GAO: Space Development Agency has not matured important laser link technology

The Space Development Agency has yet to prove out on-orbit laser communications technology — a key tenet for the Defense Department’s ability to rapidly transmit critical warfighting data in the future, according to new findings from the U.S. government’s watchdog organization.

Although SDA planned to validate the technology’s utility in Tranche 0 of the Proliferated Warfighter Space Architecture (PWSA), the agency “has not yet successfully demonstrated the full range of its laser communications technology in space using its new [optical communications terminal] standard” as of December 2024, the Government Accountability Office wrote in a new report published Wednesday. 

As a result, the watchdog is recommending that SDA complete testing of the “minimum viable product” for laser link technology before pursuing future efforts — otherwise the organization runs the risk of moving forward with the PWSA’s development without incorporating critical lessons learned.

On-orbit laser communications involves using optical communications terminals (OCTs) to transmitting data via laser links between satellites, as well as to receivers located on land, sea and in the air. The technology is considered to have several advantages over radio frequencies traditionally used by the Defense Department for communications, such as being able to send data faster and more securely.

Laser comms are central to SDA’s planned mega-constellation known as the PWSA, envisioned as hundreds of satellites stationed in low-Earth orbit that create a “mesh network” of data relay, missile warning and missile-tracking capabilities for the U.S. military. However, the agency has previously stated that proving out laser links will be a challenging technological hurdle — a fact also noted in GAO’s new report.

“[T]his technology is much more complex, and the Space Force is working with multiple vendors to develop it. Nevertheless, the number of vendors involved adds further complexity to the overall effort,” the document stated. “Among other things, the Space Force will need to ensure that different vendors’ satellite optical communications terminals (OCT), devices used to establish laser data transmission links, are able to communicate with each other.”

The watchdog noted that SDA has taken steps to prove the technology, such as developing a government OCT standard, conducting OCT laboratory tests and maturing various component capabilities. But overall, efforts to fully demonstrate space-based laser links on the agency’s experimental satellites known as Tranche 0 have not moved as quickly as expected, according to GAO. 

Delays have been largely attributed to supply chain challenges that pushed the constellation’s launch back by several months. SDA has also stalled in demonstrating laser links in orbit due to challenges in coordinating ground support and the agency’s prioritization of other technologies over laser communications, the report added.

“Specifically, as of December 2024, SDA reported that one of its four prime contractors in [Tranche 0] had demonstrated three of the eight planned laser communications capabilities while another contractor had demonstrated one of the eight capabilities,” GAO officials wrote. “The remaining two contractors have not yet achieved any planned capabilities.”

In January, York Space Systems and SpaceX announced they had successfully demonstrated a laser link connection between two of their Tranche 0 satellites. However, the GAO report emphasized that the two companies are using OCTs developed by the same subcontractor, meaning “SDA has yet to demonstrate a link between two OCT vendors in space as originally planned.”

Furthermore, the watchdog claims that the agency’s plans to launch the first operational batch of PWSA satellites — known as Tranche 1 — in the coming months without having fully demonstrated its enabling technology does not align with best practices for rapid delivery of complex tech.

Dubbed “spiral development,” SDA’s acquisition approach for the PWSA involves rapidly fielding systems through incremental “tranches” every two years, allowing for each phase to build upon previous iterations and ensuring warfighters are using the most advanced technology available.

“Our leading practices emphasize that prioritizing schedule — as SDA has done — and using an iterative development approach can support delivering products with speed to users,” the report stated. “However, our leading practices also note that speed cannot come at the cost of demonstrating critical capability.”

The watchdog noted SDA still intends to demonstrate a Tranche 0 mesh network before it launches Tranche 1 — although the agency will test only some of the capabilities it originally planned. At the same time, the report highlighted that SDA’s goal to dramatically increase both the number of PWSA satellites in orbit and the complexity of their capabilities could be compromised if the agency doesn’t have demonstrated success from previous tranches. 

“Since [Tranche 1] and [Tranche 2] are already in development, SDA may have limited opportunities to incorporate required design changes into those designs,” officials wrote. “Incorporating design changes in those tranches could potentially delay capability, meaning that laser communications capability required to support multiple DOD missions may not be available for the warfighter as planned.”

GAO said the Pentagon has concurred with the four recommendations in the report, but added that the department “believes it is already implementing our recommendations” — a position the watchdog disagreed with.

“The evidence presented throughout our draft and final report supports our view that SDA is not already taking the actions we recommend. We continue to believe SDA would benefit from taking steps aimed at implementing our recommendations,” GAO concluded.

The report’s release comes after weeks of controversy surrounding the Space Development Agency, which is currently having its semi-independent acquisition authority being reviewed by the Pentagon, according to a report from Breaking Defense. At the same time, the Department of the Air Force has placed SDA Director Derek Tournear on administrative investigative leave following a bid protest that has since prompted the agency to re-compete one of the PWSA’s contracts.