NASA awards $117M lunar payload delivery contract to Intuitive Machines, LLC
Contract Overview
Contract Amount: $116,914,514 ($116.9M)
Contractor: Intuitive Machines, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-05-30
End Date: 2024-11-30
Contract Duration: 2,011 days
Daily Burn Rate: $58.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LUNAR SURFACE TRANSPORTATION-NASA PROVIDED LUNAR PAYLOAD (NPLP) DELIVERY
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $116.9 million to INTUITIVE MACHINES, LLC for work described as: LUNAR SURFACE TRANSPORTATION-NASA PROVIDED LUNAR PAYLOAD (NPLP) DELIVERY Key points: 1. Contract value represents a significant investment in lunar exploration capabilities. 2. Competition dynamics suggest a robust bidding process for this specialized service. 3. Potential risks include performance under extreme lunar conditions and payload integrity. 4. This contract is a key component of NASA's broader Artemis program objectives. 5. The award positions Intuitive Machines as a critical player in the burgeoning commercial space sector.
Value Assessment
Rating: good
The contract value of $117 million for lunar payload delivery appears reasonable given the specialized nature of the service and the high-risk, high-reward environment of space exploration. Benchmarking against similar, albeit fewer, lunar delivery contracts is challenging due to the nascent stage of this market. However, the firm-fixed-price structure suggests a defined cost expectation. The price per pound or per kilogram for lunar delivery is not readily available for direct comparison, but the overall investment reflects the complexity and technological requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, potentially narrowing the field. The number of bidders is not explicitly stated, but the 'limited' competition level suggests fewer than a full and open competition. This could imply a higher price than if all potential providers were included, but also potentially a more focused selection of highly specialized firms.
Taxpayer Impact: The limited competition may mean taxpayers are not getting the absolute lowest price possible, but it also ensures that the selected contractor possesses the specific, advanced capabilities required for lunar missions, potentially reducing overall program risk and increasing mission success probability.
Public Impact
This contract directly benefits NASA's scientific and exploration goals by enabling the delivery of payloads to the lunar surface. It facilitates the advancement of space technology and infrastructure necessary for future human and robotic lunar missions. The services delivered are critical for scientific research, technology demonstrations, and resource prospecting on the Moon. The geographic impact is the lunar surface, specifically the landing site chosen by Intuitive Machines. Workforce implications include specialized engineering, manufacturing, and operational roles within Intuitive Machines and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Performance risk associated with operating in the harsh lunar environment.
- Potential for delays impacting NASA's broader mission timelines.
- Ensuring the integrity and functionality of delivered payloads upon arrival.
Positive Signals
- Intuitive Machines' selection indicates a high level of confidence in their technical capabilities.
- The firm-fixed-price contract provides cost certainty for NASA.
- The contract supports the development of a commercial lunar logistics capability.
Sector Analysis
The commercial space sector, particularly lunar logistics and delivery services, is rapidly evolving. This contract falls within the broader aerospace and defense industry, which is characterized by high technological barriers to entry and significant R&D investment. The market for lunar payload delivery is nascent but expected to grow substantially with increased government and private interest in lunar exploration and resource utilization. Comparable spending benchmarks are scarce due to the novelty of these services, but this award signifies a substantial commitment to developing this capability.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and Intuitive Machines, LLC is not listed as a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, as a prime contractor, Intuitive Machines may engage small businesses within its supply chain for various components and services, contributing to the broader small business ecosystem in the aerospace sector.
Oversight & Accountability
Oversight for this contract will be primarily managed by the National Aeronautics and Space Administration (NASA). Accountability measures are embedded within the contract terms, likely including performance milestones, delivery schedules, and payload integration requirements. Transparency is expected through NASA's public reporting mechanisms and contract award databases. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- NASA Commercial Lunar Payload Services (CLPS)
- Artemis Program
- Lunar Exploration Initiatives
- Spacecraft Manufacturing and Delivery
Risk Flags
- Potential for mission failure due to harsh lunar environment.
- Risk of schedule delays impacting broader program objectives.
- Dependence on a relatively new commercial provider for critical mission elements.
Tags
nasa, lunar-payload-delivery, intuitive-machines, firm-fixed-price, limited-competition, commercial-space, space-exploration, texas, delivery-order, aerospace, national-aeronautics-and-space-administration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $116.9 million to INTUITIVE MACHINES, LLC. LUNAR SURFACE TRANSPORTATION-NASA PROVIDED LUNAR PAYLOAD (NPLP) DELIVERY
Who is the contractor on this award?
The obligated recipient is INTUITIVE MACHINES, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $116.9 million.
What is the period of performance?
Start: 2019-05-30. End: 2024-11-30.
What is Intuitive Machines' track record with NASA or similar government contracts?
Intuitive Machines has a developing track record with NASA, notably being selected as one of the Commercial Lunar Payload Services (CLPS) providers. This contract is a significant award under that program. While they have experience in developing lunar landers and related technologies, this specific large-scale delivery contract represents a key milestone. Their prior work includes successful technology demonstrations and development phases, but the successful execution of this $117 million delivery mission will be a defining element of their performance history with NASA and the broader space industry. Further details on their past performance metrics for smaller contracts or specific technological achievements would provide a more comprehensive view.
How does the value of this contract compare to other lunar payload delivery services?
Direct comparisons for lunar payload delivery services are challenging due to the nascent nature of the market and the variability in payload size, destination, and mission complexity. However, the $117 million awarded to Intuitive Machines is a substantial figure, reflecting the significant investment required for lunar missions. Other CLPS providers have also received significant awards, indicating a trend of substantial funding for commercial lunar services. For instance, other contracts under the CLPS initiative have ranged from tens to hundreds of millions of dollars, depending on the scope. The value here is consistent with the high cost of developing, launching, and operating missions to the Moon, especially when considering the specialized nature of delivering payloads reliably.
What are the primary risks associated with this contract for NASA?
The primary risks for NASA associated with this contract revolve around mission success and timely execution. These include technical risks such as the lander's ability to safely reach the lunar surface, deploy payloads correctly, and withstand the harsh lunar environment (extreme temperatures, radiation, dust). There are also performance risks related to Intuitive Machines' ability to meet contractual obligations, including delivery schedules and payload integration. Schedule delays could impact NASA's broader Artemis program timelines. Furthermore, there's a risk to the payloads themselves, ensuring they arrive intact and functional for their intended scientific or technological purposes. Financial risks are somewhat mitigated by the firm-fixed-price structure, but cost overruns by the contractor could still impact future contract negotiations or program budgets.
How effective is the 'Full and Open Competition After Exclusion of Sources' approach for this type of contract?
The 'Full and Open Competition After Exclusion of Sources' approach is a nuanced method for procuring specialized services like lunar payload delivery. It allows NASA to solicit bids from a broad range of potential offerors while also having the discretion to exclude specific sources based on predefined criteria, such as technical capability, past performance, or security concerns. This can be effective when NASA has a clear understanding of the required specialized expertise and wants to ensure that only highly qualified contractors participate. However, it may limit the pool of potential bidders compared to a truly 'full and open' competition, potentially impacting price competition. For a cutting-edge field like lunar delivery, where few companies possess the necessary advanced capabilities, this approach can strike a balance between ensuring capability and fostering some level of competition.
What are the historical spending patterns for lunar exploration and payload delivery by NASA?
Historically, NASA's lunar exploration and payload delivery efforts were primarily conducted through government-owned and operated missions, involving significant in-house engineering and large prime contractors for spacecraft development and launch. Spending was often project-specific and could run into hundreds of millions or even billions of dollars for complex robotic or human missions. In recent years, NASA has shifted towards a more commercial partnership model, exemplified by the Commercial Lunar Payload Services (CLPS) initiative. This strategy aims to leverage private sector innovation and reduce costs by purchasing services rather than developing all capabilities internally. The spending patterns reflect this transition, with a move from direct mission development costs to service-based contracts with commercial entities, like the $117 million awarded here, which represents a significant portion of NASA's evolving approach to lunar exploration.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3700 BAY AREA BLVD STE 600, HOUSTON, TX, 77058
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,914,514
Exercised Options: $116,914,514
Current Obligation: $116,914,514
Actual Outlays: $55,116,514
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80HQTR19D0010
IDV Type: IDC
Timeline
Start Date: 2019-05-30
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2025-04-15
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