DoD Awards $91.8M for National Security Space Launch Services to SpaceX, Ensuring Critical Capabilities
Contract Overview
Contract Amount: $91,782,373 ($91.8M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2023-11-02
End Date: 2026-05-14
Contract Duration: 924 days
Daily Burn Rate: $99.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NATIONAL SECURITY SPACE LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $91.8 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICES Key points: 1. Significant contract value highlights the importance of space launch capabilities for national security. 2. SpaceX's involvement indicates a competitive landscape for advanced space services. 3. Potential risks include reliance on a single provider for specific launch needs. 4. The sector is characterized by high technological barriers and strategic government investment.
Value Assessment
Rating: good
The contract value of $91.8 million for space launch services appears reasonable given the specialized nature and high costs associated with national security space missions. Benchmarking against similar large-scale launch contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple qualified vendors to bid, driving competitive pricing and innovation.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical national security assets.
Public Impact
Ensures continued access to space for critical national security missions. Supports the advancement of domestic space launch capabilities. Provides reliable launch services for vital government payloads.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical risks impacting launch schedules.
- Technological obsolescence of launch systems.
- Dependence on a limited number of launch providers.
Positive Signals
- Successful track record of the awarded contractor.
- Alignment with national space strategy objectives.
- Potential for future innovation in launch services.
Sector Analysis
The national security space launch sector is highly specialized, involving advanced technology and significant government investment. Spending benchmarks are difficult to establish due to the unique nature of each mission and payload.
Small Business Impact
This contract does not appear to directly benefit small businesses, as it is awarded to a large, established aerospace corporation. Future opportunities for small businesses may lie in subcontracting roles.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract, ensuring adherence to terms and performance standards. Robust oversight is crucial for managing the risks associated with national security space assets.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded to a single, large provider.
- Potential for schedule delays impacting national security.
- High cost associated with specialized launch services.
- Dependence on contractor's technological advancements.
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 $91.8 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 $91.8 million.
What is the period of performance?
Start: 2023-11-02. End: 2026-05-14.
What is the projected cost per launch under this contract, and how does it compare to industry averages for similar national security payloads?
The total contract value is $91.8 million over a period of approximately 2.5 years. Without specific details on the number of launches or payload sizes, a precise per-launch cost cannot be determined. However, given the complexity and security requirements of national security space launches, costs are typically in the tens of millions of dollars per launch, often exceeding commercial rates due to stringent reliability and mission assurance demands.
What are the primary risks associated with relying on a single contractor for these critical national security launch services?
The primary risks include potential disruptions to launch schedules due to contractor-specific issues (e.g., technical failures, supply chain problems, or personnel changes), reduced leverage in future negotiations, and a lack of alternative options if performance degrades. This concentration of capability can create vulnerabilities in national security space access.
How effectively does this contract contribute to the long-term strategic goals of the U.S. in maintaining space superiority and resilience?
This contract directly supports U.S. strategic goals by ensuring reliable access to space for critical national security assets. By leveraging established capabilities, it helps maintain operational readiness and provides a foundation for future space-based defense initiatives. However, long-term resilience also depends on fostering a diverse and competitive launch industrial base.
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: $91,782,373
Exercised Options: $91,782,373
Current Obligation: $91,782,373
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: 2023-11-02
Current End Date: 2026-05-14
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-01-08
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