The White House evaluates terminating contracts with SpaceX
After a review, it was concluded that most of the agreements with the company are strategically irreplaceable for the Pentagon and NASA.
Launch in Texas/ Sergio Flores.
President Donald Trump pushed for an internal review of government contracts with SpaceX in early June, following tensions with Elon Musk. However, senior administration officials concluded that the company's services remain essential to national defense and space exploration.
According to sources familiar with the process, the White House-driven assessment was intended to identify potential excesses in the multibillion-dollar contracts various agencies hold with Musk's aerospace company. The review, however, made clear that most of these deals are strategically irreplaceable for the Pentagon and NASA.
A difficult domain to replace
Senior government officials admitted that SpaceX has become an irreplaceable player for the nation's rocket launches and satellite missions. Its reusable Falcon rockets and Crew Dragon manned spacecraft—currently the only one certified in the U.S. to carry astronauts to the Space Station—are key pillars of government space operations.
In addition, SpaceX has recently secured critical contracts. In April, it won the lion's share of a Pentagon deal valued at $5.9 billion, which includes 28 national security launches. In May, it also placed a new GPS satellite into orbit for the Space Force.
The Trump-Musk feud
These "scorecards," shared with the White House, evaluated whether other companies could fulfill the same services. But the conclusion was clear: there are no viable replacements for most of the contracts. It was even reported that SpaceX CEO Gwynne Shotwell met with advisers to the president during the review.
Technology dependence and pressure to diversify
The Trump Administration has long sought to reduce its dependence on a single supplier in aerospace. However, while contracts have been signed to encourage competition, many of the rival companies face technical delays and difficulties in meeting standards that SpaceX has already cemented.
Starlink, the company's satellite internet service, has also expanded its presence in the government sector. Through its Starshield division, SpaceX provides classified services to U.S. intelligence agencies.
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