Program title: Lincoln Experimental Satellites (LES) 8 and 9; 
Purpose/mission: The LES-8/9 satellites built by Lincoln Laboratory in 
the mid-1970's were originally slated to use lasercom crosslinks. The 
development of these crosslinks was impaired by the lack of an industry 
base for the necessary optical components and was abandoned in favor of 
RF links; 
Relevance to TSAT: Development of a fiber-based architecture, and use 
of space-qualified commercial fiber- optic components. 

Time frame: 1980s-1990s; 
Program title: LITE and LITE-2; 
Purpose/ mission: The LITE lasercom terminal developed by Lincoln 
Laboratory was able to capitalize on commercial parts to leverage its 
large-scale production processes. In the early 1990s, as commercial 
fiber optic components became available, the LITE-2 terminal was 
developed. It used a new fiber-based architecture with remote optics. 
The ability to remote the telescope and other free space optics from 
the High Power Optical Amplifier and modem dramatically simplifies 
spacecraft integration; 
Relevance to TSAT: Telescope, optical module, fiber-based high power 
optical amplifier, modem, and high-rate lasercom. 

Time frame: Late 1990s; 
Program title: GeoLITE; 
Purpose/mission: Built in the late 1990's by Lincoln Laboratory and 
flown aboard a Northrop- Grumman (TRW) satellite. The GeoLITE 
experiment (launched in 2001) used the fiber-based architecture 
developed under the LITE-2 program. The lasercom payload continues to 
send telemetry from critical subsystems that provide insight into the 
lifetime of optical components in space; 
Relevance to TSAT: Same as in LITE and LITE-2, demonstrating all of the 
capabilities needed for the TSAT mission. 

Time frame: 2000s; 
Program title: Airborne Lasercom Experiment (ALEX); 
Purpose/mission: ALEX, built by Lincoln Laboratory, successfully 
demonstrated the capabilities necessary for air-space lasercom; 
Relevance to TSAT: While ALEX focused on the airborne terminal, it 
demonstrated an understanding of the channel that is relevant to TSAT 
lasercom AISR support. 

Time frame: 2000s; 
Program title: Airborne Laser (ABL) program; 
Purpose/mission: The ABL program has performed numerous experiments 
characterizing the propagation of optical wavefronts through various 
airborne environments. These data are relevant to the TSAT Air-Space 
link; 
Relevance to TSAT: Atmospheric and airborne platform boundary 
characterizations. 

Source: MIT Lincoln Laboratory. 

[End of table] 

[End of section] 

Appendix VI: Technology Readiness Levels: 

Technology Readiness Level: 1. Basic principles observed and reported; 
Description: Lowest level of technology readiness. Scientific research 
begins to be translated into applied research and development. Examples 
might include paper studies of a technology's basic properties; 
Hardware/Software: None (Paper studies and analysis); 
Demonstration Environment: None. 

Technology Readiness Level: 2. Technology concept and/or application 
formulated; 
Description: Invention begins. Once basic principles are observed, 
practical applications can be invented. The application is speculative 
and there is no proof or detailed analysis to support the assumption. 
Examples are still limited to paper studies; 
Hardware/ Software: None (Paper studies and analysis); 
Demonstration Environment: None. 

Technology Readiness Level: 3. Analytical and experimental critical 
function and/ or characteristic proof of concept; 
Description: Active research and development is initiated. This 
includes analytical studies and laboratory studies to physically 
validate analytical predictions of separate elements of the technology. 
Examples include components that are not yet integrated or 
representative; 
Hardware/Software: Analytical studies and demonstration of nonscale 
individual components (pieces of subsystem); 
Demonstration Environment: Lab. 

Technology Readiness Level: 4. Component and/ or breadboard. Validation 
in laboratory environment; 
Description: Basic technological components are integrated to establish 
that the pieces will work together. This is relatively "low fidelity" 
compared to the eventual system. Examples include integration of "ad 
hoc" hardware in a laboratory; 
Hardware/Software: Low fidelity breadboard. Integration of nonscale 
components to show pieces will work together. Not fully functional or 
form or fit but representative of technically feasible approach 
suitable for flight articles; 
Demonstration Environment: Lab. 

