The SDA buys the satellites, launches and ground systems for the Proliferated Warfighter Space Architecture in tranches roughly every two years, on long-term firm-fixed-price production contracts. For a supplier it can be most of the business: York Space Systems disclosed in its January 2026 IPO prospectus that the SDA accounted for substantially all of its revenue and backlog.
At a glance
| Standard terms | FAR and DFARS firm-fixed-price production contracts, placed tranche by tranche. |
|---|---|
| How it pays | Paid on the contract's milestone or delivery schedule under FAR and DFARS rules, invoiced through the Wide Area Workflow system. |
| When it can walk away | Termination for convenience, with costs and a profit allowance, subject to appropriated funds being available for the settlement. |
| Assignment and transfer | Assignment of Claims Act and FAR 52.232-23, on notice to the contracting officer. |
| Where awards are published | Tranche awards announced by the SDA and in the Department's daily contract announcements above US$9m. |
The key terms, read across
From the United States column of contracts and licensing.
IP and data rights
FAR 52.227-14: unlimited government rights in data first produced under the contract, with protection for limited rights data and restricted software. DoD uses DFARS terms.
Export control
ITAR for spacecraft on USML Category XV; EAR 9x515 for commercial satellites moved off the USML. ITAR registrants must notify a change of ownership.
Anchor revenue and termination
FAR termination for convenience: costs and a reasonable profit on work done, capped at the contract price. Funded Space Act Agreements can be ended with less protection.
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Related
- Space Development Agency
- Guide: Government anchor contracts and bankability
- Guide: Your first government contract: a guide for new space general counsel
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.