DoD's $313.8M EELV 1A-6 Launch Services Contract Awarded to SpaceX Under Full and Open Competition
Contract Overview
Contract Amount: $313,795,536 ($313.8M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2019-02-21
End Date: 2023-04-13
Contract Duration: 1,512 days
Daily Burn Rate: $207.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EVOLVED EXPENDABLE LAUNCH VEHICLE 1A-6 LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $313.8 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: EVOLVED EXPENDABLE LAUNCH VEHICLE 1A-6 LAUNCH SERVICES Key points: 1. SpaceX secured a significant contract for EELV launch services, highlighting its growing role in government space operations. 2. The contract's firm fixed-price structure aims to provide cost certainty for the Department of Defense. 3. Competition was full and open, suggesting a robust process for selecting the most advantageous offer. 4. The duration of the contract (1512 days) indicates a long-term commitment to these launch services.
Value Assessment
Rating: good
The contract value of $313.8 million for 2 launch services appears reasonable given the complexity and cost of space launches. Benchmarking against similar EELV contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers, ensuring efficient use of public funds for critical launch services.
Public Impact
Ensures continued access to space for national security missions. Supports the development and deployment of advanced space capabilities. Potentially lowers launch costs through competitive market forces. Contributes to the U.S. dominance in space exploration and defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if launch schedules are significantly delayed.
- Dependence on a single provider for critical launch services could pose a risk.
- Geopolitical factors could impact launch operations or supply chains.
Positive Signals
- Awarded under full and open competition, indicating strong market participation.
- Firm fixed-price contract provides cost predictability.
- SpaceX's track record in successful launches suggests reliability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services. Spending in this area is critical for national security and scientific advancement, with benchmarks often driven by technological innovation and competitive dynamics.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's definitive nature and the awarding agency (Department of the Air Force) suggest established oversight mechanisms. However, ongoing monitoring of performance, cost, and schedule adherence is crucial for accountability.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for schedule slippage
- Dependence on a single provider
- Technical risks inherent in launch operations
- Geopolitical instability impacting space assets
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $313.8 million to SPACE EXPLORATION TECHNOLOGIES CORP.. EVOLVED EXPENDABLE LAUNCH VEHICLE 1A-6 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 $313.8 million.
What is the period of performance?
Start: 2019-02-21. End: 2023-04-13.
What is the projected cost per launch based on this contract?
The contract value is $313,795,536.3 for 2 launch services. This equates to approximately $156.9 million per launch. This figure should be compared against historical EELV launch costs and industry benchmarks for similar missions to assess its competitiveness and value for taxpayer money.
What are the primary risks associated with relying on SpaceX for these critical launch services?
Key risks include potential launch failures, schedule delays impacting national security missions, and the concentration of critical launch capabilities with a single provider. Geopolitical events or supply chain disruptions could also affect operations. Robust contingency planning and continuous performance monitoring are essential.
How does this contract contribute to the overall effectiveness of the DoD's space capabilities?
This contract ensures the reliable and timely delivery of national security payloads to orbit, which is fundamental to the effectiveness of numerous DoD operations. By securing launch services through a competitive process, the DoD aims to enhance its space capabilities while managing costs efficiently.
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: FA881118R0001
Offers Received: 2
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: $313,795,536
Exercised Options: $313,795,536
Current Obligation: $313,795,536
Actual Outlays: $5,466,488
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-02-21
Current End Date: 2023-04-13
Potential End Date: 2023-04-13 00:00:00
Last Modified: 2023-04-13
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