GAO rejects TraCSS contract protest

WASHINGTON – In a significant development for space traffic coordination efforts, the Government Accountability Office (GAO) has rejected a protest lodged by a company concerning a contract associated with the Office of Space Commerce’s (OSC) system designed for this purpose.

The GAO’s decision, made public on March 26, dismissed a protest from Kayhan Space challenging the Office of Space Commerce’s contract award to Slingshot Aerospace in November 2024. This contract pertains to the “presentation layer,” essentially the web interface, for the Traffic Coordination System for Space (TraCSS).

Protest Grounds

Kayhan Space’s protest raised several objections, alleging that the Office of Space Commerce had “unreasonably and unequally evaluated proposals.” These objections centered on the assessment of prior experience and technical capabilities. Kayhan also cited a perceived lack of clarity in the proposal requirements concerning past performance, and argued that Slingshot’s proposal contained unbalanced pricing.

However, the GAO dismissed all of Kayhan’s claims. The agency stated in its 11-page decision, “While we do not address every argument, we have considered them all and find that none provide us with a basis to uphold the protest.”

Evaluation Findings

The GAO decision further highlighted that Slingshot’s proposal received higher scores in the evaluation process, specifically in the areas of prior experience and technical capabilities. The Office of Space Commerce rated Slingshot’s proposal with “high confidence” in these areas, compared to a “some confidence” rating for Kayhan’s proposal. Furthermore, Slingshot’s total evaluated price was approximately $14.7 million, notably less than Kayhan’s price of approximately $18.1 million.

Araz Feyzi, co-founder and chief technology officer of Kayhan Space, indicated to SpaceNews that the company would accept the decision and “not pursue the protest” further. “While the future of TraCSS remains to be determined, we are proud to already offer a fully operational solution that actively supports satellite operators today,” Feyzi stated. He also mentioned that Kayhan Space would be launching a “significant new feature” for its Satcat product in the near future.

Protest Impact and OSC Confidence

The protest action temporarily halted work on the presentation layer contract during the GAO’s evaluation period. Janice Starzyk, acting director of the Office of Space Commerce, had previously expressed confidence in January that the office would still be able to finalize the initial phase of TraCSS, including its web interface, by the close of the fiscal year.

Staff Reductions and Schedule Concerns

However, the Office of Space Commerce has recently experienced staff reductions, with “probationary” employees being laid off in late February. Although some staff members, including Dmitry Poisik, program manager of TraCSS, have been reinstated, concerns persist within the industry regarding the office’s capacity to maintain the development schedule for the TraCSS system.

Congressional Inquiry into Layoffs

On March 26, three Democratic leaders from the House Science Committee publicized a letter, sent a week prior to Commerce Secretary Howard Lutnick, addressing the layoffs at the Office of Space Commerce. The lawmakers described the firings as “irrational and senseless,” asserting that “if not reversed,” these actions would “degrade OSC’s ability to execute its mission, which is essential for the continued growth of America’s burgeoning commercial space sector.” The letter specifically highlighted the office’s crucial work on both TraCSS and commercial remote sensing regulation.

Concerns over TraCSS Delays

The letter further warned that “delays to the TraCSS project could risk our nation’s ability to lead in space situational awareness and shape the global standards and best practices for spaceflight operations.” The representatives also emphasized that “slowing or thwarting TraCSS progress” would negatively impact the burgeoning U.S. commercial space situational awareness industry, which TraCSS is intended to support.

Questions about SpaceX Influence

In their letter, the members of Congress posed several questions to Secretary Lutnick regarding the firings of probationary employees and the potential effect on the implementation schedule for TraCSS. They also inquired about any potential role SpaceX may have had in these decisions, citing potential conflicts of interest involving SpaceX Chief Executive Elon Musk. Musk also serves as a senior advisor to the president and is considered the de facto head of the Department of Government Efficiency.

Signatories of the Letter

The letter was signed by Representatives Zoe Lofgren (D-Calif.), ranking member of the full committee; Valerie Foushee (D-N.C.), ranking member of the space subcommittee; and Emilia Sykes (D-Ohio), ranking member of the oversight subcommittee.

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