DoD's $38.7M Blackjack Phase 2&3 contract awarded to CACI Photonics for LEO constellation development

Contract Overview

Contract Amount: $38,757,349 ($38.8M)

Contractor: CACI Photonics, LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-09

End Date: 2024-12-02

Contract Duration: 1,637 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BLACKJACK PHASE 2&3,BLACKJACK WILL DEVELOP AND DEMONSTRATE A LOW EARTH ORBIT CONSTELLATION THAT PROVIDES GLOBAL PERSISTENT COVERAGE.

Place of Performance

Location: LOS GATOS, SANTA CLARA County, CALIFORNIA, 95032

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $38.8 million to CACI PHOTONICS, LLC for work described as: BLACKJACK PHASE 2&3,BLACKJACK WILL DEVELOP AND DEMONSTRATE A LOW EARTH ORBIT CONSTELLATION THAT PROVIDES GLOBAL PERSISTENT COVERAGE. Key points: 1. Contract aims to establish a global persistent coverage low Earth orbit (LEO) constellation. 2. Significant investment in advanced satellite technology and space-based communication infrastructure. 3. Focus on research and development in physical, engineering, and life sciences. 4. Long duration contract (1637 days) suggests complex, multi-phase development. 5. Awarded under a definitive contract type, indicating a firm commitment. 6. Potential for significant advancements in global surveillance and communication capabilities.

Value Assessment

Rating: fair

The contract value of $38.7 million for a multi-year R&D project in advanced satellite technology appears within a reasonable range for such complex endeavors. However, without specific benchmarks for LEO constellation development or comparable DARPA projects, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) structure allows for cost flexibility but necessitates careful oversight to ensure efficiency. Benchmarking against similar large-scale space system development contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 12 bidders indicates a competitive landscape for this type of advanced technology. A robust competition level generally leads to better price discovery and potentially more innovative solutions, as contractors vie for the award. This approach aligns with federal acquisition principles aimed at maximizing value and minimizing costs through market forces.

Taxpayer Impact: A full and open competition for a contract of this magnitude is beneficial for taxpayers as it encourages a wide range of solutions and drives down costs through competitive pressure, ensuring the government receives the best possible value for its investment.

Public Impact

The Department of Defense (specifically DARPA) is the primary beneficiary, aiming to enhance global persistent coverage capabilities. Services delivered include the development and demonstration of a low Earth orbit satellite constellation. Geographic impact is global, with the goal of providing persistent coverage worldwide. Workforce implications may include specialized engineers, scientists, and technicians in the aerospace and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
The long contract duration may present challenges in adapting to rapidly evolving technological landscapes.
Dependence on a single contractor (CACI Photonics) for this critical phase requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The project addresses a critical national security need for persistent global coverage.
DARPA's involvement suggests a focus on cutting-edge, potentially transformative technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering for space-based systems. The market for LEO constellations is rapidly growing, driven by both commercial and government demand for global connectivity and surveillance. DARPA's investment in the Blackjack program positions it at the forefront of developing next-generation space architectures, potentially influencing future defense and commercial satellite deployments. Comparable spending benchmarks are difficult to pinpoint due to the unique nature of advanced R&D, but large satellite constellation projects can range from tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and technical complexity of developing a LEO constellation, it is unlikely that small businesses would be primary awardees for the entire contract. However, CACI Photonics, as the prime contractor, may engage small businesses for subcontracting opportunities, particularly for specialized components or services, contributing to the broader small business ecosystem within the aerospace and defense industry.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), a known entity for rigorous program management and oversight of cutting-edge research. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically managed through program reviews and reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Space Development Agency (SDA) Tranche Programs
National Reconnaissance Office (NRO) satellite programs
US Space Force satellite acquisition programs
Commercial LEO satellite constellation initiatives (e.g., Starlink, OneWeb)

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost monitoring.
Long contract duration may pose challenges for adapting to rapid technological change.
Dependence on a single prime contractor for critical development phase.
Complexity of integrating diverse technologies into a cohesive constellation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to CACI PHOTONICS, LLC. BLACKJACK PHASE 2&3,BLACKJACK WILL DEVELOP AND DEMONSTRATE A LOW EARTH ORBIT CONSTELLATION THAT PROVIDES GLOBAL PERSISTENT COVERAGE.

