Capitalism in space: The U.S. Army has now successfully completed a one-year pilot program whereby it purchased the use of commercial communications satellites from both Intelsat and SES, rather than attempt to build and launch its own satellites.

Under the pilot, the Army selected satellite operators Intelsat and SES to provide “satcom as a managed service,” a model where the provider handles all satellite communications functions — from setup and maintenance of equipment to network management and technical support — through a subscription-based contract.

The project, officially completed on Sept. 30, is now raising questions about whether the Department of Defense will expand its reliance on commercial satcom providers for long-term military communications needs. David Broadbent, president of Intelsat’s Government Solutions, said that while the pilot program demonstrated the efficiency of managed services, it is still uncertain if the Army will fully embrace this model for future satellite communications (satcom) procurement.

It appears that the Pentagon’s bureaucracy is uncomfortable with the idea, and is resisting expanding the program beyond this one test. For decades the military has designed, built, owned, and operated its own satellites. That approach has created a very large job-base within the military that feels threatened by the idea of out-sourcing this work to the private sector. That approach however has also in the last two decades done a poor job of providing the Pentagon the communications satellites it needs on time and on budget.

Whether the Pentagon will change to this new approach, as NASA mostly has, will likely hinge on who wins the election in November. A Harris administration will likely provide little guidance one way or the other, but will also likely take the side of the bureaucrats in power now. A Trump administration is much more likely to force a change.