NASA's Commercial Crew Program contract awarded to SpaceX for $214M, supporting ISS crew transport
Contract Overview
Contract Amount: $213,984,138 ($214.0M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2016-07-29
End Date: 2021-10-30
Contract Duration: 1,919 days
Daily Burn Rate: $111.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF THE COMMERCIAL CREW PROGRAM (CCP) COMMERCIAL CREW TRANSPORTATION CAPABILITY (CCTCAP) CONTRACT WILL PROVIDE COMPLETION OF THE DESIGN, DEVELOPMENT, TEST, EVALUATION, AND CERTIFICATION OF AN INTEGRATED CREW TRANSPORTATION SYSTEM (CTS) CAPABLE OF TRANSPORTING NASA CREW TO AND FROM THE ISS, IN ACCORDANCE WITH THE DESIGN REFERENCE MISSIONS AND NASA'S CERTIFICATION STANDARDS AND REQUIREMENTS. CERTIFICATION OF THE CTS WILL BE DETERMINED BY NASA. NASA PLANS TO ISSUE TASK ORDERS FOR POST CERTIFICATION MISSIONS (PCM) TO AND FROM ISS THAT INCLUDE GROUND, LAUNCH, LIFEBOAT, ON-ORBIT, RETURN AND RECOVERY OPERATIONS. THE MINIMUM QUANTITY OF MISSIONS TO BE ORDERED IS TWO (2) AND THE MAXIMUM POTENTIAL QUANTITY OF MISSIONS WHICH MAY BE ORDERED IS SIX (6). IN ADDITION, NASA MAY ISSUE TASK ORDERS FOR SPECIAL STUDIES USED FOR RISK REDUCTION AND OTHER PURPOSES RELATED TO THE CTS. NASA CERTIFICATION UNDER CLIN 001 IS COMPLETE WHEN THE CONTRACTOR'S CREW TRANSPORTATION SYSTEM (CTS) HAS MET NASA'S REQUIREMENTS FOR SAFELY TRANSPORTING CREW TO AND FROM THE INTERNATIONAL SPACE STATION (ISS) IN ACCORDANCE WITH DOCUMENTS IDENTIFIED IN SECTION C.1, SPECIFICATIONS/STATEMENT OF WORK. SUBCLINS 001A AND 001B, IDENTIFIED IN TABLE B.3,DDTE/CERTIFICATION SUBCLINS, ARE DELIVERY MILESTONES THAT REPRESENT COMPLETION OF REQUIRED WORK NECESSARY TO ACHIEVE NASA CERTIFICATION. DELIVERY PAYMENT FOR THE ISS DESIGN CERTIFICATION REVIEW (DCR) FOR THE CREWED FLIGHT TO THE ISS INCLUDES ALL WORK UNDER THIS CLIN THAT OCCURS FROM THE CONTRACT EFFECTIVE DATE THROUGH THE ISS DCR COMPLETION. THE DELIVERY PAYMENT FOR THE CERTIFICATION REVIEW (CR) WILL INCLUDE ALL WORK THAT OCCURS FROM THE ISS DCR DELIVERY DATE THROUGH THE END OF THE DDTE/CERTIFICATION CLIN 001. IN ACCORDANCE WITH CLAUSE C.1, SPECIFICATION/STATEMENT OF WORK, THE TASK ORDERING PROCEDURES AND OTHER TERMS AND CONDITIONS IN THE CONTRACT, THE CONTRACTING OFFICER MAY ISSUE POST CERTIFICATION MISSION (PCM) TASK ORDERS. THE CONTRACTOR SHALL USE THE MISSION PRICING RATES SHOWN IN TABLE B.4.1, POST CERTIFICATION MISSION PRICES. THE PER MISSION PRICES ARE FOR A SINGLE ORDER AT THE PRICE STATED PER THE CALENDAR YEAR (CY) BASED ON THE NUMBER OF MISSIONS ORDERED. CTS FULL MISSION CAPABILITY PRICES SHALL BE BASED ON (1) FULFILLMENT OF THE DESIGN REFERENCE MISSION TO THE ISS FOUND IN CCT-DRM-1110, CREW TRANSPORTATION SYSTEM DESIGN REFERENCE MISSIONS, ATTACHMENT J-03, CONTRACT PERFORMANCE WORK STATEMENT, AND OTHER TERMS AND CONDITIONS IN THE CONTRACT AND (2) ALL INHERENT CTS CAPABILITIES THAT ARE WITHIN THE PROPOSED MISSION PRICES. IN ACCORDANCE WITH ATTACHMENT J-03, CONTRACT PERFORMANCE WORK STATEMENT, THE TASK ORDERING PROCEDURES AND OTHER TERMS AND CONDITIONS IN THE CONTRACT, THE CONTRACTOR SHALL PERFORM SPECIAL STUDIES, TEST AND ANALYSES, AS INITIATED BY WRITTEN DIRECTION FROM THE CONTRACTING OFFICER. SPACEX CCTCAP POST CERTIFICATION MISSION 2 (PCM-2) TASK ORDER AGAINST NNK14MA74C CLIN 002, AS DESCRIBED IN CLAUSE B.4 POST CERTIFICATION MISSIONS (IDIQ)(CLIN 002) AND ALL OTHER APPLICABLE TERMS AND CONDITIONS.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $214.0 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: IGF::OT::IGF THE COMMERCIAL CREW PROGRAM (CCP) COMMERCIAL CREW TRANSPORTATION CAPABILITY (CCTCAP) CONTRACT WILL PROVIDE COMPLETION OF THE DESIGN, DEVELOPMENT, TEST, EVALUATION, AND CERTIFICATION OF AN INTEGRATED CREW TRANSPORTATION SYSTEM (CTS) CAPABLE OF TRANSPORTING NASA CREW T… Key points: 1. Contract aims to provide a safe and reliable system for transporting NASA astronauts to and from the International Space Station. 2. Focus on design, development, testing, and certification of an integrated crew transportation system. 3. Includes potential for post-certification missions, indicating long-term operational support. 4. The contract structure allows for flexibility in ordering missions, from a minimum of two to a maximum of six. 5. This initiative represents a significant step in commercializing spaceflight and reducing reliance on traditional government-owned systems.
