DoD's $25.2M AgileSat contract for space situational awareness micro-satellite bus awarded to Blue Canyon Technologies

Contract Overview

Contract Amount: $25,244,994 ($25.2M)

Contractor: Blue Canyon Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-23

End Date: 2026-11-02

Contract Duration: 1,805 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACE SITUATIONAL AWARENESS (SSA) MICRO-SATELLITE BUS (AGILESAT)

Place of Performance

Location: LAFAYETTE, BOULDER County, COLORADO, 80026

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to BLUE CANYON TECHNOLOGIES LLC for work described as: SPACE SITUATIONAL AWARENESS (SSA) MICRO-SATELLITE BUS (AGILESAT) Key points: 1. Contract awarded for a micro-satellite bus supporting space situational awareness. 2. Research and Development focus aligns with advanced physical and engineering sciences. 3. Full and open competition suggests a potentially competitive bidding process. 4. Definitive contract type indicates a long-term agreement for services or supplies. 5. Cost Plus Fixed Fee pricing structure may incentivize contractor efficiency. 6. Contract duration of approximately five years allows for development and testing. 7. Small business set-aside was not utilized, indicating larger prime contractor involvement.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data for micro-satellite bus development. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not managed carefully. While the total award amount is $25.2 million, the actual final cost is subject to the contractor's performance and cost management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The Air Force's decision to use full and open competition indicates confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a wider pool of potential offerors and potentially lower prices due to market pressures.

Public Impact

The Department of Defense benefits from enhanced space situational awareness capabilities. The contract supports the development of advanced micro-satellite technology. This initiative contributes to national security by improving monitoring of space assets. The contract may stimulate innovation within the aerospace and defense sectors. Workforce implications include potential job creation in specialized engineering and manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher final costs if not rigorously monitored.
The specialized nature of micro-satellite development may limit the pool of experienced contractors.
Dependence on a single definitive contract for a critical capability requires careful performance management.

Positive Signals

Awarded under full and open competition, suggesting a robust market response.
Focus on micro-satellite technology aligns with current trends in space architecture.
The contract duration allows for thorough development and testing of the system.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for space situational awareness (SSA) technology is growing, driven by increasing concerns about space debris, satellite collisions, and potential threats to space assets. Micro-satellites represent a significant trend, offering potentially lower costs and faster deployment compared to traditional larger satellites. Comparable spending in this niche R&D area can vary widely based on technological complexity and program scope.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contractor, Blue Canyon Technologies, is likely a larger entity or is expected to perform the majority of the work. The absence of a small business set-aside may limit direct opportunities for smaller firms to participate as prime contractors on this specific award, though they could potentially be involved as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Mechanisms would include contract performance reviews, financial audits, and technical milestone assessments. Transparency is typically maintained through contract reporting requirements and potential public releases of non-sensitive information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Situational Awareness Programs
Satellite Development Contracts
Department of Defense Research and Development
Micro-satellite Technology Initiatives
Aerospace Engineering Services

Risk Flags

Cost Overrun Potential (CPFF)
Technical Complexity Risk
Schedule Delay Risk
Space Environment Reliability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to BLUE CANYON TECHNOLOGIES LLC. SPACE SITUATIONAL AWARENESS (SSA) MICRO-SATELLITE BUS (AGILESAT)

Who is the contractor on this award?

The obligated recipient is BLUE CANYON TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2021-11-23. End: 2026-11-02.

What is the track record of Blue Canyon Technologies in developing and delivering micro-satellite systems for government clients?

Blue Canyon Technologies, now a subsidiary of RTX, has established a significant presence in the micro-satellite market. They are known for developing and manufacturing small satellite platforms, often referred to as CubeSats and other small form factors. The company has a history of delivering satellites for various commercial and government applications, including Earth observation and technology demonstrations. Their expertise lies in providing integrated satellite solutions, from bus design to payload integration and ground operations. For government clients, particularly within the defense and intelligence communities, Blue Canyon's track record involves providing reliable and cost-effective small satellite solutions that meet specific mission requirements. Their acquisition by RTX further solidifies their capabilities and potential for larger-scale government contracts.

How does the $25.2 million award compare to other R&D contracts for similar micro-satellite bus development?

Comparing the $25.2 million award for the AgileSat micro-satellite bus to other R&D contracts is complex due to the highly specialized nature of this field and the variability in contract scope. However, this figure appears to be within a reasonable range for the development of a sophisticated micro-satellite bus, especially considering it's a definitive contract with a duration of nearly five years. R&D contracts for satellite development can range from tens of millions to hundreds of millions of dollars, depending on factors such as the satellite's size, complexity, payload requirements, and the level of technological innovation involved. Contracts focused solely on bus development, without extensive payload integration or large constellations, might fall within this mid-range. The Cost Plus Fixed Fee (CPFF) structure also influences the perceived value, as the final cost can fluctuate.

What are the primary risks associated with the development of micro-satellite buses for space situational awareness?

The primary risks associated with developing micro-satellite buses for space situational awareness (SSA) are multifaceted. Technical risks include the miniaturization of complex systems, ensuring reliability and longevity in the harsh space environment (radiation, thermal extremes, vacuum), and achieving the required pointing accuracy and sensor integration for effective SSA. Programmatic risks involve potential cost overruns, especially with Cost Plus Fixed Fee contracts, schedule delays due to supply chain issues or technical challenges, and the inherent uncertainties in R&D. Operational risks include the potential for launch failures, on-orbit anomalies, and the need for robust ground control and data processing infrastructure. Furthermore, the rapidly evolving threat landscape and the increasing number of space objects necessitate continuous technological advancement, posing a risk of obsolescence.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for R&D projects like this micro-satellite bus?

The Cost Plus Fixed Fee (CPFF) contract type is often used for Research and Development (R&D) projects when the scope of work is not precisely defined, or when there is significant uncertainty about the costs involved. For the AgileSat micro-satellite bus development, CPFF allows the contractor to incur costs deemed necessary for the work and receive a predetermined fixed fee upon successful completion. This structure can incentivize contractors to undertake innovative but potentially risky R&D efforts that might not be feasible under fixed-price contracts. However, it also shifts much of the cost risk to the government. Effectiveness hinges on robust government oversight to ensure costs are reasonable and allocable, and that the fixed fee adequately compensates the contractor without being excessive. Without strong oversight, CPFF contracts can lead to cost growth beyond initial estimates.

What is the historical spending trend for Space Situational Awareness (SSA) related R&D contracts within the Department of Defense?

Historical spending trends for Space Situational Awareness (SSA) related R&D contracts within the Department of Defense have generally shown an increasing trajectory over the past decade. This growth is driven by several factors, including the proliferation of satellites (both commercial and governmental), the increasing concern over space debris, and the recognition of space as a critical domain for national security. The DoD has consistently invested in technologies and systems to monitor, track, and identify objects in orbit, as well as to protect its own space assets. This includes funding for ground-based sensors, space-based sensors, data processing algorithms, and advanced satellite technologies like micro-satellites. While specific figures fluctuate annually based on budgetary priorities and program lifecycles, the overall emphasis on enhancing SSA capabilities indicates a sustained and often growing investment in this area.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2550 CRESCENT DR, LAFAYETTE, CO, 80026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,244,994

Exercised Options: $25,244,994

Current Obligation: $25,244,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline