Illustration of SpaceX Wins $843M Contract to Decommission ISS

SpaceX Wins $843M Contract to Decommission ISS

Over the past decade, SpaceX has become a leader in launching rockets into space. Now, the company will invest $680 million to decommission the International Space Station (ISS), according to documents released by NASA on Tuesday.

NASA announced its plan to deorbit the ISS in 2022 but only selected Elon Musk’s SpaceX as its contractor last month. SpaceX has been tasked with developing a new vehicle, described as a “tug boat,” which will be used to push the ISS into the Pacific Ocean from space. The company has been awarded an $843 million contract for its efforts.

The Hawthorne, California-based SpaceX outperformed two competitors, Northrop Grumman Systems and AlphaSpaces, for the contract, according to a source selection statement made public on Tuesday. AlphaSpaces’s proposal was deemed “unacceptable” and removed from consideration.

SpaceX’s “mission suitability” score, which evaluates factors like small business utilization, management approach, and technical approach, was 822 out of 1,000. The proposal received five strengths, three significant strengths, and one weakness.

Northrop’s score was 589 out of 1,000, with the report noting three strengths and seven weaknesses. The Falls Church, Virginia-based company submitted an incomplete approach to procuring hardware, among other issues. Additionally, Northrop’s proposal was more costly than SpaceX’s, with NASA indicating it would exceed $680 million. The report later mentioned that Northrop’s total evaluated cost was “significantly higher” than SpaceX’s. The firms’ past performances were also considered, with SpaceX’s rated as “very high” and Northrop’s as “moderate.”

The ISS has been orbiting Earth since its construction began in 1998. Since welcoming its first crew in November 2000, it has hosted more than 250 visitors from 20 countries. Currently, the ISS accommodates crews from SpaceX, Soyuz, and Boeing.

The space station’s operational lifespan has been extended multiple times, but allowing it to remain in space beyond 2030 is considered risky. The ISS’s orbit is expected to naturally decay in 2026, making it ready for deorbit in mid-2030.

“Selecting a U.S. Deorbit Vehicle for the International Space Station will help NASA and its international partners ensure a safe and responsible transition in low Earth orbit at the end of station operations,” Ken Bowersox, an associate administrator for NASA’s Space Operations Mission Directorate, said in a statement last month. “This decision also supports NASA’s plans for future commercial destinations and allows for the continued use of space near Earth.”

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