Value Assessment
Rating: good
The contract value of $214 million appears reasonable for the development and initial operational phases of a complex crewed space transportation system. Benchmarking against historical human spaceflight programs, which often ran into billions, suggests potential cost efficiencies. However, a direct comparison is difficult due to the unique public-private partnership model and the specific scope of services (design, development, and initial missions). The firm-fixed-price nature of the contract provides cost certainty for NASA, assuming SpaceX can manage its development and operational costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple companies had the opportunity to bid. This competitive process is crucial for ensuring that NASA receives the best value and technological solutions at a fair price. The number of bidders (3) suggests a healthy level of interest and capability within the industry for this type of advanced aerospace service.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.
Public Impact
Benefits NASA astronauts by providing a safe and reliable means of travel to and from the ISS. Enables continued human presence and research on the International Space Station. Supports the development of a commercial space transportation industry, fostering innovation and economic growth. Creates high-skilled jobs in aerospace engineering, manufacturing, and operations. The services delivered are critical for NASA's human spaceflight program continuity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if development challenges arise.
- Dependence on a single contractor (SpaceX) for critical crew transport capabilities.
- Risks associated with the certification process and ensuring astronaut safety.
Positive Signals
- Demonstrated success of SpaceX's existing launch capabilities.
- Firm-fixed-price contract provides cost predictability.
- Full and open competition likely led to a strong proposal.
- Alignment with NASA's strategy to foster commercial space capabilities.
Sector Analysis
The Commercial Crew Program falls within the broader aerospace and defense sector, specifically focusing on space exploration and transportation. This contract represents a significant shift towards utilizing commercial capabilities for government missions, a trend seen across various government sectors. The market for commercial spaceflight services is growing, driven by both government demand and emerging private ventures. Comparable spending benchmarks are difficult due to the novelty of this public-private model for crewed missions, but historical government-funded space programs involved substantially higher upfront investment.
Small Business Impact
This contract does not appear to have a specific small business set-aside. However, the prime contractor, SpaceX, may engage small businesses as subcontractors for various components and services. The success of such a large-scale program could indirectly benefit the small business ecosystem by creating demand for specialized aerospace products and services.
Oversight & Accountability
Oversight is provided by NASA's internal program management and safety review boards. The agency is responsible for certifying the crew transportation system, ensuring it meets stringent safety and performance requirements. Transparency is maintained through public program updates and reporting. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Commercial Resupply Services (CRS)
- Space Launch System (SLS)
- Orion Spacecraft Program
- International Space Station (ISS) Operations
Risk Flags
- Technical complexity of human-rated spacecraft development.
- Stringent safety and certification requirements.
- Potential for schedule delays.
- Dependence on a single contractor for critical services.
- Cost management risks for the contractor.