Who is the contractor on this award?

The obligated recipient is CACI PHOTONICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $38.8 million.

What is the period of performance?

Start: 2020-06-09. End: 2024-12-02.

What is CACI Photonics' track record with large-scale DARPA or DoD space development contracts?

Assessing CACI Photonics' specific track record with large-scale DARPA or DoD space development contracts requires a detailed review of their past performance data and contract history. While CACI is a known entity in defense contracting, their specific experience with developing and demonstrating complex LEO constellations like the Blackjack program is crucial. DARPA typically selects contractors with demonstrated expertise in advanced technologies and a history of successful project execution. A review of federal procurement databases and past performance evaluations would be necessary to fully understand their capabilities and reliability for this specific undertaking. The award itself suggests they met DARPA's criteria for this phase.

How does the $38.7 million cost compare to similar LEO constellation development efforts?

Directly comparing the $38.7 million cost to similar LEO constellation development efforts is challenging due to the proprietary nature of many commercial projects and the unique R&D focus of DARPA's Blackjack program. Commercial constellations like Starlink or OneWeb involve billions of dollars in investment, but these are for mass production and global deployment, not necessarily early-stage R&D and demonstration. DARPA's funding often targets specific technological advancements or proof-of-concept phases. This $38.7 million likely covers specific development, integration, and demonstration milestones for Phase 2 & 3, rather than the full build-out. Benchmarking against other government R&D contracts for advanced space systems would offer a more relevant comparison.

What are the primary technical risks associated with the Blackjack Phase 2&3 development?

The primary technical risks associated with the Blackjack Phase 2&3 development likely include achieving global persistent coverage with a LEO constellation, which involves complex orbital mechanics, inter-satellite communication links, and ground segment integration. Ensuring the reliability and longevity of satellites in the harsh space environment, managing thermal loads, radiation effects, and space debris are significant challenges. Developing and demonstrating the necessary software for constellation management, data processing, and secure communication also presents substantial technical hurdles. Furthermore, integrating diverse payloads and ensuring interoperability between different system components are critical risk areas that DARPA and CACI Photonics must address.

What is the expected program effectiveness and impact of the Blackjack constellation upon completion?

Upon completion, the Blackjack program is expected to deliver a LEO constellation capable of providing global persistent coverage. This would significantly enhance the Department of Defense's ability to conduct continuous surveillance, reconnaissance, and communication operations worldwide. The effectiveness will be measured by the constellation's ability to maintain constant contact with assets, provide high-resolution imagery or data, and ensure secure, resilient communication channels. The impact could revolutionize military operations by offering unprecedented situational awareness and command and control capabilities, reducing reliance on less persistent or geographically limited systems.

How has DARPA's spending on advanced space R&D evolved leading up to this contract?

DARPA's spending on advanced space R&D has evolved significantly, with a growing emphasis on LEO constellations and proliferated low-cost space systems in recent years. This shift reflects a broader trend in the defense sector towards leveraging commercial space advancements and developing more agile, resilient, and cost-effective space architectures. Historically, DARPA has funded groundbreaking space technologies, but the Blackjack program represents a concerted effort to mature and demonstrate a specific, large-scale capability. Analyzing DARPA's budget allocations and specific program solicitations over the past decade would reveal a clear trend towards projects aimed at achieving persistent global coverage and rapid deployment of space assets.

What are the potential long-term implications of this contract for the broader defense space industry?

This contract has significant long-term implications for the broader defense space industry. By demonstrating the feasibility and effectiveness of a proliferated LEO constellation for persistent global coverage, it could spur further investment and development in similar architectures by both government agencies and commercial entities. It may also drive innovation in related fields such as satellite manufacturing, launch services, ground station technology, and space domain awareness. Furthermore, the success of Blackjack could influence future defense acquisition strategies, potentially shifting towards more modular, networked, and commercially-derived space systems, thereby reshaping the competitive landscape and technological trajectory of the industry.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001118S0032

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 120 KNOWLES DR, LOS GATOS, CA, 95032

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

Financial Breakdown

Contract Ceiling: $39,204,784

Exercised Options: $39,204,784

Current Obligation: $38,757,349

Actual Outlays: $1,825,395

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $34,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline