NASA awards $48.9M contract to SpaceX for on-orbit cryogenic propellant management demonstration
Contract Overview
Contract Amount: $48,941,325 ($48.9M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2021-05-03
End Date: 2024-11-22
Contract Duration: 1,299 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 73
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: ON-ORBIT LARGE-SCALE CRYOGENIC PROPELLANT MANAGEMENT AND TRANSFER DEMONSTRATION
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
National Aeronautics and Space Administration obligated $48.9 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: ON-ORBIT LARGE-SCALE CRYOGENIC PROPELLANT MANAGEMENT AND TRANSFER DEMONSTRATION Key points: 1. Contract aims to advance in-space refueling capabilities, crucial for deep space missions. 2. Demonstration focuses on managing and transferring cryogenic propellants, a complex technical challenge. 3. Performance period spans over three years, indicating a significant R&D effort. 4. Fixed-price contract structure shifts performance risk to the contractor. 5. Awardee, SpaceX, is a major player in the commercial space industry. 6. This contract aligns with NASA's broader goals for sustainable space exploration.
Value Assessment
Rating: good
The contract value of $48.9 million for a large-scale R&D demonstration of cryogenic propellant management appears reasonable given the complexity and novelty of the technology. Benchmarking against similar advanced space technology development contracts is challenging due to the specialized nature of this work. However, the fixed-price nature of the contract suggests that the contractor has assessed the risks and costs involved, and the price reflects that assessment. The scope includes significant testing and demonstration phases, justifying the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. The presence of 73 proposals received suggests a robust level of interest and competition for this advanced technology development. This broad competition is a positive sign for price discovery and ensures that NASA can select the most capable and cost-effective solution.
Taxpayer Impact: A full and open competition process generally leads to better pricing for taxpayers by encouraging multiple companies to offer their best value propositions.
Public Impact
This contract directly benefits NASA's deep space exploration objectives by developing critical in-space refueling technologies. The services delivered include the demonstration of cryogenic propellant management and transfer systems in an on-orbit environment. The geographic impact is primarily national, with potential benefits for the U.S. space industry and its workforce. This project will likely spur innovation and create high-skilled jobs in the aerospace and R&D sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of cryogenic propellant handling poses inherent technical risks.
- Success is dependent on the contractor's ability to execute novel on-orbit operations.
- Long-term viability of the demonstrated technology requires further development and integration.
Positive Signals
- Awardee has a strong track record in developing and operating advanced space systems.
- Fixed-price contract aligns incentives for efficient project execution.
- Demonstration of critical technology supports future NASA mission architectures.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to space exploration. The market for advanced space propulsion and in-orbit servicing technologies is rapidly growing, driven by both government agencies and commercial entities. NASA's investment in cryogenic propellant management is a key enabler for future long-duration missions, such as lunar bases or Mars transits, and aligns with broader trends in the commercialization of space.
Small Business Impact
The data does not indicate any specific small business set-asides for this contract. Given the specialized nature of the R&D and the prime contractor's profile, it is likely that any small business involvement would be through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation in the supply chain for this contract.
Oversight & Accountability
NASA's standard oversight mechanisms for R&D contracts would apply, including regular progress reviews, technical evaluations, and financial reporting. The contract's fixed-price nature provides a degree of financial oversight by capping the government's liability. Transparency is maintained through public contract awards and reporting, though specific technical details of the demonstration may be proprietary.
Related Government Programs
- NASA Space Technology Mission Directorate
- In-Space Servicing, Assembly, and Manufacturing (ISAM)
- Advanced Propulsion Systems Development
- Cryogenic Fluid Management Research
Risk Flags
- Technical complexity of cryogenic propellant management in space.
- Reliance on contractor's innovative solutions for novel operations.
- Long-term performance and reliability of demonstrated systems.
Tags
research-and-development, space-exploration, nasa, space-technologies, cryogenic-propellants, on-orbit-demonstration, firm-fixed-price, full-and-open-competition, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $48.9 million to SPACE EXPLORATION TECHNOLOGIES CORP.. ON-ORBIT LARGE-SCALE CRYOGENIC PROPELLANT MANAGEMENT AND TRANSFER DEMONSTRATION
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 $48.9 million.
What is the period of performance?
Start: 2021-05-03. End: 2024-11-22.
What is SpaceX's track record with NASA on large-scale R&D contracts?
SpaceX has a significant and successful track record with NASA, particularly in cargo and crew transportation to the International Space Station, as well as development contracts for lunar landers and other advanced systems. Their experience includes managing complex technical requirements and meeting stringent performance standards. While this specific contract focuses on cryogenic propellant management, SpaceX's history with NASA suggests a strong foundation of technical capability and program execution experience. Their commercial successes, such as Starship development, also demonstrate a capacity for innovation and large-scale engineering projects, which are relevant to the objectives of this contract.
How does the $48.9 million value compare to similar R&D efforts in cryogenic propellant management?
Direct comparisons for large-scale, on-orbit cryogenic propellant management demonstrations are scarce due to the highly specialized and nascent nature of this field. However, the value is consistent with significant R&D investments in advanced space technologies. For context, NASA's previous cryogenic fluid management (CFM) research and technology development efforts have often involved multi-year projects with budgets in the tens of millions of dollars. The scale of this contract reflects the complexity of demonstrating these capabilities in the actual space environment, which is a significant step beyond ground-based research and requires substantial resources for hardware development, integration, testing, and mission operations.
What are the primary technical risks associated with this contract?
The primary technical risks revolve around the inherent challenges of handling cryogenic propellants (like liquid oxygen and liquid hydrogen) in the vacuum and microgravity of space. These include boil-off management, preventing ice formation, ensuring seal integrity over extended periods, and the precise control required for transfer operations. The demonstration itself carries risks related to the successful deployment and operation of the specialized hardware in orbit, potential anomalies during transfer, and the ability to collect meaningful data. Furthermore, the long duration of the contract (over three years) introduces risks related to component degradation and the need for sustained operational support.
How effective is a fixed-price contract for this type of R&D?
A Firm Fixed Price (FFP) contract, as used here, is generally effective for R&D when the scope of work is well-defined and the contractor has a clear understanding of the technical requirements and associated risks. For this demonstration, the FFP shifts the cost overrun risk to SpaceX, incentivizing them to manage their resources efficiently and innovate to meet the objectives within the agreed price. While it can limit flexibility if unforeseen technical challenges require significant scope changes, it provides cost certainty for NASA. Given SpaceX's experience and the defined nature of a demonstration project, an FFP contract is a suitable choice for managing cost and performance expectations.
What are historical spending patterns for NASA's cryogenic fluid management R&D?
Historically, NASA's spending on cryogenic fluid management (CFM) R&D has been characterized by phased investments, often starting with fundamental research and progressing to more complex technology demonstrations. Funding levels have varied depending on strategic priorities and budget allocations, but significant efforts have been dedicated to understanding and mitigating issues like heat leak, boil-off, and slosh. These investments have been crucial for enabling missions requiring long-duration storage of propellants, such as deep space exploration. The current contract represents a substantial, focused investment in maturing these technologies to an operational demonstration level, building upon decades of prior research.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80HQTR20NOA01-20STMD80 00
Offers Received: 73
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: $48,941,325
Exercised Options: $48,941,325
Current Obligation: $48,941,325
Actual Outlays: $48,941,325
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-05-03
Current End Date: 2024-11-22
Potential End Date: 2024-11-22 00:00:00
Last Modified: 2025-04-28
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