Cover Sheet – DARPA BAA-12-07 (ORIGINAL COPY) 1. BAA Number DARPA-BAA-12-07 2. Technical Area: Space Vehicle System 3. Lead Organization Submitting Proposal: Celestial Technologies Corporation 4. Type of Business: Small Business 5. Contractors reference number: STAR STREAKER SVS 2012 6. Other team members and type of business for each (a) Axelo, Inc – small business (b) Prescott Products Corp. – small business – (c) Spaceport Technologies Corporation – small business 7. Proposal Title: STAR STREAKER SVS 8. Technical point of contact – Tom Prescott 9. Administrative point of contact – David Stone 10. Award instrument requested: OTA – Build Prototype 11. Place(s) and period(s) of performance: Lockwood and San Antonio, Texas 12. Total Proposed cost: “Cost or pricing data” are not required if the proposer proposes an other transaction. 13. Proposers cognizant DCMA administration office – NONE – new contractor 14. Proposers cognizant DCMA audit office – NONE – new contractor 15. Date Proposal was prepared: 12/19/2011 16. DUNS number: 962703471 17. TIN Number: 27-0473700 18. Cage Code: 60WH3 19. Subcontractor Information: None 20. Proposal validity period. 12-20-2011 through 12-20-2014 -1- SECTION I Volume I Technical and Management Proposal Section 1.1 Funding opportunity number: DARPA-BAA-12-07 1.2 Technical Area: Space Vehicle System (SVS) 1.3 Submitted by: Celestial Technologies Corporation (CTC) 1.4 Type of Business: Small Disabled Owned Business 1.5 Contractor Reference Number: DARPA-12-07 1.6 Other Team Members: (a) Axelo, Inc. (b) Prescott Products Corp. (c) Spaceport Technologies Corporation 1.7 Proposal Title: STAR STREAKER (SVS) 1.8 Technical Point of Contact: Tom Prescott Phone: 512-275-6546 e-mail: thomas@axeloinc.com 3925 W. Braker Lane, Suite 300, Austin, Texas 78759 1.9 Administrative Point of Contact: David Stone Phone: 775-742-6137 e-mail: dstone@celestial-technologies.com 2360 Corporate Circle, Suite 400, Henderson, NV 89074 1.10 Submitted: December 20, 2011 -2- Official Transmittal Letter Mr. Mitchell Burnside Clapp, DARPA/TTO 3701 North Fairfax Drive Arlington, VA 22203-1714 ATTN: DARPA BAA-12-07 Dear Mr. Clapp and Program Reviewing Officials, Celestial Technologies Corporation submits its proposal for Project STAR STREAKER SVS in response to DARPA BAA-12-07. This proposal details our concept of operations for a space vehicle and the command and control module associated with operating the vehicle to address the requirements of this BAA. Our approach is based on being able to recover and reuse our STAR STREAKER SVS that transports satellites into space. Project STAR STREAKER SVS is forged in a whole systems design approach that concentrates on solving the needs presented for a significantly less expensive method to deliver small satellite payloads via alternatives to current range processes, control of weight and margin under a hard gross weight limit, creation of a low-cost launch vehicle compatible with an existing aircraft, and development of a concept of operations capable of achieving a cost of $1M per launch in this small satellite class. CTC will demonstrate a launch system that works without the need for extensive maintenance, preparation, or inspection in advance of launch that is designed to address the ALASA program goals of affordability, responsiveness, flexibility, and resilience. CTC proposes to be the system design and definition performer who will develop and demonstrate the STAR STREAKER demonstrator system as the general contractor utilizing technology developers who will support enabling and enhancing technology components for the STAR STREAKER Orbital system. The overarching principle of the proposal addresses our current capabilities to use proprietary technologies, composite materials and integrated design concepts to deliver a whole system in response to this solicitation. The application of the proprietary business model we use stretches the boundaries of current program preparedness by interjecting new thinking invoked by a collaboration of individuals and entities. Sincerely, Founder & Visionary Solutions Architect -3- Table of Contents COVER SHEET – DARPA BAA-12-07 (ORIGINAL COPY)...................................................................1 SECTION I......................................................................................................................................................2 VOLUME I .....................................................................................................................................................2 TECHNICAL AND MANAGEMENT PROPOSAL SECTION...............................................................2 1.7 PROPOSAL TITLE: STAR STREAKER (SVS)..................................................................................2 OFFICIAL TRANSMITTAL LETTER.......................................................................................................3 TABLE OF CONTENTS...............................................................................................................................4 ORGANIZATIONAL CONFLICT OF INTEREST AFFIRMATIONS AND DISCLOSURE....................................................6 HUMAN USE...................................................................................................................................................6 ANIMAL USE..................................................................................................................................................6 STATEMENT OF UNIQUE CAPABILITY PROVIDED BY GOVERNMENT OF GOVERNMENT-FUNDED TEAM MEMBER.6 GOVERNMENT OF GOVERNMENT-FUNDED TEAM MEMBER ELIGIBILITY............................................................6 ..........................................................................................................................................................................6 SECTION II SUMMARY OF PROPOSAL.................................................................................................7 (A) INNOVATIVE CLAIMS OF THE PROPOSED RESEARCH....................................................................................7 (B) DELIVERABLES ASSOCIATED WITH THE PROPOSED RESEARCH AND THE PLANS AND CAPABILITY TO ACCOMPLISH TECHNOLOGY TRANSITION AND COMMERCIALIZATION.................................................................12 ADVANCED MATERIALS TECHNICAL ABSTRACT ..........................................................................12 BACKGROUND .......................................................................................................................................12 Technical Story.......................................................................................................................................13 Composite Inlet......................................................................................................................................14 ALUMINUM-PLASTIC TECHNICAL ABSTRACT ...............................................................................14 COMPOSITE FUEL TANKS..................................................................................................................14 CBM™ Component Manufactured Products.........................................................................................15 ADVANCED NAVIGATION SYSTEM...................................................................................................16 STRATEGIC PLAN TO REDUCE OPERATIONAL GROUND AND LAUNCH COSTS.......................................................18 (C) COST, SCHEDULE AND MEASURABLE MILESTONES FOR THE PROPOSED RESEARCH......................................19 (D) TECHNICAL RATIONALE AND APPROACH..................................................................................................20 (E) GENERAL DISCUSSION OF OTHER RESEARCH IN THIS AREA........................................................................21 SECTION III. DETAILED PROPOSAL INFORMATION....................................................................23 A.Statement of Work...............................................................................................................................23 B.Results, products, technology transfer Ongoing Research.................................................................29 C.Previous accomplishments – Prescott Products Programs/Proposals..............................................30 D.Facilities: We can do prototyping and manufacturing in Texas. Requires approx 40,000 sq ft of lease space with improvements. We would like to propose an end use lease at NASA Langley for testing and V.V.& A with the company structure in Hampton at the innovation incubator. Our bank, Langley Federal Credit Union, requires a physical presence in Virginia.............................................30 E.Support & Teaming: we propose a CRADA with General Dynamics................................................30 SECTION IV. ADDITIONAL INFORMATION......................................................................................31 COST SUMMARIES....................................................................................................................................31 TABLE OF KEY INDIVIDUALS AND CONTRACTORS TIME COMMITMENTS:..........................................................31 -4- Organizational Conflict of Interest Affirmations and Disclosure NONE Human Use NONE Animal Use NONE Statement of Unique Capability Provided by Government of GovernmentFunded Team Member NONE Government of Government-Funded Team Member Eligibility NONE Celestial Technologies Corporation DUNS # CAGE Code FEIN 962703471 60WH3 27-0473700 Our approach is based on being able to recover and reuse our STAR STREAKER SVS that transports payloads and satellites into space. In that recovery process we can fly the vehicle to pick up the payload from an orbital steady state. Therefore the only requirements are a landing strip and the satellite and plane to be present. Furthermore, with our system we can build a set of reusable vehicles and launch them from a fixed location so that there will always be available vehicles to pick up payloads. Another advantage of our concept of operations is that not only can we deliver the satellites to the fixed orbit, but we can also retrieve them such that if in the future the operations requirement were such that a small satellite be put up for a specific purpose and then taken down after mission conditions were met then we could do this with the current design we will have built. -5- SECTION II SUMMARY OF PROPOSAL (A) Innovative Claims of the proposed research Celestial Technologies Corporation (CTC) proposes to develop the STAR STREAKER SVS as a significantly less expensive approach for launching small earth orbit payloads routinely, with a target launch cost that is a significantly lower when compared to current military and US commercial launch costs. CTC seeks to launch satellites on the order of 100 lbm for less than $10,000 per pound, or $1M total including range support costs. CTC will develop and employ radical advances in launch systems, to include the development of a complete orbital vehicle requiring minimum recurring maintenance or support, and limited integration to prepare for launch. The CTC demonstration system will draw upon emerging technologies to provide a specific new fuel tank manufacturing process, new composite materials fabrication and manufacturing process, motor case materials, new flight controls that include Advance Navigation System Command & Control Hardware– Software, advanced mission planning techniques, new nozzle designs, improved thrust vectoring methods, and new throttling approaches with a proprietary “Launch & Recover” payload vehicle. The CTC “STAR STREAKER” has the flexibility of utilizing existing vertical launch vehicles or can be launched from an airborne platform. For the airborne launch option, performance improvement, reducing range costs, and flying more frequently, will combine to reduce cost per pound. The ability to land to pick up the payload, relocate and launch quickly from virtually any major runway around the globe substantially reduces the time needed to execute a launch mission. Launch point offset permits essentially any possible orbit direction to be achieved without concerns for launch direction limits imposed by geography. Finally, launch point offset allows the entire operation to be moved should a particular fixed airfield become non-operational. CTC’s Command and Control Hardware–Software (CCH-S) meets today’s challenges, includes development of alternatives to current range processes, control of weight and margin under a hard gross weight limit, creation of a lowcost launch vehicle compatible with an existing aircraft, and development of a concept of operations capable of achieving a cost of $1M per launch with CTC’s STAR STREAKER class of recoverable orbital vehicles. CTC will utilize proprietary blends of CBM™ (Composite Building Material) and CCM™ (Composite Construction Material), brought forth by the Founding President of its Axelo Group’s company Prescott Products, to manufacture composite components molded to the desired shape that will provide temperature stabilization, high strength to weight, and mechanically integrate with other materials into the formulae for assembly. -6- The CTC manufacturing process has been developed incorporating cross linked, closed-cell, polyolefin foam and/or high temperature silicone rubber as elements of the lay-up to provide lightweight and high temperature cored composite components. In addition, other components have been mechanically integrated to support structural loads. High temperature, high acoustic levels, high shock loads, and severe vibration have long been an operational concern for the re-entry flight regime of the Common Air Vehicle. Many types of vibration isolation and absorption devices have been conceived to reduce these