Technology Readiness Level: 5. Component and/ or breadboard validation 
in relevant environment; 
Description: Fidelity of breadboard technology increases significantly. 
The basic Technological components are integrated with reasonably 
realistic supporting elements so that the technology can be tested in a 
simulated environment. Examples include "high fidelity" laboratory 
integration of components; 
Hardware/Software: High fidelity breadboard. Functionally equivalent 
but not necessarily form and/or fit (size weight, materials, etc.) 
Should be approaching appropriate scale. May include integration of 
several components with reasonably realistic support elements/ 
subsystems to demonstrate functionality; 
Demonstration Environment: Lab demonstrating functionality but not form 
and fit. May include flight demonstrating breadboard in surrogate 
aircraft. Technology ready for detailed design studies. 

Technology Readiness Level: 6. System/ subsystem model or prototype 
demonstration in a relevant environment; 
Description: Representative model or prototype system, which is well 
beyond the breadboard tested for TRL 5, is tested in a relevant 
environment. Represents a major step up in a technology's demonstrated 
readiness. Examples include testing a prototype in a high fidelity 
laboratory environment or in simulated operational; 
environment; 
Hardware/Software: Prototype--Should be very close to form, fit and 
function. Probably includes the integration of many new components and; 
realistic supporting; elements/subsystems if needed to demonstrate full 
functionality of the subsystem; 
Demonstration Environment: High-fidelity lab; demonstration or limited/ 
restricted flight; demonstration for a relevant environment; 
Integration of technology is well defined. 

Technology Readiness Level: 7. System prototype demonstration in an 
operational environment; 
Description: Prototype near or at planned operational system. 
Represents a major step up from TRL 6, requiring the demonstration of 
an actual system prototype in an operational environment, such as in an 
aircraft, vehicle or space. Examples include testing the prototype in a 
test bed aircraft; 
Hardware/Software: Prototype. Should be form, fit and function 
integrated with other key supporting elements/ subsystems to 
demonstrate full functionality of subsystem; 
Demonstration Environment: Flight demonstration in representative 
operational environment such as flying test bed or demonstrator 
aircraft. Technology is well substantiated with test data. 

Technology Readiness Level: 8. Actual system completed and "flight 
qualified" through test and demonstration; 
Description: Technology has been proven to work in its final form and 
under expected conditions. In almost all cases, this TRL represents the 
end of true system development. Examples include developmental test and 
evaluation of the system in its intended weapon system to determine if 
it meets design specifications; 
Hardware/Software: Flight qualified hardware; 
Demonstration Environment: DT&E in the actual system application. 

Technology Readiness Level: 9. Actual system "flight proven" through 
successful mission operations; 
Description: Actual application of the technology in its final form and 
under mission conditions, such as those encountered in operational test 
and evaluation. In almost all cases, this is the end of the last "bug 
fixing" aspects of true system development. Examples include using the 
system under operational mission conditions; 
Hardware/Software: Actual system in final form; 
Demonstration Environment: OT&E in operational mission conditions. 

Source: GAO and its analysis of National Aeronautics and Space 
Administration data. 

[End of table] 

FOOTNOTES 

[1] At the time of this report, the 2005 end-of-year cost data and a 
new program baseline were unavailable. 

[2] DOD originally estimated the TSAT program cost using a 50 percent 
confidence level, which meant that the program had a 50 percent chance 
of being completed under or over budget. DOD is changing to an 80 
percent confidence level in its next estimate which should result in a 
higher, more accurate, program cost estimate. 

[3] See GAO, Defense Acquisitions: Space-Based Radar Effort Needs 
Additional Knowledge before Starting Development, GAO-04-759 
(Washington, D.C.: July 23, 2004). 

[4] See GAO, Space Acquisitions: Committing Prematurely to the 
Transformational Satellite Program Elevates Risks for Poor Cost, 
Schedule, and Performance Outcomes, GAO-04-71R (Washington, D.C.: Dec. 
4, 2003). 

[5] See GAO, Defense Acquisitions: Improvements Needed In Space Systems 
Acquisition Policy to Optimize Growing Investment in Space, GAO-04-253T 
(Washington D.C.: July 12, 2005); and GAO, Military Space Operations: 
Planning, Funding, and Acquisition Challenges Facing Efforts to 
Strengthen Space Control, GAO-02-738 (Washington, D.C.: Sept. 23, 
2002). 

[6] See GAO, Defense Acquisitions: Stronger Management Practices Are 
Needed to Improve DOD's Software-Intensive Weapon Acquisitions, GAO-04-
393 (Washington, D.C.: Mar. 1, 2004). 

[7] Although the Astrolink system was never launched, the first payload 
was essentially complete before the launch was canceled. 

[8] See GAO, Missile Defense: Knowledge-Based Practices Are Being 
Adopted, but Risks Remain, GAO-03-441 (Washington, D.C.: Apr. 30, 
2003). 

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