DoD's Air Force Awards $37.7M for Unique Small Satellite Prototypes to Utah State University

Contract Overview

Contract Amount: $37,707,651 ($37.7M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2020-03-11

End Date: 2024-12-11

Contract Duration: 1,736 days

Daily Burn Rate: $21.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SMALL SATELLITE PORTFOLIO: THIS WORK WILL DEVELOP A SERIES OF ONE-OF-AKIND PROTOTYPES AS FIRST TIME DEMONSTRATORS CRITICAL TO THE FUTURE OF THE AF/DOD DIVISION

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: SMALL SATELLITE PORTFOLIO: THIS WORK WILL DEVELOP A SERIES OF ONE-OF-AKIND PROTOTYPES AS FIRST TIME DEMONSTRATORS CRITICAL TO THE FUTURE OF THE AF/DOD DIVISION Key points: 1. The contract focuses on developing one-of-a-kind prototypes for small satellite demonstrators. 2. Utah State University's Space Dynamics Laboratory is the sole awardee. 3. The project is critical for the future of Air Force/DoD divisions. 4. Research and Development in Physical, Engineering, and Life Sciences is the sector.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award is $37.7 million, but without comparable contracts, a precise per-unit cost benchmark is difficult to establish.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayer funds are being used for a sole-source award, raising questions about the efficiency of the procurement process and whether the best possible price was achieved.

Public Impact

Development of advanced small satellite technology could enhance national security capabilities. Investment in specialized research institutions like USU Space Dynamics Laboratory supports scientific advancement. The prototypes are intended as first-time demonstrators, implying a high degree of innovation and potential risk. The long duration of the contract (2020-2024) suggests a complex and lengthy development process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially price efficiency.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of detailed performance metrics makes value assessment difficult.

Positive Signals

Focus on critical, one-of-a-kind prototypes for future defense needs.
Supports a specialized research institution with a history in space dynamics.
Long-term investment in potentially groundbreaking technology.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is often characterized by high innovation, long development cycles, and significant upfront investment, with outcomes that can be uncertain but potentially transformative.

Small Business Impact

The awardee, Utah State University Space Dynamics Laboratory, is a large research institution, not a small business. There is no indication that small businesses were subcontracted for this specific award, suggesting limited direct impact on the small business sector.

Oversight & Accountability

The contract's sole-source nature warrants close oversight to ensure cost control and adherence to project milestones. Regular reviews of the Cost Plus Fixed Fee structure are essential to prevent unnecessary expenditure.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source procurement
Cost Plus Fixed Fee contract type
Lack of competition
Potential for cost overruns
Uncertainty of demonstrator success

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. SMALL SATELLITE PORTFOLIO: THIS WORK WILL DEVELOP A SERIES OF ONE-OF-AKIND PROTOTYPES AS FIRST TIME DEMONSTRATORS CRITICAL TO THE FUTURE OF THE AF/DOD DIVISION

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

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 $37.7 million.

What is the period of performance?

Start: 2020-03-11. End: 2024-12-11.

What is the specific technological advantage these one-of-a-kind prototypes are expected to provide over existing small satellite capabilities?

The prototypes are intended as first-time demonstrators, suggesting they aim to introduce novel capabilities or significantly enhance existing ones in areas like sensor technology, communication, or maneuverability for small satellites. Their unique nature implies a focus on leap-ahead technologies crucial for future Air Force/DoD missions, potentially offering advantages in areas such as persistent surveillance, rapid response, or specialized data collection that current systems cannot achieve.

Given the Cost Plus Fixed Fee structure and sole-source award, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?

While the contract type and limited competition present risks, oversight mechanisms likely include detailed milestone tracking, regular financial reviews by the contracting officer, and potentially independent cost estimates. The fixed fee component provides some incentive for the contractor to manage costs efficiently to maximize their profit. However, the effectiveness of these measures depends heavily on the diligence of the Air Force's program management and auditing.

How will the success of these 'first time demonstrators' be measured, and what is the pathway to potential future production or widespread adoption?

Success will likely be measured against predefined technical performance specifications and demonstration objectives outlined in the contract. This could include successful deployment, data acquisition, system reliability during the demonstration period, and achievement of specific technological advancements. The pathway to future adoption depends on the successful validation of these demonstrators and their alignment with evolving DoD requirements and budget priorities.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Utah State University

Address: 1695 N RESEARCH PKWY, NORTH LOGAN, UT, 84341

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,223,978

Exercised Options: $38,223,978

Current Obligation: $37,707,651

Actual Outlays: $2,930,262

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $12,006,682

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945318D0042

IDV Type: IDC

Timeline