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Pentagon Halts Key Satellite Buys Amid Review
16 Feb
Summary
- US military satellite constellation procurement paused for review.
- Shift in responsibility for parts of the program outside SDA.
- Supply chain issues and industry checkout challenges persist.

Procurements for critical U.S. military satellite constellation elements are currently paused as the Pentagon reassesses acquisition strategies and reassigns program responsibilities. The Space Development Agency (SDA), established in 2019 for rapid satellite constellation fielding, is seeing shifts in its oversight. Specifically, the planned acquisition of satellites for the PWSA's data transport and custody layers remains on hold.
While the tracking layer procurement is advancing, the custody layer's acquisition will likely fall under a different Space Force organization focused on space-based sensing and targeting. Future Tranche 3 plans for the transport layer, which acts as the PWSA's data backbone, are also uncertain, with potential integration into a broader Space Force initiative.
Supply chain bottlenecks, particularly for optical communication terminals and encryption devices, continue to impact currently contracted tranches (Tranche 0, 1, and 2). Industry challenges in satellite checkout processes, especially for large constellations, are also presenting significant hurdles. Lessons learned from earlier tranches are being applied to improve ground testing and bus performance.




