Defense Department cancels small rocket contract awards
The Department of Defense yesterday withdrew the small contracts it had given to six small rocket companies on June 16 using funds allocated to help companies impacted by the Wuhan flu panic lock downs.
According to multiple industry sources, the selection of the six companies drew widespread criticism because it was unclear how these suppliers were selected over others. When contracts are awarded without an open competition, DoD by law has to file a “Justification & Approval” document explaining why an award was sole-sourced. No J&A documents were filed in this case.
This certainly appears fishy, as there are far more than six startups trying to capture market share in the smallsat launch market. Defense could now allow companies to competitively bid on this money, estimated to be about $115 million total, but it is unclear whether it will.
The Department of Defense yesterday withdrew the small contracts it had given to six small rocket companies on June 16 using funds allocated to help companies impacted by the Wuhan flu panic lock downs.
According to multiple industry sources, the selection of the six companies drew widespread criticism because it was unclear how these suppliers were selected over others. When contracts are awarded without an open competition, DoD by law has to file a “Justification & Approval” document explaining why an award was sole-sourced. No J&A documents were filed in this case.
This certainly appears fishy, as there are far more than six startups trying to capture market share in the smallsat launch market. Defense could now allow companies to competitively bid on this money, estimated to be about $115 million total, but it is unclear whether it will.
