DoD's $6.9M contract for space panel manufacturing systems awarded to Solaero Technologies Corp

Contract Overview

Contract Amount: $6,923,000 ($6.9M)

Contractor: Solaero Technologies Corp.

Awarding Agency: Department of Defense

Start Date: 2021-12-15

End Date: 2026-12-24

Contract Duration: 1,835 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AUTOMATED LOW COST SPACE PANEL MANUFACTURING SYSTEMS

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87123

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to SOLAERO TECHNOLOGIES CORP. for work described as: AUTOMATED LOW COST SPACE PANEL MANUFACTURING SYSTEMS Key points: 1. Contract awarded for R&D in physical sciences, focusing on automated low-cost space panel manufacturing. 2. Solaero Technologies Corp. is the sole awardee under full and open competition. 3. The contract has a duration of 1835 days, spanning from December 2021 to December 2026. 4. This award falls under the Research and Development in Physical, Engineering, and Life Sciences NAICS code. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns but with a defined profit margin. 6. No small business set-aside was applied to this procurement. 7. The contract is a definitive contract, suggesting a firm commitment between the parties.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the lack of publicly available comparable contract data for 'AUTOMATED LOW COST SPACE PANEL MANUFACTURING SYSTEMS'. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's allowable costs plus a fixed fee, which can sometimes lead to higher overall costs than fixed-price contracts if not managed carefully. However, CPFF is often used for R&D where cost is uncertain. The total award amount of $6.9 million over approximately five years suggests a moderate investment in developing new manufacturing capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The specific number of bidders is not provided in the data, but the 'full and open' designation suggests a competitive process was intended. This approach generally aims to maximize the pool of potential offerors and foster price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to better value for the government.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially the broader Department of Defense, gaining access to advanced space panel manufacturing technology. The services delivered involve research and development to create automated, low-cost manufacturing systems for space panels. The geographic impact is primarily within New Mexico, where Solaero Technologies Corp. is located. Workforce implications may include the creation or upskilling of specialized roles in advanced manufacturing and aerospace engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher final costs if not closely monitored.
Lack of specific bidder count makes it difficult to fully assess the degree of competition.
R&D contracts inherently carry risk of not achieving desired technological outcomes.
Specialized nature of the technology may limit the pool of experienced contractors.
The contract duration is long, requiring sustained oversight.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified vendors.
Focus on 'low-cost' manufacturing indicates a potential for future cost savings.
Development of automated systems can lead to increased efficiency and scalability.
The definitive contract type provides a clear commitment for the project's duration.
The specific NAICS code points to a focus on advanced scientific and engineering capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced manufacturing technologies for aerospace applications. The market for space technology and related manufacturing is a growing segment within the broader defense and commercial space industries. Comparable spending benchmarks for highly specialized R&D in automated manufacturing are difficult to ascertain without more specific details on the technology's maturity and application. However, investments in domestic manufacturing capabilities for critical components like space panels are a strategic priority for many nations.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the contractor, Solaero Technologies Corp., is not a small business. There is no information provided regarding subcontracting plans or implications for the small business ecosystem. Therefore, the direct impact on small businesses through this specific award appears minimal, unless Solaero Technologies Corp. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress and expenditures may be subject to proprietary or national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Systems Development
Advanced Manufacturing Technologies
Aerospace Research and Development
Department of Defense R&D Spending
Air Force Procurement

Risk Flags

Cost Overrun Risk (CPFF)
Technical Feasibility Risk (R&D)
Limited Competition Visibility
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to SOLAERO TECHNOLOGIES CORP.. AUTOMATED LOW COST SPACE PANEL MANUFACTURING SYSTEMS

Who is the contractor on this award?

The obligated recipient is SOLAERO TECHNOLOGIES CORP..

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 $6.9 million.

What is the period of performance?

Start: 2021-12-15. End: 2026-12-24.

What is Solaero Technologies Corp.'s track record with government contracts, particularly in R&D and aerospace manufacturing?

Information regarding Solaero Technologies Corp.'s specific track record with government contracts, especially in R&D and aerospace manufacturing, is not detailed in the provided data. A comprehensive analysis would require accessing contract databases (like FPDS or SAM.gov) to review past awards, performance evaluations (e.g., CPARS), and any history of contract modifications or disputes. Understanding their past performance in similar technological areas and contract types (like CPFF) would provide crucial context for assessing the risk and potential success of this current award. Without this historical data, it's difficult to gauge their established reliability and expertise in delivering complex R&D projects for the government.

How does the $6.9 million award compare to typical R&D investments for similar automated manufacturing system development?

The $6.9 million award for 'AUTOMATED LOW COST SPACE PANEL MANUFACTURING SYSTEMS' represents a moderate investment for a research and development project of this nature. Benchmarking against similar contracts is challenging due to the specificity of the technology and the proprietary nature of much R&D spending. However, R&D contracts can vary widely in cost, from a few hundred thousand dollars for feasibility studies to tens or hundreds of millions for large-scale system development. Given the five-year duration and the goal of developing automated manufacturing systems, $6.9 million suggests a focus on a specific technological advancement or prototype development rather than a full-scale production system. Further context would be needed from industry experts or comparative government spending reports on advanced manufacturing R&D to definitively assess if this amount is high, low, or appropriate.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for R&D, like this one, revolve around cost control and potential for cost overruns. In a CPFF contract, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased costs, although the fixed fee remains constant. For R&D, where technical uncertainties and unforeseen challenges are common, this can lead to the total contract cost being higher than initially anticipated. Effective oversight, rigorous cost accounting, and clear definition of allowable costs are critical to mitigate these risks and ensure the government receives good value. The risk for the contractor is that they may not recoup anticipated profit if costs are significantly lower than expected, but the primary risk to the government is cost escalation.

What are the potential program effectiveness indicators for automated low-cost space panel manufacturing systems?

Potential program effectiveness indicators for automated low-cost space panel manufacturing systems would focus on quantifiable metrics related to the development and implementation of the technology. Key indicators could include: the percentage reduction in manufacturing cost per panel achieved by the automated system compared to current methods; the increase in production throughput or speed; the improvement in panel quality and consistency (e.g., reduced defect rates); the successful integration of the automated system into existing or new production lines; the system's reliability and uptime; and the achievement of specific performance targets outlined in the contract's Statement of Work. Ultimately, the program's success will be measured by its ability to deliver on the promise of 'low-cost' and 'automated' manufacturing, contributing to more affordable and accessible space technologies.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) trended in recent years?

Federal spending within the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) has generally shown a consistent upward trend over the past decade, driven by investments from agencies like the Department of Defense, Department of Health and Human Services (especially NIH), and the National Science Foundation. While specific year-over-year fluctuations occur based on budget appropriations and national priorities, the overall trajectory reflects a sustained commitment to scientific and technological advancement. This category encompasses a broad range of research, from fundamental physics and materials science to engineering applications and life sciences innovation. Analyzing historical spending patterns within this NAICS code can reveal which sub-sectors or agencies are driving the growth and highlight areas of strategic focus for federal R&D investment.

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

Solicitation Procedures: TWO STEP

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10420 RESEARCH RD SE, ALBUQUERQUE, NM, 87123

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: $6,923,000

Exercised Options: $6,923,000

Current Obligation: $6,923,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline