The Space Development Agency will rescind a contract for 10 satellites awarded to Tyvak Nano-Satellite Systems last summer and reopen the competition, Air & Space Forces Magazine has confirmed—but uncertainty continues to swirl around the organization whose director was abruptly suspended in January.
SDA awarded Tyvak a $254 million contract in August 2024 to build advanced communications satellites for its proliferated constellation in low-Earth orbit. At the time, it also awarded a $170 million deal to York Space Systems. But Viasat protested the award in federal court, alleging SDA had violated federal acquisition regulations by providing Tyvak additional information—prompting Pentagon leaders to place SDA director Derek M. Tournear on administrative leave.
In a status report filed in court on Feb. 14, government lawyers said an SDA employee violated regulations by telling Tyvak its bid was second highest in price. Air & Space Forces Magazine has learned that employee was Tournear, who the filing says directed Tyvak to team with an unnamed contractor and conveying to Tyvak and two other contractors his “own expectations regarding their proposal pricing.”
The agency has since agreed to a corrective action plan, including canceling Tyvak’s contract and reopening the competition for 10 satellites with a new source selection official, according to court documents.
SDA reopened another competition following a protest in 2021, when it released an updated request for proposals for satellites after Maxar Intelligence protested a competition. But in that instance, no contract had been awarded.
An SDA spokesperson confirmed the corrective action plan to Air & Space Forces Magazine and said a new solicitation would be issued “soon.”
With the case resolved, the next question for SDA is what happens to Tournear, who is seen by many as a transformational visionary for his work in driving SDA activities since its inception during the first Trump administration. The SDA spokesperson declined to speculate on his fate.
SDA faces other questions, as well. A recent Pentagon memo called for an “independent review team” to determine the “health” of SDA and its programs, and consider whether it should remain a semi-independent acquisition arm within the Space Force or be absorbed into other structures. Defense One reported recently that the Air Force inspector general’s office has alerted SDA to its intent to review the agency.
Air & Space Forces Magazine confirmed these memos exist, but has not reviewed their contents.
SDA made waves and earned plaudits for its fast-paced approach to acquisition, awarding contracts for hundreds of small satellites to go in low-Earth orbit on timelines previously unseen in military space. But its rapid-fire approach has has put the small agency at odds with traditional acquisition insiders and some prime contractors, leading to moments of tension. In October 2023, for example, Tournear took to social media to claim he had faced internal resistance to SDA and pledged to be the “bad cop” as he pushed for change in Pentagon acquisition processes.
Originally established as a “constructive disruptor” within the office of the Secretary of Defense, rather than in the Department of the Air Force, SDA transitioned into the Space Force in 2022.