SpaceX will not be eligible to compete for the Sustaining Lunar Development contract. However, NASA said it plans to exercise a provision in its HLS award, called Option B, to fund development of changes to SpaceX’s Starship lander to support the new requirements and a second crewed demonstration mission.
NASA officials said the decision to hold a second competition did not reflect a lack of confidence in SpaceX on its HLS development. “We’re still targeting 2025 for that landing. SpaceX continues to make good progress toward that mission,” said Jim Free, associate administrator for exploration systems development. “But beyond Artemis 3 we want to increase the healthy competition and advance our lunar capabilities to support more science, more exploration and an emerging lunar marketplace.”
Sustaining Lunar Development will be run as part of the overall HLS program, said Lisa Watson-Morgan, NASA’s HLS program manager. She said there will be “multiple swim lanes” within HLS for SpaceX’s current Option A work, new Option B work and the Sustaining Lunar Development project. The new award will be a fixed-price, milestone-based award like the original HLS award, and will have very similar requirements to Option B.
Watson-Morgan said NASA will release a draft request for proposals (RFP) for the new project by the end of March, with an industry day in early April. A final RFP will come out later in the spring, with the goal of making an award early next year.
Nelson declined to go into details about the budget for Sustaining Lunar Development. The White House is expected to release its fiscal year 2023 budget proposal as soon as March 28 that will include financial details for the effort.
NASA has struggled, though, to secure funding for HLS, receiving only about a fourth of the $3.4 billion it requested in fiscal year 2021. It did receive full funding, albeit at the much lower level of $1.195 billion, for fiscal year 2022. Efforts to secure several billion dollars of additional funding for a second lander through infrastructure and stimulus bills last year also failed.
A second lander could be significantly more expensive than the $2.9 billion cost of the HLS Option A award to SpaceX. In the original competition, a team led by Blue Origin bid $6 billion while a third proposal by Dynetics bid even more. Those were for the Option A landers that would be less capable, and presumably less expensive, that the ones that would meet the Sustaining Lunar Development requirements.
Free said he hoped that some technology development contracts awarded in September for risk reduction work will lower the cost of the Sustaining Lunar Development landers. “Many folks have told us, ‘We’ve learned a lot and we think our bids can be better this time,’” he said.