This is a AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING AND MANAGEMENT report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A845604. The abstract provided by the Pentagon follows: A growing interest in formation flying satellites demands development and analysis of control and estimation algorithms for station-keeping and formation maneuvering. This thesis discusses the development of a discrete linear-quadratic- regulator control algorithm for formations in the vicinity of the L2 sun-earth libration point. The development of an appropriate Kalman filter is included as well. Simulations are created for the analysis of the station-keeping and various formation maneuvers of the Stellar Imager mission. The simulations provide tracking error, estimation error, and control effort results. From the control effort, useful design parameters such as AV and propellant mass are determined. For formation maneuvering, the drone spacecraft track to within 4 meters of their desired position and within 1.3 millimeters per second of their desired zero velocity. The filter, with few exceptions, keeps the estimation errors within their three-sigma values. Without noise, the controller performs extremely well, with the drones tracking to within several micrometers. Bach drone uses around 1 to 2 grams of propellant per maneuver, depending on the circumstances.