NASA awards $85.6M for lunar payload delivery, with Intuitive Machines securing the contract

Contract Overview

Contract Amount: $85,646,080 ($85.6M)

Contractor: Intuitive Machines, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2021-11-17

End Date: 2027-03-31

Contract Duration: 1,960 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLPS TASK ORDER CP-11 CLPS PAYLOADS AND RESEARCH INVESTIGATIONS ON THE SURFACE OF THE MOON

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $85.6 million to INTUITIVE MACHINES, LLC for work described as: CLPS TASK ORDER CP-11 CLPS PAYLOADS AND RESEARCH INVESTIGATIONS ON THE SURFACE OF THE MOON Key points: 1. Contract value represents a significant investment in lunar exploration capabilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (nearly 2000 days) indicates a long-term commitment to lunar surface operations. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. This contract aligns with broader national goals for space exploration and scientific discovery. 6. The geographic location of the contractor in Texas may have implications for regional economic impact.

Value Assessment

Rating: good

The contract value of $85.6 million for lunar payload delivery appears reasonable given the complexity and novelty of the services. Benchmarking against similar, albeit fewer, lunar payload contracts is challenging due to the nascent nature of this market. However, the fixed-price structure suggests that the contractor has assessed the risks and costs involved. The specific deliverables and the technological requirements will ultimately determine the true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while initial solicitations may have had limitations, the final award was open to all eligible bidders. The presence of 9 bids suggests a healthy level of interest and competition for this specialized service. This competitive environment is expected to drive more favorable pricing and innovative solutions.

Taxpayer Impact: A competitive bidding process for lunar payload delivery services helps ensure that taxpayer funds are used efficiently, leading to better prices and services for the government.

Public Impact

The primary beneficiaries are NASA and the scientific community, gaining access to lunar surface payloads and research capabilities. Services delivered include the transportation and deployment of scientific instruments and payloads to the lunar surface. The geographic impact is global in terms of scientific knowledge gained, with a specific focus on the Moon. Workforce implications include specialized jobs in aerospace engineering, mission operations, and scientific research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen technical challenges arise during lunar missions.
  • Dependence on a single contractor for critical lunar payload delivery could pose a risk if performance issues emerge.
  • The novelty of lunar surface operations introduces inherent risks related to mission success and payload integrity.

Positive Signals

  • The fixed-price contract incentivizes the contractor to manage costs effectively.
  • Multiple bids indicate a robust market and potential for strong contractor performance.
  • The long contract duration suggests a commitment to sustained lunar exploration efforts.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on space transportation and payload delivery services. The market for lunar logistics is emerging, driven by renewed government and private interest in lunar exploration. Comparable spending benchmarks are scarce, but this award signifies a substantial investment in developing this capability, positioning it as a key component of future space missions.

Small Business Impact

The data does not indicate any specific small business set-asides for this contract. The prime contractor, Intuitive Machines, LLC, is a private company. Further analysis would be needed to determine if small businesses are involved as subcontractors, which is common in the aerospace industry.

Oversight & Accountability

Oversight will likely be managed by NASA's contracting officers and program managers, ensuring adherence to contract terms and performance milestones. Transparency is facilitated through public contract awards and reporting mechanisms. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

  • NASA Commercial Lunar Payload Services (CLPS)
  • Space Exploration Initiatives
  • Lunar Surface Operations
  • Payload Delivery Services
  • Aerospace Research and Development

Risk Flags

  • Contract duration exceeds typical delivery timelines, requiring robust project management.
  • Novelty of lunar surface operations introduces inherent technical and operational risks.
  • Dependence on a single provider for critical lunar access.

Tags

nasa, commercial-lunar-payload-services, clps, intuitive-machines, lunar-exploration, payload-delivery, fixed-price, full-and-open-competition, space-transportation, texas, aerospace, research-and-development

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $85.6 million to INTUITIVE MACHINES, LLC. CLPS TASK ORDER CP-11 CLPS PAYLOADS AND RESEARCH INVESTIGATIONS ON THE SURFACE OF THE MOON

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 $85.6 million.

What is the period of performance?

Start: 2021-11-17. End: 2027-03-31.

What is the track record of Intuitive Machines, LLC in delivering complex aerospace projects?

Intuitive Machines, LLC is a relatively new but prominent player in the commercial space industry, known for its focus on lunar landers and associated technologies. The company was selected as one of NASA's Commercial Lunar Payload Services (CLPS) providers, indicating a level of trust and capability recognized by the agency. They have been actively developing their lunar lander, 'Nova-C,' and have participated in various technology demonstrations and development programs. While they have not yet completed a full operational lunar landing mission under this specific contract, their prior work and selection by NASA suggest a strong technical foundation and a promising track record in the development phase of lunar exploration hardware and services. Their success will be closely monitored as this contract progresses.

How does the value of this contract compare to other lunar payload delivery initiatives?

The $85.6 million value for this specific task order is significant within the context of lunar payload delivery. NASA's Commercial Lunar Payload Services (CLPS) initiative is designed to foster a commercial lunar delivery market, and individual task orders can vary widely based on payload mass, complexity, destination, and mission duration. While some CLPS task orders might be smaller for simpler deliveries, this award to Intuitive Machines for 'CLPS TASK ORDER CP-11 CLPS PAYLOADS AND RESEARCH INVESTIGATIONS ON THE SURFACE OF THE MOON' suggests a comprehensive scope, potentially involving multiple payloads, complex surface operations, or extended mission duration. Direct comparisons are difficult without knowing the exact specifications of other CLPS awards, but this figure represents a substantial investment in enabling scientific research on the lunar surface through commercial partnerships.

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 contractor performance. Given the inherent challenges of space exploration, particularly lunar surface operations, there is a risk that the contractor may encounter technical difficulties leading to delays, increased costs (though mitigated by fixed-price), or mission failure. Payload delivery is critical; any damage or loss of scientific instruments would represent a significant setback for research objectives. Furthermore, reliance on a single provider for specific lunar access capabilities could pose a risk if the contractor faces financial instability or operational issues. NASA also faces the risk of not achieving its scientific return on investment if the delivered payloads do not function as expected or if the mission objectives are not met due to unforeseen circumstances.

What is the expected program effectiveness and impact on NASA's lunar exploration goals?

This contract is expected to be highly effective in advancing NASA's lunar exploration goals, particularly through the CLPS initiative. By leveraging commercial capabilities, NASA can achieve more frequent and cost-effective access to the lunar surface for scientific instruments and technology demonstrations. The 'payloads and research investigations' specified in the task order indicate a direct contribution to scientific discovery, potentially yielding valuable data on lunar geology, resources, and environmental conditions. This contract supports NASA's broader Artemis program objectives, which include establishing a sustainable human presence on the Moon and preparing for future Mars missions. The successful execution of this contract will demonstrate the viability of commercial lunar logistics and pave the way for more ambitious scientific and exploratory endeavors.

How does historical spending on lunar missions compare to this contract's value?

Historical spending on lunar missions, particularly during the Apollo era, involved vastly larger sums, often in the billions of dollars, for human missions with extensive infrastructure development. However, comparing those figures directly to this $85.6 million contract is not apples-to-apples. This contract represents a modern approach, utilizing commercial services for specific payload delivery rather than building and operating entire government-led missions from scratch. In the context of the CLPS initiative, which aims to be more cost-effective, this award is substantial and reflects the current market value for commercial lunar access. It signifies a shift towards leveraging private sector innovation and investment, making lunar exploration more accessible and potentially more frequent than in previous eras, albeit with different scales of investment per mission.

Industry Classification

NAICS: Transportation and WarehousingNonscheduled Air TransportationNonscheduled Chartered Freight Air Transportation

Product/Service Code: RESEARCH AND DEVELOPMENTSpace 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: 9

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: $85,646,080

Exercised Options: $85,646,080

Current Obligation: $85,646,080

Actual Outlays: $66,243,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 80HQTR19D0010

IDV Type: IDC

Timeline

Start Date: 2021-11-17

Current End Date: 2027-03-31

Potential End Date: 2027-03-31 00:00:00

Last Modified: 2026-03-19

More Contracts from Intuitive Machines, LLC

View all Intuitive Machines, LLC federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending