Satellite program canceled; intelligence community uneasy

Published 22 October 2008

Congress has shelved a Pentagon program to buy two commercial imagery satellites; in 2005 the Pentagon pulled the plug on a major component of the Future Imagery Architecture system; U.S. intelligence community fears intelligence gaps will open

This is not good news for the U.S. intelligence community (or for Boeing or Lockheed Martin, either): Congress has canceled Pentagon plans to buy and launch two commercial imagery satellites which would complement the Department of Defense’s network of classified spy craft. USA Today reports that House and Senate intelligence appropriations committees cut all funds for the satellite program during a conference meeting to work out differences in the classified 2009 bills that approve intelligence spending. They also wiped out the remaining 2008 funds. The newspaper quotes an industry official with knowledge of the decision as saying that Congress cut “about $1 billion.” The classified program was expected to cost about $1.7 billion.

The Pentagon has pushed back a competition between Lockheed Martin Corp. and Boeing Co. for the Transformational Communications Satellite (TSAT), a new multibillion dollar satellite communications system contract. The contract, which could be worth as much as $6.5 billion, is now planned for the fourth quarter of 2010.

There has been a heated debate for months now about whether to buy and operate commercial satellites with the ability to see the outlines of 16-inch objects from space, or use the money to buy more imagery from the commercial companies that already have such satellites in orbit. Those who objected to the Pentagon buying new satellites said the department would be spending billion of dollars in replicating capabilities already available from private companies such as GeoEye and DigitalGlobe. The Pentagon needs these refined imagery capabilities to spy on enemy troop movements, spot construction at suspected nuclear sites, and alert commanders to militant training camps.

The intelligence community and the Pentagon would no doubt note that the recent cancellation and postponement follow the cancellation in September 2005 of a major component of the Future Imagery Architecture system overseen by the National Reconnaissance Office. USA Today says that the primary contractor, Boeing, ran into technical problems developing the satellite and spent nearly $10 billion, exceeding its budget by $3 billion to $5 billion before the Pentagon pulled the plug.