The Space Force’s acquisition shop, led by Frank Calvelli, has pursued fixed-price development contracts which come with risks for industry, but provide reduced risk to the government. Calvelli highlighted the importance of a nuanced approach and has issued memos to drive speed into development programs.
Defense companies, including Boeing and Northrop Grumman, have expressed concerns about the use of fixed-price contracts, citing challenges like cost overages. Calvelli’s vision is for the Space Force to buy smaller systems using existing technology under fixed-price contracts to field programs within three years of an initial award.
Not all programs fit the fixed-price mold, such as the Space Force’s Evolved Strategic Satellite Communications program. Boeing and Northrop Grumman have been developing prototype satellites, with production expected to start in 2025. Calvelli is considering a cost-plus contract model for this program, which may be a better fit due to its complexity and requirements.
