SpaceX just stomped the competition for a new contract—that’s not great

Enlarge / With Dragon and Falcon, SpaceX has become an essential contractor for NASA. (credit: SpaceX)

There is an emerging truth about NASA's push toward commercial contracts that is increasingly difficult to escape: Companies not named SpaceX are struggling with NASA's approach of awarding firm, fixed-price contracts for space services.

This belief is underscored by the recent award of an $843 million contract to SpaceX for a heavily modified Dragon spacecraft that will be used to deorbit the International Space Station by 2030.

The recently released source selection statement for the "US Deorbit Vehicle" contract, a process led by NASA head of space operations Ken Bowersox, reveals that the competition was a total stomp. SpaceX faced just a single serious competitor in this process, Northrop Grumman. And in all three categories—price, mission suitability, and past performance—SpaceX significantly outclassed Northrop.