search phase, when a pivot may be necessary, and when there is an in- tention to diversify industrial partners and avoid vendor-lock. Market research. One of the ear- liest opportunities to evaluate com- mercial options is during the Analy- sis of Alternatives (AoA) process of a program’s life cycle. Federal law (10 U.S.C. § 3453) states that “the head of an agency shall use the re- sults of market research to determine whether there are commercial ser- vices or commercial products, or to the extent that commercial products suitable to meet the agency’s needs are not available … .” During this pro- cess, market research is conducted by the targeted PEO’s program office, the requirements staff, subject matter ex- perts in the Joint Staff, the Office of the Secretary of Defense (OSD), and the Service. This is also when large prime contractors pitch their ideas to DoD leadership in hopes of land- ing a large research and development contract. However, in an era of rapid com- mercial space development, it is im- portant to consider whether all po- tential solutions from industry have the opportunity to contribute in the AoA process. Incumbents who have worked on similar technologies are sometimes preferred because of their previous experience. During the AoA process, subject matter experts, with dual fluency in commercial and defense industries, are crucial to thorough market re- search. DIU’s bench of dual-fluency expertise can be a valuable USSF re- source. DIU is tied directly with Com- batant Commanders, Service leads,
and their staffs to understand DoD needs and capture the demand signal for commercial industry. In parallel, DIU consistently partners with com- mercial companies, from large primes to start-ups, as the connective tissue between the Warfighters’ needs and commercial solutions. So, when the USSF conducts market research for alternative so- lutions to a capability gap, DIU can do the homework and bring forward nontraditional options. A program could be birthed as an outcome of the AoA, and a materiel solution fielded sooner, if adapted from the commercial marketplace. Pivot. Were commercial solu- tions not evaluated during the mar- ket research phase or if that research clearly showed the technologies were not mature enough, another opportu- nity to integrate them arises when the current POR and its materiel solution is headed toward a cost or schedule breach. When a POR heads toward a breach, the space system program office focuses solely on corrective ac- tions or preparing to run the gauntlet of stakeholder briefings. This may not be an ideal time for a strategic pivot because of the inclination to rescue the program. There may be termina- tion liabilities, further schedule delays, or increased uncertainty in changing course. But pivoting rarely occurs in defense acquisitions. The expensive nature of space ac- quisitions should allow for decision points in the program’s development. If a POR faces a breach, resources should be set aside to reevaluate previous decisions with more current
data. One could find that the commer- cial market iterated and developed a solution that now is mature enough to be integrated. There may be a commercially derived lower cost and operationally effective prototype that can be fielded sooner and incremen- tally scaled to become an enduring weapon system for the USSF. Diversify. Finally, there is another opportunity to integrate and scale commercial capabilities into USSF programs when planning for the next block upgrade to a previously deliv- ered space system. As a system nears completion on path to delivery, the system program office is already plan- ning the next batch of systems and capability upgrades. While the first satellite is in production, resources are made available to investigate ca- pability upgrades for the next space system. If the first satellite is delivered on time or on cost, this may not be an ideal time to inject uncertainty or complexity in the next satellite’s development. However, Space Force acquirers should understand the cur- rent state of commercial solutions and whether opportunities exist to test prototype payloads that inform future block upgrades. It should not be assumed that the incumbent prime continues to win future upgrade con- tracts. Competition should continue for future contracts to bring the so- lution forward that drives down life- cycle costs and provides enhanced capabilities. Block upgrades can allow roadmapping and integration of mature commercial technologies to raise technology readiness for new payloads and functionality.
Block upgrades can enable game-changing commercial technologies as an entry point to test and scale viable capabilities that provide value to acquirers, operators, commercial industry, and the taxpayer.
46 | DEFENSE ACQUISITION | March-April 2025
Made with FlippingBook - Online Brochure Maker