DoD awards $22M contract to Apex Technology for multi-mission satellites, highlighting space domain awareness capabilities

Contract Overview

Contract Amount: $22,000,000 ($22.0M)

Contractor: Apex Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-13

End Date: 2029-01-12

Contract Duration: 1,429 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SBIR PHASE II STRATFI TO APEX TECHNOLOGY, INC FOR MULTI-MISSION SATELLITES FOR LEO AND GEO DYNAMIC SPACE OPERATIONS

Place of Performance

Location: CULVER CITY, LOS ANGELES County, CALIFORNIA, 90230

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to APEX TECHNOLOGY, INC. for work described as: SBIR PHASE II STRATFI TO APEX TECHNOLOGY, INC FOR MULTI-MISSION SATELLITES FOR LEO AND GEO DYNAMIC SPACE OPERATIONS Key points: 1. Contract value of $22 million for multi-mission satellites suggests a significant investment in advanced space capabilities. 2. The definitive contract type indicates a long-term agreement for ongoing services or supplies. 3. Fixed-price contract structure shifts performance risk to the contractor, potentially stabilizing costs. 4. The contract's focus on LEO and GEO dynamic space operations points to critical national security needs. 5. Apex Technology, Inc. is positioned to deliver specialized hardware and software for space missions. 6. The exclusion of sources clause in an otherwise full and open competition warrants further investigation into the rationale.

Value Assessment

Rating: good

The $22 million contract value for multi-mission satellites appears reasonable given the specialized nature of space technology and the extended performance period of nearly four years. Benchmarking against similar contracts for satellite development and deployment is challenging due to the unique specifications of LEO and GEO dynamic operations. However, the firm fixed-price structure suggests that cost control is a primary objective, and the contractor bears the financial risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the initial phase was open, a specific exclusion of sources was applied, suggesting that only certain qualified entities were considered or that a waiver was granted. The number of bidders is not specified, but the exclusion clause implies a narrowed field, potentially impacting the full breadth of competitive pricing.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, may limit the potential for the most competitive pricing by restricting the pool of eligible offerors. Taxpayers benefit from competition, and any limitations on this process could lead to higher costs than if all potential sources were considered.

Public Impact

The Department of Defense, specifically the Air Force, is the primary beneficiary, enhancing its capabilities in space domain awareness and operations. The contract will deliver advanced multi-mission satellites designed for dynamic operations in both Low Earth Orbit (LEO) and Geosynchronous Equatorial Orbit (GEO). The geographic impact is global, as space-based assets provide persistent surveillance and communication capabilities worldwide. This contract supports a highly specialized segment of the aerospace workforce, requiring expertise in satellite design, manufacturing, and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires scrutiny to ensure it was justified and did not unduly restrict competition.
Lack of specific details on the number of bidders makes it difficult to fully assess the competitive landscape.
The long performance period (nearly 4 years) increases the potential for scope creep or unforeseen technical challenges.

Positive Signals

Firm fixed-price contract aligns incentives for contractor performance and cost control.
Focus on LEO/GEO dynamic operations addresses critical national security requirements in space.
Award to Apex Technology, Inc. leverages specialized expertise in satellite manufacturing.

Sector Analysis

The aerospace and defense sector, particularly the segment focused on satellite manufacturing and space systems, is highly specialized and capital-intensive. This contract falls within the Guided Missile and Space Vehicle Manufacturing industry (NAICS 336414). The market for defense-related space assets is driven by national security priorities, technological advancements, and geopolitical considerations. Spending in this area is often characterized by long development cycles and high unit costs due to complexity and stringent performance requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false). There is no explicit mention of subcontracting plans for small businesses. Given the specialized nature of satellite manufacturing, it is likely that Apex Technology, Inc. may engage larger, established subcontractors. The impact on the broader small business ecosystem in this specific contract appears minimal unless Apex has a robust small business subcontracting program that is not detailed here.

