DoD's $86M National Security Space Launch contract awarded to SpaceX for air transportation services
Contract Overview
Contract Amount: $86,163,655 ($86.2M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2023-06-15
End Date: 2028-08-30
Contract Duration: 1,903 days
Daily Burn Rate: $45.3K/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 $86.2 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 contract value is substantial, indicating a major investment in space capabilities. 3. Competition method is 'Full and Open', suggesting a robust procurement process. 4. The sector is highly specialized, focusing on advanced aerospace and defense technology.
Value Assessment
Rating: good
The contract value of $86.16 million for a 5-year period appears reasonable given the specialized nature of national security space launch services. Benchmarking against similar complex aerospace contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a 'Full and Open Competition' method, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract suggests a structured approach to price discovery.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential national security space launch capabilities.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological development in the aerospace sector. Contributes to the U.S. strategic advantage in space-based operations. Potential for job creation and economic activity within the aerospace industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) may limit flexibility for future technological advancements.
- Dependence on a single provider for critical launch services could pose a risk.
- Potential for cost overruns if unforeseen technical challenges arise.
Positive Signals
- Award to a proven provider like SpaceX suggests reliability.
- Firm Fixed Price contract provides cost certainty.
- Full and open competition indicates a well-vetted procurement process.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space launch services. Spending in this area is critical for national security and technological advancement, with significant government investment driven by strategic imperatives.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses within this contract. The nature of national security space launch typically involves large, specialized contractors.
Oversight & Accountability
The Department of Defense, through the Department of the Air Force, is responsible for overseeing this contract. Standard oversight mechanisms for large defense contracts would apply, including performance monitoring and financial audits.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Dependency on a single provider for critical national security assets.
- Potential for schedule delays due to the complexity of space launches.
- Risk of cost escalation if contract scope changes or unforeseen issues arise.
- Geopolitical factors impacting supply chains or launch operations.
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 $86.2 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 $86.2 million.
What is the period of performance?
Start: 2023-06-15. End: 2028-08-30.
What is the specific breakdown of services covered under this delivery order and how does it align with the overall National Security Space Launch program objectives?
This delivery order likely covers specific launch missions or related services for national security payloads. Its alignment with the broader NSSL program objectives would be detailed in the contract's statement of work, ensuring it contributes to the overarching goals of providing reliable and cost-effective access to space for critical defense and intelligence missions.
How does the firm fixed price structure mitigate risks associated with the inherent uncertainties in space launch operations?
A Firm Fixed Price (FFP) contract shifts most of the risk to the contractor (SpaceX). While it provides cost certainty for the government, it relies on the contractor's accurate estimation of costs and risks. For complex space launches, this structure can incentivize efficiency but may also lead to higher initial bids to cover potential contractor contingencies.
What performance metrics are in place to ensure the effectiveness and reliability of the launch services provided under this contract?
Effectiveness and reliability are typically ensured through stringent performance metrics outlined in the contract's Statement of Work (SOW). These often include on-time launch schedules, successful payload deployment, adherence to safety protocols, and mission success rates. Regular performance reviews and potential penalties for non-compliance would be part of the oversight.
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: $86,163,655
Exercised Options: $86,163,655
Current Obligation: $86,163,655
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: 2028-08-30
Potential End Date: 2028-08-30 00:00:00
Last Modified: 2025-09-26
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