SpaceX awarded $115.8M contract for air transportation services by NASA
Contract Overview
Contract Amount: $115,774,074 ($115.8M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-03-25
End Date: 2032-03-24
Contract Duration: 4,382 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GATEWAY LOGISTICS SERVICES (GLS) CONTRACT AWARD - SPACE EXPLORATION TECHNOLOGIES (SPACEX)
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
National Aeronautics and Space Administration obligated $115.8 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: GATEWAY LOGISTICS SERVICES (GLS) CONTRACT AWARD - SPACE EXPLORATION TECHNOLOGIES (SPACEX) Key points: 1. Contract awarded to a single, highly specialized provider known for rapid deployment. 2. Pricing structure is firm-fixed-price, offering cost certainty for the agency. 3. Contract duration is long-term, suggesting a sustained need for these services. 4. Competition was full and open, indicating a broad search for qualified bidders. 5. The award represents a significant investment in logistical support for space exploration. 6. Performance is tied to critical mission support, highlighting its importance. 7. Geographic focus is primarily within the United States, supporting domestic operations.
Value Assessment
Rating: good
The contract value of $115.8 million over approximately 12 years suggests a substantial but potentially reasonable annual spend for specialized aerospace logistics. Benchmarking against similar large-scale, long-term government contracts for unique transportation services is challenging due to the specialized nature of SpaceX's capabilities. However, the firm-fixed-price structure provides cost predictability. The absence of detailed performance metrics in the provided data makes a granular value assessment difficult, but the award to a leading provider in the field implies a strategic decision based on capability and potential efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the fact that it was competed broadly suggests NASA sought the best possible solution in the market. Full and open competition is generally expected to drive competitive pricing and innovation by allowing multiple qualified vendors to vie for the contract.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that NASA explored multiple options to secure the most advantageous terms for these critical logistics services.
Public Impact
The primary beneficiaries are NASA and its various space exploration programs, which will receive essential logistical support. Services delivered include nonscheduled chartered freight air transportation, crucial for moving equipment and personnel. Geographic impact is likely concentrated around NASA facilities and launch sites, primarily within the United States. Workforce implications may include support for specialized aviation and logistics personnel employed by SpaceX and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Reliance on a single provider for critical logistics may pose a risk if unforeseen operational issues arise.
- The specialized nature of the service limits readily available alternative providers in the short term.
Positive Signals
- Award to a proven, innovative provider like SpaceX suggests high likelihood of successful execution.
- Firm-fixed-price contract provides budget certainty for NASA.
- Full and open competition indicates a thorough market search and potential for competitive pricing.
Sector Analysis
The aerospace and defense sector is characterized by high-value, complex contracts often involving specialized technologies and services. This contract falls within the air transportation and logistics sub-sector, supporting critical government operations. Spending in this area is driven by national security, scientific research, and exploration initiatives. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of space-related logistics, but large government contracts for specialized transport are common.
Small Business Impact
The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses. Consequently, the direct impact on the small business ecosystem may be limited unless SpaceX actively engages small businesses as subcontractors, which is not detailed here. Further investigation into subcontracting plans would be necessary to assess the broader impact on small businesses.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officer and program management. As a definitive contract, it is subject to standard government oversight procedures, including performance monitoring and financial audits. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NASA Logistics Management
- Aerospace Transportation Services
- Government Freight Services
- Space Exploration Support Contracts
- Department of Defense Air Mobility Command Contracts
Risk Flags
- Long-term contract duration
- Sole-source potential if competition is not sustained
- Reliance on a single, specialized provider
Tags
nasa, spacex, air-transportation, logistics, freight, definitive-contract, firm-fixed-price, full-and-open-competition, california, aerospace, space-exploration, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $115.8 million to SPACE EXPLORATION TECHNOLOGIES CORP.. GATEWAY LOGISTICS SERVICES (GLS) CONTRACT AWARD - SPACE EXPLORATION TECHNOLOGIES (SPACEX)
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 $115.8 million.
What is the period of performance?
Start: 2020-03-25. End: 2032-03-24.
What is SpaceX's track record with similar government contracts, particularly in logistics and air transportation?
SpaceX has a well-established track record with NASA, primarily known for its commercial cargo and crew transportation services to the International Space Station. While their core expertise lies in launch services, they have increasingly been involved in broader logistical support. Their performance history with NASA has generally been strong, marked by successful missions and a reputation for innovation and reliability. However, this specific contract for 'Nonscheduled Chartered Freight Air Transportation' may represent a different facet of their logistical capabilities compared to their primary spaceflight operations. Analyzing their performance on contracts outside of direct spaceflight would provide a more complete picture of their suitability for this specific role.
How does the per-unit cost or annual cost of this contract compare to industry benchmarks for similar air freight services?
Directly comparing the per-unit cost or annual spend of this $115.8 million contract to standard industry benchmarks for nonscheduled chartered freight air transportation is challenging. This is due to several factors: 1) The specialized nature of the client (NASA) and the potential requirements for security, speed, or specific handling protocols associated with space program assets. 2) The provider, SpaceX, operates with a unique business model and cost structure compared to traditional air cargo carriers. 3) The contract duration (over 10 years) implies a long-term strategic partnership rather than spot market rates. Without specific details on the volume, type of cargo, routes, and service level agreements, a precise benchmark comparison is not feasible. However, the firm-fixed-price nature suggests NASA sought predictable costs for a defined service.
What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?
The provided data does not explicitly detail the Key Performance Indicators (KPIs) or specific risk mitigation strategies for this contract. However, given the nature of the services (air freight transportation) and the client (NASA), typical KPIs would likely include on-time delivery rates, cargo integrity, adherence to flight schedules, safety compliance, and cost control. Risk mitigation strategies would likely involve robust contingency planning for flight delays or cancellations (e.g., alternative aircraft or routes), stringent maintenance protocols for aircraft, comprehensive insurance coverage, and clear communication channels between NASA and SpaceX. The firm-fixed-price structure itself acts as a cost risk mitigation tool for the government.
What is the historical spending pattern for similar air transportation services by NASA or other federal agencies?
Historical spending patterns for similar air transportation services by NASA and other federal agencies vary significantly based on the specific needs and scale of operations. Agencies like the Department of Defense (DoD) have substantial budgets for air mobility and charter services through entities like the Air Mobility Command. NASA, while having unique logistical needs tied to space missions, also procures standard air freight and charter services for personnel and equipment movement. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract values, providers, and service types. This $115.8 million award to SpaceX for a long duration suggests a significant, ongoing requirement that may differ from typical, shorter-term ad-hoc charter needs.
What are the potential implications of awarding such a long-term contract to a single provider like SpaceX for specialized air logistics?
Awarding a long-term contract (over 10 years) to a single provider like SpaceX for specialized air logistics has several implications. Positively, it can foster a strong partnership, allow for tailored service development, and provide cost stability through the firm-fixed-price agreement. It leverages SpaceX's unique capabilities and potential efficiencies. However, it also carries risks, including potential complacency from the provider, reduced incentive for continuous innovation if competition is absent during the contract term, and vulnerability to disruptions if SpaceX faces operational challenges. Furthermore, it limits the government's flexibility to switch providers or adopt new technologies that may emerge during the contract period without incurring significant transition costs.
How does this contract align with NASA's broader strategic goals in space exploration and logistics?
This contract aligns with NASA's broader strategic goals by ensuring the reliable and efficient logistical support necessary for its ambitious space exploration objectives. As NASA increasingly relies on commercial partnerships and pursues complex missions, securing specialized transportation services becomes critical. SpaceX, as a leading innovator in the aerospace industry, offers capabilities that can support these goals, potentially enabling faster deployment of assets, personnel, and equipment. The long-term nature of the contract suggests a strategic commitment to integrating SpaceX's logistical solutions into NASA's operational framework, facilitating sustained program execution and future mission planning.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80KSC019R0002
Offers Received: 4
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: $7,000,000,000
Exercised Options: $7,000,000,000
Current Obligation: $115,774,074
Actual Outlays: $114,712,955
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-25
Current End Date: 2032-03-24
Potential End Date: 2035-03-24 00:00:00
Last Modified: 2026-04-07
More Contracts from Space Exploration Technologies Corp.