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 in the firm fixed-price contract terms, requiring Apex Technology to deliver specified capabilities within budget. Transparency may be limited due to the classified or sensitive nature of space-based defense systems. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Force Satellite Programs
National Reconnaissance Office (NRO) Contracts
DoD Space Domain Awareness Initiatives
Advanced Satellite Technology Development
Missile Defense Agency (MDA) Space Components

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Complexity of multi-mission satellite technology introduces inherent performance risks.
Long contract duration increases exposure to schedule delays and cost fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to APEX TECHNOLOGY, INC.. SBIR PHASE II STRATFI TO APEX TECHNOLOGY, INC FOR MULTI-MISSION SATELLITES FOR LEO AND GEO DYNAMIC SPACE OPERATIONS

Who is the contractor on this award?

The obligated recipient is APEX TECHNOLOGY, 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 $22.0 million.

What is the period of performance?

Start: 2025-02-13. End: 2029-01-12.

What is the specific rationale behind the 'exclusion of sources' in this otherwise full and open competition?

The 'exclusion of sources' clause, even within a full and open competition framework, suggests that while the initial solicitation was broadly advertised, a specific decision was made to limit the pool of eligible offerors or to exclude certain entities from consideration. This could be due to various reasons, such as the need for highly specialized proprietary technology, unique manufacturing capabilities possessed by only a few firms, national security concerns requiring specific clearances or access, or a previous relationship or performance history that made a particular contractor uniquely qualified. Without further documentation or clarification from the Department of the Air Force, the precise justification remains unclear. This exclusion warrants careful review to ensure it was properly documented, justified according to federal acquisition regulations, and did not unnecessarily stifle competition or lead to suboptimal pricing for the government.

How does the $22 million contract value compare to similar multi-mission satellite procurements by the DoD?

Benchmarking the $22 million contract value for multi-mission satellites requires detailed comparison with similar procurements, considering factors like satellite size, payload complexity, orbit (LEO vs. GEO), mission duration, and technological sophistication. Contracts for advanced military satellites can range from tens of millions to hundreds of millions of dollars, or even billions for large constellations or highly complex platforms. Given that this is for 'multi-mission' satellites for 'dynamic space operations,' the $22 million figure might represent a moderate investment, potentially for a single advanced satellite or a small cluster, rather than a large constellation. The firm fixed-price nature suggests a well-defined scope, which can help in cost predictability. However, without specific technical details of the satellites and their capabilities, a precise value-for-money assessment relative to market rates is difficult.

What are the key performance risks associated with developing and deploying multi-mission satellites for dynamic space operations?

Developing and deploying multi-mission satellites for dynamic space operations entails significant performance risks. These include technological risks, such as the failure of novel components or systems to meet performance specifications in the harsh space environment. Integration risks are also high, as multiple complex subsystems must function seamlessly. Schedule risks are inherent due to long lead times for manufacturing, testing, and launch, with potential delays impacting operational readiness. Furthermore, the 'dynamic' nature implies requirements for maneuverability, rapid tasking, and potentially on-orbit servicing or upgrades, which introduce further complexity and potential failure points. Ensuring long-term reliability and mission assurance over the satellite's lifespan, especially for operations in both LEO and GEO, presents a substantial challenge.

What is Apex Technology, Inc.'s track record with similar DoD satellite contracts?

Information regarding Apex Technology, Inc.'s specific track record with similar DoD multi-mission satellite contracts is not provided in the summary data. A thorough assessment would require reviewing the company's past performance on government contracts, particularly those involving satellite development, manufacturing, or space systems integration. Key areas to investigate would include their history of meeting technical requirements, adhering to schedules, managing costs, and overall customer satisfaction ratings from previous DoD engagements. Without this historical data, it is difficult to definitively assess their capability and reliability for this specific, high-stakes project.

How does this contract align with broader trends in DoD space acquisition and strategy?

This contract aligns with the DoD's increasing emphasis on space as a critical warfighting domain. The focus on multi-mission satellites for dynamic LEO and GEO operations reflects a strategic shift towards more resilient, agile, and responsive space architectures. This moves away from relying solely on large, high-value, vulnerable assets towards a more distributed and adaptable approach. The investment in capabilities for space domain awareness and operations is crucial for maintaining information superiority and protecting U.S. assets in space. The contract also underscores the DoD's continued reliance on private sector innovation and manufacturing expertise to meet evolving space-based requirements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5331 MCCONNELL AVE, LOS ANGELES, CA, 90066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,930,000

Exercised Options: $30,000,000

Current Obligation: $22,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline