USSTRATCOM Cyber & Space 2011 Walter Scott

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Session Ten: Space Industry Panel - Walter Scott

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USSTRATCOM Cyber & Space 2011 Walter Scott

  1. 1. Service Level AgreementsA New Acquisition Model for a BudgetConstrained EraImage: Iran | July 5, 2011 | 50cm
  2. 2. Service Level Agreement (SLA)• Vendor provides infrastructure and operations to deliver a service• Customer makes stable, multi-year commitment to acquire the service
  3. 3. Consumer Electronics
  4. 4. Dedicated Manufacturing
  5. 5. SLA Manufacturing • Seasonal demand • Can repurpose excess capacity • Can surge if needed
  6. 6. EnhancedView (EV) SLA QuickBird• NGA contract to acquire WorldView-2 unclassified, shareable imagery WorldView-1• 10 yr term, monthly fee• Priority access to 5-satellite On-orbit 0.6m GSD imaging constellation for much On-orbit less than cost of ownership On-orbit 0.46m GSD 0.5m GSD• Guaranteed capacity, accuracy, WorldView-3 WorldView-4 timeliness, availability• Includes hosting and delivery• Continuous improvement in capacity, # sats, resolution, 2014 2018 timelines, etc 0.3m GSD <=0.3m GSD• Firm fixed price, low cost risk
  7. 7. DigitalGlobe Satellite Acquisitions Schedule Growth (Percent) 160% 140% 120% 100% 80% 60% 40% 20% 0% -200% 0% 200% 400% 600% 800% Cost Growth (Percent)
  8. 8. DigitalGlobe Satellite Acquisitions Schedule Growth (Percent) 160% 140% 120% 100% 80% 60% WorldView-1 40% QuickBird, WorldView-2 20% 0% -200% 0% 200% 400% 600% 800% Cost Growth (Percent) (All cost growth has been absorbed entirely by DigitalGlobe; none was passed on to the USG)
  9. 9. SLAs Enable This Performance• Stable requirements• Stable funding• Stable, experienced staffing• Managed innovation• Eating our own cooking
  10. 10. Why Are SLAs Better? Traditional Acquisition SLA Acquisition• You buy the car • You sign up for an SLA• You drive the car • We drive the car• You pay for gas • We pay for gas • We fix the car if it breaks• You fix the car if it breaks • We add a better car every few years• You buy a new car every few years • When your relatives visit, we provide extra cars for their use • And it all costs less than ownership
  11. 11. SLAs Most Applicable When• Up-front investment is needed to create required infrastructure• Activity requires development and operations• Long term, (mostly) predictable needs• Bleeding edge technology not required – SLA does allow for technology insertion• There are multiple customers across whom to spread costs, and enabling surge capacity
  12. 12. SLA Model is Applicable To Imagery Geospatial production • & Analysis?• Telecommunications• Launch• Weather?• Cyber?

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