- THE Commercial Crew Program (CCP) Commercial Crew Transportation Capability (cctcap) Contract Will Provide Completion of the Design, Development, Test, Evaluation, and Certification of an Integrated Crew Transportation System (CTS) Capable of Transporting Nasa Crew to and From the ISS, in Accordance With the Design Reference Missions and Nasa's Certification Standards and Requirements. Certification of the CTS Will BE Determined by Nasa. Nasa Plans to Issue Task Orders for Post Certification Missions (PCM) to and From ISS That Include Ground, Launch, Lifeboat, On-Orbit, Return and Recovery Operations. the Minimum Quantity of Missions to BE Ordered IS TWO (2) and the Maximum Potential Quantity of Missions Which MAY BE Ordered IS SIX (6). in Addition, Nasa MAY Issue Task Orders for Special Studies Used for Risk Reduction and Other Purposes Related to the CTS. Nasa Certification Under Clin 001 IS Complete When the Contractor's Crew Transportation System (CTS) HAS MET Nasa's Requirements for Safely Transporting Crew to and From the International Space Station (ISS) in Accordance With Documents Identified in Section C.1, Specifications/Statement of Work. Subclins 001A and 001B, Identified in Table B.3,Ddte/Certification Subclins, ARE Delivery Milestones That Represent Completion of Required Work Necessary to Achieve Nasa Certification. Delivery Payment for the ISS Design Certification Review (DCR) for the Crewed Flight to the ISS Includes ALL Work Under This Clin That Occurs From the Contract Effective Date Through the ISS DCR Completion. the Delivery Payment for the Certification Review (CR) Will Include ALL Work That Occurs From the ISS DCR Delivery Date Through the END of the Ddte/Certification Clin 001. in Accordance With Clause C.1, Specification/Statement of Work, the Task Ordering Procedures and Other Terms and Conditions in the Contract, the Contracting Officer MAY Issue Post Certification Mission (PCM) Task Orders. the Contractor Shall USE the Mission Pricing Rates Shown in Table B.4.1, Post Certification Mission Prices. the PER Mission Prices ARE for a Single Order AT the Price Stated PER the Calendar Year (CY) Based on the Number of Missions Ordered. CTS Full Mission Capability Prices Shall BE Based on (1) Fulfillment of the Design Reference Mission to the ISS Found in Cct-Drm-1110, Crew Transportation System Design Reference Missions, Attachment J-03, Contract Performance Work Statement, and Other Terms and Conditions in the Contract and (2) ALL Inherent CTS Capabilities That ARE Within the Proposed Mission Prices. in Accordance With Attachment J-03, Contract Performance Work Statement, the Task Ordering Procedures and Other Terms and Conditions in the Contract, the Contractor Shall Perform Special Studies, Test and Analyses, AS Initiated by Written Direction From the Contracting Officer. Spacex Cctcap Post Certification Missions 3-6(PCM-3-6) Task Order Against Nnk14ma74c Clin 002, AS Described in Clause B.4 Post Certification Missions (idiq)(clin 002) and ALL Other Applicable Terms and Conditions — $3.0B (National Aeronautics and Space Administration)
- Work Required for the Design, Development, Manufacture, Test, Launch, Demonstration, and Engineering Support of the Human Landing System (HLS) Integrated Lander — $3.0B (National Aeronautics and Space Administration)
- 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) — $425.6M (National Aeronautics and Space Administration)
- Evolved Expendable Launch Vehicle 1A-6 Launch Services — $313.8M (Department of Defense)
- National Security Space Launch Phase 3 Lane 1 — $307.7M (Department of Defense)
View all Space Exploration Technologies Corp. federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →