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 <subject>Cost overruns</subject>
 <subject>Defense capabilities</subject>
 <subject>Defense cost control</subject>
 <subject>Defense procurement</subject>
 <subject>Internal controls</subject>
 <subject>Performance measures</subject>
 <subject>Procurement planning</subject>
 <subject>Procurement policy</subject>
 <subject>Satellites</subject>
 <subject>Schedule slippages</subject>
 <subject>Strategic planning</subject>
 <subject>Weapons research and development</subject>
 <subject>Air Force Total System Performance</subject>
 <subject>Responsibility Program</subject>
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 <title>Defense Acquisitions: Incentives and Pressures That Drive Problems Affecting Satellite and Related Acquisitions</title>
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<abstract>In fiscal year 2006, the Department of Defense (DOD) expects to
spend more than $23 billion to develop, acquire, and operate	 
satellites and other space-related systems. These systems are	 
becoming increasingly critical to every facet of military	 
operations as well as the U.S. economy and homeland security.	 
Satellite systems collect information on the capabilities and	 
intentions of potential adversaries. They enable U.S. military	 
forces to be warned of missile attacks and to communicate and	 
navigate while avoiding hostile actions. They provide information
that allows forces to precisely attack targets in ways that	 
minimize collateral damage and loss of life. DOD&apos;s satellites	 
also enable global communications; television broadcasts; weather
forecasting; disaster planning; navigation of ships, planes,	 
trucks, and cars; and synchronization of computers,		 
communications, and electric power grids. DOD&apos;s introduction of  
these desirable capabilities over time has not come without	 
difficulties. Space system acquisitions have experienced problems
over the past several decades that have driven up costs by	 
hundreds of millions, even billions of dollars, stretched	 
schedules by years, and increased performance risks. In some	 
cases, capabilities have not been delivered to the warfighter	 
after decades of development. As a result of these problems, DOD 
is now contending with important trade-off decisions, such as the
following. Whether to keep striving to build its Space-Based	 
Infrared System (SBIRS) High as intended or cut back on 	 
capabilities. This system is intended to replace and upgrade an  
older generation of missile-warning satellites, but its cost has 
already more than doubled and continues to increase, and its	 
schedule has stretched for years. Whether and how much to employ 
lower orbiting satellites equipped with similar capabilities to  
facilitate missile defense activities. DOD had spent two decades 
on this effort without launching a single satellite. Cost and	 
schedule problems forced DOD to rebaseline the program several	 
times. Overall affordability of missile defense has driven DOD to
assess whether to continue with this particular effort as well as
pursue development of a newer generation of missile-tracking	 
satellites. Whether to limit the acquisition of new communication
satellites, known as the Advanced Extremely High Frequency (AEHF)
satellites, in favor of developing a newer generation of	 
laser-linked satellites, known as the Transformational Satellite 
Communications System (TSAT). The AEHF program is running over	 
cost and schedule, but it incorporates more mature technologies. 
TSAT promises dramatically greater bandwidth and processing	 
capabilities and is considered integral to DOD&apos;s efforts to	 
network all of its weapon systems, but there is much less	 
certainty as to how much the system will cost or when it can be  
delivered because critical technologies are not mature. Whether  
to pursue incremental increases in capability for the Global	 
Positioning System or embark on a more expensive program that	 
would offer more dramatic capability advances. Two years ago, we 
issued a report to Congress that analyzed reports we had	 
previously issued on satellite and other space-related programs  
over the past two decades as well as other studies. Our 2003	 
report identified common problems affecting those acquisitions.  
Generally, the problems we identified were common to DOD weapons 
acquisitions and were recognized within DOD and the space	 
community. In February 2005, Congress requested that we identify 
underlying incentives and pressures that drive the problems we	 
had identified earlier. Congress also asked that we complete our 
fieldwork by April 2005 to support the subcommittee&apos;s decisions  
on DOD&apos;s appropriations.</abstract>
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<identifier type="preferred citation">GAO-05-570R</identifier>
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</location>
<note>Correspondence</note>
<extension>
 <searchTitle>GAO-05-570R; Defense Acquisitions: Incentives and Pressures That Drive Problems Affecting Satellite and Related Acquisitions;
            </searchTitle>
</extension>
<subject>
 <topic>Cost overruns</topic>
 <topic>Defense capabilities</topic>
 <topic>Defense cost control</topic>
 <topic>Defense procurement</topic>
 <topic>Internal controls</topic>
 <topic>Performance measures</topic>
 <topic>Procurement planning</topic>
 <topic>Procurement policy</topic>
 <topic>Satellites</topic>
 <topic>Schedule slippages</topic>
 <topic>Strategic planning</topic>
 <topic>Weapons research and development</topic>
 <topic>Air Force Total System Performance</topic>
 <topic>Responsibility Program</topic>
</subject>
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