DoD's $34.9M Slingshot Orbital Lab Training Tool Contract Raises Questions on Value and Competition

Contract Overview

Contract Amount: $34,924,630 ($34.9M)

Contractor: Slingshot Aerospace Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-23

End Date: 2026-02-22

Contract Duration: 1,460 days

Daily Burn Rate: $23.9K/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: SLINGSHOT ORBITAL LAB TRAINING TOOL AND ADVANCED VISUALIZATION ENVIRONMENT DIGITAL TWIN SOFTWARE

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to SLINGSHOT AEROSPACE INC for work described as: SLINGSHOT ORBITAL LAB TRAINING TOOL AND ADVANCED VISUALIZATION ENVIRONMENT DIGITAL TWIN SOFTWARE Key points: 1. The contract for a digital twin software environment for orbital lab training appears to be a niche, high-cost solution. 2. Competition was limited after exclusion of sources, potentially impacting price discovery and taxpayer value. 3. The firm fixed-price contract structure offers some cost certainty but doesn't guarantee optimal value. 4. The sector is Space Research and Technology, a critical but often complex area for government procurement.

Value Assessment

Rating: questionable

The $34.9 million award for specialized orbital lab training software lacks clear benchmarks for comparison. Without more data on similar digital twin environments or training tools, assessing its pricing against industry standards is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that initial broad competition was narrowed. This method can limit the pool of potential bidders and may not result in the most competitive pricing.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this specialized software. Further justification for excluding other sources would be needed to confirm value.

Public Impact

Taxpayers are funding advanced digital twin software for specialized space training. The Department of the Air Force is investing in simulation and training technologies. The contract supports a specific technology provider, Slingshot Aerospace Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition after source exclusion
  • Lack of clear value benchmarks
  • High contract value for specialized software

Positive Signals

  • Firm fixed-price contract provides cost certainty
  • Supports advanced visualization and training capabilities

Sector Analysis

The Space Research and Technology sector is characterized by rapid innovation and high development costs. Spending in this area often involves specialized, cutting-edge technologies like digital twins, making direct cost comparisons challenging.

Small Business Impact

The contract was awarded to Slingshot Aerospace Inc., a single entity. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The contract type is a definitive contract, suggesting a more defined scope than a task order. Oversight will focus on contract performance, deliverables, and adherence to the firm fixed-price terms.

Related Government Programs

  • Space Research and Technology
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition raises value concerns.
  • Lack of public benchmarks for specialized software.
  • Potential for cost overruns if scope expands.
  • Dependence on a single provider for critical training.

Tags

space-research-and-technology, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to SLINGSHOT AEROSPACE INC. SLINGSHOT ORBITAL LAB TRAINING TOOL AND ADVANCED VISUALIZATION ENVIRONMENT DIGITAL TWIN SOFTWARE

Who is the contractor on this award?

The obligated recipient is SLINGSHOT AEROSPACE 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 $34.9 million.

What is the period of performance?

Start: 2022-02-23. End: 2026-02-22.

What specific capabilities does the Slingshot Orbital Lab Training Tool offer that justify its cost and limited competition?

The Slingshot Orbital Lab Training Tool and Advanced Visualization Environment Digital Twin Software likely provides highly specialized, immersive training for complex orbital operations. This could include realistic simulations of spacecraft docking, satellite maintenance, and emergency procedures in a zero-gravity environment, potentially requiring unique technological expertise and development that limits the number of capable providers.

How was the 'exclusion of sources' justified, and what steps were taken to ensure fair pricing despite limited competition?

The justification for excluding sources would typically involve demonstrating that only specific contractors possess the required unique capabilities, technology, or intellectual property. To ensure fair pricing, the agency likely relied on market research, historical pricing data for similar (though perhaps less advanced) systems, or independent cost estimates to validate the proposed price against a reasonable expectation.

What is the long-term effectiveness and potential for broader application of this digital twin technology beyond the initial training scope?

The long-term effectiveness hinges on how well the digital twin translates to improved operator performance and mission success. Its potential for broader application could include mission planning, system design validation, or even remote troubleshooting of actual orbital assets. If successful, the technology could become a standard for future space operations training and development.

Industry Classification

NAICS: Public AdministrationSpace Research and TechnologySpace Research and Technology

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense 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: 841 APOLLO ST, EL SEGUNDO, CA, 90245

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

Financial Breakdown

Contract Ceiling: $34,924,630

Exercised Options: $34,924,630

Current Obligation: $34,924,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2022-02-23

Current End Date: 2026-02-22

Potential End Date: 2026-02-22 00:00:00

Last Modified: 2025-12-12

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