Jeff Bezos’ Blue Origin was rejected by U.S. regulators due to NASA contract dispute


Aerospace Industry Update

U.S. government regulators rejected an appeal by Jeff Bezos’ aerospace company Blue Origin on NASA’s decision to award the moon landing contract to Elon Musk’s SpaceX.

The Government Accountability Office rejected the protest, stating that the space agency “did not violate procurement laws or regulations” when submitting documents. SpaceX’s $2.89 billion deal Help return the Americans to the moon, possibly as early as 2024.

This decision is another blow to Bezos’ ambition to create an important space exploration company. Blue Origin has encountered major delays in producing its own suborbital rocket to compete with Musk’s progress.

Although initially expressing its intention to award contracts to several suppliers, NASA said in April that it would only use one due to budget constraints. The agency said that SpaceX’s bid was “substantially” cheaper than other companies.

Blue Origin – and Dynetics, another supplier that was rejected – protested NASA’s decision, arguing that the agency violated its intention to use multiple suppliers and did not give other companies the opportunity to re-examine their respective bidding costs.

In a statement Friday release, GAO said: “NASA’s announcement stipulates that the number of awards the agency will provide depends on the amount of funds available for the program.

“In addition, the announcement reserves the right to award multiple awards, single awards, or no awards.” GAO is the investigative agency of the US Congress and is also responsible for reviewing disputes related to government contracts.

Bezos wrote to NASA Director Bill Nelson and was rejected a few days later Proposed to pay a cost of $2 billion Blue Origin said on Friday that in the current fiscal year and the next two fiscal years, in exchange for the terms of the contract-the offer is still valid.

“We firmly believe that there is a fundamental problem with NASA’s decision,” the company said. “But due to limited jurisdiction, GAO cannot solve these problems. We will continue to advocate for two direct suppliers because we believe this is the right solution.”

The company said that Congress’ efforts to increase NASA’s budget to allow it to award multiple contracts and Nelson’s recent comments on the importance of healthy competition in the modern space race are “encouraging.”

Blue Origin added: “The Human Landing System program needs to compete now, not later-this is the best solution for NASA and the best solution for our country.”

NASA acknowledged GAO’s decision, saying it will allow the agency to advance cooperation with SpaceX. “We will continue to work with the Biden administration and Congress, and with U.S. business partners, to ensure funding for a robust and sustainable method for the country to return to the moon,” it said.

On twitter, Musk responded to the message By writing “GAO” and then an emoji depicting flexed biceps.


Source link