DoD Awards $17.4M for STARSHIELD Block 2 to SpaceX Under Full and Open Competition

Contract Overview

Contract Amount: $17,447,160 ($17.4M)

Contractor: Space Exploration Technologies Corp.

Awarding Agency: Department of Defense

Start Date: 2024-08-05

End Date: 2025-12-31

Contract Duration: 513 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: FREESOL BAA STARSHIELD BLOCK 2

Place of Performance

Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: FREESOL BAA STARSHIELD BLOCK 2 Key points: 1. Significant award to a major aerospace contractor for advanced research and development. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration extends into late 2025, indicating a medium-term project. 4. Focus on R&D in physical sciences aligns with strategic defense objectives.

Value Assessment

Rating: good

The contract value of $17.4M for a 513-day duration appears reasonable for specialized R&D. Benchmarking against similar complex R&D contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used for advanced research and development, aiming to enhance national security capabilities. The competitive award process is intended to maximize the value of this investment.

Public Impact

Advancement of space technology critical for national defense. Potential for technological breakthroughs with broad applications. Investment in a key sector of the US economy and technological leadership.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in provided data.
  • Potential for cost overruns in complex R&D projects.

Positive Signals

  • Awarded to a reputable contractor with proven capabilities.
  • Competitive bidding process likely ensured fair pricing.
  • Clear project objective for STARSHIELD Block 2.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding Nanotechnology and Biotechnology. Spending in this area is crucial for maintaining technological superiority, with significant government investment directed towards innovation and scientific advancement.

Small Business Impact

The contract was awarded to SpaceX, a large aerospace corporation. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The Department of the Air Force is the awarding agency, implying oversight through their established procurement and program management processes. Further details on specific oversight mechanisms would be needed for a comprehensive assessment.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Complexity of R&D projects can lead to cost overruns.
  • Dependence on a single contractor for critical technology.
  • Potential for scope creep without strict management.
  • Long-term viability of technology in a rapidly evolving field.

Tags

research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to SPACE EXPLORATION TECHNOLOGIES CORP.. FREESOL BAA STARSHIELD BLOCK 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 $17.4 million.

What is the period of performance?

Start: 2024-08-05. End: 2025-12-31.

What specific technological advancements are expected from STARSHIELD Block 2, and how do they align with current and future defense needs?

STARSHIELD Block 2 likely focuses on enhancing capabilities related to satellite technology, space domain awareness, or advanced propulsion systems, crucial for maintaining a strategic advantage in space. These advancements are expected to bolster national security by improving surveillance, communication, and potentially defensive or offensive space-based operations in an increasingly contested environment.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective use of funds?

Key performance indicators for this R&D contract would typically include successful completion of defined research milestones, demonstration of specific technological capabilities, and adherence to project timelines and budget constraints. Measurement would involve regular technical reviews, prototype testing, and final deliverable assessments by the Department of the Air Force to ensure the project meets its objectives.

Given the specialized nature of the R&D, what are the primary risks associated with project delays or technical failures, and what mitigation strategies are in place?

Primary risks include unforeseen technical challenges inherent in advanced R&D, potential delays in component delivery, and the possibility of research outcomes not meeting initial expectations. Mitigation strategies often involve phased development with go/no-go decision points, contingency planning for critical path items, and close collaboration between the contractor and the government technical team to address issues proactively.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 1

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: $21,491,148

Exercised Options: $17,447,160

Current Obligation: $17,447,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2024-08-05

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2025-08-26

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