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July 30, 2021

Government watchdog rejects Blue Origin’s protest over lunar lander contract

Blue Origin’s protest to a governmental watchdog over NASA’s decision to award SpaceX a multi-billion dollar contract to develop a lunar lander was rejected.

The Government Accountability Office said Friday that it was denying both Blue Origin’s protest and a separate challenge filed by Dynetics, a defense contractor that also submitted a proposal for the contract. GAO concluded that NASA did not violate any laws or regulations when granting the sole award to SpaceX. “As a result, GAO denied the protest arguments that NASA acted improperly in making a single award to SpaceX,” the agency said in a press release.

The formal protest was over NASA’s decision to award the contract for the Human Landing System Program, which aims to return humans to the moon for the first time since Apollo, solely to SpaceX – and not to two companies, as was originally intended. SpaceX’s proposal for the Human Landing System Program came in at $2.9 billion, around half of Blue Origin’s $5.99 billion proposal. Earlier this week, Bezos penned an open letter to NASA Administrator Bill Nelson offering to knock $2 billion off that price to solve the “near-term budgetary issues” that caused NASA to select just one company for the contract.

NASA’s decision to give just one company the award did veer from historical standard, but GAO maintained that “the [contract] announcement reserved the right to make multiple awards, a single award, or no award at all.”

Blue Origin maintains that it was not given time to revise its bid after NASA concluded it did not have sufficient funding for two awards. “Blue Origin was plainly prejudiced by the Agency’s failure to communicate this change in requirements,” the company said in the protest. “Blue Origin could have and would have taken several actions to revise its proposed approach, reduce its price to more closely align with funding available to the Agency, and/or propose schedule alternatives.”

Blue Origin and Dynetics submitted their separate protests in April.

Update: In response to the decision, a Blue Origin spokesperson told TechCrunch:

“We stand firm in our belief that there were fundamental issues with NASA’s decision, but the GAO wasn’t able to address them due to their limited jurisdiction. We’ll continue to advocate for two immediate providers as we believe it is the right solution.”

The spokesperson noted that the company was encouraged by lawmakers adding a provision to a bill in Senate that would require NASA to select to providers for the HLS program.

TechCrunch has reached out to Dynetics for comment. We will update the story if they respond.


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