DoD's $89.4M GPS III Launch Services Contract Awarded to SpaceX Under Full and Open Competition
Contract Overview
Contract Amount: $89,439,137 ($89.4M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2016-04-27
End Date: 2018-07-31
Contract Duration: 825 days
Daily Burn Rate: $108.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF GLOBAL POSITIONING SYSTEM III LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $89.4 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: IGF::OT::IGF GLOBAL POSITIONING SYSTEM III LAUNCH SERVICES Key points: 1. The contract awarded to SpaceX for GPS III launch services represents a significant investment in national security space capabilities. 2. Competition was full and open, suggesting a potentially competitive pricing environment and a wide range of potential bidders. 3. The fixed-price contract structure aims to mitigate cost overruns, but risks associated with launch complexity remain. 4. This contract falls within the broader aerospace and defense sector, specifically focusing on satellite launch services.
Value Assessment
Rating: good
The contract value of $89.4M for launch services appears reasonable given the complexity and criticality of GPS III deployment. Benchmarking against similar high-value satellite launch contracts would provide further context on pricing.
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 were allowed to bid. This process generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, with the aim of securing services at a market-driven price.
Public Impact
Ensures continued operation and enhancement of the Global Positioning System, vital for military and civilian applications. Supports the deployment of next-generation GPS satellites, improving accuracy, resilience, and capabilities. Highlights the role of private space companies in critical national security infrastructure. Potential for spin-off technologies and economic benefits in the commercial space sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Launch vehicle reliability and performance risks.
- Potential for schedule delays impacting GPS constellation readiness.
- Geopolitical factors affecting launch operations or satellite performance.
Positive Signals
- Award to a proven launch provider (SpaceX).
- Fixed-price contract structure for cost certainty.
- Full and open competition driving value.
- Strategic importance of GPS III for national security.
Sector Analysis
This contract is within the aerospace and defense sector, specifically focusing on launch services for critical satellite constellations. Spending benchmarks for similar government launch contracts vary widely based on payload size, launch vehicle, and mission requirements.
Small Business Impact
While the prime contractor is SpaceX, a large aerospace company, the contract may indirectly benefit small businesses through subcontracting opportunities for components, services, or specialized technologies required for the launch.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure mission success, adherence to schedule, and proper utilization of funds.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Launch vehicle technical risks.
- Schedule slippage impacting constellation readiness.
- Dependence on a single launch provider for critical missions.
- Potential for cost growth if fixed-price contract terms are challenged by unforeseen issues.
- Cybersecurity risks associated with launch operations and data transmission.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.4 million to SPACE EXPLORATION TECHNOLOGIES CORP.. IGF::OT::IGF GLOBAL POSITIONING SYSTEM III LAUNCH SERVICES
Who is the contractor on this award?
The obligated recipient is SPACE EXPLORATION TECHNOLOGIES CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $89.4 million.
What is the period of performance?
Start: 2016-04-27. End: 2018-07-31.
What is the specific performance criteria and success metrics outlined in the contract for the GPS III launch services?
The contract likely includes detailed performance criteria related to launch window adherence, payload integration, successful orbit insertion, and mission success rates. Success metrics would focus on achieving specified orbital parameters, minimizing anomalies during launch, and ensuring the satellite's operational readiness post-deployment. Specific details would be found in the contract's statement of work and performance requirements.
How does the cost of this launch service compare to historical government launch contracts for similar payloads?
Benchmarking this $89.4M contract against historical GPS or other national security satellite launches requires detailed analysis of payload mass, required orbit, launch vehicle class, and contract type. While SpaceX has driven down launch costs, the specific requirements for GPS III may necessitate unique capabilities or mission assurance protocols that influence the final price compared to earlier, potentially less complex, missions.
What are the contingency plans in place to address potential launch failures or significant delays impacting the GPS III program timeline?
Contingency plans for launch failures or delays typically involve insurance policies, potential re-procurement of launch services, and schedule adjustments for subsequent satellite deployments. The contract may specify liability limits and remedies for both parties in case of mission failure. The Air Force would also have internal program management strategies to mitigate schedule impacts on the overall GPS constellation modernization.
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
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: $91,780,937
Exercised Options: $89,439,137
Current Obligation: $89,439,137
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-04-27
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2018-12-12
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 Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)