Background of the Lawsuit
In a significant development resulting from a lawsuit filed by Viasat, the Department of the Air Force has decided to revoke a $254 million award previously granted to Tyvak Nano-Satellite Systems. This contract was intended for the development of 10 experimental fire-control satellites, and as part of this outcome, the bidding process will be reopened.
Impact on Other Contracts
While the revocation applies specifically to the Tyvak contract, documents filed with the US Court of Federal Claims on February 14 reveal that a separate contract awarded to York Space Systems—valued at $170 million for 10 prototype space vehicles in the Tranche 2 Transport Layer (T2TL) Gamma variant—will remain unaffected.
New Bidding Process
The court documents do not outline a precise timeline for the new bidding process; however, it has been confirmed that officials unrelated to the original contract oversight will manage the rebidding. A spokesperson for the Space Development Agency (SDA) indicated that details regarding the new solicitation are expected to be released soon, affirming that all eligible companies will have an opportunity to compete.
Triggering Events of the Lawsuit
The revocation follows a protest filed by Viasat in September 2023, which subsequently led to the Air Force’s January 16 decision to place SDA Director Derek Tournear on administrative leave. An internal evaluation within the Air Force identified that an unnamed SDA employee disclosed confidential information to Tyvak regarding its bid status prior to the Gamma contract award. This breach was recognized by Major General Alice Trevino, who deemed it a violation of the Procurement Integrity Act, which governs government contracting practices.
Importance of the Gamma Vehicles
The requirement for the 10 Gamma vehicles awarded to Tyvak is considered essential for the success of the Proliferated Warfighter Space Architecture involving low Earth orbit satellites. However, the possibility of significant delays or increased costs may prompt a reassessment of this requirement and the necessity for a new competitive process.
The SDA has clarified that the Gamma satellites will not integrate into the operational Transport Layer of data relay satellites. Instead, they are designed to contribute to developing fire control capabilities for missile defense systems and the experimental FOO Fighter program. Such advancements may play a vital role in the newly proposed Iron Dome for America missile defense initiative.
Responses from Companies Involved
Both Tyvak and York have accepted the Air Force’s plans regarding the rebidding. However, as of the court filing date, Viasat had yet to reply to the proposal. Viasat’s policy prevents public commentary on ongoing litigation, as stated by a company spokesperson.
York, on the other hand, expressed their commitment to transparency and the integrity of the selection process, highlighting that the investigation revealed no wrongdoing on their part and reaffirming confidence in the merit of their award.
Conclusion
The revocation of the $254 million award to Tyvak Nano-Satellite Systems and the reopening of the bidding process underscore the importance of adherence to procurement laws within government contracting. The outcome of this case may set precedents for future contracts in the defense sector, emphasizing accountability and integrity in the selection processes for critical aerospace technology.
