NASA gave Space Exploration Technologies, or SpaceX, a contract that potentially could be in the billion-dollar class to use SpaceX Falcon 1 and Falcon 9 rockets to transport cargo into space.
How much money SpaceX would receive would depend on how many launches NASA wishes to buy.
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.
The U.S. will lose its space transportation capabilities for half a decade, from the scheduled 2010 retirement of the space shuttle fleet until the next-generation Orion-Ares space system begins manned flights in 2015. During that gap, NASA will have to depend on Russia, other nations or on private firms such as SpaceX to carry cargo and astronauts to the International Space Station.
Under the NASA 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.
The NASA 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.