Lunar Lander Deal Paused After Bid Protests

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Key Takeaways:

  • NASA's $2.9 billion lunar lander contract, controversially awarded solely to SpaceX, has been suspended.
  • The suspension follows protests from unsuccessful bidders, Dynetics and Blue Origin, who expected the contract to be split among two companies.
  • Progress on the contract, including initial payments to SpaceX, is on hold pending an assessment by the Government Accountability Office (GAO).
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The unsuccessful bidders in NASA’s lunar lander contract have protested the award to SpaceX so the process is on hold until the Government Accountability Office assesses the protests. NASA announced two weeks ago that SpaceX had been awarded a $2.9 billion contract to build the vehicle that will return astronauts to the moon for the first time since 1974. The contract award became immediately controversial, largely because the contract was expected to go to two of the three bidders. The two companies left out, Dynetics and Blue Origin, cried foul.

“Pursuant to the GAO protests, NASA instructed SpaceX that progress on the HLS contract has been suspended until GAO resolves all outstanding litigation related to this procurement,” NASA spokeswoman Monica Witt said in a statement. Bid documents revealed that SpaceX vastly undercut its competitors’ prices and offered flexibility on the payment terms. The suspension means SpaceX won’t get its first draws on the contract or even be able to talk to NASA about next steps until the GAO signs off.

Russ Niles

Russ Niles is Editor-in-Chief of AVweb. He has been a pilot for 30 years and joined AVweb 22 years ago. He and his wife Marni live in southern British Columbia where they also operate a small winery.
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