Space Force Overhauls Acquisition Strategy
The U.S. Space Force is rolling out a major acquisition reform to counter threats from China and Russia. The new model uses Portfolio Acquisition Executives to reallocate funding faster and shifts to a threat-driven plan, where capability goals are updated annually rather than locked into rigid budget cycles.
This acquisition overhaul is a direct response to the Department of Defense's long history of challenges in space procurement, which has seen multi-billion-dollar cost increases and significant schedule delays. For example, the GPS Next Generation Operational Control System is facing a 73% cost increase and is nearly five years behind schedule. The previous model was criticized for being too slow and fragmented to keep pace with the rapidly evolving threats in the space domain. The new strategy empowers Portfolio Acquisition Executives (PAEs) with the authority and resources to manage an entire mission area, from development to sustainment. This is a shift away from the traditional Program Executive Officer (PEO) structure, aiming to create a more holistic and unified command. The Space Force plans to have nine PAEs, with the first two designated for Space Access and Space-Based Sensing and Targeting. This reform is part of a broader "Warfighting Acquisition System" being implemented across the Department of the Air Force to place the entire acquisition enterprise on a wartime footing. The goal is to move from a compliance-based process to a dynamic model focused on the rapid delivery of combat-effective capabilities. This includes a "commercial first" approach to leverage private sector innovation and get technology to Guardians faster. A key figure in this transformation was Frank Calvelli, the first Assistant Secretary of the Air Force for Space Acquisition and Integration, who was sworn in in May 2022. He championed a set of nine "space acquisition tenets" designed to increase speed and efficiency, such as building smaller satellites, using fixed-price contracts, and holding industry accountable for results. To further streamline efforts, the Space Force is creating new units called System Deltas (SYDs) and Integrated Mission Deltas (IMDs). SYDs, under Space Systems Command, will consolidate the design and development of mission systems, while IMDs, under Space Operations Command, will focus on mission readiness, combining operations, intelligence, and cyber defense. The first provisional SYDs and IMDs are focused on positioning, navigation, and timing (PNT) and electromagnetic warfare (EW). This overhaul coincides with a significant proposed increase in the Space Force's budget, potentially reaching $40 billion in fiscal year 2026, largely driven by funding for the "Golden Dome" missile defense initiative. This funding is intended to support a more resilient and proliferated space architecture to counter adversary threats. However, there are concerns about the reliance on one-time supplemental funding rather than sustained growth in the base budget.
