DoD's $7.19M R&D contract with Urban Sky Theory Inc. for advanced aerial systems
Contract Overview
Contract Amount: $7,187,500 ($7.2M)
Contractor: Urban SKY Theory Inc
Awarding Agency: Department of Defense
Start Date: 2025-08-15
End Date: 2029-06-22
Contract Duration: 1,407 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: STRATFI URBAN SKY THEORY MHAB
Place of Performance
Location: DENVER, DENVER County, COLORADO, 80216
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $7.2 million to URBAN SKY THEORY INC for work described as: STRATFI URBAN SKY THEORY MHAB Key points: 1. Contract awarded for research and development in physical and engineering sciences. 2. Focus on advanced aerial systems development, potentially impacting future defense capabilities. 3. Firm Fixed Price contract type suggests defined scope and cost control. 4. Long performance period of over three years indicates a complex, multi-phase project. 5. Awarded by the Department of the Air Force, aligning with strategic aviation priorities. 6. Contractor has a single award, suggesting a focused engagement on this project.
Value Assessment
Rating: fair
The contract value of $7.19 million for a definitive contract over nearly four years appears reasonable for specialized R&D. Benchmarking against similar advanced aerial system development contracts is challenging due to the niche nature of the technology. However, the firm fixed-price structure provides cost certainty for the government, mitigating some risk of cost overruns typical in R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, specific sources were excluded, potentially due to unique capabilities or prior relationships. The exact number of bidders is not specified, but the exclusion of sources suggests a limited competitive pool, which could impact price negotiation.
Taxpayer Impact: A limited competitive pool may result in less downward pressure on pricing compared to full and open competition, potentially leading to higher costs for taxpayers.
Public Impact
The primary beneficiary is the Department of the Air Force, which will receive advanced aerial system technologies. This contract supports innovation in aerospace engineering and defense technology. The project is geographically located in Colorado, potentially creating local economic and workforce impacts. Successful development could lead to enhanced surveillance, reconnaissance, or operational capabilities for the Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have restricted the government's ability to secure the most cost-effective solution.
- The specific nature of 'advanced aerial systems' could involve proprietary technology, limiting broader application or understanding.
- Long contract duration increases the risk of scope creep or evolving technological requirements.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Award to a single entity (Urban Sky Theory Inc.) suggests specialized expertise relevant to the project's needs.
- The project falls under R&D, indicating investment in future technological advancements.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The market for advanced aerial systems is highly specialized, driven by defense and aerospace innovation. Comparable spending benchmarks are difficult to establish without more specific details on the technology, but R&D contracts in this domain often represent significant investments in cutting-edge capabilities.
Small Business Impact
The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this award. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular contract's structure.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm fixed-price structure and the definitive contract terms. Transparency is facilitated through contract award databases, though specific technical details of the R&D may be sensitive.
Related Government Programs
- Advanced Aerial Systems Research
- Aerospace Technology Development
- Department of Defense Research and Development Programs
- Air Force Science and Technology Investments
Risk Flags
- Limited competition may impact value for money.
- Long contract duration increases risk exposure.
- R&D inherently carries technical uncertainty.
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, firm-fixed-price, limited-competition, advanced-aerial-systems, colorado, physical-engineering-life-sciences, non-small-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.2 million to URBAN SKY THEORY INC. STRATFI URBAN SKY THEORY MHAB
Who is the contractor on this award?
The obligated recipient is URBAN SKY THEORY INC.
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 $7.2 million.
What is the period of performance?
Start: 2025-08-15. End: 2029-06-22.
What is the specific technological focus of Urban Sky Theory Inc. within advanced aerial systems?
The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' with the North American Industry Classification System (NAICS) code 541715. The contract description mentions 'STRATFI URBAN SKY THEORY MHAB'. While 'STRATFI' might refer to a specific program or initiative, and 'MHAB' could be an acronym for a system or technology, the precise technological focus of Urban Sky Theory Inc. within advanced aerial systems is not detailed in the provided summary. Further investigation into the contract's statement of work or related program documentation would be necessary to ascertain the specific R&D objectives, such as drone technology, hypersonic vehicles, or novel propulsion systems.
How does the $7.19 million contract value compare to similar R&D efforts in advanced aerial systems?
Directly comparing the $7.19 million contract value to similar R&D efforts in advanced aerial systems is challenging without more specific details about the technology being developed. The market for advanced aerial systems is highly specialized, with R&D costs varying significantly based on complexity, maturity, and intended application. However, for a multi-year R&D project involving novel technology development, $7.19 million represents a moderate investment. Larger programs for developing fully operational systems can run into hundreds of millions or billions of dollars. This contract likely focuses on a specific research phase or component development, making its value context-dependent within a larger potential program.
What are the primary risks associated with this firm fixed-price definitive contract for R&D?
The primary risks associated with this firm fixed-price definitive contract for R&D include potential scope creep if requirements are not clearly defined and managed, and the risk that the contractor may cut corners to maintain profitability under the fixed price, potentially impacting quality or innovation. For R&D, there's also the inherent risk of technical failure – the research may not yield the desired results, even with diligent effort. The 'limited' competition aspect could also pose a risk if the chosen contractor lacks the most innovative or cost-effective approach compared to a broader field of competitors. The long duration (1407 days) increases the exposure to evolving technological landscapes and potential obsolescence.
What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the procurement process?
The designation 'Full and Open Competition After Exclusion of Sources' implies that the solicitation was initially intended for broad competition, but specific sources were subsequently excluded from consideration. This typically occurs when a contracting officer determines that only a limited number of responsible sources can provide the required supplies or services, often due to unique capabilities, proprietary data, or specific technical requirements. While it starts with an intent for broad competition, the exclusion narrows the field, suggesting that Urban Sky Theory Inc. was either one of a few qualified entities or the only one meeting specific, potentially restrictive, criteria. This can impact the level of price competition achieved.
What is the historical spending pattern for Urban Sky Theory Inc. with the Department of Defense?
Based on the provided data, Urban Sky Theory Inc. has received a single award from the Department of Defense for this specific contract. There is no information available in the summary regarding historical spending patterns or previous contracts awarded to this entity by the DoD. This suggests that this contract may be a new engagement or that prior engagements were not captured in the provided dataset. Further research into federal procurement databases would be required to establish a comprehensive history of their dealings with the DoD.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: TWO STEP
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4800 RACE ST, DENVER, CO, 80216
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,000,000
Exercised Options: $15,000,000
Current Obligation: $7,187,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-08-15
Current End Date: 2029-06-22
Potential End Date: 2029-06-22 00:00:00
Last Modified: 2026-02-13
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