NASA Awards $425.6M Contract to SpaceX for International Space Station Deorbit Vehicle
Contract Overview
Contract Amount: $425,568,844 ($425.6M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-06-26
End Date: 2031-03-31
Contract Duration: 2,469 days
Daily Burn Rate: $172.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DESIGN, DEVELOP, MANUFACTURE, TEST, INTEGRATE, ACHIEVE NASA ACCEPTANCE, DELIVER, AND SUSTAIN ITS UNITED STATES DEORBIT VEHICLE (USDV) SUCH THAT THE USDV CAN PERFORM THE FINAL DEORBIT OF THE INTERNATIONAL SPACE STATION (ISS)
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
National Aeronautics and Space Administration obligated $425.6 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: DESIGN, DEVELOP, MANUFACTURE, TEST, INTEGRATE, ACHIEVE NASA ACCEPTANCE, DELIVER, AND SUSTAIN ITS UNITED STATES DEORBIT VEHICLE (USDV) SUCH THAT THE USDV CAN PERFORM THE FINAL DEORBIT OF THE INTERNATIONAL SPACE STATION (ISS) Key points: 1. The contract focuses on designing, developing, and sustaining a vehicle to deorbit the ISS. 2. SpaceX, a major player in space exploration, secured this contract. 3. The contract's fixed-price nature aims to control costs for this critical mission. 4. This expenditure falls under the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: good
The $425.6 million contract price appears reasonable given the complexity and critical nature of developing a deorbit vehicle for the ISS. Benchmarking against similar, highly specialized aerospace development contracts would provide further context, but the firm fixed-price structure suggests an effort to establish clear cost expectations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to have driven a more favorable price discovery for NASA.
Taxpayer Impact: Taxpayers are funding a critical mission to ensure the safe deorbiting of the ISS, a significant undertaking with long-term implications for space safety and debris mitigation.
Public Impact
Ensures the safe and controlled deorbiting of the International Space Station, preventing potential hazards. Supports continued innovation and capability development within the U.S. space industry. Represents a significant investment in the final stages of the ISS's operational life.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays in complex space vehicle development.
- Reliance on a single contractor for a critical deorbit function.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Awarded through full and open competition.
- SpaceX's proven track record in space missions.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of aerospace. Spending in this sector is often characterized by high R&D costs, long development cycles, and significant government investment due to national security and exploration objectives.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor, SpaceX, is a large corporation. There is no direct information on small business subcontracting opportunities within this award.
Oversight & Accountability
NASA's procurement processes, including full and open competition and firm-fixed-price contracts, are designed to ensure oversight and accountability. The agency will monitor the contractor's progress against milestones and technical requirements throughout the contract duration.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for schedule slippage in complex space vehicle development.
- Reliance on a single contractor for a critical deorbit function.
- Unforeseen technical challenges during development and testing.
- Cost overruns despite firm fixed-price structure due to scope creep or unforeseen issues.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $425.6 million to SPACE EXPLORATION TECHNOLOGIES CORP.. DESIGN, DEVELOP, MANUFACTURE, TEST, INTEGRATE, ACHIEVE NASA ACCEPTANCE, DELIVER, AND SUSTAIN ITS UNITED STATES DEORBIT VEHICLE (USDV) SUCH THAT THE USDV CAN PERFORM THE FINAL DEORBIT OF THE INTERNATIONAL SPACE STATION (ISS)
Who is the contractor on this award?
The obligated recipient is SPACE EXPLORATION TECHNOLOGIES CORP..
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 $425.6 million.
What is the period of performance?
Start: 2024-06-26. End: 2031-03-31.
What are the key technical challenges in developing the USDV, and how will NASA ensure these are addressed within the contract's scope?
Key technical challenges likely include ensuring the vehicle's reliability for a single critical burn, managing thermal loads during reentry, and precise trajectory control. NASA will address these through rigorous design reviews, phased testing requirements, and performance milestones tied to acceptance criteria. The firm fixed-price nature incentivizes SpaceX to proactively manage these risks to avoid cost overruns.
What are the potential risks associated with relying on a single vehicle and contractor for the final deorbit of the ISS?
The primary risk is a single point of failure; if the USDV or SpaceX encounters insurmountable technical issues or delays, the ISS deorbit plan could be jeopardized. This could necessitate costly contingency plans or impact the deorbit timeline. NASA's oversight and SpaceX's established capabilities mitigate this, but redundancy in planning or alternative deorbit strategies might be considered.
How does this contract contribute to NASA's long-term goals beyond the ISS deorbit mission?
This contract leverages and potentially advances SpaceX's capabilities in spacecraft design, manufacturing, and mission execution, which could benefit future NASA missions, including lunar and Mars exploration. It also solidifies a critical capability within the U.S. commercial space sector, fostering a robust ecosystem for complex space operations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80JSC023R0003
Offers Received: 3
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: $843,256,690
Exercised Options: $800,635,259
Current Obligation: $425,568,844
Actual Outlays: $91,725,544
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-26
Current End Date: 2031-03-31
Potential End Date: 2031-03-31 00:00:00
Last Modified: 2026-04-09
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