The primary purpose of the Department of Defense's (DOD) Evolved Expendable Launch Vehicle (EELV) program is to develop a family of vehicles that will (1) reduce the costs of launching satellites into space and (2) at a minimum, maintain the reliability, operability, and capability levels of current launch systems. As you requested, we reviewed the EELV program, with emphasis on DOD's revised acquisition approach. We specifically reviewed whether (1) DOD's goal of reducing recurring space launch costs could be achieved, (2) DOD'S planned investment would result in commensurate benefits, and (3) there are risks that could affect the program.

NSIAD-98-151 Evolved Expendable Launch Vehicle: DOD Guidance Needed to Protect Government's Interest

The Department of Defense (DOD) and the National Reconnaissance Office (NRO) plan to spend about $15 billion for launch services from fiscal year 2013 to fiscal year 2017 through DOD's Evolved Expendable Launch Vehicle (EELV) program. The program launches satellites for military, intelligence, civil, and commercial customers. In 2009, DOD and the NRO decided the program's business model needed improvement, and initiated studies to determine the best approach. The studies addressed potential business models, cost reductions, and the nation's assured access to space. Given expected changes to the EELV acquisition strategy, GAO was asked to (1) determine whether DOD has the knowledge it needs to develop a new EELV acquisition strategy, and (2) identify issues that could benefit future launch acquisitions. To address these questions, GAO reviewed launch studies, a supplier survey, and interviewed DOD and other officials. Among other things, GAO recommends DOD assess engine costs and mission assurance activities, reassess the length of the proposed block buy, and consider how to address broader launch acquisition and technology development issues. DOD generally concurred with the recommendations.

The federal government currently uses a fleet of expendable launch vehicles-Delta, Atlas, and Titan-to transport a variety of national security and civil satellites into space. According to DOD, these vehicles (which are acquired by DOD), currently operate at or near their maximum performance capability. Also, DOD and congressional sources consider these vehicles to be very costly to produce and launch. Since 1987, the government has made several attempts to develop a new launch vehicle system, but these attempts were canceled either because of funding issues, changing requirements, or controversy regarding the best solution. In 1994, by congressional direction, DOD developed a space launch modernization plan that led to the initiation of the EELV program. Currently, two contractors-Lockheed Martin Astronautics and McDonnell Douglas Aerospace-are competing in a pre-EMD phase, and one is to be chosen for the EMD phase. Of the total planned $2 billion investment, the EMD phase is expected to cost about $1.6 billion and take approximately 6 years. Concurrent with the EMD decision, DOD plans to authorize the start of EELV production. An initial quantity of 29 launch vehicles is estimated to cost about $1.5 billion. In addition, toward the end of the EMD phase, a decision is to be made on whether to produce a significantly larger quantity that would cost several billion dollars.

In 1994, the National Space Transportation Policy laid the framework for appropriate government agencies to maintain strong launch systems and infrastructure while modernizing space transportation capabilities and encouraging cost reductions. More than a decade later, through combined Department of Defense (DoD) and industrial investment, the two Evolved Expendable Launch Vehicle (EELV) families of U.S. rockets (Atlas V and Delta IV) have proved to be maturing, reliable state-of-the-art technologies. In 2004, Congress directed the Secretary of Defense to establish a panel of experts with extensive space launch and operations background to address the future National Security Space launch requirements and the means of meeting those requirements. DoD selected RAND to facilitate and support this panel in its deliberations between May 2005 and May 2006. This report analyzes the National Security Space (NSS) Launch Requirements Panel's major findings and recommendations. In short, the Panel concludes that, because basic rocketry principles, use of chemically derived thrust, and multiple expendable stages seem certain to remain the design of choice for operational space launch vehicles, the EELV can satisfy all known and projected NSS requirements through 2020.

DOD began the EELV program in 1995 to provide a new generation of launch vehicles to ensure affordable access to space for government satellites. It resulted in two families of commercially owned and operated launch vehicles Boeing's Delta IV and Lockheed Martin's Atlas V.