Crack the Commercial SATCOM Paradigm 20100423.pptx

Crack the Commercial SATCOM Paradigm – MILSATCOM Conference

• Commercial satellite/payload acquisition - aligning the commercial wideband business case

27 April 2010 Joe Vanderpoorten Technical Director, MILSATCOM Advanced Concepts Group

IS / PEO Execution Review

Advance Concept Group Commercial SATCOM - Request for Information Summary “Casting the Net” RFI Release 28 Oct 09 4 Feb Gov’t Industry Exchange Mtg

21 Industry Responses

Gov’t Concepts Furnished to Promote Dialogue/Promote Deliverables Fall 10

BAA

Traditional Lease vs Buy Dialogue Traditional MILSATCOM Buy/O&M

Lease MILSATCOM Wideband Traditional comparison – “25% to 70% cheaper to buy versus lease” Traditional dialogue… “long term leases”, “flexible termination liability”, “MILSATCOM is free”, “cost model omissions…” worth chasing, but not very compelling – dominantly a Gov’t problem But… Have we harvested more compelling game changers?

25-70% LCC savings Buy vs Lease Years Normalized Price Normalized LCC Totals Hosted Payload NRE Example Insurance Launch Development Integration But….. Is that All we’ve got?

Global MILSATCOM Requirements Where can Wideband Commercial fit?

Full Satellite Programs of Record % Requirement Normalized Loaded Performance

AOR

Military requirements LCC optimized Bigger is more affordable Allocated Comsat Wideband Requirements - FAR 12 System Integration Products - Part 15

International Hosted Payloads Space diversity?

Purpose built Includes SSA?

Uniform CRAF model?

Part 15 Payloads, Part 12 integration

Hosted Payload Policy Niche?

Un-Planned Leases

Notional

JSCL-Defined Architecture

WGS 0.4 0.4 0.2 0.4 0.2 DSCS 3.0000000000000054E-2 4.0000000000000091E-2 3.0000000000000054E-2 4.0000000000000091E-2 4.0000000000000091E-2 New? 0.2 0.30000000000000032 0.2 0.2 0.30000000000000032 Hosted 0.4 0.2 0.4 0.2 0.1 SATCOM Acquisition Contexts Changing the Value Equation- “Pulling in Net”

Programs Of Record Short/Long Term Leases

Unplanned Access (Max Flex - COCOM $?)

Business Case Expansion?

Stressing Requirements (Lowest Enterprise LCC?)

Expanded Commercial SATCOM Alternatives

- Lease durations Term Liability flexibility Lower NRE budgets Improved business case for capability insertions New commercial capabilities Higher capacities/lower costs Quicker time to market Capability Investment Hosted P/L Alternative Lease Capability New POR

- New technologies Military unique capabilities New programs launch in FY24+ Let’s Emphasize This!

Known!

Known!

Commercial Offerings to DoD Where “business case” closure is leading MIL/COMSAT acquisition

- Technical Capacity Increases (transponder, P/L or satellite) Capacity Increases – reduce cost/bit Directionality Increases – focused beams Situational awareness, Adjacent P/L, Antenna-AJ modem optimization New product exploitation (Mobile services sector, baseband, handhelds)

- Resource management improvements – technical/programmatic Fill in unused gaps, more-users per transponder, more antenna for special users, uncontested shared modulation for multiple users Switchable mil-comm frequencies to sustain sales through DoD gaps Flexible management—enable shifting between gov’t & industry purchase “leased minutes” Alternative business arrangements for investment/sharing Reduce LCC (Ops, Sustainment, Enterprise)

How can DoD be open to the velocity of potential commercial offerings?

“Payload in the Barn” Concept (v5) Payloads, Interfaces, “Rides” Aligned to meet AFSPC 36 month phasing Years Commercial Consortium “Ride” Alignment Hosted Payload (P/L) Development

Requirement Assessment/Equity

Pre Award 2-3 Months

Production, I&T

Ex: “Pacific-Sat”

“Ride” Award 36 Months

MSA

ICD

Tech Dvmt

MS-A

EMD

Group B P/L Production

Define Consortium Interface Standard

Consortium Interface Definition

EMD

Group A Consortium Alignment

Military Payload/Integration Investment

AFSPC Decision “Take a Ride?”

Launch Opportunities across Multi-Company Consortium (Competition, Placement, Compatibility, Diversity) AFSPC Go Forward Decision For Commercial Location e.g. “Pacific”

Military Payload/Integration Ready – “Scarring”

Recurring Commercial Launch Opportunity Phasing Special Antennas Sit Aware Package Secure Control Platform-Unique Adaptor (Thermal, Electrical, Mechanical) Vendor-Specific Commercial Bus

Bus “Group B”** “Group A” Exercise “Option” Earliest 1st Article is Available Vehicle Concept (Mil-Ka) Multi-Bus Design Commercial Launch FAA/ITU Processing Military Comm Payload (2Kw, 500 Lbs)

Foreign Launch Approval Obtain Policy Alignment Warfighter Service Availability/Targeting Min Lease Costs DISA FCSA Lease Availability

BAA

Payload/Term Management Control Upgrade Teleport Update

Ground

Challenge - Alignment of DoD/Industry Investment and Leasing Models

Challenges to Commercial Engagement Vitality CDRL requirements – level of insight/oversight – Target for DAU Assistance Plans Management , Test and Evaluation, Security Management, Software Test, System Engineering, TEMPEST Control, Information Assurance, Security Verification, Software Build, System Training, NSA Certification, Integration Reports Software Resources, Software Tests, System Test, Reliability Test, Cost Performance, Contract Funds Status, Environmental Health and Safety, CDSR, IMS , Functional Cost Hour, LCC Engineering/Operations Products Logistics Management Information, Provisioning data, ECPs, Spec Changes, ICDs, IDDs, System Design Specs, Design Descriptions, Software Requirements, Version Descriptions Operations Concepts, Logistics and Support Concepts, System/Sub system Design, Reviews

IDR, SDR, SSR, PDR, CDR, PMR

Traditional Space Segment CDRL Requirements Alternative Business Alignment ~70 CDRLS Support Numerous Vital Equities

Aggressively staying “between lines” of commercial product do abilities Use Commercial mission assurance Viable insight vs oversight models Synchronizing with enterprise interfaces (Terminals, Networks, O&M) Leverage commercial artifacts/inherent incentives (Fleet Ao reputation) DoD acquisition/funding limitations

Reduced management artifacts to commercial essentials *Total System Performance Responsibility Sell Acquisition Approach – Sell Commercial Processes to meet Gov’t equities

New Commercial Acquisition Scenario “What’s in the Net” Game Changers Challenges Resource Factors Equities ITU Policy – resolve commercial’s provisioning of mil-Freq (DoD-DISA/Industry) Security/Protection Policy – resolve or waiver access control, IA, AJ (DoD/Industry) Launch Policy – leverage Space policy leanings enabling flexible launch use (DoD/Industry) Enable commercial dialogue vitality within Gov’t constrained competitive/interactions (DoD, DAU, Industry) Funding limitations/policies (DoD/Industry) Requirements/Needs Process (DoD/Industry)

Cost/bit & “Speed of need” reduction (DoD/Industry) Expand opportunities - Move military onto commercial enterprise solutions Hosted payloads (Industry/DoD) Commoditize offerings (FCSA handoff) Operations Mgt and Situational Awareness Terminal/Network Integ/Sync (DoD/Industry) Commercial capitalization of military investment (Industry) Alternative business approaches – (Industry) NRE/Sharing alignments (DoD/Industry)

O&M – Leasing/Ops/Sustainment – value improvement, supplementals are leaving (Industry/DoD) RDT&E – NRE – compelling value statements (Industry/DoD) Legacy Investments/Transitions – Terminal constraints, Integration constraints (DoD) Industrial Base Sustainment (Industry/DoD)

Control – DoD/Service/SATCOM Assured Access - won’t change Intellectual Property – Industry competitive edge Taxpayer value – Congressional oversight

Issue Components of Hosted Payload Acquisition Planning

Closing the Business Case Value/Cost Optimized Driving down cost for accessible bandwidth Purpose built focus better (Mil-Ka, AISR, COTM, AJ) Workable Commercial to Gov’t acquisition alignments Resolution of Policy enablers Gov-Commercial Acquisition, Appropriations, Launch, ITU, Security

Focus Industry Support on the Dominant Value Points image2.png image3.emf image4.png image1.png