Space Force Faces Industry Doubts on

Smaller space companies are pressing the U.S. Space Force to clarify how its "commercial first" acquisition mantra will translate into long-term, funded programs of record. The issue was debated at a Washington Space Business Roundtable forum on August 25, where Space Force Colonel Dan Urban outlined new reforms while industry executives expressed deep skepticism.

Colonel Dan Urban, director of the Space Force's space system of systems engineering directorate, stated that nine new program acquisition executives (PAEs) will have high authority to speed capabilities to warfighters. He said the recent cancellation of the Joint Capabilities Integration and Development System (JCIDS) will help move faster. "Instead of taking years to get a requirement through the JCIDS process, the PAEs will have closer to direct authority," Urban told the forum. He also emphasized a push for open systems architecture to eliminate vendor lock and allow more companies to compete.

Urban highlighted the role of funding matches through mechanisms like Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). He said Space Force matches of $80 million have led to "tangible results" in attracting new companies and boosting their collective market value to $6.8 billion. He named several beneficiaries.

Urban added that the Space Force may institute a scorecard for the nine PAEs, grading them on areas like foreign partner integration. However, he cautioned that this accountability "does not mean necessarily that will lead directly to programs of record that are one-for-one commercial programs."

Industry Calls for Sustainable Model

Smaller company representatives argued that enthusiasm for commercial technology has not created a functional, sustainable business model. Tahara Dawkins, senior director of policy at Astroscale U.S., stated, "Companies cannot build a sustainable business based solely on demonstration and pilot programs." She said the government is good at starting innovation through SBIRs and Other Transaction Authorities but struggles with the next step. "We don't know who owns the capability after demonstration. Who incorporates it into their architecture? Who budgets for it?"

Astroscale U.S., a subsidiary of Japan's Astroscale, was awarded a $61 million contract in April last year by Space Systems Command to demonstrate hydrazine refueling above Geostationary Orbit.

The 'Acquisition Valley of Death'

Clive Cook, CEO of geospatial intelligence firm Precursor SPC, described a critical barrier for startups. He identified two "Valleys of Death." The first is a technical challenge in moving from Technology Readiness Level 6 to 9. "Most serious companies cross the technical 'Valley of Death'," Cook said. "The acquisition 'Valley of Death' - therein lies the big challenge - moving from a demonstrational capability to a funded program of record."

Cook explained that requirements are retrospective, creating a funding mismatch for innovators ahead of the cycle. "Hence, they cannot receive funding because the funding is all tied to the requirement which is fed into the program of record," he said. This problem is compounded by the need for a sponsor to integrate into classified national security systems, which new startups lack.

He suggested PAEs should have budgeted "programs of merit" for promising technologies that lack formal validation, instead of only coupling programs of record with commercial add-ons. Precursor SPC analyzes the ionosphere to detect space weather affecting launches and may also track adversary hypersonic missiles.