DoD Awards $971M for National Security Space Launch Phase 2 to SpaceX
Contract Overview
Contract Amount: $97,100,437 ($97.1M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2023-06-15
End Date: 2026-04-14
Contract Duration: 1,034 days
Daily Burn Rate: $93.9K/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 $97.1 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant contract awarded to a single provider, SpaceX. 2. Focus on space launch services indicates a critical national security need. 3. Potential for cost efficiencies through firm-fixed-price contract. 4. Limited visibility into specific performance metrics or competitive alternatives.
Value Assessment
Rating: good
The contract value of $971M is substantial for space launch services. Benchmarking against similar large-scale national security space launch contracts is difficult due to the unique nature and limited number of providers. However, the firm-fixed-price structure suggests an attempt to control costs.
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 were considered. The specific award type, a delivery order, suggests it's part of a larger framework. The firm-fixed-price nature aims to provide cost certainty.
Taxpayer Impact: The firm-fixed-price contract aims to provide predictable costs for taxpayers, although the overall value is high due to the critical nature of the services.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological capabilities in space operations. Potential for job creation and economic activity in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics in the provided data.
- Reliance on a single provider for a critical national security function.
- Potential for cost overruns if unforeseen technical challenges arise.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract provides cost certainty.
- Supports advanced national security space 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 requirements and technological advancements, often involving high-value, complex contracts with limited competition due to specialized capabilities.
Small Business Impact
The data indicates the award went to SpaceX, a large established company. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award, which is common for large prime contracts in this sector.
Oversight & Accountability
Oversight would typically involve the Department of the Air Force ensuring adherence to contract terms, performance milestones, and budget. The firm-fixed-price nature provides a degree of financial accountability, but ongoing monitoring of technical execution is crucial.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value.
- Critical national security function.
- Potential for single-provider dependency.
- Complexity of space launch technology.
- Long contract duration.
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 $97.1 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 $97.1 million.
What is the period of performance?
Start: 2023-06-15. End: 2026-04-14.
What are the specific performance metrics and key performance indicators (KPIs) associated with this contract to ensure mission success and value for money?
The provided data does not detail specific performance metrics or KPIs. Typically, for national security space launch contracts, these would include launch success rates, payload delivery accuracy, adherence to launch schedules, and compliance with safety and security protocols. Detailed oversight by the Department of the Air Force would be responsible for monitoring these aspects to ensure mission success and taxpayer value.
How does the pricing of this contract compare to historical benchmarks for similar national security space launch missions, considering the firm-fixed-price structure?
Direct pricing comparisons are challenging due to the unique and evolving nature of national security space launch. While the firm-fixed-price structure offers cost certainty, the $971M award reflects the high cost of developing and operating advanced launch capabilities. Benchmarking would require access to classified or proprietary cost data from previous similar missions, which is not publicly available.
What is the long-term strategy for ensuring robust competition and mitigating risks associated with relying on a limited number of providers for critical space launch capabilities?
The strategy likely involves fostering a competitive environment through phased procurements and encouraging new entrants where feasible. For Phase 2, full and open competition was utilized. Long-term risk mitigation may include diversifying launch providers, investing in domestic launch infrastructure, and exploring alternative technologies to maintain resilience and prevent sole-source dependency.
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: $97,100,437
Exercised Options: $97,100,437
Current Obligation: $97,100,437
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: 2023-06-15
Current End Date: 2026-04-14
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-09-23
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