concerns. CTC has derived a solution to this dilemma wherein composite inserts are molded to the desired shape that will provide temperature stabilization, acoustic isolation, minimized shock loading and vibration damping. CTC and its affiliates have developed a proprietary end to end manufacturing process that incorporates cross linked, closed-cell, polyolefin foam and high temperature silicone rubber as components of the lay-up to provide a level of temperature, noise, shock, and vibration isolation required for space flight. The STAR STREAKER orbital vehicle and associated launch pod are comprised of two major components: (1) The Transport Pod, or TP, manufactured from CBM™, houses the orbital vehicle for transport and launch . (a) The Transport Pod can be attached to a vertical launch vehicle or carried to high altitude on a “mother ship” and then launched utilizing on-board insertion rocket motors. -7- (b) Upon attaining desired orbital altitude, the Transport Pod is separated from the orbital vehicle to allow mission completion and allow vehicle recovery. (2) The STAR STREAKER orbital vehicle includes a payload bay, fold-able wings, the booster rocket motor, maneuvering motors (4), and an eject-able ablative shield. -8- (a) The deployable wings upper surface contains sufficient solar cells providing battery replenishment during sunlight exposure. (b) Upon recovery command the wings are folded and the STAR STREAKER is placed in its recovery projector. -9- (c) The ablative shield protects the orbital vehicle during re-entry. (d) After re-entry, the ablative shield is ejected allowing a (powered/un-powered) runway recovery. The STAR STREAKER payload bay preparation for re-launch requires a minimum number of man-hours for preparation that we seek to optimize by introducing proprietary techniques in the turn around process command chain. CTC will demonstrate a launch system that works without the need for extensive maintenance, preparation, or inspection in advance of launch. This capability will enable a one day interval between call-up and launch, a rapid mission planning demonstration where the intended orbit is selected after takeoff of the launch assist aircraft, and a demonstration of the ability for rapid departure from a threatened airfield to execute a launch mission from a remote site. These demonstrations are designed to address program goals of affordability, responsiveness, flexibility, and resilience. - 10 - (B) Deliverables associated with the proposed research and the plans and capability to accomplish technology transition and commercialization. Advanced composite material manufacturing process and components Various lighter in weight and less expensive to produce components Aluminum Plastic Panels Composite Fuel Tanks Advance Navigation System Command & Control Hardware–Software Strategic plan to reduce operational ground and launch costs ADVANCED MATERIALS TECHNICAL ABSTRACT CTC via its affiliation with Prescott Products Corp, as an application for its proprietary formula blend of CBM™ (Composite Building Material) and CCM™ (Composite Construction Material), is proposing to manufacture composite components molded to the desired shape that will: provide temperature stabilization, high strength to weight, and mechanically integrate other materials into the assembly. Resulting from Prescott Products Corp. UAV production, a proprietary manufacturing process has been developed incorporating cross linked, closed-cell, polyolefin foam and/or high temperature silicone rubber as elements of the lay-up to provide lightweight and high temperature cored composite components. In addition, other components have been mechanically integrated to support structural loads. High temperature, high acoustic levels, high shock loads, and severe vibration have long been an operational concern for the re-entry flight regime of the Common Air Vehicle. Many types of vibration isolation and absorption devices have been conceived to reduce these concerns. Prescott Products Corp. is proposing to manufacture composite inserts molded to the desired shape that will provide temperature stabilization, acoustic isolation, minimized shock loading and vibration damping. The manufacturing process has been developed incorporating cross linked, closed-cell, polyolefin foam and high temperature silicone rubber as components of the lay-up to provide a level of temperature, noise, shock, and vibration isolation required for space flight. Thickness, foam/silicone characteristics, and a (carbon, fiberglass, Kevlar™, epoxy, polyester matrix) can be tailored to provide desired levels of temperature stabilization, minimized shock loading, provide the structural required strength and mechanically incorporate other non-matrix materials. BACKGROUND Prescott Products Corp. has developed a proprietary composite building material and manufacturing process that utilizes existing materials and processes with a twist. Composite panels/sandwiches are not new. Historically, they have been expensive to manufacture and difficult to cut/mold into shapes needed for their application. Prescott Products Corp.'s solution consists of a composite building material called CBM™ that is a strong, lightweight composite panel that is easy to cut/mold to a desired shape. - 11 - During the development of production UAV components, the application of CBM™ has resulted in lighter, stronger and more cost effective components. Technical Story As a reverse engineering project, Prescott Products Corp. developed and manufactures a Federal Aviation Administration (FAA) certified turbo-prop engine composite inlet. The function of this complex inlet structure is to accept the installation of a rubberized heater blanket that provides anti-icing protection for the engine. The materials to manufacture the inlet were tested and certified by Prescott Products Corp. to be fire resistant to 2,000° C for a period of five (5) minutes. This technology has been incorporated into canister mufflers for small reciprocating engines that can withstand the temperature and vibration environment encountered with UAV applications. By incorporating CBM™ technology and a multi-part mold, components can be manufactured with a core material added. This core material can be tailored to provide the desired temperature stabilization, minimized shock loading, and high structural strength. The identification, cataloging, and evaluation of potential core materials will provide selection criteria for core layers. Cross linked, closed-cell, polyolefin foams used independently or combined with silicone rubber (-80° F to +425°F for example) could provide the protection required for components. Material thickness can also be varied to further tailor the characteristics. The Out of Autoclave (OOA) manufacturing methodology for cored components will be similar to the un-cored methods currently employed but, with the addition of a mandrel. The utilization of the existing manufacturing technology will reduce technical risk for the development. The end product to be produced as a High Strength Cored Composite Material (HSCCM™) will be tailored to specific operational environments. Composite Inlet Note: The composite inlet is FAA certified for installation on Maule Aerospace Corporation, Inc. aircraft utilizing the Allison Turbine 250-B17-C engine. - 12 - ALUMINUM-PLASTIC TECHNICAL ABSTRACT Prescott Products Corp., as an application for its Aluminum-Plastic Panels, will manufacture composite components molded to the desired shape that will provide a lightweight, portable, durable, high strength to weight, environmentally and chemically resistant space-flight construction system. Our panels are easy to maintain and corrosion resistant. Because of the panels’ composite construction, the panels are anti-shock, impact and fire-proof. The panels are easily mechanically integrated with other materials of the assembly, utilizing common construction tools. The development plan is to manufacture the composite components utilizing our aluminum-plastic bonding process. The panels can be tailored to provide desired levels of size, durability, temperature stabilization, minimized shock loading, the structurally required strength, while mechanically incorporating other non-matrix materials. COMPOSITE FUEL TANKS Impregnated liner material is integrated to provide a leak-proof structure. Prescott Products Corp. has manufactured composite tanks utilizing cross linked, closed-cell, polyolefin foam and/or silicone rubber as the core material with an impregnated liner. The thickness, foam/silicone characteristics, carbon/fiberglass/Kevlar™, epoxy/polyester matrix, and liner can be tailored to provide, minimized shock loading, provide the structural required strength, and mechanically incorporate other non-matrix materials. - 13 - CBM™ Component Manufactured Products Automotive Part CBM™ Component is 60% Lighter & Stronger Sun Reflective Component Internal Layered Damping Material (SBIR) Attachment Inserts Lighter Weight CBM™ Parts Tested @ 2,000°F for 5 Min. CBM™ Type UAV Muffler - 14 - ADVANCED NAVIGATION SYSTEM CTC via its affiliation with Axelo, Inc. is developing of a low-cost tactical hardened UAV/UGV Unmanned Space Vehicle (USV) navigation system. This improved system for manned/unmanned aerial and spaceborne systems is being developed with partners; Celestial Technologies Corporation and Prescott Products Corp. Axelo is actively engaged in R&D to rid drift error in MEMS-based IMUs. Integrating the IMU with Magnetometer components yields a reliable and accurate solid-state inertial navigations system (INS). A significant reduction in size, weight and cost is achieved by utilizing MEMS technology. To render accurate positioning and orientation sensing, the INS data output is being combined with a newly developed GPS module. These navigation units are designed to have operational redundancy at the Chip, System and Connectivity levels. Current IMU systems have a cumulative measurement error. This error accumulation is due to inherent bias in the components and/or is resulting from environmental parameters; i.e. temperature variation or induced engine vibration. Axelo’s solution is based on years of expertise in integrating advanced hardware and software and includes filtering and sensor data fusion algorithms. The Axelo Group’s innovation progression path combines our improved MultiSystem GPS receiver modules with advanced IMU/INS hardware/firmware. The desired accuracy required to optimize system performance is achieved utilizing a matrix of sensors (Accelerometers, Gyroscopes, and Magnetometers) which provide more precise position and orientation information. Individually, the MEMS-based IMU/INS modules are prone to large systematic errors (biases, scale factors, drifts). ***** Typically, the performance of these sensing modules reaches a position accuracy of 0.5 m, a velocity accuracy of 0.2 m/s, as well as an orientation accuracy of 1 deg for pitch and roll and 2 deg for heading MEMS sensors are highly miniaturized thus they offer the possibility of using numerous sensors to enhance the calculation of geo-positioning. Today’s unmanned airborne platforms have limited real-estate for major components. The Axelo Group of Celestial Technologies Corporation has devised a solution with an approach that creates a “virtual” sensor array by combining several sensors of the same type on the same circuit board, minimizing the noise generation error and increasing sensing accuracy. This matrix of sensors also provides required redundancy if individual components malfunction. - 15 - The Axelo Group’s proprietary design uses chips incorporating multiple sensors. Total system costs will become more controllable as multi-sensor chips become more widespread and commercially available. Axelo anticipates a reduction in error of 30-50%. The resulting redundancy of the sensing units will improve performance of the GPS/INS hardware in the following ways: 1. Direct noise estimation will be achieved directly from the data improving the stochastic model of the Extended Kalman Filter (EKF). 2. Extraneous noise levels will be reduced as will defective sensors and sensor malfunctioning be detected and isolated more rapidly and accurately. 3. Sensor error attenuation then becomes conceivable even during uniform motion or static initialization. 4. Redundant IMU’s (dual electrical buses) will dramatically improve reliability. Axelo applies a real-time data fusion algorithm, based on an Extended Kalman Filter (EKF), to combine computed GPS position, velocity, and heading. Acceleration and heading rate measurements are provided by dead reckoning sensors (3D accelerometer and heading gyro). The problem with today’s systems is that short-term accuracy of the INS is good while long-term accuracy is poor. GPS long-term accuracy is good. The disadvantages of the combined GPS/INS are corrected in the Axelo solution which in turn becomes the miniaturized integration of GPS and INS in the next generation of system navigation. Ultimately, the capability to alter orbital inclination resides in the software developed for the vehicle via the Axelo Advanced Navigation System. Should an instance arise that the GPS signal become minimized or interrupted, the INS enables the navigation system to coast along until the GPS signal is re-established. Axelo is assessing different methods to optimize the real-time capability of Extended Kalman Filters. These methods include the use of a parallel processing approach (based on OTC processing modules). Methods being evaluated also include fuzzy logic and rule-based approaches. - 16 - The redundancy at the chip level is complemented by redundancy on the system level. A dual control/data bus will be used in the unmanned system. Each bus services a separate GPS/INS module. The outputs of both modules are processed through a comparator. The final output is synchronized with the decision protocol specified by the end user. Strategic plan to reduce operational ground and launch costs www.spaceport-technologies.com What we want to do in this part of our developmental path is to link the Spaceport Research Technology Institute at KSC through Dale Ketcham, its Director as Principal Investigator and teaming as a CRADA with General Dynamics to develop the strategic plan to convert the Future Inter-Agency Range and Spaceport Technology (FIRST) study into a formal business model. The end result of this work as it pertains to this BAA would be the production of a strategic plan to reduce operational ground and launch services costs. - 17 - (C) Cost, schedule and measurable milestones for the proposed research What we know we can do is build a whole space vehicle system that accomplishes all the requirements definitions attached to this BAA at a low enough cost that meets the request for continued operations in the less than 1M per 100 lbm payloads category. This much is given as fact. The work associated with building this system also delivers other elements such as new techniques in NG&C and enhancements in many other areas of systems which can be cross-fitted to applied research and development of similar space vehicle systems. The process for the advanced materials manufacturing, a complete product road map for the whole system that includes replacement parts and operator training programs as well as strategic plan for the reduced operational costs on the spaceport and range cost equation are defined as a part of the suite of deliverables that CTC is prepared to develop under this BAA. We could state a cost as a fixed number but ideally we would want to work with DARPA to establish an other transaction contract that allows us to build this system as proof in the demonstration of its superiority. The BAA states “Cost or pricing data” are not required if the proposer proposes an other transaction. The “Other Transactions Guide for Prototype Projects” defines a nontraditional defense contractor as “A business unit that has not, for a period of at least one year prior to the date of the OT agreement, entered into or performed on (1) any contract that is subject to full coverage under the cost accounting standards prescribed pursuant to section 26 of the Office of Federal Procurement Policy Act (41 U.S.C. 422) and the regulations implementing such section; or (2) any other contract in excess of $500,000 to carry out prototype projects or to perform basic, applied, or advanced research projects for a Federal agency that is subject to the Federal Acquisition Regulation.” Celestial Technologies Corporation meets all these criteria. There is no restriction with regard to subcontracting amounts for technology demonstrations. FAR 35.009 states “since the selection of R&D contractors is substantially based on the best scientific and technological sources, it is important that the contractor not subcontract technical or scientific work without the contracting officer’s advance knowledge.” If a proposer intends to subcontract out some portion of the effort, this must be identified in the proposal per the BAA. Additionally, any resulting award will contain a clause requiring the Contracting Officer’s prior consent before altering the composition of the proposed research team. We would openly discuss any subcontracting needed with the contract officer prior to approaching any arrangement that might alter the composition of the proposed research team we are initially applying for this BAA with. - 18 - (D) Technical rationale and approach TECHNOLOGY APPROACH - RATIONALE, VALUATIONS & METRICS To speak quantitatively about the Star Streaker SVS let’s first define some useful metrics. In the past, we have tended to think in terms of cost per launch in terms of weight per volume of payload, and that is an easy metric to understand. To optimize this metric, one can manipulate the size of the payloads as a variable, increase utilization of existing payloads by reducing set-up times to reduce cost or any number of other means to effect change in cost per unit measurement. As we move towards a modernized service to deliver payloads paradigm, and think in terms of value per kg as a function of the quantifiable performance of the payload in relations to its particular application in space as opposed to the raw weight versus total cost net valuation formula, we are faced with the need to have more granular data and more robust analysis of the correlations affecting each variable. Instead of cost per pound, we can characterize the data volume that can be associated with the value of the measurable performed activity associated with the payload being delivered. To be quantitative here, we need to define the reference point. For instance, a re-supply cargo payload has a fairly fixed point of reference in terms of cost per unit already baked into the most simplistic equation. With all the elements of cost containment come opportunities to work towards the offloading of redundant resources. - 19 - And so, we will define “reference spacecraft payloads”: we normalize the spacecraft to have an RF output power of 10 W and an antenna diameter of 1.4 m (which, for a 50% efficient antenna, provides the equivalent of a 1m antenna). To extend this definition, we postulate a spacecraft system consisting of a 30 cm optical aperture and a 3 W laser output, corresponding to the specifications of the optical transceiver in the NASA Advanced Space System Development Program (X2000 program). In this definition, we can speak quantitatively about the data rate that this reference spacecraft can downlink to the stage one vehicle, common ground antenna (RF) or telescope (optical). Finally, with this single-aperture definition in place, we can also talk about the aggregate capacity for the entire ground network, by adding up the downlink rates for antennas/telescopes in the DSN. In effect, this corresponds to the aggregate bandwidth that the DSN could supply to an ensemble of “reference” spacecrafts. So then, in this configuration you have a second reference point of the fully integrated operational maintenance status of the functional payload spacecraft without the features of the payloads accounted for in any variable or level of understanding. So then, the function becomes how do we measure the value of the payloads that are being transported based on monetary cost basis and take into consideration the relevant function of whatever mission critical task or experiment derives from the success metric of the mission itself. This is our challenge. As we become adept at routine payload delivery on demand then the measuring and valuing of the mission deliverables will take on a new set of key characteristics that will in turn translate into additional variables which will lead to greater understandings of the characteristics of the costs of operations as a function of total throughput. We are at the point in time where the number of launches must rise significantly for our technical expertise to develop safely and on time every time the mastery of tasks associated with precisely delivering payloads on demand. (E) General Discussion of other research in this area. In searching the market for existing research sources and competing programs we uncovered Generation Orbit Launch Services (GOLS). GOLS is a new company incubated out of Space Works and the Georgia Economic Development Department. Research determined that GOLS is developing a system called Go Launch that uses expendable rocketry for its efficiency of scale cost reduction strategy. - 20 - It appears that the designs that relate to satellites and other utilities associated with the pieces that would logically conform to the design and interface with STAR STREAKER SVS mechanical devices to perform maneuvers with orbital payloads coming forth from GOLS does not displace our effort in any way. Therefore, we see their research as complimentary and not competitive at this juncture. However, our approach is based on being able to recover and reuse our STAR STREAKER SVS that transports payloads and satellites into space. In that recovery process we can fly the vehicle to pick up the payload from an orbital steady state. Therefore the only requirements are a landing strip and the satellite and plane to be present. With the GOLS approach they seem to be intending to move personnel and other assets via logistics required from point to point in order to rendezvous with the payload and plane required to perform the demonstration. Furthermore, with our system we can build a set of reusable vehicles and launch them from a fixed location so that there will always be available vehicles to pick up payloads. Another advantage of our concept of operations is that not only can we deliver the satellites to the fixed orbit, but we can also retrieve them such that if in the future the operations requirement were such that a small satellite be put up for a specific purpose and then taken down after mission conditions were met then we could do this with the current design we would have built. In short, we are developing a system that would make the affixing of payload onto an airborne platform such as a fighter plane as routine as affixing ammunition such as a GBU or any other Modular Guided Weapon System. In terms of strategy, GOLS appears to be building a team where they would consider themselves the prime contractor. We are taking the approach of using a CRADA with General Dynamics as our anchor where they would Prime programs we develop together from participating in a basket of associated FOA proposals in co-operation with them. Formal plans and discussions are approaching their first anniversary. DARPA BAA-12-07 would be a catalyst to the development of what is already expected to be a piece of business we have discussed working up together. Our contact there at GD is Vince Holtmann in GD-AIS – 210-932-5522. - 21 - Section III. Detailed proposal information A. Statement of Work Celestial Technologies Corporation (the “Company”) agrees to engage Prescott Products Corp. and Analogix, Inc. d.b.a. Axelo, Inc as Member/Partner (“Member”) to perform project services according to the following terms: I. Project Services; Fees A. Member will perform the certain services as specified and directed by the Company during the course of this engagement. The Company will pay Member at the rate of $105.00 per hour (“Project Fees”) B. Member will design, develop and integrate whole systems designs of aerospace vehicles and associated command and control modules that conform with requested models sought by the combined best efforts of the Member and the Company. II. Payment The Company will pay all amounts owed to Member no later than 10 days after receipt of invoice. The Company will promptly reimburse Member personnel for reasonable travel and out-of-pocket business expenses. III. Member Personnel; Relationship of the Parties Member will assign its human and capital resources to perform work on the Project. The parties agree that Member is an independent contractor for tax, insurance, workers’ compensation, and all other purposes and is not to be an employee of the Company. Member therefore has control over the order and sequence of project work and the specific hours worked, has the opportunity for entrepreneurial profit, and is not subject to Company withholding of income or employment taxes. Both parties agree that Member’s success in performing the services depends on the participation, cooperation, and support of the Company’s most senior management. Use of the term Member or Partner does not confer that status; and neither Member nor its partners will sign any securities or tax filings on behalf of the Company. IV. Standard Disclaimers A. Member will not be liable for any non-compliance with federal, state or local laws or regulations. B. The Company agrees that reports, projections and/or forecasts can be prepared only at the Company’s direction and reflect the judgment of the Company. Member makes no representation or warranty as to the accuracy or reliability of reports, projections and/or forecasts and will not be held liable for any claims of reliance on such reports, projections and/or forecasts. - 22 - C. Member’s services shall not constitute an audit, review or compilation, or any other type of financial statement reporting engagement that is subject to the rules of the AICPA or other such state and national professional bodies. V. Indemnity; Joint Defense; Liability Limitations; Arbitration; Insurance A. The Company agrees to indemnify Member to the full extent permitted by law for any losses, costs, damages and expenses, including attorneys’ fees, as such are incurred, in connection with any cause of action, suit or other proceeding arising in connection with this Agreement and including any legal proceeding in which we may be required or agree to participate, but in which we are not a party. This indemnification does not apply to actions taken by Member in bad faith. B. If the Company and Member are defendants in any action, suit, or other proceeding, the defense of Member will be by counsel selected by Member. C. The Company and Member agree to binding arbitration under the rules of the American Arbitration Association (“AAA”), to take place in the Raleigh, NC AAA office, if any dispute arises among some or all. D. The Parties recognize and agree that any breach by Member of this Agreement would result in injury that would be impossible to accurately ascertain. Therefore, Member shall pay to the Company as liquidated damages, and not as a penalty, those Project Fees paid and/or owed Member for the last two full months of work actually performed under this Agreement. The parties agree that this amount of liquidated damages represents a reasonable approximation of the damages that would be incurred as a result of a breach by Member of this Agreement. E. In any event, at any time, Member may pay a sum equal to 50% of the total Project Fees paid under this Agreement, which payment the Company agrees shall serve as final satisfaction and accord for any and all such liabilities of Member under this Agreement. F. As a precondition for recovery of any alleged liability, the Company shall give Member notice, in writing, of the alleged basis for liability within thirty (30) days of discovering the circumstances giving rise to such alleged liability, and no legal or other action shall be taken by the Company against Member (i) more than (60) days after such notice has been given or (ii.) less than thirty (30) days after such notice has been given, in order that Member shall have the opportunity to investigate in a timely manner and, where possible, correct or rectify the alleged basis for liability. G. Member will not be liable in any event for incidental or consequential damages, including without limitation, any interruption of business or loss of business, profit, or goodwill. H. This statement of work (SOW) describes the functions and products that shall be delivered by the contractor to provide an integrated infrastructure approach. - 23 - I. An integrated infrastructure approach in a changing business environment requires strategic planning for tasks and projects. It also requires the ability to self-assess, improve, and evolve processes to facilitate efficiency, adaptability, and advancement of functions. The strategic and organizational planning and business process improvement tasks to be provided by the contractor follow. Provide best-practice and process-improvement evaluations for works specified in task orders. Evaluations may use lean six sigma, benchmarking, or other evaluation techniques. Best-practice and process-improvement evaluations shall assess on-going practices, identify future-state requirements, and provide options, including pros and cons, for process modifications. If a process modification is accepted, follow-on activities shall include an assessment of previous state against the modified state to track the achievement of the expected improvements. Provide scheduling generation, assessment, and tracking for activities as specified in task orders. Schedule generation shall include schedule assessment, phasing and planning analysis, resource loading analysis, and recommendations of schedule options including pros and cons of the options. Schedule tracking shall include an ongoing assessment of finalized schedules to track completed work, identify schedule shortfalls, and recommend schedule corrective actions. Provide cost estimation, assessment, and tracking for activities as specified in task orders. Cost estimation shall include cost assessment, phasing and planning assessments, resource loading analysis, schedule compatibility analysis, and recommendations of cost estimations options including pros and cons of the options. Cost estimation tracking shall include an ongoing assessment of costs, comparison of planned hours and dollars against actual, identification of actual versus planned cost shortfalls, and estimation of end of fiscal year costs. Cost estimation shall also include budgetary forecasting of costs for projects and activities as specified in task orders. Budgetary forecasting shall include assessment of future costs for the time frame specified via task orders, options for phasing work, and input for budget planning activities. Provide metrics generation, assessment, and tracking for activities as specified in task orders. Metrics generation may utilize existing tools or may require generation of a new reporting method. Metrics generation shall collect and report data electronically and provide trending patterns, trending analysis, and trending forecasts. Assessment and tracking to compare current metrics against previously reported metrics and assess metrics on track with past and fore-casted trends. Provide risk assessment and tracking for activities as specified in task orders. Risk assessment may utilize existing tools or may require generation of a new assessment method. Risk assessment shall collect and report data electronically and provide risk identification, risk categorization, and risk mitigation options including pros and cons of the options. Risk tracking shall compare risk assessments against the identified risk mitigation and assess whether the risk is satisfactorily mitigated, resolved, or increasing. When a risk is identified as increasing, a new risk assessment shall be conducted. - 24 - Provide records and data management including coordination of document reviews, integration, and baseline maintenance of documentation and records. Provide data management of documentation and records. Provide project facilitation and support for project activities. Both administrative and technical support shall be provided. VI. General Terms and Conditions A. This Agreement may be canceled by either party upon 30 days advance written notice. However, Member retains the right to terminate this agreement immediately if the Company has not remained current with its obligations to Member under this Agreement, the Company is engaged in or asks the Member to engage in an illegal or unethical activity, or by death or disability of the principal officer(s) of Member. B. The provisions on the attached Schedule A are incorporated by reference as if set forth herein; and the provisions concerning the bonus in Schedule A will survive any cancellation of this Agreement. C. Neither the Company or Member shall be deemed to have waived any rights or remedies accruing under this Agreement unless such waiver is in writing and signed by the party electing to waive the right or remedy. D. This Agreement is governed by Nevada law. E. The terms of this Agreement are severable, and they may not be amended except in writing signed by the parties. This Agreement binds and benefits the successors of the parties. F. This Agreement contains the entire agreement between the parties, superseding any prior oral or written statements or agreements. G. The persons signing below are authorized to sign on behalf of each party, and their signatures are all necessary signatures. Celestial Technologies Corporation _____________________ Signature David Stone, Founder Name and Title Prescott Products Corp ____________________ Signature Tom Prescott, President Name and Title On File Axelo, Inc _________________ Signature Pierre Tormeau, CEO Name andTitle On File - 25 - Schedule A. Project Work Agreement A. The Company will pay to Member either in cash, in company stock, or in company stock options a bonus equal to 25% of previously billed Member invoices for services performed, upon completion of the first set of contracts. B. The Company will pay to Member further incentive payments for the performance of future mutually agreed performance-related milestones. Performance of Work and Scope Member and Company will co-operate to acquire business and secure additional partnerships that advance mutual ambitions. Member and Company will develop a basis of estimate (BOE) of hours and of cost to implement requirements identified in task orders. This Schedule A will be the basis for the Statement of Work and will have appendages and be amended to as a living document. The first project worked on by Member and Company will be the creation of the Star Streaker SVS as a direct response to a Broad Agency Announcement from the Defense Advanced Research Projects Agency (DARPA) Airborne Launch Assist Space Access (ALASA) Solicitation Number: DARPA-BAA-12-07 The focus of Phase I is to define the ALASA demonstration concept; derive the design for both the launch assist system and space vehicle system; make initial selections of those technologies, and integrate them into a preliminary design. A significant number of design selections must be made to meet the program milestones, while also considering the desirable attributes that would ensure future transition to the Services. The focus of Phase I is to define the ALASA demonstration concept; derive the design for both the launch assist system and space vehicle system; make initial selections of those technologies, and integrate them into a preliminary design. A significant number of design selections must be made to meet the program milestones, while also considering the desirable attributes that would ensure future transition to the Services. - 26 - B. Results, products, technology transfer Ongoing Research CTC, via the experience of Tom Prescott, President of its Axelo Group and Prescott Products provides overall program management, documentation and delivery of the Contract Data Requirement List. Tom Prescott’s direct involvement in programs has delivered: two separate families of UAV’s to the U.S. Army, Night Vision & Electronic Sensors Directorate (NVL). These operational UAV’s supported CCD, Infrared, Hyper-spectral cameras and noise acquisition sensor development programs within NVL. In addition, PPC provided UAV operational training to the U.S. Army. two operational UAV’s platforms. The task included completing the design and producing CAD engineering drawings, building component “plugs” to develop production molds, and manufacturing production units. These operational UAV’s supported a variety of U.S. Government Agencies. These government projects were investigating specialized sensor payloads. Our Commercial-Off-The-Shelf (COTS) UAV’s have demonstrated fully autonomous flight, and superior mission adaptability. The UAV’s can be catapult launched and have parachute recovery. a U.S. Navy SBIR contract that developed a proprietary product called Internal Layered Damping System (ILDS™). This system reduces vibratory modes and noise inside of rotating tubes. a reverse engineering project was completed for Maule Air, Inc. which included a FAA fire resistance certification testing program. The all composite turbo-prop inlet is now being manufactured to strict FAA specifications. a joint venture with EADS Dornier to manufacture under license a Precision Parachute Delivery System (PPDS™). This joint venture allows PPC to offer an in-production GPS guided parachute system. The Precision Parachute Delivery System supports both the High Altitude-Low Opening/High Altitude-High Opening (HALO/HAHO) Navigation Aid manned operational requirement and the autonomous aerial delivery of cargo. The PPDS™ gives the U.S. Armed Forces the capability to deliver men and equipment during all operational and weather scenarios. PPC is the Prime Contractor for a U.S. Army Natick Soldier Center evaluation. NACA composite inlet kits and assembled units for Maule Air Inc, Air Tractor Inc, and Adams Aircraft. Our NACA inlet scoops are also manufactured for the general aviation homebuilt market. Lexan™ NACA scoops for the Toyota NASCAR™ racing team. a specialty line of composite R/C model aviation products. Ongoing research specializes in the design, manufacturing, testing, and repair of fiberglass parts and components. Composite Building Material (CBM™), Composite Construction Material (CCM™), Composite Structural Material (CSM™), and Aluminum Composite Material (ACM™) are composites exclusively manufactured by Prescott Products Corp. - 27 - C. Previous accomplishments – Prescott Products Programs/Proposals 1. U.S. Army Night Vision Lab. (NVL), FlightHawk UAV. 2. U.S. Army Night Vision Lab. (NVL), Setter UAV. 3. U.S. Navy (BAI), Tern-P UAV. 4. U.S. Navy (BAI), Super Tern-P. 5. Wing In Ground-Effect (WIG, AeroVironment), WIG UAV. 6. USDA Proposal, Observer UAV. 7. USAF Range Relay Proposal, Howard DH-200SP UAV. 8. USAF Aerial Launch Lethal Proposal, Starstrike UAV. 9. OSD Special Operations Proposal, Integral UAV. 10.DARPA Hovering/Staring SBIR (& Unsolicited with Tracker UGV), Server UAV. 11.Alyeska Alaskan Pipeline Proposal, TwinTOL UAV. 12.U.S. Army Large Scale Winged Target (LSWT) Proposal, Prescott LSWT. 13.OSD UAV Trainer Proposal, FET-50 UAV and Advanced Trainer UAV. 14.U.S. Army Night Vision Lab. (NVL) Proposal, Receiver UAV. 15.U.S. Navy Small Ship UAV System Proposal, TwinTOL VerticalLaunch UAV. 16.U.S. Army Target Directorate Proposal, TAV-5. D. Facilities: We can do prototyping and manufacturing in Texas. Requires approx 40,000 sq ft of lease space with improvements. We would like to propose an end use lease at NASA Langley for testing and V.V.& A with the company structure in Hampton at the innovation incubator. Our bank, Langley Federal Credit Union, requires a physical presence in Virginia. E. Support & Teaming: we propose a CRADA with General Dynamics. - 28 - Section IV. Additional Information Cost Summaries Budget Pro Forma Subcontractor Senior Personnel Tom Prescott – Prescott Products Pierre Touma - Axelo Ravi Rao - Axelo Phase 1 Phase 2 1st Quarter 2012 4,128 4,128 February 2012 6,143 0 Testing As budgeted As budgeted Quality Controls As budgeted As budgeted 4500 4500 Hourly Rate $105 $105 $105 Other Personnel 1 Rick Horn – CTC 2.David Stone - CTC Salary from CTC Disabled owner Subcontractors: Axelo Prescott Products Meeting cost - 1 annual Travel Domestic (not material) International – 1 conference spaceport safety Vienna Austria Administrative Secretarial-Clerical Consultant Services Accounting /Compliance/Audits Performed by CTC CTC NONE Other Direct Costs Demonstration Program Program Roll-out Full scale deployment Supplies Documentation /Dissemination Totals – calculated To be named Materials As budgeted As budgeted Facility As budgeted As budgeted Tooling Equipment As budgeted As budgeted reports Assumptions: Table of Key individuals and Contractors time commitments: Key Individual/Contractor Tom Prescott Pierre Touma Ravi Rao David Stone Project Star Streaker Star Streaker Star Streaker Star Streaker Pending/Current Proposed Proposed Proposed Proposed - 29 - 2012 1850 900 900 200 2013 1850 900 900 200 2014 1850 900 900 200 - 30 -
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