DoD Awards $91.7M for National Security Space Launch Phase 2 Services to SpaceX
Contract Overview
Contract Amount: $91,720,436 ($91.7M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2025-10-03
Contract Duration: 1,226 days
Daily Burn Rate: $74.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NATIONAL SECURITY SPACE LAUNCH PHASE 2 LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $91.7 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 LAUNCH SERVICES Key points: 1. Significant contract awarded to a single provider, SpaceX, for critical national security space launch services. 2. The contract value of $91.7 million covers a period extending to October 2025. 3. Competition method is 'Full and Open', but the award is a delivery order, suggesting a specific need. 4. The sector is IT/Aerospace, a high-stakes area for national security and technological advancement.
Value Assessment
Rating: good
The contract value of $91.7 million appears reasonable for specialized space launch services, though direct comparisons are difficult without more detailed service breakdowns. Benchmarking against similar national security launch contracts would provide better context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', indicating that multiple vendors could have bid. However, this specific award is a delivery order, suggesting it's part of a larger framework or a specific task order within that competition.
Taxpayer Impact: The taxpayer impact is tied to the $91.7 million expenditure for essential national security capabilities, aiming for cost-effectiveness through competitive processes.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological capabilities for defense and intelligence. Contributes to the U.S. dominance in space-based operations. Potential for future innovation and cost reductions in space launch.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of specific small business participation noted.
- High reliance on a single provider for critical infrastructure.
Positive Signals
- Awarded under full and open competition.
- Supports vital national security objectives.
- Utilizes a firm fixed-price contract type, providing cost certainty.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on space launch services crucial for national security. Spending benchmarks in this area are highly variable due to the specialized nature and high costs associated with space missions.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award ('sb': false). Further analysis would be needed to determine if small businesses were involved in subcontracting or if opportunities were missed.
Oversight & Accountability
The Department of Defense, through the Department of the Air Force, is responsible for overseeing this contract. Robust oversight is critical to ensure mission success, cost control, and adherence to security protocols for national security space launches.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns if scope expands.
- Dependence on a single provider for critical national security assets.
- Limited visibility into detailed cost breakdowns.
- Ensuring continued technological superiority in a rapidly evolving space domain.
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 $91.7 million to SPACE EXPLORATION TECHNOLOGIES CORP.. NATIONAL SECURITY SPACE LAUNCH PHASE 2 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 $91.7 million.
What is the period of performance?
Start: 2022-05-26. End: 2025-10-03.
What is the specific breakdown of services covered by this $91.7 million award and how does it align with the overall National Security Space Launch Phase 2 requirements?
The provided data does not detail the specific services included in the $91.7 million award beyond 'Launch Services'. Understanding the exact mission profiles, payload integrations, and launch frequencies is crucial for assessing the value and necessity of this expenditure. This information would allow for a more precise comparison against industry standards and projected needs for Phase 2.
Given the 'Full and Open Competition' designation, what was the competitive landscape, and were there other viable bidders for this specific delivery order?
While designated as 'Full and Open Competition', the award being a delivery order implies it might be one of several taskings under a broader contract vehicle. Information on the number of proposals received and the evaluation process for this specific order is needed to fully understand the competitive dynamics and ensure optimal price discovery for the government.
How does the per-unit cost or cost per launch for this contract compare to historical national security space launch contracts and commercial equivalents?
Benchmarking the cost-effectiveness of this contract requires detailed cost data per launch or per kilogram to orbit, which is not provided. Comparing this award to previous national security launch contracts and commercial launch service pricing is essential to determine if the government is achieving competitive rates and maximizing taxpayer 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: $91,720,436
Exercised Options: $91,720,436
Current Obligation: $91,720,436
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: 2022-05-26
Current End Date: 2025-10-03
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-10-07
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