DoD Awards $78M for NSSL Phase 3 Lane 2 Launch Services to SpaceX
Contract Overview
Contract Amount: $78,053,555 ($78.1M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2025-04-30
End Date: 2027-09-07
Contract Duration: 860 days
Daily Burn Rate: $90.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $78.1 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES Key points: 1. SpaceX secured a significant contract for national security space launch services. 2. The contract is for Phase 3, Lane 2, indicating a specific service tier. 3. The award value is substantial, reflecting the critical nature of space launch. 4. This award falls under the broader National Security Space Launch program.
Value Assessment
Rating: good
The award value of $78 million for launch services appears reasonable given the specialized nature of national security space launches. Benchmarking against similar contracts within the NSSL program 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 competitive bidding process. This method is expected to drive price discovery and potentially achieve better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical national security capabilities.
Public Impact
Ensures continued access to space for critical national security missions. Supports the Department of Defense's strategic objectives in space. Highlights the role of private sector innovation in national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex launch missions.
- Dependence on a single provider for this specific lane.
- Geopolitical risks impacting launch schedules or capabilities.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security infrastructure.
- Leverages established launch provider capabilities.
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 critical for maintaining a strategic advantage and is subject to rigorous oversight.
Small Business Impact
The provided data does not indicate any specific subcontracting or set-aside for small businesses in this particular award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The National Security Space Launch program is subject to significant oversight from the Department of Defense and Congress to ensure mission success and responsible use of funds.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for single-source dependency in future phases.
- Complexity of space launch introduces inherent technical risks.
- Geopolitical factors could impact launch operations.
- Need for continuous monitoring of cost and schedule performance.
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 $78.1 million to SPACE EXPLORATION TECHNOLOGIES CORP.. NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 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 $78.1 million.
What is the period of performance?
Start: 2025-04-30. End: 2027-09-07.
What is the historical cost performance of SpaceX for similar NSSL launch services?
Historical cost performance data for SpaceX on similar NSSL launches would be crucial for a comprehensive value assessment. Analyzing past contract execution, including any cost overruns or savings, against initial projections provides insight into the contractor's reliability and pricing accuracy. This information helps determine if the current award represents a fair and reasonable price compared to demonstrated performance.
What are the specific risks associated with relying on SpaceX for this critical launch lane?
Risks include potential launch failures, schedule delays due to technical issues or external factors, and the concentration of critical launch capabilities with a single provider. Geopolitical events or supply chain disruptions could also impact operations. The government must have robust contingency plans and potentially explore alternative providers for future phases to mitigate these risks.
How effectively does this contract support the DoD's long-term space strategy?
This contract directly supports the DoD's need for reliable and timely access to space for national security missions. By securing launch services through a competitive process, the DoD aims to ensure cost-effectiveness and technological advancement. The effectiveness will be measured by successful mission execution, adherence to schedules, and the overall contribution to maintaining U.S. space superiority.
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: $78,053,555
Exercised Options: $78,053,555
Current Obligation: $78,053,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881125DB002
IDV Type: IDC
Timeline
Start Date: 2025-04-30
Current End Date: 2027-09-07
Potential End Date: 2033-04-04 00:00:00
Last Modified: 2025-08-25
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