DoD's $99.3M National Security Space Launch contract awarded to SpaceX for air transportation
Contract Overview
Contract Amount: $99,297,437 ($99.3M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2023-06-15
End Date: 2026-04-29
Contract Duration: 1,049 days
Daily Burn Rate: $94.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
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 $99.3 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. SpaceX secured a significant contract for critical national security space launch services. 2. The award highlights the growing role of private space companies in defense. 3. Potential risks include reliance on a single provider for specialized launch capabilities. 4. The IT sector is indirectly impacted through the need for secure communication and data transfer.
Value Assessment
Rating: good
The contract value of $99.3 million appears reasonable for specialized space launch services. Benchmarking against similar national security launch contracts would provide a more definitive assessment of value.
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 drive price discovery and ensure fair market value.
Taxpayer Impact: The use of competitive bidding aims to optimize taxpayer funds by securing services at a favorable price point.
Public Impact
Ensures continued access to space for national security missions. Supports advanced technological capabilities for defense and intelligence. Contributes to the growth and innovation within the commercial space industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for single-source dependency in future phases.
- Geopolitical risks impacting launch schedules or capabilities.
- Technological obsolescence in a rapidly evolving field.
Positive Signals
- Leverages cutting-edge private sector technology.
- Promotes competition and innovation in space launch.
- Supports critical national security infrastructure.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services. Spending in this area is critical for maintaining national security and technological superiority in space.
Small Business Impact
While this specific contract was awarded to a large prime contractor, the broader space launch ecosystem involves numerous small businesses as subcontractors for components and specialized services.
Oversight & Accountability
The Department of Defense's oversight mechanisms are crucial to ensure contract performance, adherence to security protocols, and responsible use of taxpayer funds throughout the contract duration.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Reliance on a single provider for critical launch services.
- Potential for cost overruns in a complex technological field.
- Vulnerability to supply chain disruptions for specialized components.
- Geopolitical instability impacting launch operations or satellite security.
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 $99.3 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 $99.3 million.
What is the period of performance?
Start: 2023-06-15. End: 2026-04-29.
What is the long-term strategy for ensuring diverse launch capabilities beyond this contract?
The Department of Defense is likely pursuing a multi-provider strategy to mitigate risks associated with relying on a single entity. This may involve fostering competition through future solicitations and exploring alternative launch providers to ensure resilience and redundancy in national security space launch capabilities.
How does this contract align with broader national space policy objectives?
This contract directly supports national security objectives by ensuring reliable access to space for critical defense and intelligence missions. It also aligns with policies encouraging commercial space development and public-private partnerships, fostering innovation and reducing reliance on government-only capabilities.
What are the key performance indicators (KPIs) being tracked for this contract?
Key performance indicators likely include on-time launch success rates, payload delivery accuracy, adherence to mission timelines, and compliance with stringent security and safety regulations. Performance against these KPIs will determine the overall success and value derived from the contract.
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: $99,297,437
Exercised Options: $99,297,437
Current Obligation: $99,297,437
Actual Outlays: $27,500
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: 2026-04-29
Potential End Date: 2026-05-03 00:00:00
Last Modified: 2025-12-15
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