DoD Awards $8.8M for Space Payloads R&D, Integrating with Small Satellites for On-Orbit Demo
Contract Overview
Contract Amount: $8,803,530 ($8.8M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-25
End Date: 2023-12-31
Contract Duration: 1,985 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THIS IS A RESEARCH AND DEVELOPMENT EFFORT TO PROCURE HIGH ALTITUDE/SPACE CAPABLE TACTICAL SPACE SUPPORT PAYLOADS WHICH MEET THE CLASSIFIED PERFORMANCE REQUIREMENTS, INTEGRATE THOSE PAYLOADS INTO COMMERCIALLY AVAILABLE SPACE QUALIFIED SMALL SATELLITE PLATFORMS AND SUPPORT A ONE-YEAR ON-ORBIT DEMONSTRATION.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to DYNETICS, INC. for work described as: THIS IS A RESEARCH AND DEVELOPMENT EFFORT TO PROCURE HIGH ALTITUDE/SPACE CAPABLE TACTICAL SPACE SUPPORT PAYLOADS WHICH MEET THE CLASSIFIED PERFORMANCE REQUIREMENTS, INTEGRATE THOSE PAYLOADS INTO COMMERCIALLY AVAILABLE SPACE QUALIFIED SMALL SATELLITE PLATFORMS AND SUPPORT A ONE-YE… Key points: 1. Focuses on R&D for tactical space support payloads and small satellite integration. 2. Contract awarded via full and open competition, suggesting market availability. 3. High-risk R&D effort with a one-year on-orbit demonstration phase. 4. Sector is primarily Research and Development in Physical, Engineering, and Life Sciences.
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 amount of $8.8M for a multi-year R&D effort with an on-orbit demonstration is difficult to benchmark without more specific performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing, but the R&D nature and classified requirements may limit true price discovery.
Taxpayer Impact: Taxpayer funds are supporting advanced R&D in space technology, with potential future defense applications. The cost-effectiveness will depend on the success of the demonstration and subsequent technology adoption.
Public Impact
Advancement of tactical space support capabilities for national defense. Integration of payloads with commercially available small satellite platforms. Potential for new technologies to enhance space-based intelligence and operations. One-year on-orbit demonstration to validate performance in a real-world environment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- R&D cost uncertainty
- On-orbit demonstration risk
- Classified performance requirements
Positive Signals
- Full and open competition
- Leverages commercial satellite platforms
- Potential for technological innovation
Sector Analysis
This contract falls within the Research and Development in Physical, Engineering, and Life Sciences sector. Spending in this area is critical for technological advancement but often carries higher risk and less predictable outcomes compared to procurement of established systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus, though they may have participated as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger program, suggesting some level of prior oversight. However, the R&D nature and classified aspects may present challenges for transparent public oversight of specific technical progress and cost management.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun potential (CPFF contract)
- Technical risk in R&D
- On-orbit demonstration failure
- Limited transparency due to classified requirements
- Uncertainty in achieving specific performance metrics
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to DYNETICS, INC.. THIS IS A RESEARCH AND DEVELOPMENT EFFORT TO PROCURE HIGH ALTITUDE/SPACE CAPABLE TACTICAL SPACE SUPPORT PAYLOADS WHICH MEET THE CLASSIFIED PERFORMANCE REQUIREMENTS, INTEGRATE THOSE PAYLOADS INTO COMMERCIALLY AVAILABLE SPACE QUALIFIED SMALL SATELLITE PLATFORMS AND SUPPORT A ONE-YEAR ON-ORBIT DEMONSTRATION.
Who is the contractor on this award?
The obligated recipient is DYNETICS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $8.8 million.
What is the period of performance?
Start: 2018-07-25. End: 2023-12-31.
What is the expected return on investment for this R&D effort, considering the potential for classified performance requirements and the inherent risks of space-based demonstrations?
Quantifying ROI for classified R&D is challenging. The investment aims to enhance tactical space support capabilities, potentially leading to improved intelligence, surveillance, and reconnaissance. Success hinges on meeting classified performance metrics and successful on-orbit demonstration, which could yield significant long-term national security benefits, justifying the initial $8.8M expenditure.
How will the classified performance requirements impact the ability to assess the true value and effectiveness of the procured payloads and integrated systems?
Classified requirements inherently limit public and potentially even internal non-cleared personnel's ability to fully assess value and effectiveness. While the DoD will have internal mechanisms for verification, external benchmarking and independent analysis become difficult. This necessitates a high degree of trust in the contracting and oversight bodies to ensure the investment meets its intended, albeit secret, objectives.
What are the primary risks associated with integrating payloads into commercially available small satellite platforms for a one-year on-orbit demonstration, and how are they being mitigated?
Key risks include payload-platform incompatibility, launch failures, on-orbit malfunctions, and environmental degradation. Mitigation strategies likely involve rigorous testing, simulation, selection of robust commercial platforms, and contingency planning for potential failures during the demonstration phase. The Cost Plus Fixed Fee contract structure may also incentivize the contractor to manage these risks to control costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,095,216
Exercised Options: $9,095,216
Current Obligation: $8,803,530
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $125,330
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M17D0002
IDV Type: IDC
Timeline
Start Date: 2018-07-25
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2026-01-05
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