Microsoft Word Azercosmos rfp 18. 13

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Section 1: 
INTRODUCTION 
 
The U.S. Trade and Development Agency (USTDA) has provided a grant in the amount of 
US$604,000 to Azercosmos Open Joint Stock Company (the “Grantee”) in accordance with a 
grant agreement dated August 21, 2013 (the “Grant Agreement”). This project will focus on the 
Azerspace-2 communications satellite project in Azerbaijan.  The feasibility study (FS) will help 
Azercosmos to assess the technical, economic, and financial feasibility for a second 
communications satellite.  The Grant Agreement is attached at Annex 4 for reference.  The 
Grantee is soliciting technical proposals from qualified U.S. firms to provide expert consulting 
services to perform the Feasibility Study. 
 
1.1 BACKGROUND 
SUMMARY 
 
Azerbaijan established its space program in 2009 with the aim of improving communications in 
the country, diversifying the economy from oil and gas by establishing a satellite industry, and 
contributing to bridging the global digital divide.  As part of this program, Azercosmos was 
created by the President of Azerbaijan that same year as the key implementation arm for the 
mandated space program.  As such, Azercosmos is responsible for the design, implementation 
and management of the current and planned satellite projects of the Republic of Azerbaijan.   
 
Azercosmos has already launched and is operating its first satellite, the Azerspace-1 
communications satellite.  Azercosmos partnered with MEASAT Satellite Systems, the leading 
satellite operator in Malaysia, to jointly operate this satellite, which has an orbital slot that covers 
not only the entire territory of Azerbaijan, but also the Caucasus, Central Asia and Europe, as 
well as the Middle East, CIS region and Africa.  This has allowed MEASAT to replace its aging 
Africasat-1 communications satellite.  Azerspace-1 was procured from Orbital Sciences 
Corporation of Dulles, VA with financing from a loan of $116.6 million by the Export-Import 
Bank of the United States (Ex-Im).  The total cost of the project was greater than $200 million.  
The satellite was placed into orbit on a French Arianespace rocket in early 2013 and has been 
already commissioned for commercial satellite operations.  Azercosmos controls the satellite 
from its modern ground control center in Baku, Azerbaijan.  Azercosmos reports that it has 
already contracted 40% of the capacity on Azerspace-1 and will have contracted 80% of capacity 
within two years of launch.  With the contracted capacity revenues Azercosmos expects to pay 
back the Ex-Im loan within ten years, with the satellite slated to last approximately more than 15 
years.    
   
Although Azerspace-1 will meet immediate satellite telecommunications needs, the demand for 
services is expected to grow.  Furthermore, Africa, which is experiencing considerable economic 
growth and even higher need for telecommunications bandwidth, is a historically underserved 
market for satellite coverage.  In order to meet the expected future demand in Azerbaijan, the 
region and Africa, the President of the Republic of Azerbaijan announced in 2012 the 
commitment to launch a second communications satellite, Azerspace-2.  Azerspace-2 will meet 
this increased demand by using three different satellite frequency ranges, C-band, Ku-band and 
Ka-band; Azerspace-1 only uses C-band and Ku-band.  By incorporating Ka-band, which is the 
newest and the highest bandwidth frequency range available to communications satellites, 
Azerspace-2 will be able to meet high data throughput needs.  Furthermore with multipoint and 
steerable beams, the satellite will be able to provide spot coverage, which increases the number 

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of customers that can be served simultaneously, supports internet broadband access, typically 
reduces data transmission costs, and provides better performance.  Azerspace-2 will allow 
Azercosmos to be a full service satellite provider in its coverage area.   
 
A background Definitional Mission Report is provided for reference in Annex 2.  
 
1.2 OBJECTIVE 
 
To assess the feasibility of launching a second satellite for Azercosmos Open Joint Stock 
Company.  The Terms of Reference (TOR) for this Feasibility Study are attached as Annex 5. 
 
1.3 
PROPOSALS TO BE SUBMITTED 
 
Technical proposals are solicited from interested and qualified U.S. firms.  The administrative 
and technical requirements as detailed throughout the Request for Proposals (RFP) will apply.  
Specific proposal format and content requirements are detailed in Section 3. 
 
The amount for the contract has been established by a USTDA grant of US$604,000.  The 
USTDA grant of $US604,000 is a fixed amount.  Accordingly, COST will not be a factor in 
the evaluation and therefore, cost proposals should not be submitted.  Upon detailed 
evaluation of technical proposals, the Grantee shall select one firm for contract negotiations.   
 
1.4 
CONTRACT FUNDED BY USTDA 
 
In accordance with the terms and conditions of the Grant Agreement, USTDA has provided a 
grant in the amount of US$604,000 to the Grantee.  The funding provided under the Grant 
Agreement shall be used to fund the costs of the contract between the Grantee and the U.S. firm 
selected by the Grantee to perform the TOR.  The contract must include certain USTDA 
Mandatory Contract Clauses relating to nationality, taxes, payment, reporting, and other matters.  
The USTDA nationality requirements and the USTDA Mandatory Contract Clauses are attached 
at Annexes 3 and 4, respectively, for reference. 
 
 
 

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