Key Issues > Duplication & Cost Savings > GAO's Action Tracker > Government Satellite Program Costs (2013-24)
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General Government: Government Satellite Program Costs (2013-24)

Government agencies could achieve considerable cost savings on some missions by leveraging commercial spacecraft through innovative mechanisms such as hosted payload arrangements and sharing launch vehicle costs. Selected agencies have reported saving hundreds of millions of dollars to date from using these innovative mechanisms.

Action:

Congress may wish to consider authorizing agencies enhanced flexibility to acquire certain satellite services related to hosted payload and ride sharing arrangements, when appropriately planned and justified.

Progress:

Congress passed legislation that authorizes enhanced flexibility to acquire satellite services related to hosted payload and ride share arrangements, as GAO suggested in April 2013. In December 2013, Congress passed the National Defense Authorization Act for Fiscal Year 2014, which required the Department of Defense (DOD) to conduct a study that (1) reviewed existing and past operationally responsive low-cost launch efforts by domestic or foreign governments or industry and (2) assessed the viability of greater utilization of innovative methods, including the use of secondary payload adapters on existing launch vehicles. DOD conducted its study and issued a report in June 2015, which GAO reviewed. The study identified specific needs that could be addressed by the development of operationally responsive space capabilities, which may help DOD to gain enhanced flexibility to review and identify additional options for acquiring satellite services related to hosted payloads and ride sharing arrangements.

The enactment of this legislation and the conclusion of the DOD study should help DOD gain additional flexibility to identify options for hosted payloads and ride sharing. Having this additional flexibility could promote cost savings and help reduce government satellite program costs.

Implementing Entity:

Congress

Action:

Congress may wish to consider revisiting the law to determine whether efforts should be made to provide federal agencies additional flexibility to select space transportation services and launch vehicles from other countries for hosted payloads to encourage cost savings.

Progress:

On November 21, 2013, the Executive Office of the President issued a revised U.S. Space Transportation Policy that includes additional flexibility for federal agencies to select space transportation services and launch vehicles from other countries for hosted payloads. Although Congress has not taken action to introduce legislation, as GAO suggested in April 2013, the recently issued policy provides agencies with additional flexibility for selecting these services and vehicles from other countries, which could promote cost savings. Accordingly, GAO considers this action addressed.

Implementing Entity:

Congress

Action:

The Executive Office of the President may wish to consider revisiting the policy to determine whether efforts should be made to provide federal agencies additional flexibility to select space transportation services and launch vehicles from other countries for hosted payloads to encourage cost savings.

Progress:

On November 21, 2013, the Executive Office of the President issued a revised U.S. Space Transportation Policy that includes additional flexibility for federal agencies to select space transportation services and launch vehicles from other countries for hosted payloads, as GAO suggested in April 2013. Having additional flexibility to select these services for hosted payloads could promote cost savings.

Implementing Entity:

Executive Office of the President

Action:

The Secretary of Defense should require programs using hosted payloads to provide cost and technical data and lessons learned to a central office.

Progress:

The Department of Defense (DOD) is taking steps to centralize information on costs, technical data, and lessons learned for past and planned commercially hosted payloads, as GAO recommended in July 2018 In August 2018, Congress passed the John S. McCain National Defense Authorization Act for Fiscal Year 2019, which required the DOD, in coordination with the Air Force and other military departments, to designate a component of the DOD to be responsible for coordinating information, processes, and lessons learned relating to commercially hosted payloads across DOD.

As a result, in February 2019, DOD designated Air Force Space Command as the office with primary responsibility for coordinating and tracking commercially hosted payload information. This office began developing the Commercially Hosted Payload Information Repository website. As of January 2020, this repository was online and functional. The office is currently in the process of determining the capabilities and limitations of the site, including resource requirements, for maintaining the site as well as a strategy for protecting proprietary information from commercial vendors.

An Air Force official told GAO that DOD has not issued department-wide direction to use the website, stating that it would be prudent to wait to direct other organizations to use the website while the Air Force determines a strategy for aggregating data and protecting information. Determining an office and finalizing the development of a central repository for commercially hosted payload information should help centralize information and identify potential hosted payload arrangements.

Implementing Entity:

Department of Defense
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