DoD's $18.7M Milsatcom R&D Contract Awarded to LANTERIS SPACE LLC Shows Moderate Competition
Contract Overview
Contract Amount: $18,675,000 ($18.7M)
Contractor: Lanteris Space LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-28
End Date: 2014-09-18
Contract Duration: 720 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 19
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: PROTECTED TACTICAL MILSATCOM
Place of Performance
Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94303
Plain-Language Summary
Department of Defense obligated $18.7 million to LANTERIS SPACE LLC for work described as: PROTECTED TACTICAL MILSATCOM Key points: 1. Contract focused on advanced research and development in tactical satellite communications. 2. Awarded under full and open competition, indicating a broad search for qualified vendors. 3. The contract duration of 720 days suggests a project requiring significant development time. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The relatively small award amount compared to major defense programs suggests a niche or early-stage R&D effort. 6. The contractor, LANTERIS SPACE LLC, is a key player in this specialized domain.
Value Assessment
Rating: good
The contract value of $18.7 million for a 720-day R&D effort appears reasonable within the defense sector for specialized satellite communications. Benchmarking against similar R&D contracts in advanced space technologies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of cost control by the Air Force.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 19 bids indicates a healthy level of interest and competition for this specialized R&D requirement. This broad competition likely contributed to achieving a fair market price.
Taxpayer Impact: The extensive competition suggests that taxpayer funds were used efficiently, as multiple companies vied to offer their best technical solutions and pricing.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Air Force, which will receive advancements in protected tactical satellite communications. This contract supports the development of next-generation satellite communication capabilities crucial for military operations. The geographic impact is primarily within the United States, with potential for deployment globally. The contract likely stimulates innovation and employment within the aerospace and defense R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if R&D proves more complex than anticipated, despite fixed-price structure.
- Dependence on a single contractor for critical R&D outcomes could pose a risk if performance falters.
- The specialized nature of the technology might limit future competition if only a few firms possess the requisite expertise.
Positive Signals
- Awarded under full and open competition, ensuring a wide pool of potential solutions.
- Firm fixed-price contract type provides cost certainty for the government.
- The contractor has experience in space and defense technologies, suggesting capability.
- The contract addresses a critical military need for secure satellite communications.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on satellite communications technology. The market for tactical satellite communications is highly specialized, driven by government and military demand for secure, resilient, and high-bandwidth connectivity. Spending in this area is critical for national security and involves significant R&D investment to maintain technological superiority. Comparable spending benchmarks would likely be found in other advanced defense R&D programs related to space, cyber, and electronic warfare.
Small Business Impact
This contract does not appear to have a specific small business set-aside. Given the specialized nature of tactical satellite communications R&D, it is possible that larger, more established defense contractors or specialized R&D firms were the primary bidders. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award.
Oversight & Accountability
The Department of the Air Force, as the awarding agency, is responsible for oversight of this contract. The firm fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Protected Satellite Communications
- Tactical Data Links
- Space-Based Command and Control
- Advanced Communications Research
- Military Satellite Systems
Risk Flags
- Potential for R&D project delays
- Technical feasibility risks
- Contractor performance uncertainty
Tags
research-and-development, department-of-defense, air-force, satellite-communications, protected-milsatcom, firm-fixed-price, full-and-open-competition, california, lanteris-space-llc, advanced-technology, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to LANTERIS SPACE LLC. PROTECTED TACTICAL MILSATCOM
Who is the contractor on this award?
The obligated recipient is LANTERIS SPACE 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 $18.7 million.
What is the period of performance?
Start: 2012-09-28. End: 2014-09-18.
What is LANTERIS SPACE LLC's track record with similar government R&D contracts, particularly in satellite communications?
LANTERIS SPACE LLC has a history of engaging in research and development contracts, often within the aerospace and defense sectors. While specific details on their past performance for protected tactical satellite communications R&D would require deeper database analysis, their involvement in this contract suggests they possess the requisite technical capabilities and clearances. Examining their prior contract awards, performance reviews, and any past issues would provide a clearer picture of their reliability and expertise in delivering complex R&D outcomes for the government. Their ability to secure this contract under full and open competition indicates they met the initial qualification criteria set forth by the Department of the Air Force.
How does the $18.7 million award value compare to other R&D contracts for tactical satellite communications?
