DoD's $102M Small Satellite Program Task Order Awarded to Utah State University Space Dynamics Laboratory

Contract Overview

Contract Amount: $102,450,850 ($102.5M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2021-11-11

End Date: 2030-09-30

Contract Duration: 3,245 days

Daily Burn Rate: $31.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACE & NUCLEAR ADVANCED PROTOTYPES, EXPERIMENTS & TECHNOLOGY DEVELOPMENT (SNAPET) SMALL SATELLITE PROGRAM (SSP) TASK ORDER

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $102.5 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: SPACE & NUCLEAR ADVANCED PROTOTYPES, EXPERIMENTS & TECHNOLOGY DEVELOPMENT (SNAPET) SMALL SATELLITE PROGRAM (SSP) TASK ORDER Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of over 8 years suggests a long-term research and development effort. 3. The contract is a cost-plus-fixed-fee type, which can lead to cost overruns if not managed carefully. 4. No small business set-aside or subcontracting was indicated, potentially limiting small business participation. 5. The contract is a delivery order under a larger contract, indicating a phased approach to funding and execution. 6. The specific North American Industry Classification System (NAICS) code 541715 points to a focus on advanced scientific research.

Value Assessment

Rating: fair

The contract value of approximately $102 million over a period of nearly 9 years represents a substantial investment in space and nuclear advanced prototypes. Benchmarking this specific task order against similar R&D contracts for small satellite programs is challenging without more granular data on the scope of work and deliverables. However, the cost-plus-fixed-fee structure warrants careful monitoring to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for the risks undertaken.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that pricing and value were not tested against market alternatives, potentially leading to higher costs than if multiple bidders had been involved.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government did not benefit from the price discovery mechanisms inherent in a competitive environment.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive advanced research and technology development for small satellite programs. The services delivered will focus on research and development in physical, engineering, and life sciences, likely contributing to advancements in space technology and national security. The geographic impact is centered in Utah, where Utah State University Space Dynamics Laboratory is located, potentially fostering local economic activity and research expertise. Workforce implications include the potential for highly skilled jobs in scientific research, engineering, and program management at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
Cost-plus-fixed-fee contracts can incentivize cost escalation if not rigorously managed and overseen.
Absence of small business participation or subcontracting requirements may limit opportunities for smaller innovative firms.

Positive Signals

Utah State University Space Dynamics Laboratory is a recognized research institution with a history in space-related projects.
The long contract duration suggests a strategic, long-term investment in critical technology development.
The focus on advanced R&D aligns with national priorities for technological superiority in space.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences. The market for space technology and small satellite development is highly specialized and competitive, with significant government investment. Comparable spending benchmarks would typically involve other large R&D contracts awarded to research institutions or defense contractors for similar technological advancements in the aerospace and defense industry.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this significant research and development effort are limited. The absence of such provisions could mean that the full potential of the small business ecosystem in contributing to this program is not being leveraged.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the achievement of milestones and deliverables outlined in the contract. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects often associated with defense R&D. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Space and Missile Systems Center (SMC) Contracts
Advanced Technology Development Programs
Small Satellite Research Initiatives
Department of Defense Research and Development Funding

Risk Flags

Sole-source award may limit price competition.
Cost-plus-fixed-fee structure requires diligent cost oversight.
Long contract duration increases exposure to potential scope creep or changing requirements.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.5 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. SPACE & NUCLEAR ADVANCED PROTOTYPES, EXPERIMENTS & TECHNOLOGY DEVELOPMENT (SNAPET) SMALL SATELLITE PROGRAM (SSP) TASK ORDER

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

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 $102.5 million.

What is the period of performance?

Start: 2021-11-11. End: 2030-09-30.

What is the specific technical scope and expected deliverables for this task order?

The provided data indicates this task order is for the 'SPACE & NUCLEAR ADVANCED PROTOTYPES, EXPERIMENTS & TECHNOLOGY DEVELOPMENT (SNAPET) SMALL SATELLITE PROGRAM (SSP) TASK ORDER'. While the exact technical scope and deliverables are not detailed in the summary data, the NAICS code 541715 ('Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)') suggests a focus on fundamental and applied research. This likely includes the design, development, testing, and potentially demonstration of advanced technologies for small satellites, possibly related to space and nuclear applications as implied by the program name. Deliverables would typically include research reports, prototypes, experimental data, and technical briefings.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar R&D efforts?

Cost-plus-fixed-fee (CPFF) contracts are common for research and development efforts where the scope of work is not precisely defined at the outset, or where significant technical uncertainties exist. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility for the government to adapt to evolving research needs but carries a higher risk of cost growth if not managed effectively. Other R&D contract types include Cost-Plus-Incentive-Fee (CPIF), which incentivizes performance against targets, and Firm-Fixed-Price (FFP) for well-defined R&D projects. The CPFF structure here suggests a high degree of uncertainty in the research path.

What is Utah State University Space Dynamics Laboratory's track record with Department of Defense contracts, particularly in small satellite R&D?

Utah State University Space Dynamics Laboratory (USU SDL) has a well-established history of supporting the Department of Defense and other government agencies in space-related research and development. They have been involved in numerous projects related to satellite technology, sensor development, and space systems engineering. While specific details of their past performance on small satellite R&D for the DoD are not provided in this data, USU SDL is generally recognized for its expertise in these areas, often collaborating on complex scientific and engineering challenges. Their experience likely positions them as a capable contractor for this SNAPET SSP task order.

What are the potential risks associated with a sole-source award for a contract of this magnitude and duration?

The primary risks associated with a sole-source award of this magnitude ($102 million over nearly 9 years) include a lack of price competition, potentially leading to inflated costs for taxpayers. Without competitive proposals, the government may not achieve the best possible value or secure the most innovative solutions available in the market. There's also a risk that the contractor may have less incentive to control costs or accelerate delivery compared to a competitive scenario. Furthermore, sole-source awards can sometimes indicate a lack of available qualified sources or a reliance on a single entity, which can create strategic vulnerabilities if that entity faces performance issues or business challenges.

How does this contract's spending align with historical trends in DoD small satellite R&D?

The Department of Defense has significantly increased its investment in small satellite technology over the past decade, recognizing their utility for rapid deployment, reduced cost, and specialized mission capabilities. This $102 million task order for advanced prototypes, experiments, and technology development aligns with this trend. Historically, DoD R&D spending in space has been substantial, but the focus has shifted towards more agile and proliferated systems like small satellites. This contract represents a portion of that ongoing strategic investment, supporting the development of next-generation capabilities in this rapidly evolving domain.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 416 E INNOVATION AVE, NORTH LOGAN, UT, 84341

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,450,850

Exercised Options: $102,450,850

Current Obligation: $102,450,850

Actual Outlays: $12,317,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945322D0005

IDV Type: IDC

Timeline