Tags
space-exploration, nasa, spacex, commercial-crew-program, human-spaceflight, firm-fixed-price, full-and-open-competition, aerospace, iss, florida, guided-missile-and-space-vehicle-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $214.0 million to SPACE EXPLORATION TECHNOLOGIES CORP.. IGF::OT::IGF THE COMMERCIAL CREW PROGRAM (CCP) COMMERCIAL CREW TRANSPORTATION CAPABILITY (CCTCAP) CONTRACT WILL PROVIDE COMPLETION OF THE DESIGN, DEVELOPMENT, TEST, EVALUATION, AND CERTIFICATION OF AN INTEGRATED CREW TRANSPORTATION SYSTEM (CTS) CAPABLE OF TRANSPORTING NASA CREW TO AND FROM THE ISS, IN ACCORDANCE WITH THE DESIGN REFERENCE MISSIONS AND NASA'S CERTIFICATION STANDARDS AND REQUIREMENTS. CERTIFICATION OF THE CTS WILL BE DETERMINED BY NASA. NASA PLANS TO ISSUE TASK ORDERS FOR POST CE
Who is the contractor on this award?
The obligated recipient is SPACE EXPLORATION TECHNOLOGIES CORP..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $214.0 million.
What is the period of performance?
Start: 2016-07-29. End: 2021-10-30.
What is the track record of SpaceX in delivering complex aerospace projects, particularly those involving human spaceflight?
SpaceX has a notable track record in developing and operating complex aerospace systems. They successfully developed the Falcon 9 rocket and Dragon spacecraft, which have been used for numerous cargo resupply missions to the ISS under NASA's Commercial Resupply Services (CRS) program. The company has also achieved significant milestones in reusable rocket technology. While the Commercial Crew Program represents their most advanced human-rated system development for NASA, their prior experience with cargo missions and numerous successful launches provides a strong foundation. Their ability to innovate and adapt quickly has been a hallmark, though the rigorous demands of human certification present unique challenges.
How does the cost of this contract compare to historical government-led human spaceflight programs?
Direct cost comparisons are challenging due to differing program structures, technological eras, and objectives. Historically, government-led programs like the Apollo program or the Space Shuttle program involved immense upfront investment, often in the tens or hundreds of billions of dollars when adjusted for inflation, and were entirely government-managed. The Commercial Crew Program, leveraging private sector innovation and investment, aims for greater cost-efficiency. The initial $214 million for SpaceX covers development and initial missions, which is significantly less than the total cost of developing and operating previous human spaceflight systems entirely in-house. This reflects a strategic shift towards public-private partnerships to potentially lower long-term costs.
What are the primary risks associated with the development and certification of the crew transportation system?
The primary risks revolve around the technical complexity and stringent safety requirements inherent in human spaceflight. Key risks include potential delays in design, development, and testing phases due to unforeseen engineering challenges. Ensuring the reliability and safety of the launch vehicle, capsule, life support systems, and emergency abort capabilities is paramount. The certification process itself is a significant undertaking, requiring rigorous validation and verification to meet NASA's high standards. Furthermore, the dependence on a single provider for critical crew transport introduces program risk if the contractor faces financial instability or major technical setbacks. Cybersecurity threats to the control systems also represent a growing concern.
How effective is the firm-fixed-price contract structure in managing costs for this program?
The firm-fixed-price (FFP) contract structure is designed to provide NASA with cost certainty and transfer a significant portion of the cost risk to the contractor, SpaceX. This means SpaceX is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes SpaceX to manage its expenses efficiently and innovate to control development and operational costs. However, if unforeseen technical challenges arise that require significant design changes or additional resources beyond what was anticipated, SpaceX bears the financial burden, which could potentially impact their profitability or lead to disputes if scope changes are necessary. For NASA, it caps the financial exposure for the defined scope.
What are the historical spending patterns for NASA's human spaceflight initiatives, and how does this contract fit in?
Historically, NASA's human spaceflight initiatives, such as the Mercury, Gemini, Apollo, and Space Shuttle programs, represented massive government investments, often consuming a substantial portion of NASA's annual budget during their peak operational years. These programs were characterized by direct government funding, extensive in-house development, and large government workforces. The Commercial Crew Program marks a significant departure, shifting towards a model where NASA acts as a customer procuring services from commercial providers. This contract, with its initial $214 million award, represents a more targeted investment focused on leveraging existing commercial capabilities and fostering a new space economy, fitting into a broader strategy to reduce long-term operational costs and increase access to space.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
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: $213,984,138
Exercised Options: $213,984,138
Current Obligation: $213,984,138
Actual Outlays: $89,403,615
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNK14MA74C
IDV Type: IDC
Timeline
Start Date: 2016-07-29
Current End Date: 2021-10-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-05-29
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