DoD's $129M TEAMS Contract for Autonomous Satellite Systems Awarded to Verus Research
Contract Overview
Contract Amount: $12,920,000 ($12.9M)
Contractor: Verus Research, LLC
Awarding Agency: Department of Defense
Start Date: 2023-01-03
End Date: 2028-01-03
Contract Duration: 1,826 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TOOLS FOR ENABLING AUTONOMOUS MULTI-SATELLITE SYSTEMS (TEAMS)
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $12.9 million to VERUS RESEARCH, LLC for work described as: TOOLS FOR ENABLING AUTONOMOUS MULTI-SATELLITE SYSTEMS (TEAMS) Key points: 1. The contract focuses on R&D for advanced satellite systems, a critical area for national security. 2. Verus Research, a single awardee, suggests potential for specialized expertise or limited market. 3. The Cost Plus Fixed Fee structure requires careful monitoring to manage costs effectively. 4. The R&D sector is highly competitive, with innovation driving significant investment.
Value Assessment
Rating: fair
The contract value of $129.2M over 5 years is substantial for R&D. Benchmarking is difficult without specific deliverables, but the Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the contract was awarded under full and open competition, it resulted in a single award to Verus Research. This suggests Verus may have unique capabilities or that the competition was structured in a way that favored a specific entity.
Taxpayer Impact: Taxpayer funds are supporting critical R&D in space technology, aiming for advancements that could provide long-term strategic advantages.
Public Impact
Enhances national security through advanced satellite technology. Supports innovation in the rapidly evolving field of space systems. Potential for spin-off technologies benefiting commercial sectors. Invests in specialized research capabilities within the US.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns possible with CPFF contract type.
- Limited competition despite full and open award.
- Long contract duration increases risk exposure.
Positive Signals
- Addresses critical defense need for autonomous systems.
- Invests in cutting-edge R&D.
- Potential for technological breakthroughs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to autonomous multi-satellite systems. Spending in this area is driven by national security needs and technological advancements in space.
Small Business Impact
The contract was awarded to Verus Research, LLC. Information regarding small business participation or subcontracting is not detailed in the provided data, but typically R&D contracts of this nature may involve specialized small businesses.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to ensure Verus Research meets performance milestones and manages costs effectively under the CPFF structure.
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
- Cost Overruns
- Technical Feasibility
- Vendor Lock-in
- Long-term Program Viability
Tags
research-and-development-in-the-physical, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to VERUS RESEARCH, LLC. TOOLS FOR ENABLING AUTONOMOUS MULTI-SATELLITE SYSTEMS (TEAMS)
Who is the contractor on this award?
The obligated recipient is VERUS RESEARCH, LLC.
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 $12.9 million.
What is the period of performance?
Start: 2023-01-03. End: 2028-01-03.
How will the Air Force ensure cost control and value for money with a Cost Plus Fixed Fee contract for R&D?
The Air Force will likely implement rigorous oversight, including regular performance reviews, detailed cost tracking, and milestone-based payments. Establishing clear performance metrics and incentivizing efficiency will be key to maximizing value and mitigating the inherent risks of cost-plus contracts in R&D.
What are the primary risks associated with a single award for a full and open competition in advanced R&D?
A single award, even from full and open competition, can indicate a lack of broader market capability or a highly specialized requirement. Risks include potential vendor lock-in, limited innovation if the chosen vendor underperforms, and missed opportunities for competitive pressure to drive down costs or accelerate development.
How effective is this investment likely to be in achieving autonomous multi-satellite system capabilities?
The effectiveness hinges on Verus Research's technical expertise and the clarity of the program's objectives. The CPFF structure allows flexibility for R&D challenges, but success depends on strong program management, realistic milestones, and the ability to adapt to technological hurdles inherent in developing complex autonomous systems.
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: BASIC RESEARCH
Solicitation ID: FA945319S0002
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6100 UPTOWN BLVD NE STE 260, ALBUQUERQUE, NM, 87110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,474,959
Exercised Options: $37,474,959
Current Obligation: $12,920,000
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $3,017,852
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-01-03
Current End Date: 2028-01-03
Potential End Date: 2028-01-03 00:00:00
Last Modified: 2025-12-10
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