SDA Urges Contractors to Diversify Satellite Supply Chain

The Space Development Agency (SDA) has urged its primary contractors to secure secondary and tertiary suppliers for key satellite components, aiming to mitigate supply chain shortfalls that could disrupt its aggressive schedule for deploying a new, proliferated architecture in low-Earth orbit (LEO). This initiative follows concerns about contractors' dependence on single sources for critical subsystems.

Colonel Alexander Rasmussen, chief of SDA’s Tracking Layer program, highlighted the agency's proactive discussions with its major vendors to "diversify the supplier base" as much as possible. These discussions were spurred by the realization that contractors were overly reliant on single sources for essential subsystems.

SDA, operating under the U.S. Space Force, plans to invest approximately $4 billion annually in a proliferated constellation comprising hundreds of small satellites, deployed on a regular cadence. The agency's strategy involves ordering satellites from multiple vendors and ensuring their interoperability through optical links.

However, this approach has resulted in supply chain bottlenecks, delaying the deployment of SDA’s initial batch of satellites, known as Tranche 0. Ongoing concerns about limited manufacturing capacity among suppliers persist, raising questions about scaling up production.

“We’re not going to do a milestone and then order some parts and then another milestone. We have to have pretty mature designs at kickoff, and start ordering those long-lead items really early to make sure we understand if there is enough supply chain diversity,” - Colonel Alexander Rasmussen, Chief of SDA’s Tracking Layer Program

During the Tranche 0 program, the agency discovered that multiple prime contractors were dependent on the same vendor for certain components, such as encryption systems. Additionally, some were sourcing propulsion systems from vendors facing financial difficulties and unable to meet demand.

These supply chain vulnerabilities prompted a reevaluation within the agency. SDA is "open to new suppliers and sub-tier suppliers," with a preference for U.S. suppliers whenever possible.

The upcoming milestone will be the Tranche 1 deliveries, closely monitored by the industry and the Pentagon. SDA anticipates Tranche 1 launches to occur later this year and into early 2025, serving as a crucial indicator of whether the agency can execute its proliferated LEO strategy as planned.

SDA recently announced a new prototyping program aimed at widening its industrial base. The “Hybrid Acquisition for Proliferated LEO” (HALO) program represents an effort to provide non-traditional companies with opportunities to work on demonstration projects, signaling a move to cultivate more diverse suppliers.

As SDA continues to navigate supply chain challenges, its efforts to diversify suppliers and encourage new industry players will be pivotal in achieving its ambitious satellite deployment goals.