SDA Director: Fixed-Price Contract Model to Remain in Acquiring Tech, Services

The Space Development Agency will continue working on its existing business model in procuring missile tracking and related communications satellites for its Proliferated Warfighter Space Architecture.

In a LinkedIn post, SDA Director Derek Tournear, a Potomac Officers Club speaker and past Wash100 winner, said that during his dialogue with industry executives, many expressed support for the agency’s fixed-price model. He added that the decision to stick with the business model follows the agency’s motto of “Semper citius,” or “Always faster,” enabling the SDA to stick to its schedule.
 
Tournear also discussed other reasons the agency opted for a fixed-price contract, including not locking vendors into a lengthy development and production timeframe, Via Satellite reported.

Northrop Grumman CEO Kathy Warden discussed how her company considers SDA’s pricing “fair and reasonable.” However, the SDA stopped negotiations with the company.

The agency has been working on the PWSA for years. In 2023, Tournear discussed how the architecture will be resilient against missile attacks and continue to provide warfighters with valuable data transport and missile-tracking capabilities.