The production of large quantities of spacecraft needed by SDIO will require a cultural change in design and production practices. Low rates production and the need for exceedingly high reliability has driven the industry to custom designed, hand crafted, and exhaustively tested satellites. These factors have mitigated against employing design and manufacturing cost reduction methods commonly used in tactical missile production. Additional challenges to achieving production efficiencies are presented by the SDI spacecraft mission requirement. IR sensor systems, for example, are comprised of subassemblies and components that require the design, manufacture, and maintenance of ultra precision tolerances over challenging operational lifetimes. These IR sensors demand the use of reliable, closed loop, cryogenic refrigerators or active cryocoolers to meet stringent system acquisition and pointing requirements. The authors summarize some spacecraft cryocooler requirements and discuss observations regarding Industry`s current production capabilities of cryocoolers. The results of the Lawrence Livermore National Laboratory (LLNL) Spacecraft Fabrication and Test (SF and T) MODIL`s Phase I producibility demonstration project is presented.