DoD Awards $96.8M Contract for Nonscheduled Chartered Freight Air Transportation to SpaceX
Contract Overview
Contract Amount: $96,855,000 ($96.9M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2025-04-14
End Date: 2026-04-13
Contract Duration: 364 days
Daily Burn Rate: $266.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: SEE ATTACHMENT 1, PERFORMANCE WORK STATEMENT (PWS)
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $96.9 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: SEE ATTACHMENT 1, PERFORMANCE WORK STATEMENT (PWS) Key points: 1. Contract awarded to SpaceX for air transportation services. 2. Full and open competition was utilized. 3. Potential for high value delivery orders. 4. Sector is transportation and logistics.
Value Assessment
Rating: good
The contract is a delivery order under an existing contract, suggesting a pre-negotiated pricing structure. The firm fixed price type provides cost certainty. Benchmarking against similar air charter contracts would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors can bid.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing value for the services rendered.
Public Impact
Ensures critical air transport capabilities for the Department of Defense. Supports potential rapid deployment and logistical needs. Benefits from competition driving efficiency and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single provider for specific routes or times.
- Potential for surge pricing during peak demand periods.
- Geopolitical risks impacting flight operations or availability.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Experienced provider in aerospace and logistics.
Sector Analysis
This contract falls within the transportation and logistics sector, specifically air freight. Spending in this area is crucial for military readiness and global operations. Benchmarks for similar services vary widely based on route, aircraft type, and urgency.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor is SpaceX, a large aerospace manufacturer.
Oversight & Accountability
As a delivery order under a larger contract, oversight may be embedded within the parent contract's framework. The Air Force is responsible for ensuring performance and compliance with the PWS.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for sole-source reliance if SpaceX is the only viable option for specific mission requirements.
- Contract duration is relatively short (364 days), requiring potential re-competition or extension.
- Dependence on specialized aerospace capabilities may limit alternative providers.
- Geopolitical factors could impact international flight routes and operational feasibility.
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 $96.9 million to SPACE EXPLORATION TECHNOLOGIES CORP.. SEE ATTACHMENT 1, PERFORMANCE WORK STATEMENT (PWS)
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 $96.9 million.
What is the period of performance?
Start: 2025-04-14. End: 2026-04-13.
What is the historical performance of SpaceX in fulfilling similar government air transportation contracts?
Information on SpaceX's historical performance for government air transportation contracts is not detailed in the provided data. A review of past performance records, including on-time delivery, safety incidents, and customer satisfaction, would be crucial to assess their reliability and capability for this specific award. This would inform the overall risk assessment.
How does the awarded price compare to market rates for similar nonscheduled chartered freight air transportation services?
The provided data does not include specific pricing details beyond the total award amount. A comprehensive market analysis comparing the per-mile or per-hour rates against industry benchmarks for similar aircraft types and routes is necessary. This comparison would determine if the $96.8 million represents a competitive and cost-effective price for the anticipated services.
What are the specific performance metrics and key performance indicators (KPIs) outlined in the PWS to ensure effective service delivery?
The Performance Work Statement (PWS) is referenced but not provided. Key performance indicators (KPIs) such as on-time pickup and delivery, flight safety compliance, cargo integrity, and responsiveness to mission changes are critical. The effectiveness of this contract hinges on clearly defined and measurable KPIs within the PWS and robust monitoring by the Air Force.
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: $100,000,000
Exercised Options: $100,000,000
Current Obligation: $96,855,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881125DB002
IDV Type: IDC
Timeline
Start Date: 2025-04-14
Current End Date: 2026-04-13
Potential End Date: 2026-04-13 00:00:00
Last Modified: 2026-01-13
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