DoD Awards $183M for National Security Space Launch Phase 2, Boosting SpaceX Capabilities
Contract Overview
Contract Amount: $183,438,742 ($183.4M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2024-07-25
End Date: 2028-01-29
Contract Duration: 1,283 days
Daily Burn Rate: $143.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH PHASE 2 LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $183.4 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 LAUNCH SERVICES Key points: 1. Significant contract awarded to SpaceX for critical national security space launch services. 2. Competition method is 'Full and Open', indicating a potentially competitive bidding process. 3. Risk is moderate, given the reliance on a single provider for this specific delivery order. 4. The IT sector is not directly applicable; this falls under Defense/Aerospace services.
Value Assessment
Rating: good
The award amount of $183.4M for launch services appears reasonable given the scope and duration. Benchmarking against similar national security space launch contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', suggesting multiple vendors could have bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award 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 development and deployment of advanced space-based assets. Contributes to the U.S. government's strategic advantage in space. Potentially fosters innovation and competition within the commercial space launch industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single provider for this delivery order.
- Potential for cost overruns if not managed tightly.
- Geopolitical risks impacting launch schedules or capabilities.
Positive Signals
- Award to a proven launch provider.
- Firm Fixed Price contract provides cost certainty.
- Supports critical national security infrastructure.
Sector Analysis
This contract falls within the Defense/Aerospace sector, specifically focusing on launch services for national security payloads. Spending in this area is crucial for maintaining strategic advantage and is subject to rigorous oversight.
Small Business Impact
The data indicates the award went to Space Exploration Technologies Corp. (SpaceX), a major player. Analysis of subcontracting opportunities for small businesses within this large contract would be beneficial.
Oversight & Accountability
The Department of the Air Force, under the DoD, is responsible for this award. Oversight will be critical to ensure performance, cost control, and adherence to national security requirements throughout the contract duration.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Single provider reliance for this specific order.
- Potential for schedule delays impacting national security.
- Complexity of space launch operations.
- Evolving threat landscape in space.
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 $183.4 million to SPACE EXPLORATION TECHNOLOGIES CORP.. NATIONAL SECURITY SPACE LAUNCH PHASE 2 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 $183.4 million.
What is the period of performance?
Start: 2024-07-25. End: 2028-01-29.
What is the specific breakdown of services included in this $183M award and how does it align with projected launch needs?
The award covers launch services for National Security Space Launch Phase 2. A detailed breakdown of specific launch missions, payload integration, and associated services would clarify how the $183M aligns with projected needs. Understanding the number and type of launches anticipated under this delivery order is key to assessing its value and ensuring it meets the DoD's evolving space requirements effectively.
What are the key performance indicators (KPIs) and risk mitigation strategies in place for this contract to ensure mission success?
Key performance indicators likely include on-time launch success rates, payload delivery accuracy, and adherence to safety protocols. Risk mitigation strategies would involve contingency planning for launch failures, robust quality assurance processes, and close monitoring of the provider's technical readiness. The firm fixed price nature helps mitigate financial risk, but operational and technical risks remain paramount for national security missions.
How does this contract contribute to the long-term strategic goals of the U.S. in space, beyond immediate launch needs?
This contract supports the U.S. strategic goal of maintaining assured access to space for national security. By leveraging established capabilities, it ensures the timely deployment of critical assets. Furthermore, it contributes to the broader strategy of fostering a robust domestic space launch industrial base, promoting innovation, and ensuring technological superiority in the increasingly contested space domain.
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: $183,438,742
Exercised Options: $183,438,742
Current Obligation: $183,438,742
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: 2024-07-25
Current End Date: 2028-01-29
Potential End Date: 2028-01-29 00:00:00
Last Modified: 2025-06-25
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