Air Force awards $71.8M contract for Tropospheric Emissions Monitoring Payload to LANTERIS SPACE LLC

Contract Overview

Contract Amount: $71,807,911 ($71.8M)

Contractor: Lanteris Space LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-26

End Date: 2025-09-18

Contract Duration: 2,276 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HOSTED PAYLOAD SOLUTION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S TROPOSPHERIC EMISSIONS: MONITORING OF POLLUTION PAYLOAD

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94303

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $71.8 million to LANTERIS SPACE LLC for work described as: HOSTED PAYLOAD SOLUTION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S TROPOSPHERIC EMISSIONS: MONITORING OF POLLUTION PAYLOAD Key points: 1. Contract value of $71.8M over its period of performance. 2. Awarded under full and open competition. 3. Firm Fixed Price contract type indicates predictable costs. 4. Delivery Order awarded against a larger contract vehicle. 5. Contract duration spans over 6 years. 6. Performance location in California.

Value Assessment

Rating: good

The contract value of $71.8M for a payload solution appears reasonable given the 6-year duration and the specialized nature of space-based monitoring. Without specific benchmarks for similar tropospheric monitoring payloads, a direct comparison is difficult. However, the firm fixed-price structure suggests that the government has locked in costs, which is a positive indicator for value.

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 had the opportunity to bid. This competitive process is expected to drive better pricing and innovation. The specific number of bidders is not provided, but the open competition is a strong signal of a healthy market for this type of service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a robust bidding process, potentially leading to lower prices and higher quality services.

Public Impact

Benefits the Department of the Air Force by providing critical data for environmental monitoring. Delivers a specialized payload solution for tracking atmospheric pollution. Geographic impact is national, with potential global implications for climate research. Workforce implications may include specialized aerospace engineers and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on satellite payload development and deployment for environmental monitoring. The market for such specialized technology is typically dominated by a few key players with advanced capabilities. Spending in this area is driven by national security and scientific research needs.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. Further analysis would be needed to determine the extent of small business involvement in this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management within the Department of the Air Force. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

defense, air-force, california, delivery-order, firm-fixed-price, full-and-open-competition, aerospace, environmental-monitoring, payload-development, large-contract, lanteris-space-llc

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.8 million to LANTERIS SPACE LLC. HOSTED PAYLOAD SOLUTION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S TROPOSPHERIC EMISSIONS: MONITORING OF POLLUTION PAYLOAD

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 $71.8 million.

What is the period of performance?

Start: 2019-06-26. End: 2025-09-18.

What is the specific technical capability of the "HOSTED PAYLOAD SOLUTION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S TROPOSPHERIC EMISSIONS: MONITORING OF POLLUTION PAYLOAD"?

The "HOSTED PAYLOAD SOLUTION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S TROPOSPHERIC EMISSIONS: MONITORING OF POLLUTION PAYLOAD" refers to a system designed to monitor and collect data on pollutants in the Earth's troposphere, the lowest layer of the atmosphere. This payload is likely integrated onto a satellite or other space-based platform. Its primary function is to provide crucial information on atmospheric composition, including greenhouse gases and other harmful emissions, which is vital for climate research, environmental policy, and air quality management. The 'hosted' aspect suggests it might be a secondary payload on a larger mission or utilize existing infrastructure, potentially optimizing cost and deployment.

How does the $71.8M contract value compare to similar tropospheric monitoring payload contracts?

Benchmarking the $71.8M contract value for this specific tropospheric emissions monitoring payload against similar contracts is challenging without access to a comprehensive database of specialized aerospace procurements. Contracts for space-based payloads can vary significantly based on technological complexity, mission duration, data resolution, and the specific pollutants being monitored. However, for a multi-year project involving advanced sensor technology and integration onto a space platform, a value in the tens of millions of dollars is not uncommon. Factors like whether it's a primary or secondary payload, the required lifespan, and the level of customization heavily influence the final cost. Further analysis would require identifying comparable missions and their associated contract values.

What are the primary risks associated with a firm-fixed-price contract for a complex aerospace payload?

While a firm-fixed-price (FFP) contract is generally favored for cost control, it introduces specific risks, particularly for complex aerospace projects like a tropospheric emissions monitoring payload. The primary risk lies with the contractor: if the project encounters unforeseen technical challenges, material cost increases, or scope creep not explicitly covered by contract modifications, the contractor may incur losses. Conversely, the government's risk is that the contractor might cut corners on quality or performance to maintain profitability, especially if the initial price was set too low due to aggressive bidding. Effective risk mitigation requires robust technical oversight, clear contract specifications, and strong communication channels to manage any potential deviations or issues promptly.

What is the expected impact of this contract on environmental monitoring capabilities?

This contract is expected to significantly enhance environmental monitoring capabilities by providing advanced data on tropospheric emissions. The payload's data will contribute to a better understanding of air quality, climate change drivers, and pollution patterns. This information is crucial for informing policy decisions, validating climate models, and potentially enabling more targeted pollution control strategies. The sustained operation over the contract's duration (2019-2025) ensures a continuous stream of valuable environmental data, supporting long-term research and operational monitoring efforts.

How does the 'full and open competition' award mechanism influence the cost-effectiveness for taxpayers?

Awarding this contract through 'full and open competition' is designed to maximize cost-effectiveness for taxpayers. This process allows any qualified vendor to submit a proposal, fostering a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as bidders strive to offer the most attractive combination of cost and technical merit. It also encourages innovation, as companies seek to differentiate their offerings. For taxpayers, this means the government is more likely to secure the required services or products at a fair market price, avoiding the potential overpricing associated with sole-source or limited competition scenarios.

Industry Classification

NAICS: Transportation and WarehousingNonscheduled Air TransportationNonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA881419R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3825 FABIAN WAY, PALO ALTO, CA, 94303

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,958,684

Exercised Options: $72,613,196

Current Obligation: $71,807,911

Actual Outlays: $1,378,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA881414D0003

IDV Type: IDC

Timeline

Start Date: 2019-06-26

Current End Date: 2025-09-18

Potential End Date: 2025-09-18 00:00:00

Last Modified: 2025-12-17

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