DoD Awards $77.7M for NRO Launch Services to SpaceX, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $77,764,763 ($77.8M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2021-03-09
End Date: 2025-02-23
Contract Duration: 1,447 days
Daily Burn Rate: $53.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAUNCH SERVICES FOR NATIONAL RECONNAISSANCE OFFICE MISSION 69
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $77.8 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: LAUNCH SERVICES FOR NATIONAL RECONNAISSANCE OFFICE MISSION 69 Key points: 1. Significant contract awarded to SpaceX for critical NRO mission launch services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract's firm fixed price structure aims to control costs and manage risk. 4. This award falls within the broader context of national security space capabilities.
Value Assessment
Rating: good
The $77.7 million award for launch services appears reasonable given the specialized nature of NRO missions. Benchmarking against similar classified launch contracts is difficult, but the firm fixed price suggests cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The firm fixed price contract aims to provide cost predictability for taxpayers, minimizing the risk of cost overruns for this critical national security service.
Public Impact
Ensures continued access to space for vital national reconnaissance missions. Supports advanced technological capabilities for national security. Potential for technological advancements driven by competition in the space sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays impacting mission readiness.
- Reliance on a single provider for a critical mission segment.
- Geopolitical risks affecting launch operations or satellite deployment.
Positive Signals
- Successful execution of a complex launch mission.
- Cost certainty due to firm fixed price contract.
- Leveraging private sector innovation in space launch.
Sector Analysis
This contract falls under the IT and Defense sectors, specifically focusing on space launch services for intelligence gathering. Spending in this area is critical for national security and often involves high-value, specialized contracts.
Small Business Impact
The data does not indicate any specific set-asides or participation requirements for small businesses in this particular contract award.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for classified programs would apply to ensure performance and accountability.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Mission critical nature
- Classified payload
- Potential for launch failure
- Schedule sensitivity
- Single source provider for this specific mission
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.8 million to SPACE EXPLORATION TECHNOLOGIES CORP.. LAUNCH SERVICES FOR NATIONAL RECONNAISSANCE OFFICE MISSION 69
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 $77.8 million.
What is the period of performance?
Start: 2021-03-09. End: 2025-02-23.
What is the specific performance metric for mission success and how is it measured?
Performance metrics for NRO missions are typically classified due to national security implications. However, success is generally measured by the successful deployment of the payload into the intended orbit and the subsequent functionality of the satellite. The contract likely includes detailed, albeit classified, performance standards and acceptance criteria that SpaceX must meet.
What are the contingency plans if SpaceX encounters launch failures or significant delays?
Contingency plans for launch failures or delays are crucial for NRO missions. These could include contractual provisions for re-flight opportunities, insurance, or alternative launch providers, though details are classified. The firm fixed price nature might influence the allocation of risk and cost associated with such contingencies.
How does the cost of this launch compare to similar classified NRO missions or commercial satellite launches?
Direct cost comparisons are challenging due to the classified nature of NRO missions and the unique requirements involved. While the $77.7 million award is substantial, it must be evaluated against the complexity, security protocols, and specific orbital insertion needs. Commercial launches of similar payload mass might be less expensive but lack the specialized security and mission assurance required for intelligence assets.
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: $77,764,763
Exercised Options: $77,764,763
Current Obligation: $77,764,763
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0002
IDV Type: IDC
Timeline
Start Date: 2021-03-09
Current End Date: 2025-02-23
Potential End Date: 2025-02-25 00:00:00
Last Modified: 2024-08-22
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