SpaceX Government Contracts
Cal Berkeley professor Robert Reich claims that Elon Musk is “getting a taxpayer-funded windfall” because SpaceX “landed” the “largest contract” among 3 firms that “secured deals” to launch Space Force satellites.
IN FACT, SpaceX bid 25% to 38% less per launch than its competitors, and this is a “firm fixed-price contract” in which the contractor shoulders “maximum risk and full responsibility for all costs and resulting profit or loss.”
In 2023, the Biden administration increased SpaceX’s share of a similar contract because it’s main competitor—which used to be the government’s sole source for such launches—did not deliver its product on time.
