Figure 1  shows the phases of DOD’s acquisition process. The program was  subsequently designated the MQ-25. That system, referred to as the  Unmanned Carrier Launched Airborne Surveillance and Strike (UCLASS)  system was to have the potential to operate in highly contested  environments. Under the MQ-25 program, the Navy is now focused on developing and  fielding an unmanned tanker capable of operating from the carrier, in a  permissive environment, to refuel other naval aircraft and provide only  limited ISR capability. The MQ-25 system will consist of three segments: an aircraft segment; a  control system and connectivity segment (CS&C); and an aircraft carrier  segment (see figure 2). The  aircraft carrier segment is to make modifications to upgrade the existing  carrier infrastructure to support unmanned aircraft systems. These three  segments will be managed and integrated by the Navy’s Unmanned  Carrier Aviation program office, acting as a Lead Systems Integrator. Between fiscal years 2017 and 2022, the Navy has budgeted almost $2.5  billion to continue development of the MQ-25 carrier and control  segments and to begin development of the aircraft segment. MQ-25 Requirements Have Been Validated

In July 2017, the Joint Requirements Oversight Council (JROC) validated  system requirements for the MQ-25. The Navy has two primary  requirements, known as key performance parameters. Those  requirements are: (1) carrier suitability and (2) air refueling. The Navy refined the carrier  suitability requirement to focus more clearly on the MQ-25’s basic ability  to operate on and from the aircraft carrier. While the Navy is still developing, refining, and  finalizing most of the acquisition documentation that will make up its  program business case, our review of its acquisition strategy and other  available documentation showed that they reflect key aspects of a  knowledge-based approach and generally align with what we have found  to be product-development best practices:
Using open systems standards and an evolutionary approach:  The Navy is planning to use open systems standards and an  evolutionary development approach to develop, fly, and deploy the  MQ-25 over time. Using knowledge-based criteria to assess progress and inform  key decisions: The Navy has established knowledge-based criteria  for seven key points during MQ-25 aircraft development. Constraining development schedule: According to the Navy’s  acquisition strategy, the MQ-25 aircraft is expected to take 6 to 8  years from the start of product development (i.e., Milestone B) to the  fielding of an initial operational capability. The Navy plans to issue a request for proposals to the  four competing contractors in October 2017 and award the contract to  one of those four contractors the following year. With the Milestone B  review scheduled in the summer of 2018, the ultimate success of the MQ- 25 program largely depends on the Navy’s ability to present an  executable business case and then effectively implement its planned  approach. Agency Comments

We are not making recommendations in this report. We provided DOD  with a copy of this report and they returned technical comments, which  we incorporated as appropriate.
Why GAO Did This Study

The Navy expects to invest almost $2.5 billion through fiscal year 2022 in the development of an unmanned aerial refueling system referred to as the MQ-25 . The MQ-25 is the result of a restructure of the former Unmanned Carrier-Launched Airborne Surveillance and Strike system. The program is expected to deliver an unmanned aircraft system that operates from aircraft carriers and provides aerial refueling to other Navy aircraft and intelligence, surveillance, and reconnaissance capabilities. The Navy plans to release a request for proposals for air system development by October 2017 and award a development contract one year later.
A House Armed Services Committee report on a bill for the National Defense Authorization Act for Fiscal Year 2017 contained a provision for GAO to review the status of the MQ-25 program. This report assesses the extent to which the MQ-25's acquisition strategy is (1) rooted in validated requirements and (2) structured to follow a knowledge-based acquisition process.
To do this work, GAO reviewed the Navy's requirements documentation, acquisition strategy, and other relevant documents and compared them with acquisition statutes, Department of Defense acquisition policy, and previous GAO reports and best practices. GAO also discussed the MQ-25 requirements and acquisition strategy with the Navy program office and other cognizant officials.

What GAO Found

The MQ-25 requirements have been validated by DOD's Joint Requirements Oversight Council. The Navy has identified two primary requirements: carrier suitability, which means the ability to operate on and from the Navy's aircraft carriers; and air refueling, which is the ability to provide fuel to other carrier-based assets while in flight. While the MQ-25 system is also expected to possess intelligence, surveillance and reconnaissance capabilities; those capabilities are not considered primary requirements. According to the program's acquisition strategy, the MQ-25 system will consist of three segments: the Air segment; a control and connectivity segment, which will interface with existing command and control systems; and an aircraft carrier segment, which will make modifications to upgrade existing carrier infrastructure. These three segments will be managed and integrated by the Navy's Unmanned Carrier Aviation program office, acting as a Lead Systems Integrator (see figure below).
The Navy has established a knowledge-based approach for acquiring the MQ-25 aircraft. For example, the Navy plans to take an incremental approach to develop and evolve the MQ-25 over time. Further, the Navy expects to use knowledge-based criteria to assess progress at key decision points during development, and to use only technologies with high levels of maturity. With the Milestone B review scheduled in the summer of 2018—signaling the beginning of development—the ultimate success of the MQ-25 program depends heavily on the Navy's ability to present an executable business case and then effectively implement its planned approach.

What GAO Recommends

GAO is not making recommendations. DOD's technical comments are incorporated in this report.