DoD Awards $152.6M for Launch Service Support to SpaceX, Highlighting Full and Open Competition
Contract Overview
Contract Amount: $152,560,977 ($152.6M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2020-08-19
End Date: 2022-08-18
Contract Duration: 729 days
Daily Burn Rate: $209.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAUNCH SERVICE SUPPORT
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $152.6 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: LAUNCH SERVICE SUPPORT Key points: 1. Significant contract value of $152.6 million awarded to SpaceX. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial at 729 days. 4. The sector is aerospace/defense, a critical area for national security and exploration.
Value Assessment
Rating: good
The contract value of $152.6 million for launch services appears reasonable given the scope and duration. Benchmarking against similar large-scale launch contracts would provide a more precise assessment, but the competitive nature suggests a fair price was likely achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method is expected to drive competitive pricing and ensure the government receives the best value.
Taxpayer Impact: The competitive process is likely to have resulted in taxpayer savings compared to a sole-source or limited competition award.
Public Impact
Supports critical space exploration and national security missions. Ensures continued access to space for Department of Defense assets. Boosts the commercial space launch industry through significant government investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if launch schedules are significantly altered.
- Dependence on a single contractor for critical launch services.
Positive Signals
- Successful execution of launch services.
- Utilized a competitive procurement strategy.
- Supports advanced technological capabilities.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services. Spending in this area is crucial for national security, scientific research, and commercial space endeavors. Benchmarks for similar launch contracts vary widely based on payload, orbit, and launch vehicle.
Small Business Impact
While SpaceX is a large business, the nature of specialized launch services may limit direct participation by small businesses in the prime contract. However, subcontractors could potentially benefit.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for oversight. The contract's duration and value necessitate robust monitoring to ensure performance and cost control.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is long, increasing exposure to market or technological changes.
- Dependence on a single provider for critical launch services.
- Potential for schedule delays impacting national security operations.
- Geopolitical factors could impact launch operations or supply chains.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.6 million to SPACE EXPLORATION TECHNOLOGIES CORP.. LAUNCH SERVICE SUPPORT
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 $152.6 million.
What is the period of performance?
Start: 2020-08-19. End: 2022-08-18.
What specific launch capabilities are being procured, and how do they align with current and future DoD space requirements?
The contract is for 'Launch Service Support,' which is broad. It likely encompasses a range of services including launch vehicle integration, mission assurance, ground support, and potentially payload processing. Understanding the specific capabilities procured is crucial to assess their alignment with the DoD's evolving space architecture, including satellite deployment for communication, intelligence, surveillance, and reconnaissance missions.
What are the key performance indicators (KPIs) and risk mitigation strategies outlined in the contract to ensure successful mission execution?
Key performance indicators would likely include on-time launch schedules, mission success rates, and adherence to safety protocols. Risk mitigation strategies might involve contingency planning for launch delays, robust quality assurance processes, and clear communication channels between the government and SpaceX. Detailed review of the contract's PWS and SOW would reveal specific KPIs and risk management plans.
How does the pricing structure (Firm Fixed Price) compare to industry standards for similar launch services, and what is the potential for cost savings or overruns?
A Firm Fixed Price (FFP) contract generally shifts cost risk to the contractor, which can be advantageous for the government if the contractor manages costs effectively. For launch services, FFP is common but can be higher upfront than cost-plus contracts. The benchmark for FFP launch services depends heavily on the specific launch vehicle, payload mass, and destination orbit. Potential overruns are less likely for the government under FFP, but scope creep or unforeseen technical issues could still impact the overall value.
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
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: $152,560,977
Exercised Options: $152,560,977
Current Obligation: $152,560,977
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0002
IDV Type: IDC
Timeline
Start Date: 2020-08-19
Current End Date: 2022-08-18
Potential End Date: 2022-08-18 00:00:00
Last Modified: 2021-04-13
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