NASA Awards $24.9M VADR Contract to SpaceX for Dedicated and Rideshare Launch Services
Contract Overview
Contract Amount: $24,948,976 ($24.9M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-03-29
End Date: 2027-02-03
Contract Duration: 1,407 days
Daily Burn Rate: $17.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: VENTURE-CLASS ACQUISITION OF DEDICATED AND RIDESHARE (VADR) UMBRELLA TASK ORDER.
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
National Aeronautics and Space Administration obligated $24.9 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: VENTURE-CLASS ACQUISITION OF DEDICATED AND RIDESHARE (VADR) UMBRELLA TASK ORDER. Key points: 1. SpaceX secured a significant contract for launch services, highlighting their dominance in the commercial space sector. 2. The contract's firm fixed-price structure aims to provide cost certainty for NASA's launch needs. 3. Full and open competition was utilized, suggesting a robust process for selecting the vendor. 4. The duration of the contract extends over three years, indicating a long-term need for these services.
Value Assessment
Rating: good
The contract value of $24.9 million for launch services appears reasonable given the scope and duration. Benchmarking against similar NASA launch contracts would provide a more precise assessment, but the firm fixed-price nature suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a single delivery order under an umbrella task order suggests a streamlined procurement process for specific launch needs.
Taxpayer Impact: The competitive nature of the award is expected to benefit taxpayers by ensuring fair pricing for essential space launch services.
Public Impact
Ensures continued access to space for NASA missions, supporting scientific research and exploration. Supports the commercial space industry, fostering innovation and technological advancement. Provides critical infrastructure for national security and economic interests reliant on space capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if launch requirements exceed initial estimates.
- Dependence on a single provider for critical launch services.
- Limited visibility into the specific breakdown of costs for individual launches.
Positive Signals
- Utilizes a competitive procurement process.
- Employs a firm fixed-price contract type for cost predictability.
- Supports a key player in the domestic space launch industry.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services. Spending in this area is critical for national capabilities and scientific advancement, with significant government investment driven by both civilian and defense needs.
Small Business Impact
The data indicates this contract was awarded to SpaceX, a large commercial entity. There is no explicit information provided regarding the involvement or subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
NASA's procurement processes are subject to oversight from various bodies, including the Government Accountability Office (GAO) and the Inspector General (IG). The use of full and open competition suggests adherence to standard oversight procedures for contract awards.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Contract awarded to a single, dominant provider.
- Potential for schedule delays impacting NASA missions.
- Limited transparency on per-launch cost breakdown.
- Dependence on commercial launch market stability.
Tags
nonscheduled-chartered-freight-air-trans, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $24.9 million to SPACE EXPLORATION TECHNOLOGIES CORP.. VENTURE-CLASS ACQUISITION OF DEDICATED AND RIDESHARE (VADR) UMBRELLA TASK ORDER.
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 $24.9 million.
What is the period of performance?
Start: 2023-03-29. End: 2027-02-03.
What is the cost per launch under this contract, and how does it compare to historical averages or other providers?
The provided data does not detail the cost per launch, only the total contract value. To assess value, a breakdown of launch costs would be necessary. Comparing this to historical NASA launch costs or bids from other providers like ULA would reveal if this contract represents a competitive price point for dedicated and rideshare missions.
What are the specific risks associated with relying on a single provider for these critical launch services?
Relying on a single provider like SpaceX introduces risks such as potential launch delays due to the provider's operational issues, supply chain disruptions affecting the provider, or unforeseen technical failures. A sole-source or limited competition scenario would heighten these risks, whereas full and open competition mitigates some of this by allowing for future re-competition.
How effectively does this contract support NASA's long-term strategic goals for space exploration and scientific discovery?
This contract directly supports NASA's ability to execute its missions by providing reliable launch capabilities. By securing dedicated and rideshare options, NASA can optimize payload delivery and mission planning. The long-term nature of the contract suggests it aligns with sustained program needs, contributing to the continuity of scientific research and exploration objectives.
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: $300,000,000
Exercised Options: $300,000,000
Current Obligation: $24,948,976
Actual Outlays: $19,339,095
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80KSC022DA109
IDV Type: IDC
Timeline
Start Date: 2023-03-29
Current End Date: 2027-02-03
Potential End Date: 2027-02-03 00:00:00
Last Modified: 2026-03-04
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 →