Risk of spacecraft on-orbit obsolescence: Novel framework, stochastic modeling, and implications

The Government Accountability Office (GAO) has repeatedly noted the difficulties encountered by the Department of Defense (DOD) in keeping its acquisition of space systems on schedule and within budget. Among the recommendations provided by GAO, a minimum Technology Readiness Level (TRL) for technologies to be included in the development of a space system is advised. The DOD considers this recommendation impractical arguing that if space systems were designed with only mature technologies (high TRL), they would likely become obsolete on-orbit fairly quickly. The risk of on-orbit obsolescence is a key argument in the DOD's position for dipping into low technology maturity for space acquisition programs, but this policy unfortunately often results in the cost growth and schedule slippage criticized by the GAO. The concept of risk of on-orbit obsolescence has remained qualitative to date. In this paper, we formulate a theory of risk of on-orbit obsolescence by building on the traditional notion of obsolescence and adapting it to the specificities of space systems. We develop a stochastic model for quantifying and analyzing the risk of on-orbit obsolescence, and we assess, in its light, the appropriateness of DOD's rationale for maintaining low TRL technologies in its acquisition of space assets as a strategy for mitigating on-orbit obsolescence. Our model and results contribute one step towards the resolution of the conceptual stalemate on this matter between the DOD and the GAO, and we hope will inspire academics to further investigate the risk of on-orbit obsolescence.