DoD's $115M National Security Space Launch Services contract awarded to SpaceX under full and open competition
Contract Overview
Contract Amount: $115,348,776 ($115.3M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2023-08-19
End Date: 2024-08-18
Contract Duration: 365 days
Daily Burn Rate: $316.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $115.3 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICES Key points: 1. Significant contract value for critical national security space launch capabilities. 2. SpaceX (Space Exploration Technologies Corp.) is the sole awardee for this delivery order. 3. The contract falls under nonscheduled chartered freight air transportation. 4. Awarded by the Department of the Air Force, highlighting its role in space defense.
Value Assessment
Rating: good
The contract value of $115.3M for a one-year duration appears reasonable for specialized national security space launch services. Benchmarking against similar complex launch contracts is difficult due to unique mission requirements and evolving technology.
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 and access to the best available services.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential national security space launch capabilities.
Public Impact
Ensures continued access to space for critical national security missions. Supports the advancement of space technology and launch capabilities. Provides a vital link in the defense supply chain for space assets. Contributes to the operational readiness of the U.S. military in space.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if launch requirements change significantly.
- Dependence on a single provider for this specific delivery order.
- Geopolitical risks impacting launch operations or supply chains.
Positive Signals
- Awarded through full and open competition, promoting value.
- Supports critical national security objectives.
- Utilizes a firm fixed-price contract type, offering cost certainty.
Sector Analysis
This contract is within the aerospace and defense sector, specifically focusing on launch services. Spending in this area is crucial for maintaining national security and technological superiority in space, with significant government investment.
Small Business Impact
The data indicates the awardee is Space Exploration Technologies Corp., a major player in the space industry. There is no explicit mention of small business participation in this specific delivery order, which is common for highly specialized, large-scale contracts.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard oversight mechanisms for defense contracts, including performance monitoring and financial audits, would apply to ensure accountability and proper execution.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for schedule delays impacting mission timelines.
- Dependence on a single provider for critical launch services.
- Risk of scope creep or requirement changes increasing costs.
- Vulnerability to external factors like geopolitical events or natural disasters affecting launch operations.
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 $115.3 million to SPACE EXPLORATION TECHNOLOGIES CORP.. NATIONAL SECURITY SPACE 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 $115.3 million.
What is the period of performance?
Start: 2023-08-19. End: 2024-08-18.
What is the historical cost performance of similar national security space launch contracts awarded under full and open competition?
Historical data on similar national security space launch contracts is often classified or highly specific due to the sensitive nature of the missions and technologies involved. However, general trends suggest that competitive bidding can lead to cost savings compared to sole-source awards. The firm fixed-price nature of this contract provides a degree of cost certainty, but unforeseen technical challenges or scope changes could still impact overall program expenditure.
What are the primary risks associated with relying on a single provider for this national security space launch delivery order?
The primary risks include potential supply chain disruptions, technical failures unique to the provider's systems, and limited leverage in negotiating future services if the provider becomes indispensable. Dependence on one entity could also create vulnerabilities if the provider faces financial instability or operational challenges. Mitigation strategies often involve maintaining alternative launch capabilities or fostering competition in subsequent contract phases.
How effectively does this contract contribute to the overall strategic goals of national security space operations?
This contract directly supports national security space operations by ensuring reliable access to space for critical assets and missions. By awarding to a capable provider like SpaceX through a competitive process, the Department of Defense aims to achieve these strategic goals efficiently and cost-effectively. The firm fixed-price structure further aligns incentives for successful mission completion within budget.
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: $115,348,776
Exercised Options: $115,348,776
Current Obligation: $115,348,776
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: 2023-08-19
Current End Date: 2024-08-18
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-09-19
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