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Funding for SDA’s next missile tracking contracts diverted to troop payments: Sources – Breaking Defense

WASHINGTON

The

Space
Development
Agency’s

plan
to
award
new
contracts
this
month
for
its
next
set
of

missile
warning/missile
tracking

satellites
is
in
limbo,
having
fallen
victim
to
the
Pentagon’s
wave
of
fiscal
2025
budget
“clawbacks”
being
used
to
pay
troops
during
the
ongoing

government
shutdown
,
according
to
government
and
industry
sources.

“We
were
supposed
to
hear
by
Thanksgiving
who
wins,”
one
industry
representative
told
Breaking
Defense.
“When
the
funding
will
be
authorized,
given
the
shutdown
and
all
the
fun
there,
is
a
question
mark.”

The
Pentagon

announced
last
month

that
it
planned
to
pull
$8
billion
from
“unobligated”
research
and
development
coffers
in
order
to
pay
troops
during
the
shutdown,
but
since
then,
little
has
been
revealed
about
what
specific
programs
are
feeling
the
pinch.

“It’s
so
much
[money],
it’s
basically
everything,”
one
congressional
aide
said.

As
for
the
the
tracking
satellites,
according
to
the
SDA’s

April
solicitation
,
three
winners
are
to
be
chosen
to
each
provide
18
satellites
(54
total)
for
the
Tranche
3
Tracking
Layer
constellation

part
of
a
larger
planned
network
of
hundreds
of
satellites
in
low
Earth
orbit
(LEO)
to
track
not
just
ballistic
but
also
hypersonic
cruise
missiles.

Tranche
3
would
expand
on
the
capabilities
being
provided
by
earlier
design
iterations
under
Tranche
1
and
Tranche
2,
and
provide
global
surveillance
of
missile
launches
using
infrared
sensors.

Spokespeople
for
the
Defense
Department
and
Space
Development
Agency
did
not
respond
to
requests
for
comment
Friday.

According
to
the
Space
Force’s

FY26
budget
submission
,
the
agency
originally
was
slated
to
make
awards
worth
$237
million
for
the
Tranche
3
Tracking
Layer
in
October
using
FY25
funds.
In
December,
it
was
to
make
another
round
of
awards
worth
$536
million
using
FY26
funds.

However,
a
second
industry
source
said
that
SDA
has
taken
a
total
hit
of
$700
million
in
the
clawback

noting
that
some
planned
Tranche
2
Tracking
Layer
“milestones”
also
are
likely
to
be
delayed.
Between
October
and
December,
about
$357
million
was
slated
to
go
to
such
payments,
the
source
added.

While
it
is
unclear
at
the
moment
when
the
shutdown
will
end

and
even
less
clear
how

funds
for
FY26

finally
will
make
their
way
into
the
Pentagon’s
coffers
as
Congress
continues
to
battle
over
the
budget

one
government
source
with
acquisition
expertise
explained
that
the
DoD
plan
is
to
pay
back
the
RDT&E
funds
borrowed
from
most,
if
perhaps
not
all,
programs.

That
includes
the
Tranche
3
Tracking
Layer,
the
source
said,
because
missile
warning/tracking
from
LEO
is
considered
a
key
enabler
for
President
Donald
Trump’s

Golden
Dome

initiative
designed
to
develop
a
comprehensive
missile
defense
shield
over
the
US
homeland.
The
first
industry
source
agreed.

“There’s
a
hefty
amount
of
money
for
Tracking
Tranche
3

it’s
actually
going
to
be
the
largest

and
probably
with
an
immense
focus
on
fire
control,
which
supports
Golden
Dome
more
so
than
than
just
missile
warning/missile
tracking.
That
actually
is
the
strategic
piece,”
the
source
said.

SDA’s

January
2024
contracts

for
the
previous
Tranche
2
Tracking
Layer
included
the
development
of
six
first-iteration
fire
control
satellites,
which
will
carry
sensors
precise
enough
to
convey
targeting
coordinates
for
interceptors.
Under
those
contracts,
worth
a
total
of
more
than
$2.5
billion,
L3Harris
Technologies
will
receive
$919
million,
Lockheed
Martin
$890
million
and
Sierra
Space
$740
million
to
each
deliver
and
operate
18
space
vehicles,
including
two
kitted
out
for
fire
control.
Those
birds
currently
are
slated
to
be
launched
no
later
than
April
2027.


Valerie
Insinna
contributed
to
this
report.