Uncertainty mounts at Space Development Agency as Air Force IG prepares probe

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The Air Force will send an inspection team to Space Development Agency facilities to comb through records and interview employees, according to a memo obtained by Defense One, amid growing concerns over the future of the Pentagon’s space-acquisition “constructive disruptor.”

The Feb. 11 memo, signed by Air Force Inspector General Lt. Gen. Stephen Davis, said there will be an onsite inspection of the Space Development Agency from March 10 to 14, and will use “data, surveys, interviews, and applicable directives to conduct the inspection.” The team will require “full access” to SDA “records, facilities, and all employees” and will conduct “group sensing sessions” as part of the inspection, according to the memo. (SDA is headquartered at the Pentagon and also has facilities in Chantilly, Virginia; Colorado Springs, Colorado; Los Angeles, and elsewhere.)

The inspection notice follows weeks of turmoil at the agency after SDA director Derek Tournear was placed on “investigative administrative leave.” Tournear was replaced on Jan. 16 in an acting capacity by Lt. Gen. Philip Garrant, who leads Space Systems Command. Less than three weeks later, Garrant himself was replaced as temporary SDA chief by William Blauser, a longtime acquisition official currently serving as deputy director of the Air Force’s rapid capabilities office. 

The unexpected changes and inspection notice has created much uncertainty at the agency as employees fear for SDA’s survival as an independent unit, multiple sources say.

In late January, Pentagon acting acquisition executive Steven Morani ordered the Air Force to form an independent review team to assess whether SDA’s organizational performance and acquisition approach for its Proliferated Warfighter Space Architecture is meeting “warfighter requirements.” Defense One obtained a copy of the Jan. 31 memo, which was first reported by Breaking Defense.

The memo also directs the team to analyze “the efficacy of the SDA’s organizational staffing, structure, processes, and direct reporting unit within the U.S. Space Force”—calling into question SDA’s future independence. Currently, SDA operates as its own entity within the Space Force, separately from the main acquisition arm Space Systems Command.

Ultimately, the incoming civilian leaders will determine what happens to the agency. 

The shakeup could also delay the launch of SDA’s Tranche 1 satellites, as it will take time for new leaders to get up to speed and make key decisions on T1, multiple sources said. Those satellites, which will operate in a planned network of hundreds of communications satellites in low-Earth orbit, have already been delayed until this spring by supply-chain problems. 

In a statement, an SDA spokesperson said the agency doesn’t have a specific update for the launch of Tranche 1, but said the team “remains focused on the mission to deliver space-based capabilities to the warfighter. We understand the importance of this mission and will continue to apply speed and discipline to deliver next-generation capabilities like missile defense and enhanced global kill chains.”

“Mr. Blauser is honored to be assigned to act as director at SDA to move the mission forward during this season. His intent is to lead the agency to rapidly deliver capabilities leveraging SDA’s unique business model and culture,” the spokesperson said. 

The five-year-old SDA has been hailed for its efforts to accelerate the Pentagon’s ability to develop, buy, and launch satellites. But other members of the space community have said SDA might be unwisely sacrificing operational capability for sheer speed.

Frank Calvelli, former Air Force space acquisition chief, has been a longtime supporter of SDA. But in an exit interview last month, Calvelli said the agency’s acquisition approach might need to be reassessed if Tranche 1 doesn’t pan out as expected. 

“It doesn’t matter how fast we build them if no one uses them,” Calvelli said.

Tournear was placed on leave after he allegedly evaded proper contracting processes in last August’s award of a $424 million satellite-building contract to York Space Systems and Tyvak, Breaking Defense first reported and Defense One has confirmed. A losing bidder, Viasat, protested, alleging that SDA gave unfair help to the winner.

The timing of the announcement, which was just before the new administration took over, has raised questions about whether the move was politically motivated. The situation has caught the attention of lawmakers such as Sen. Kevin Cramer, R-N.D., who has been a vocal supporter of SDA’s work.

The timing of Tournear being placed on leave looks “very fishy,” Cramer told Defense One. “We cannot afford to go slower, and Derek is one of these guys that’s always gone fast. He's been creative. He understands that the pace of things almost matters as much as the quality of things, frankly,” he said. 

Tournear’s approach to the PWSA, dubbed spiral development, intentionally aims to buy low-cost systems that can be bought and iterated upon quickly and affordably, so warfighters can have the newest tech.  

Tournear has been vocal about this approach, blasting critics in the Pentagon who don’t like his “bad cop” attitude.

“Although it’s not a role I relish, I cannot stand by and watch wasteful, thoughtless procedures that will only benefit our enemies by delaying delivery to the warfighter. Calling that out won't always make friends, but it will make our nation stronger,” Tournear said in a 2023 LinkedIn post. 

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