The $18.7 million award value for this 720-day R&D contract for protected tactical satellite communications is within a moderate range for specialized defense research. Larger, more complex system development contracts can easily reach hundreds of millions or even billions of dollars. However, early-stage R&D or specific component development contracts can be in this multi-million dollar bracket. The number of bidders (19) suggests that this value was competitive enough to attract significant interest, implying it was perceived as a viable and potentially profitable undertaking by multiple firms. A precise benchmark would require comparing it to contracts with similar technical scope, duration, and technological maturity.
What are the primary risks associated with this specific R&D contract for the Department of Defense?
The primary risks for the Department of Defense (DoD) in this R&D contract revolve around the inherent uncertainties of research and development. Technical risks include the possibility that the desired technological advancements may not be achievable within the project's scope or timeline, or that unforeseen challenges arise during development. Cost risks, while mitigated by the firm fixed-price structure, could still materialize if the contractor miscalculates the effort required or if scope creep occurs without proper change management. Performance risks involve the contractor's ability to deliver the promised outcomes to the required specifications and quality standards. Finally, there's a strategic risk if the developed technology becomes obsolete quickly due to rapid advancements in the field or if the chosen approach does not align with future operational needs.
How effective is the firm fixed-price contract type in managing costs for this type of R&D effort?
The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood, even in R&D. For this contract, the FFP structure places the primary cost risk on the contractor, LANTERIS SPACE LLC. This incentivizes the contractor to manage their expenses efficiently and to accurately estimate the resources needed. The Department of the Air Force benefits from cost certainty, as the final price is fixed unless changes are formally negotiated. However, for highly exploratory R&D where the path forward is uncertain, an FFP contract can sometimes lead contractors to build in significant contingencies, potentially increasing the initial price, or to cut corners if they underestimate costs. The success of FFP in R&D often depends on the clarity of the SOW and the contractor's technical expertise.
What does the level of competition (19 bidders) imply about the market for protected tactical satellite communications R&D?
The fact that 19 bids were received for this contract strongly suggests a competitive and relatively mature market for protected tactical satellite communications R&D. This indicates that multiple companies possess the necessary technical expertise, resources, and interest to pursue government contracts in this specialized area. A high number of bidders typically leads to better price discovery and potentially more innovative solutions as companies strive to differentiate themselves. It also suggests that the barriers to entry for qualified firms are not prohibitively high, or that existing players are actively seeking new opportunities. This competitive landscape is generally favorable for the government, as it increases the likelihood of obtaining high-quality services at a reasonable cost.
What are the potential long-term implications of this contract for the advancement of military satellite communications?
This contract represents an investment in the future capabilities of military satellite communications. Successful R&D outcomes could lead to enhanced security, increased bandwidth, improved resilience against jamming or interference, and potentially reduced operational costs for the Department of Defense. The advancements made could influence the design and architecture of future satellite constellations and ground systems. Furthermore, the knowledge and intellectual property generated may have dual-use applications, benefiting the commercial sector as well. The contract's focus on 'protected' communications highlights the ongoing need for secure and reliable data transmission in increasingly contested electromagnetic environments, signaling a strategic priority for the military.
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: BASIC RESEARCH
Offers Received: 19
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maxar Technologies Ltd (UEI: 206233199)
Address: 3825 FABIAN WAY, PALO ALTO, CA, 90
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: $18,675,000
Exercised Options: $18,675,000
Current Obligation: $18,675,000
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-28
Current End Date: 2014-09-18
Potential End Date: 2014-09-18 00:00:00
Last Modified: 2014-09-17
More Contracts from Lanteris Space LLC
- Tipping Point Technologies - Dragonfly: On-Orbit Robotic Installation and Reconfiguration of Large Solid Radio Frequency Reflectors — $167.1M (National Aeronautics and Space Administration)
- THE Contractor Furnishes ALL the Necessary Personnel, Facilities, Services, Equipment, and Materials to Design, Fabricate, Integrate, Test, and Deliver the Spacecraft BUS, and Provide Services Such AS Integration and Test of the RSV AT Gsfc and Performance of On-Orbit Activities for the Initial Restore-L Refueling Campaign in MID-2020. Since the Contractor IS Providing the Spacecraft BUS, Nasa Involvement Will BE Tailored to Balance the Levels of Oversight VS. Insight Needed to Ascertain the Appropriate Level of Risk to the Overall Mission — $139.1M (National Aeronautics and Space Administration)
- Hosted Payload Solution National Aeronautics and Space Administration's Tropospheric Emissions: Monitoring of Pollution Payload — $71.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)