Jeff Bezos offers NASA $2BN discount to build moon lander in exchange for lunar contract

Barely a few days after completing a historic flight to the edge of space, Blue Origin founder Jeff Bezos on July 26 wrote an open letter to NASA offering a discount of $2 billion for allowing his company to build a moon lander. In a letter addressed to NASA Administrator Bill Nelson, the American billionaire said the offer would “bridge the funding shortfall” that led the US space agency to pick just one contractor, Blue Origin’s rival, SpaceX. The human landing system (HLS) contract which is worth $2.9 billion was awarded to Elon Musk’s SpaceX in April prompting Blue Origin and a third company Dynetics to file protests awaiting adjudication by the US Government Accountability Office.

The United States is eyeing to return the country to the moon by 2024 under its Artemis program to ultimately utilise the learnings for a crewed mission to Mars in the 2030s. In the open letter, Bezos offered the discount arguing that two contractors would then compete with each other. Blue Origin founder said, “this offer is not a deferral, but is an outright permanent waiver." Since the award fell away from Blue Origin, the company has been frantically arguing to have the NASA decision reversed. It also led the US Senate to pass a bill agreeing to add $10 billion to the human lander system. 

Jeff Bezos wrote, “Instead of this single source approach, NASA should embrace its original strategy of competition...Without competition, NASA’s short-term and long-term lunar ambitions will be delayed, will ultimately cost more, and won’t serve the national interest.”

“Blue Origin will bridge the HLS budgetary funding shortfall by waiving all payments in the current and next two government fiscal years up to $2B to get the program back on track right now. This offer is not a deferral but is an outright and permanent waiver of those payments. This offer provides time for government appropriation actions to catch up,” he added.

‘The mission is important’

Further, in a detailed letter, Bezos not only noted the importance of NASA mission but also expressed Blue Origin’s willingness to discuss “different ideas” that US space agency might have in mind regarding the same. He said, “I believe this mission is important. I am honoured to offer these contributions and am grateful to be in a financial position to be able to do so...If NASA has different ideas about what would best facilitate getting back to true competition now, we are ready and willing to discuss them.”

Noting the bipartisan support, the billionaire said, “We have seen that there is strong, bipartisan Congressional support for a second lander and for the Artemis Program in general. Along with that support, we believe this offer provides a strong foundation, both technically and fiscally, for the return of Americans to the Moon – this time to stay.”

IMAGE: AP/Unsplash