NASA Awards Launch Services Contract to SpaceX

[Chris Bergin]

CONTRACT RELEASE: C08-023

NASA AWARDS LAUNCH SERVICES CONTRACT TO SPACEX

WASHINGTON -- NASA has awarded Space Exploration Technologies, or
SpaceX, a NASA Launch Services contract for the Falcon 1 and Falcon 9
launch vehicles.

The NASA Launch Services contracts are multiple awards to multiple
launch service providers. Twice per year, there is an opportunity for
existing and emerging domestic launch service providers to submit
proposals if their vehicles meet the minimum contract requirements.

The contract is an Indefinite Delivery/Indefinite Quantity (IDIQ)
contract where NASA may order launch services through June 30, 2010,
for launches to occur through December 2012. Under the NASA Launch
Services IDIQ contracts, the potential total contract value is
between $20,000 and $1 billion, depending on the number of missions
awarded.

The contract seeks a launch capability for payloads weighing 551
pounds or heavier into a circular orbit of 124 miles at an orbital
inclination of 28.5 degrees. Payloads would be launched to support
three NASA mission directorates: Science, Space Operations and
Exploration Systems.

Because an IDIQ contract has been awarded to SpaceX, it can compete
for NASA missions using the Falcon 1 and Falcon 9 launch vehicles as
specified by the NASA Launch Services contract process.

NASA's Launch Services Program at Kennedy Space Center is responsible
for program management. This award to SpaceX adds to the stable of
launch vehicles available to NASA under previously awarded contracts.
The original request for proposal was issued in 1999.

[aero313]

Congrats to SpaceX.  While we likely won't ever get real numbers, it would be interesting to see where their costs go when they must comply with all the NLS requirements.

Chris Bergin - 22/4/2008  9:38 PM
...the potential total contract value is between $20,000 and $1 billion...

That's quite a spread of return - between wooHooo! and "no cigar" congratulations SpaceX.

[jabe]

Looks like this will give SpaceX more legitimacy as a company, even though they haven't had a successful launch.. I hope they succeed on their next launch and then we can see what they do.  I'm sure Elon has some scheme of what to do next with Spacex once it becomes successful.
I'm sure a round of drinks was had when it was signed.
well done
jb

[Comga]

This is not new.  SpaceX has previously "won" an IDIQ listing.  SpaceX used to put this on the bottom of their launch manifest.  I do not recall if the last one included the Falcon 5 or Falcon 9.

This is not winning the blue ribbon. It is getting your pet to the judging arena.  A contract is the blue ribbon.  This costs NASA next to nothing.  We will still have to wait to see if they ever win a NASA launch contract.  (COTS is not a launch contract.  Launching certain elements into certain orbits constitutes some of the milestones and deliverables for COTS, although Jim will probably correct my wording.)

[Jim]

Achilles - 22/4/2008  5:03 PM

Chris Bergin - 22/4/2008  9:38 PM
...the potential total contract value is between $20,000 and $1 billion...

That's quite a spread of return - between wooHooo! and "no cigar" congratulations SpaceX.

the total contract value is spread among all the contractors

[Jim]

aero313 - 22/4/2008  4:44 PM

Congrats to SpaceX.  While we likely won't ever get real numbers, it would be interesting to see where their costs go when they must comply with all the NLS requirements.

Bingo

[Jim]

Comga - 22/4/2008  7:22 PM

This is not new.  SpaceX has previously "won" an IDIQ listing.  SpaceX used to put this on the bottom of their launch manifest.  I do not recall if the last one included the Falcon 5 or Falcon 9.

This is not winning the blue ribbon. It is getting your pet to the judging arena.  A contract is the blue ribbon.  This costs NASA next to nothing.  We will still have to wait to see if they ever win a NASA launch contract.  (COTS is not a launch contract.  Launching certain elements into certain orbits constitutes some of the milestones and deliverables for COTS, although Jim will probably correct my wording.)

This is new.  The other IDIQ was for the USAF.  

But you are correct, Spacex still has to win a Launch Service Task Order.  And depending on the risk level of the spacecraft, the LV would have to be certified before use.  

[Jim]

I would put this under US launchers

[aero313]

Achilles - 22/4/2008  5:03 PM

Chris Bergin - 22/4/2008  9:38 PM
...the potential total contract value is between $20,000 and $1 billion...

That's quite a spread of return - between wooHooo! and "no cigar" congratulations SpaceX.

That's typical of IDIQ contracts.  To be a legal contract, the government must award some firm dollar value.  That's the $20K, which is usually supposed to pay for a User's Guide of some sort.  This is exactly the same as the Air Force IDIQ contract, though SpaceX got $30K for the User's Guide that time (despite the fact that the document was available on the web for free).

The $1B figure comes from the mythical mission model and assumes that SpaceX wins all the launch business under the model and that all contract options (such as payload cleanliness, alternate launch sites, etc) are also exercised.  Considering that most of the missions in the model aren't even funded by Congress yet, quoting the $1B number is a bit, ah, optimistic.  Note that SpaceX no longer touts their "$100M" IDIQ contract with the Air Force, since exactly NO launches have been exercised under that contract to date.

And in fairness, Orbital got spanked a few years ago for claiming that they had won a $1B spacecraft contract from NASA/GSFC.  Again, that was another IDIQ contract and the $1B figure was a mythical best possible case.

[Skyrocket]

In 1998 NASA awarded under the Small Expendable Launch Vehicle Services (SELVS-2) procurement also a IDIQ contract to Coleman Aerospacefor launches of their LeoLink rocket (americanized Shavit), but never got any launches awarded.

[Seattle Dave]

Achilles - 22/4/2008  4:03 PM

Chris Bergin - 22/4/2008  9:38 PM
...the potential total contract value is between $20,000 and $1 billion...

That's quite a spread of return - between wooHooo! and "no cigar" congratulations SpaceX.