Summary: Originally designed to relay messages during global nuclear war, the costly Milstar satellite system could be scaled back to save more than $2 billion. Both Milstar and the Defense Support System (DSP), meant to detect ballistic missile launches, are products of the Cold War and need to be adapted to tactical warfare in regional conflicts. The Pentagon's decision to scrap the most recent DSP follow-on program and start anew provides an opportunity to fully assess the need for early missile warning information. The Defense Department's (DOD) plans to replace DSP with Alert, Locate, and Report Missiles (ALARM) requires a comprehensive analysis that includes (1) reviewing and validating operational requirements, (2) selecting the most cost-effective alternative from plausible candidate systems, (3) ensuring that the system selected is affordable, (4) demonstrating that the transition from DSP to ALARM will avoid coverage gaps, and (5) evaluating the launch vehicle implications for DSP. Regarding Milstar, GAO believes that DOD could save more than $2 billion if it opted not to acquire the last two satellites under the current plan. This decision would require the accelerated development of an enhanced Milstar that is smaller, lighter, cheaper, and capable of being launched on a smaller vehicle than the Titan IV. This accelerated development would entail some additional investment in the short run.
