DoD Awards $105M for National Security Space Launch Phase 2 to SpaceX
Contract Overview
Contract Amount: $105,264,780 ($105.3M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2024-07-02
End Date: 2025-09-30
Contract Duration: 455 days
Daily Burn Rate: $231.4K/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 $105.3 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, major aerospace provider. 2. Focus on national security space launch indicates critical infrastructure. 3. High contract value suggests substantial investment in space capabilities. 4. Competition method is 'Full and Open', but awardee is specific. 5. Contract duration spans over a year, indicating ongoing need.
Value Assessment
Rating: good
The contract value of $105.26 million for a delivery order under a larger program appears reasonable given the specialized nature of national security space launch services. 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 a 'Full and Open Competition' framework, suggesting multiple vendors could have bid. However, the specific award to SpaceX for this delivery order implies they were the selected provider based on technical and cost factors, impacting price discovery by focusing on one offeror for this specific task.
Taxpayer Impact: Taxpayer funds are being utilized for critical national security space launch capabilities, ensuring access to space for defense and intelligence missions.
Public Impact
Ensures continued access to space for national security missions. Supports advanced satellite deployment and operations. Contributes to the U.S. strategic advantage in space. Funds critical technological development in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source reliance in future phases if competition is not maintained.
- Geopolitical risks associated with reliance on a single launch provider.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security infrastructure.
- Utilizes a firm fixed-price contract type, providing cost certainty.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services for national security payloads. Spending in this area is driven by defense requirements, technological advancements, and the strategic importance of space-based assets.
Small Business Impact
The data does not indicate any direct subcontracting to small businesses for this specific delivery order. The primary awardee is a large aerospace corporation, suggesting that small business participation would likely occur at a lower tier if at all.
Oversight & Accountability
Oversight is managed by the Department of the Air Force within the Department of Defense. The use of a delivery order under a larger contract framework implies existing oversight mechanisms are in place, but specific details on monitoring performance and cost are not provided.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value.
- Single awardee for this delivery order.
- Reliance on specialized launch services.
- National security implications.
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 $105.3 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 $105.3 million.
What is the period of performance?
Start: 2024-07-02. End: 2025-09-30.
What is the total projected cost of the National Security Space Launch Phase 2 program, and how does this $105M delivery order compare to the overall budget?
The provided data only details a single delivery order of $105.26 million. The total projected cost for the entire National Security Space Launch Phase 2 program is not specified here. A comprehensive review would require access to the overarching contract details and program budget to understand the scale and significance of this particular award within the broader initiative.
What specific risks are associated with relying on SpaceX for critical national security space launches, and what mitigation strategies are in place?
Risks could include launch failures, geopolitical tensions affecting operations, or potential supply chain disruptions. Mitigation strategies might involve redundant launch providers, robust safety protocols, and contingency planning. The 'Full and Open Competition' aspect suggests an effort to broaden the provider base, but the specific award highlights current reliance on SpaceX for this task.
How does the performance of this delivery order contribute to the overall effectiveness of the U.S. national security space capabilities?
This delivery order is crucial for ensuring the successful launch of national security payloads, which are vital for intelligence gathering, communication, navigation, and missile warning systems. Its effective execution directly supports the operational readiness and strategic advantage of U.S. defense and intelligence agencies in maintaining critical space-based assets.
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: $105,264,780
Exercised Options: $105,264,780
Current Obligation: $105,264,780
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: 2024-07-02
Current End Date: 2025-09-30
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-09-24
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