Missile Defense: Recent Acquisition Policy Changes Balance Risk and Flexibility, but Actions Needed to Refine Requirements Process
Fast Facts
Getting missile defense systems into the field to defend the U.S. and its allies from attacks is a high priority.
Traditionally, the Department of Defense allowed more flexibility in acquiring these systems. But in 2020, DOD made some changes—including more oversight from senior leaders—to improve how missile defense acquisitions perform against cost, schedule, and capability goals.
Most of these changes align with best practices, such as performing independent reviews of program costs and technical risks.
But DOD doesn't fully match the new systems' capabilities with the needs of the systems' users. We recommended doing so.
Launch of a Long-Range Ground-Based Interceptor from Vandenberg Air Force Base, California
Highlights
What GAO Found
In 2002, the Department of Defense (DOD) provided the Missile Defense Agency (MDA) with flexibilities to diverge from traditional requirements-setting and acquisition processes and instead implement a unique approach to managing its acquisitions. After completing studies in 2019, DOD revised those flexibilities in 2020 by making significant changes to MDA's requirements-setting and acquisition processes (see figure). Most notably, the Under Secretary of Defense for Acquisition and Sustainment, rather than the MDA Director, now determines whether major MDA programs may progress through the development phases.
2020 Department of Defense Changes to Missile Defense Acquisition Process
Most of the changes are consistent with GAO's identified acquisition best practices and align with changes GAO previously recommended. For example, MDA must now obtain independent cost estimates and Under Secretary of Defense approval of its acquisition strategies. The warfighter (military planners and weapon system operators) also now has greater requirements-setting responsibility. GAO previously recommended these actions to improve the likelihood of MDA delivering effective capabilities to the warfighter as promised.
However, DOD did not establish processes and products that would fully align missile defense capabilities in early development with operational-level warfighter requirements. Instead, DOD continues to rely on MDA to identify its own operational-level requirements, which could result in MDA later having to make costly, time-consuming design changes to meet warfighter needs.
GAO also found that DOD generally met the statutory requirements Congress established for changing missile defense non-standard acquisition processes and responsibilities by: (a) consulting with required DOD officials; (b) certifying this consultation occurred; (c) reporting the changes to Congress; and (d) generally waiting the required 120 days before implementing the changes. U.S. Strategic Command determined that it did not need to take these same actions on changes it made to requirements-setting processes. GAO also found that DOD generally met a statutory requirement to obtain an independent study on MDA's acquisition process and organizational placement within DOD. As required, DOD updated congressional defense committees on the scope of the study report and provided the report to congressional committees. However, DOD exceeded the statutorily mandated reporting deadline by 13 days.
Why GAO Did This Study
Since MDA was established in 2002, DOD has invested over $174 billion developing and fielding missile defense capabilities. MDA has used its acquisition flexibilities to quickly develop and field capabilities, but has also had setbacks. In 2020, DOD determined that modifications to MDA's acquisition flexibilities were needed to better balance risk.
Congress recently prohibited DOD from changing certain missile defense acquisition processes and responsibilities unless certain requirements were met. Congress also required DOD to enter into a contract for an independent study of MDA's acquisition process and organizational placement within DOD. The National Defense Authorization Act for Fiscal Year 2021 included a provision for GAO to assess whether DOD complied with these requirements. This report assesses the effects of recent changes DOD made to missile defense non-standard acquisition processes and responsibilities and whether, in doing so, it met the statutory requirements.
GAO reviewed DOD documents and policies issued in 2020 and interviewed DOD officials.
Recommendations
GAO recommends that DOD establish processes and products to align missile defense capabilities in early development with operational-level warfighter requirements. The Under Secretary of Defense for Research and Engineering did not agree with GAO's recommendations but various other DOD components, such as U.S. Strategic Command, agreed. GAO maintains the recommendations are valid, as discussed in this report.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Commander of U.S. Strategic Command should include in the next update to U.S. Strategic Command Instruction 538-03 a process for documenting and validating operational-level warfighter requirements in an initial requirements document. (Recommendation 1) |
Closed – Implemented
DOD did not concur, stating that the process we recommended was inconsistent with MDA's unique acquisition authorities and processes. However, we noted in our report that several DOD components agreed with our recommendation and that the Joint Staff was considering implementing a process that could potentially address our recommendation. After receiving a copy of our draft report in June 2021, the Vice Chairman of the Joint Chiefs of Staff issued a memorandum in November 2021, which established a capability portfolio management review process for missile defense. The process introduces several new changes, including the development of "foundational" and "dynamic" products that: (1) document initial missile defense capability requirements; and (2) are subject to warfighter validation via DOD's Joint Requirements Oversight Council. Under this new process, the council approved the first edition of the Joint Integrated Air and Missile Defense Portfolio Priority List in March 2023. Joint Staff officials told us that our November 2021 report coincided with and informed their efforts to establish the new process. We believe the new process addresses the intent of our recommendation.
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| Department of Defense | The Secretary of Defense should include in the next update to DOD Directive 5134.09 a requirement for MDA to perform analyses of alternatives for all major MDS programs using warfighter-validated initial requirements documents. (Recommendation 2) |
Open
DOD did not concur with our recommendation but stated that MDA would propose a change to DOD Directive 5134.09 (referred to as the MDA Charter) that would effectively implement our recommendation. DOD stated that MDA would propose the change as part of a broader update to the MDA Charter required by DOD Directive-Type Memorandum (DTM) 20-002. The deadline for updating the MDA Charter was originally August 21, 2020, but the deadline was subsequently extended to 2024. An official from the Office of the Under Secretary of Defense for Acquisition and Sustainment told us in April 2023 that efforts within DOD to update the MDA charter were ongoing and should be completed in 2024. We will continue to monitor the status of DOD's efforts to update the MDA Charter and whether the update includes provisions that would meet the intent of our recommendation.
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| Department of Defense | The Secretary of Defense should include in the next update to DOD Directive 5134.09 a requirement for the combatant commands and military services, in coordination with MDA, to produce for MDS programs: (1) initial Top Level Requirements Documents prior to starting technology development activities; and (2) Top Level Requirements Documents that are approved by the Missile Defense Executive Board prior to starting product development activities. (Recommendation 3) |
Open
DOD did not concur, stating that it would be premature to develop and coordinate a Top Level Requirements Document (TLRD) prior to a technology development decision. However, we noted in our report that several DOD components agreed with our recommendation. The Vice Chairman of the Joint Chiefs of Staff recently directed the establishment of a new missile defense capability requirements process that includes the production of initial requirements documents. Developing an initial TLRD or other similar product (e.g., draft Capability Development Document) prior to starting technology development, as we recommended, would help ensure MDS programs have a direct linkage to initial requirements established through the Joint Staff's new process. As such, we continue to maintain that DOD should implement our recommendation and will continue to monitor the department's efforts to update DOD Directive 5134.09, which remain ongoing as of August 2023 and are expected to be completed sometime in 2024.
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