DoD's $10M SARGO contract to Capella Space Corp for R&D in synthetic aperture radar

Contract Overview

Contract Amount: $9,998,447 ($10.0M)

Contractor: Capella Space Corp

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2026-02-01

Contract Duration: 518 days

Daily Burn Rate: $19.3K/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: SYNTHETIC APERTURE RADAR FOR GOVERNMENT OPERATIONS (SARGO)

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to CAPELLA SPACE CORP for work described as: SYNTHETIC APERTURE RADAR FOR GOVERNMENT OPERATIONS (SARGO) Key points: 1. Contract awarded for advanced synthetic aperture radar capabilities, indicating a focus on enhancing intelligence, surveillance, and reconnaissance (ISR) assets. 2. The firm-fixed-price contract type suggests that cost risks are primarily borne by the contractor, potentially leading to more predictable spending. 3. Research and Development (R&D) focus implies investment in future technological advancements rather than immediate operational deployment. 4. The contract's duration of over 1.5 years suggests a substantial project scope requiring sustained effort. 5. Awarded by the Department of the Air Force, aligning with strategic priorities for aerial and space-based ISR. 6. The contract value, while significant, should be benchmarked against similar R&D efforts in advanced sensor technology.

Value Assessment

Rating: good

The contract value of approximately $10 million for a 518-day period of performance appears reasonable for specialized R&D in synthetic aperture radar. Benchmarking against similar government contracts for advanced sensor development or satellite imagery research would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing cost certainty for R&D projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while competition was sought, specific circumstances led to the exclusion of certain potential bidders. This could be due to proprietary technology, unique capabilities, or specific national security requirements. The exact number of bidders and the rationale for exclusion are critical to understanding the extent of competition and its impact on pricing.

Taxpayer Impact: A limited competition environment may result in less aggressive pricing compared to full and open competition, potentially increasing costs for taxpayers if not carefully managed.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will gain enhanced capabilities in data acquisition and analysis. The contract will deliver advanced synthetic aperture radar technology and associated research, potentially improving intelligence gathering and situational awareness. The geographic impact is likely global, as SAR data can be collected over any area of interest, supporting diverse operational needs. Workforce implications may include specialized roles in R&D, data science, and engineering within the contractor's organization and potentially within government oversight teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a fully open process.
The specific nature of SAR technology might create dependencies on a limited number of specialized providers.
The R&D nature of the contract carries inherent risks of technological feasibility and timely delivery.

Positive Signals

Award to a specialized provider like Capella Space Corp suggests access to cutting-edge technology.
Firm-fixed-price contract provides cost certainty for the government.
Focus on R&D indicates investment in future technological superiority.

Sector Analysis

The Synthetic Aperture Radar (SAR) market is a critical segment within the broader aerospace and defense technology sector, driven by demand for advanced Earth observation and intelligence capabilities. This contract fits within the R&D sub-sector, focusing on enhancing the performance and application of SAR systems. Comparable spending benchmarks would involve looking at other government investments in satellite technology, sensor development, and data analytics platforms.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'sb': false. The prime contractor, Capella Space Corp, is a commercial entity. There is no explicit information regarding subcontracting plans with small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the achievement of R&D milestones and deliverables outlined in the contract. Transparency will depend on the level of detail shared publicly regarding the project's progress and outcomes, subject to national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Reconnaissance Office (NRO) satellite programs
Space Development Agency (SDA) initiatives
Intelligence, Surveillance, and Reconnaissance (ISR) modernization efforts
Advanced sensor technology research grants

Risk Flags

Limited competition may impact price.
R&D projects carry inherent technical and schedule risks.
Dependence on specialized technology providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to CAPELLA SPACE CORP. SYNTHETIC APERTURE RADAR FOR GOVERNMENT OPERATIONS (SARGO)

Who is the contractor on this award?

The obligated recipient is CAPELLA SPACE 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 $10.0 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-02-01.

What is Capella Space Corp's track record with government contracts, particularly in R&D for SAR technology?

Capella Space Corp is a relatively newer player in the commercial satellite imagery market, known for its constellation of SAR satellites. While specific government contract history for R&D might be limited or not publicly detailed, their commercial success in deploying and operating SAR satellites suggests technical proficiency. Government agencies often engage with innovative commercial providers to leverage cutting-edge technology. A deeper dive into contract databases and agency procurement histories would reveal the extent of their prior government work, including any past performance on R&D initiatives or similar technology development efforts. Their ability to secure this DoD contract indicates a level of trust and perceived capability by the awarding agency.

How does the $10 million contract value compare to similar R&D efforts in synthetic aperture radar technology?

The $10 million contract value for R&D in SAR technology over approximately 1.5 years appears to be within a reasonable range for specialized projects. However, direct comparisons are challenging without knowing the specific scope, technological maturity, and deliverables. Similar R&D contracts for advanced sensor development, satellite payload integration, or novel data processing algorithms can range from a few million to tens of millions of dollars, depending on complexity and duration. For instance, contracts focused on developing next-generation radar components or exploring new SAR applications might fall within this bracket. Benchmarking against publicly available data for R&D contracts awarded by agencies like DARPA, NRO, or NASA for comparable technologies would provide a more robust assessment of value for money.

What are the primary risks associated with this R&D contract, and how are they being mitigated?

The primary risks associated with this R&D contract include technological feasibility (will the desired advancements be achieved?), schedule delays (R&D can be unpredictable), and potential cost overruns if not managed tightly, although the firm-fixed-price structure mitigates this for the government. There's also a risk of the developed technology not meeting operational requirements or becoming obsolete quickly. Mitigation strategies likely involve rigorous milestone reviews, clear performance metrics, strong government oversight, and potentially phased development approaches. The 'limited' competition aspect also introduces a risk of suboptimal pricing if the chosen contractor does not face sufficient competitive pressure. The government's mitigation would involve detailed technical evaluations and potentially negotiating specific performance incentives.

What is the expected program effectiveness and impact on the Department of Defense's capabilities?

The expected program effectiveness hinges on the successful development and integration of advanced SAR capabilities. If successful, this contract is anticipated to significantly enhance the DoD's intelligence, surveillance, and reconnaissance (ISR) capabilities. This could translate to improved all-weather, day/night imaging and monitoring of areas of interest, providing critical data for operational planning, threat assessment, and situational awareness. The impact could be felt across various military branches, supporting missions ranging from strategic intelligence gathering to tactical battlefield support. Enhanced SAR data could lead to more informed decision-making, potentially reducing risks and improving mission outcomes.

How does this contract align with historical spending patterns for SAR technology within the DoD?

This contract aligns with a broader trend of increasing DoD investment in advanced ISR technologies, including SAR. Historically, the DoD has invested heavily in satellite-based reconnaissance, with SAR being a key component due to its all-weather and day/night imaging capabilities. Spending patterns have evolved from large, monolithic satellite programs to more agile, commercially-leveraged approaches and investments in specialized R&D. This $10 million contract represents a focused R&D effort, likely aimed at acquiring specific technological advancements or capabilities that complement existing or planned SAR assets. It reflects a strategic move to stay at the forefront of sensor technology, ensuring information superiority.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 450 SHOTWELL ST, SAN FRANCISCO, CA, 94110

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

Financial Breakdown

Contract Ceiling: $14,993,358

Exercised Options: $9,998,447

Current Obligation: $9,998,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline