Attachment 2 - Drones_BrandName_JA_Redacted.pdf

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Attached to
USAFA Teal 2 Drones Federal contract opportunity
Solicitation number
FA700025Q0146
Issued by
Department of the Air Force Headquarters Air Force Academy

About this file

This is a Sole Source (Including Brand Name) Justification document for a small unmanned aircraft system procurement by the United States Air Force Academy (USAFA). The acquisition is for brand name "Teal 2 Drones" with specific technical specifications, including a flight time of 30+ minutes, weight of 2.75 lbs, and a dual-axis EO/IR gimbal sensor system. The procurement is a small business set-aside with a funding level between >SAT and ≤$750K, focused on operational contracting for airmanship training.

Key details include USAFA's existing inventory of 100 Teal 2 drones and the desire to maintain operational continuity without extensive retraining. Teal Drones, Inc. (a subsidiary of Red Cat Holdings) has discontinued future production of this system, making this a final procurement. The document notes that after this purchase, USAFA will pursue different/upgraded drone platforms. The acquisition will be competed between Atlantic Diving Supply, Inc. and Teal Drones, Inc., with the contracting activity located at 10 CONS/PKB, USAF Academy in Colorado.

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Attachment 1 - ProvisionsandClauses_FA700025Q0146.pdf PDF
Teal 2 Drones Combined Synopsis V1.pdf PDF

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

SOURCE SELECTION SENSITIVE

July 2025 SOURCE SELECTION SENSITIVE Page 2 of 4July 2025 SOURCE SELECTION SENSITIVE Page 2 of 4

I. Contracting Activity.

10 CONS/PKB

II. Nature and/or description of the action being processed.

Brand Name acquisition of Small Unmanned Aircraft Systems

III. Description of supplies/services required to meet agency needs.

Brand name "Teal 2 Drones"

Salient Characteristics:

AIRCRAFT

-Flight Time30+ minutes* -Weight2.75 lbs (1.25 kg) -Flight Speed10 m/s (23 mph) -Max Flight Ceiling10,000 ft (3048 m) MSL -Max Range (From Controller)5 km -Operation Temp Range-32 to 110 F (-35.6 to 43.3 C) -Flight ControllerMAVLink Compliant -Wind Limits18 mph (16 kn) Sustained to 25 mph (22 kn) Gusts

SENSOR

-System Dual Axis EO IR Gimbal with Hadron -EO Sensor 16MP, 67 degree HFOV -EO Video Recording 4000x3000 at 15fps -Gimbal Pitch Control Range -120 to +120 -IR Sensor Boson 640 Radiometric, 32 degree HFOV -IR Video Recording 640R640x512 at 30Hz -Removable Storage microSD Card -Recorded Video Format MP4 and Transport Stream

TEAL AIR CONTROL (TAC)

-Downlink Resolution 720p -Encryption AES 256 -Latency ~300ms -Software OS Android -Battery Life 6 hours -Weight 3.7 lbs (1.68 kg)

PROCESSOR

-Main Processor: Snapdragon 845 -GPU: Adreno 630 -CPU: Octa-core Kryo 385 -Image Signal Processor: Spectra 280 -Memory: 6GB LPDDR4X

IV. Statutory authority permitting other than full and open competition.

FAR 13.501(a)(1), Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. However, contracting officers must-

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

July 2025 SOURCE SELECTION SENSITIVE Page 3 of 4July 2025 SOURCE SELECTION SENSITIVE Page 3 of 4

(i) Conduct sole source acquisitions, as defined in 2.101, (including brand name) under this subpart only if the need to do so is justified in writing and approved at the levels specified in paragraph (a)(2) of this section;

This acquisition is being conducted as a brand name and justified accordingly.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The Teal 2 branded drones from Teal Drones, Inc are the platform we currently have in use at USAFA. We have 100 of these drones now, and purchase of the same platform will allow for the continuity of operations without extensive familiarity training to learn a new platform.

All pertinent parties have training on the Teal 2 platform, so purchasing the same platform would not require extensive retraining. Retraining would cost approximately $ if switching to a new platform. This would also cause delays/effect efficiency of USAFA's airmanship training if those involved are not intimately familiar with the platform/ system.

Drones are being used for cadet familiarity/military training; so cadets can train each other on the existing platform.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Teal Drones, Inc., a subsidiary of Red Cat Holdings, Inc has discontinued future production of the Teal 2 system. After this procurement, USAFA will pursue different/upgraded platforms as future purchases become necessary. New models and vendors will be solicited in the future.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Prior to award, price fair and reasonable will be determined IAW FAR13.106-3(a). SAM and SPRS will be reviewed to asses quoter responsibility/qualification, past performance, and supplier risk IAW FAR part 9 and DFARS 204.7602.

Financial responsibility will be determined IAW DAFFARS 5309.107-1.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

This is a non-complex requirement for a commercial product as defined in FAR 2.101. The item being procured is not unique to the government and can be acquired using FAR part 12 procedures. Economic price adjustment or price redetermination is not anticipated. There is minimal risk to the Government. IAW FAR 16.103(b) A firm-fixed-price contract, which best utilizes the basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be predicted with an acceptable degree of certainty; therefore, a commercial firm-fixed-price purchase order is most appropriate to meet the agency need.

Based on the results of market research, there are no mandatory sources available to meet this requirement. There was an FSS #47QSWA20D00AJ that could have met this requirement, but the BPA ordering period ended on 10 September 2025.

Competition is anticipated amongst two or more responsible small businesses, who are competitive in terms of fair market prices, quality, and delivery.

Atlantic Diving Supply, Inc and Teal Drones, Inc are two small businesses that can satisfy the government's need.

This acquisition will be a brand name, total small business set-aside.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

N/A

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

July 2025 SOURCE SELECTION SENSITIVE Page 4 of 4July 2025 SOURCE SELECTION SENSITIVE Page 4 of 4

X. List of any sources that expressed, in writing, an interest in the acquisition.

Teal Drones, Inc. has stated they can provide the requested drones. ADS is a reseller for Teal Drones through DLA.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

As stated in section IV. Teal Drones, Inc., a subsidiary of Red Cat Holdings, Inc has discontinued the production of these drones. After this procurement, USAFA will upgrade to a different platform. New models and vendors will be solicited in the future.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.

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