DoD's $158.7M STP-2 Mission Contract Awarded to SpaceX Under Full and Open Competition
Contract Overview
Contract Amount: $158,741,300 ($158.7M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2012-12-04
End Date: 2019-12-31
Contract Duration: 2,583 days
Daily Burn Rate: $61.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: STP-2 MISSION
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $158.7 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: STP-2 MISSION Key points: 1. Significant contract value for space exploration services. 2. SpaceX, a major player, secured the award. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The sector is critical for national defense and technological advancement.
Value Assessment
Rating: good
The contract value of $158.7 million over approximately 7 years appears reasonable given the scope of a space mission. Benchmarking against similar complex aerospace contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers benefited from a fair price for essential space mission services.
Public Impact
Enhances national security through advanced space capabilities. Supports technological innovation in the aerospace sector. Provides critical infrastructure for scientific research and exploration. Contributes to the U.S. presence and capabilities in space.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term space missions.
- Dependence on a single contractor for a critical mission.
- Geopolitical risks affecting space operations.
Positive Signals
- Awarded through full and open competition.
- Contractor has a proven track record in space.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space launch and mission operations. Spending in this area is driven by national security, scientific research, and commercial interests, with significant government investment.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large prime contractors in this sector often subcontract to smaller firms, but direct analysis of SMB participation is not possible from this data.
Oversight & Accountability
The Department of the Air Force awarded this contract, implying internal oversight mechanisms are in place. Further review of contract performance reports and audits would be needed to assess accountability.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration increases risk of obsolescence.
- High cost associated with advanced space technology.
- Dependence on a single contractor for critical mission.
- Potential for scope creep or requirement changes.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $158.7 million to SPACE EXPLORATION TECHNOLOGIES CORP.. STP-2 MISSION
Who is the contractor on this award?
The obligated recipient is SPACE EXPLORATION TECHNOLOGIES CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $158.7 million.
What is the period of performance?
Start: 2012-12-04. End: 2019-12-31.
What specific services are included under the 'STP-2 MISSION' to justify the $158.7 million cost?
The 'STP-2 MISSION' likely encompasses a range of services including launch vehicle integration, payload deployment, mission operations, and data management for a series of Department of Defense space experiments and satellites. The exact scope would detail the number and type of satellites, the complexity of their orbits, and the duration of operational support required, all contributing to the overall cost.
What are the primary risks associated with the long duration (approx. 7 years) and complexity of this space mission contract?
Key risks include technological obsolescence of payloads or launch systems over the mission's lifespan, potential for launch failures or in-orbit anomalies, and the possibility of cost increases due to unforeseen technical challenges or changes in mission requirements. Furthermore, geopolitical shifts or evolving threats in the space domain could impact mission objectives and security.
How effectively does the 'full and open competition' ensure optimal value and performance for this advanced space mission?
Full and open competition is designed to maximize value by fostering a competitive environment where multiple qualified vendors can propose solutions, driving down prices and encouraging innovation. For advanced space missions, it helps ensure the government selects the most capable and cost-effective provider, though the complexity of space technology means thorough technical evaluation alongside price is crucial for true effectiveness.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 ROCKET RD, HAWTHORNE, CA, 90250
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $158,741,300
Exercised Options: $158,741,300
Current Obligation: $158,741,300
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881813D0003
IDV Type: IDC
Timeline
Start Date: 2012-12-04
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2019-08-20
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