Disputed Contract Scrapped Amidst Uncertainty Over SDA Leader's Position
The Space Development Agency (SDA) has decided to revoke a contract for tenant satellites previously awarded to Tyvak Nano-Satellite Systems, and will restart the bidding process, according to Air & Space Forces Magazine. The decision comes after a federal court dispute concerning alleged violations of acquisition regulations by SDA during the awarding process.
In August 2024, SDA awarded Tyvak a $254 million contract to develop advanced communication satellites for its proliferated constellation in low-Earth orbit, and also granted a $170 million deal to York Space Systems. However, Viasat lodged a protest in federal court, claiming SDA had provided Tyvak Preferential treatment, leading Pentagon leaders to put SDA Director Derek M. Tournear on administrative leave.
According to a status report filed in court on Feb. 14, an unnamed SDA employee violated regulations by disclosing that Tyvak's bid was second highest in price. Court documents indicate that this employee was Tournear, who allegedly directed Tyvak to collaborate with an unnamed contractor and communicated his expectations regarding the pricing of several proposals.
Following the violation, SDA has agreed to a corrective action plan, which includes cancelling Tyvak's contract and reopening the competition for ten satellites. This plan includes the appointment of a new source selection official.
In the past, SDA had reopened a competition following a protest in 2021, after Maxar Intelligence lodged a complaint. However, no contract was awarded in that instance.
When asked for comment, an SDA spokesperson confirmed the corrective action plan and stated that a new solicitation would be issued soon. The agency's next question is about the fate of Tournear, who has been instrumental in driving SDA activities since its inception, but the spokesperson declined to speculate on the matter.
Additionally, a recent Pentagon memo called for an "independent review team" to examine the "health" of SDA and its programs, and to consider whether it should remain a semi-independent acquisition arm within the Space Force or be absorbed into other structures. Defense One reported that the Air Force inspector general's office is planning to review SDA, but Air & Space Forces Magazine has not yet reviewed the contents of the memo.
The SDA has garnered attention for its rapid-paced approach to acquisition, awarding contracts for hundreds of small satellites to go in low-Earth orbit on unprecedented timelines in military space. However, this fast-paced approach has put the small agency at odds with traditional acquisition insiders and some prime contractors, leading to moments of tension. Some controversies involve Tournear himself, who took to social media in October 2023 to claim he faced internal resistance to SDA and pledged to be a catalyst for change in Pentagon acquisition processes.
Originally established as a "constructive disruptor" within the office of the Secretary of Defense, SDA transitioned into the Space Force in 2022.
[1] "Space Development Agency Sees Tension with Traditional Acquisition Insiders," Air & Space Forces Magazine, November 8, 2023.[2] "What to Expect in 2025 for Space Development Agency Programs," Defense News, January 2, 2025.[3] "The 2025 State of Space Development Agency," Space.com, May 1, 2025.[4] "Whither the Space Development Agency?" CNN, March 24, 2025.
- The Space Development Agency (SDA) has cancelled a contract for ten satellite projects previously awarded to Tyvak Nano-Satellite Systems and will restart the bidding process due to alleged violations of acquisition regulations.
- The SDA awarded Tyvak a $254 million contract in August 2024 for developing advanced communication satellites, but Viasat lodged a protest in federal court, accusing SDA of providing preferential treatment.
- An unnamed SDA employee violated regulations by disclosing that Tyvak's bid was second highest in price and the court documents indicate that this employee was SDA Director Derek M. Tournear.
- The SDA's corrective action plan includes the appointment of a new source selection official and the reopening of competition for the ten satellites.
- In the past, the SDA has reopened a competition following a protest, but no contract was awarded in that instance.
- The SDA has garnered attention for its rapid-paced approach to acquisition, but this fast-paced approach has put the small agency at odds with traditional acquisition insiders and some prime contractors.
- Defense One reported that the Air Force inspector general's office is planning to review the SDA, and a recent Pentagon memo called for an "independent review team" to examine the SDA and its programs.
- Originally established as a "constructive disruptor" within the office of the Secretary of Defense, the SDA transitioned into the Space Force in 2022.
