DoD Awards $65M Firm Fixed Price Contract for NROL-86 Launch Services to SpaceX
Contract Overview
Contract Amount: $65,000,000 ($65.0M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2026-01-12
End Date: 2028-06-12
Contract Duration: 882 days
Daily Burn Rate: $73.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAUNCH SERVICE FOR NROL-86
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $65.0 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: LAUNCH SERVICE FOR NROL-86 Key points: 1. Contract awarded to SpaceX for launch services, a key player in the commercial space sector. 2. The $65 million contract value is a significant investment in national security space capabilities. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract duration spans over two years, indicating a substantial service requirement.
Value Assessment
Rating: good
The $65 million contract value for launch services appears reasonable given the specialized nature of NROL missions and the current market for launch providers. Benchmarking against similar classified payload launches is difficult, but SpaceX's established track record suggests competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing multiple qualified vendors to bid. This competitive environment is expected to drive favorable pricing and ensure the best value for the government.
Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by ensuring fair pricing and access to the most capable providers for critical national security missions.
Public Impact
Ensures continued access to space for national security intelligence gathering. Supports the U.S. technological advantage in space-based surveillance and reconnaissance. Contributes to the operational readiness of the U.S. intelligence community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for launch delays impacting mission timelines.
- Geopolitical risks affecting launch operations or satellite functionality.
- Dependence on a single provider for critical launch capabilities.
Positive Signals
- Utilizes a proven launch provider with a strong success rate.
- Firm fixed price contract limits cost overrun risk for the government.
- Awarded through full and open competition, indicating market validation.
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 U.S. space superiority and intelligence capabilities, with significant government investment.
Small Business Impact
While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracting opportunities within the broader aerospace supply chain. However, direct small business participation in this specific launch service contract is not indicated.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for overseeing this contract. Robust oversight will be crucial to ensure timely delivery, mission success, and adherence to contract terms, especially given the classified nature of the payload.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Launch failure risk
- Schedule slippage
- Payload security concerns
- Geopolitical instability impacting operations
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 $65.0 million to SPACE EXPLORATION TECHNOLOGIES CORP.. LAUNCH SERVICE FOR NROL-86
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 $65.0 million.
What is the period of performance?
Start: 2026-01-12. End: 2028-06-12.
What is the specific performance metric for successful launch and payload deployment?
The contract likely includes detailed performance metrics for successful launch, including achieving target orbit, payload separation, and initial system activation. These metrics are critical for validating mission success and ensuring the government receives the intended capability. Specific details are often classified due to the nature of NROL missions.
How does the government mitigate risks associated with relying on a single launch provider for this critical mission?
While awarded to SpaceX, the government likely maintains contingency plans and may have agreements with other providers for future or alternative launch needs. Diversification of launch capabilities and robust risk management strategies are standard practice for national security space programs to ensure mission continuity.
What is the long-term strategic value of this contract beyond the immediate NROL-86 mission?
This contract not only secures a critical intelligence-gathering capability but also supports the development and sustainment of U.S. launch infrastructure and expertise. It reinforces the U.S. position in space, fosters innovation in the commercial space sector, and ensures readiness for future space-based defense and intelligence operations.
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: $153,945,750
Exercised Options: $153,945,750
Current Obligation: $65,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881125DB002
IDV Type: IDC
Timeline
Start Date: 2026-01-12
Current End Date: 2028-06-12
Potential End Date: 2028-06-12 00:00:00
Last Modified: 2026-01-12
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