DoD's National Security Space Launch Phase 2 contract awarded to SpaceX for $157M, covering air transportation
Contract Overview
Contract Amount: $157,167,205 ($157.2M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2022-08-18
Contract Duration: 364 days
Daily Burn Rate: $431.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH PHASE 2
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $157.2 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Contract awarded to a single, dominant provider in a specialized sector. 2. Significant spending on space launch services highlights national security priorities. 3. Fixed-price contract aims to control costs for a defined period. 4. Potential for future contract growth exists based on performance and needs.
Value Assessment
Rating: good
The contract value of $157M for a 364-day duration appears reasonable given the specialized nature of national security space launch. Benchmarking against similar large-scale launch contracts is difficult due to unique mission requirements and limited providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing, though the specific market dynamics for national security space launch can influence the final price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for critical national security infrastructure and capabilities, with the expectation of receiving value through competitive procurement.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological capabilities in the space sector. Contributes to the U.S. government's ability to maintain space superiority.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single provider for critical launch services.
- Potential for cost overruns if unforeseen technical issues arise.
- Geopolitical risks impacting launch schedules or capabilities.
Positive Signals
- Successful execution of a competitive bidding process.
- Use of a firm fixed-price contract to manage cost certainty.
- Award to a provider with demonstrated launch capabilities.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space launch services. Spending in this area is driven by national security imperatives and technological advancements, with significant investment required for complex missions.
Small Business Impact
The data indicates no specific set-aside for small businesses in this particular contract award. The nature of national security space launch typically involves large, specialized contractors capable of meeting stringent requirements.
Oversight & Accountability
Oversight is likely managed by the Department of the Air Force within the Department of Defense, ensuring compliance with contract terms and performance standards. Accountability for mission success and financial stewardship rests with the contracting agency.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source provider risk
- Technological obsolescence
- Geopolitical instability
- Budgetary constraints impacting future funding
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 $157.2 million to SPACE EXPLORATION TECHNOLOGIES CORP.. NATIONAL SECURITY SPACE LAUNCH PHASE 2
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 $157.2 million.
What is the period of performance?
Start: 2021-08-19. End: 2022-08-18.
What is the projected long-term cost-effectiveness of this contract strategy for national security space launch?
The long-term cost-effectiveness hinges on SpaceX's ability to maintain competitive pricing through technological innovation and efficient operations, alongside the government's strategic sourcing decisions. Future contract renewals or new solicitations will be key indicators of sustained value compared to alternative launch providers and evolving mission needs.
What are the primary risks associated with relying on a single provider for this critical national security capability?
The primary risks include potential disruptions due to the sole provider's operational issues, supply chain vulnerabilities, or unforeseen geopolitical events impacting their capabilities. A single point of failure could jeopardize national security missions, highlighting the need for robust contingency planning and potentially fostering alternative capabilities.
How effectively does this contract support the government's overall space launch strategy and technological advancement goals?
This contract directly supports the government's strategy by securing essential launch services from a capable provider. It implicitly encourages technological advancement by leveraging private sector innovation in reusable rocket technology and launch efficiency, contributing to modernization efforts within the national security space domain.
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: $157,167,205
Exercised Options: $157,167,205
Current Obligation: $157,167,205
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: 2021-08-19
Current End Date: 2022-08-18
Potential End Date: 2022-08-18 00:00:00
Last Modified: 2022-08-30
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