SpaceX told to suspend work on NASA’s moon-lander project until a challenge by Jeff Bezos’ rival space company is resolved

Jeff Bezos Elon Musk
  • The SpaceX moon-lander project is on hold pending review by the Government Accountability Office.
  • NASA ordered the halt after competing firms Dynetics and Jeff Bezos’ Blue Origin filed complaints.
  • The space agency initially said it would choose two companies before awarding SpaceX a sole contract.
  • See more stories on Insider’s business page.

SpaceX’s moon-lander project for NASA has been put on hold after rival bidders Dynetics and Jeff Bezos’ Blue Origin filed challenges with the Government Accountability Office.

The US space agency told SpaceX to halt its work on the project, which aims to land humans on the moon as early as 2024, until the dispute can be resolved.

“NASA instructed SpaceX that progress on the HLS contract has been suspended until GAO resolves all outstanding litigation related to this procurement,” the space agency said in a statement Friday reported by Jeff Foust for Space News.

In Dynetics’ complaint, which was co-signed by Blue Origin, the company argues that NASA should have withdrawn its request for bids for the lunar project once it became clear it didn’t have enough funding to proceed with two companies, as it had originally planned.

In awarding to SpaceX alone, Dynetics argued, NASA chose “the most anti-competitive and high risk option available.”

SpaceX received the exclusive $2.9 billion contract earlier this month, after bidding a much lower price than the competitors offered, NASA said.

The move was met with skepticism from the Blue Origin team, who filed a 50-page protest with the GAO.

In a statement to Insider earlier this week, Bezos’ company described the award as “flawed,” adding that NASA “moved the goal posts at the last minute.”

In its filing, Blue Origin said NASA set a project target cost of $6 billion – more than double SpaceX’s $2.9 billion proposal.

The company said NASA negotiated a proposed price with SpaceX, but not with Blue Origin, which it said was unfair.

NASA responded by saying budget concerns and lack of Congressional funding meant it had to go with a single competitor. The agency reportedly received about a quarter of the total $3.3 billion budget allocation it requested for 2021.

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New York just became the biggest city to make LGBT-owned businesses eligible for billions in government contracts for minority entrepreneurs

FILE PHOTO: A rainbow flag waves in the wind at the Stonewall National Monument outside the Stonewall Inn, site of the1969 Stonewall uprising, considered the birth of the lesbian, gay, bisexual and transgender (LGBT) movement in Greenwich Village in New York City, New York, U.S., June 4, 2019. REUTERS/Mike Segar/File Photo
A rainbow flag waves in the wind at the Stonewall National Monument outside the Stonewall Inn in New York.

  • New York City will officially recognize LGBT-owned businesses as part of its certification program.
  • That means that LGBT-owned business will have access to resources like mentorship and consulting, as well as the opportunity to be suppliers for government contracts.
  • Currently, the city has a 10-year goal to award $25 billion in contracts to women and minority-owned businesses, a group that now includes LGBT-owned businesses.
  • Visit Business Insider’s homepage for more stories.

LGBT-owned businesses will now be officially recognized by New York City as minority-owned businesses, qualifying them for resources like mentorship and consulting – and, significantly, as suppliers for government contracts.

In conjunction with the National LGBT Chamber of Commerce (NGLCC), New York City’s Department of Small Business Services will fast-track LGBT businesses into its certification programs

Those certification programs were already open to minority and women-owned businesses, as well as historically economically and socially disadvantaged individuals. 

The city has a 10 year goal to award $25 billion in contracts to those certified businesses by 2025. An August press release said that the city is on track to award 30% of all contracts to minority and women-owned businesses in 2021. The city awarded $964 million in contracts during the first three quarters of 2020.

Now, those opportunities will be open to majority LBGT-owned businesses certified with NGLCC

Justin Nelson, the president and cofounder of NGLCC, said New York has been a priority for the group for nearly 10 years. The group saw victories on the other side of the Hudson in Hoboken and Jersey City, but they just couldn’t get across the finish line in NYC – until today.

“This is, without a doubt, a major win for LGBT businesses, a major win for NGLCC,” he said. He added that it’s “one of the most diverse cities in the world saying, ‘You know what, yes, we want to be inclusive, not just in our policies, but in our practices.'”  

In 2019, New York City spent $96 billion; while not all of that will go to small businesses, Nelson said “there are literally billions of dollars of opportunity that have been opened up now to LGBT businesses that weren’t there yesterday.”

“Equity of access and inclusion are at the core of the work we do at SBS,” Jonnel Doris, commissioner of the NYC Department of Small Business Services, said in a statement. “A diverse vendor pool makes a stronger New York City, and we are excited to maximize the inclusion of LGBTQ certified firms into the City’s certification process. We look forward to our continued partnership with the NGLCC.”

A recent survey by the NGLCC found that nearly 59% of LGBT businesses fear shutting down due to COVID if they don’t receive any additional funds, according to Nelson. 

Marti Cummings, a gig worker and drag artist who is running for New York City Council, told Insider that “any opportunity to help women owned businesses, BIPOC owned businesses. and LGBTQIA+ businesses is a positive.”

“To be able to welcome LGBTQIA+ businesses into this fold is really important, because our marginalized communities need a seat at the table and need their voices to be heard,” they said about the new certification program.

As a drag artist, Cummings primarily works and performs at small businesses. They said that three of the venues they used to work at have closed during the pandemic, and ensuring the futures of remaining LGBT-owned businesses is crucial. 

“We really need to put in the work to save these spaces and these institutions that are so vital to the safety of queer people,” they said. Cummings said that measures like canceling rent, mortgages, and taxing the wealthy could also provide needed relief to businesses in the short-term.

In the meantime, LGBT-owned businesses who want to take advantage of the new program need to be certified with the NGLCC (or get certification), and register with the small business services (SBS) database.

“I love local business. I just think it is the heartbeat of our city,” Cummings said. “And we have such a long road of recovery ahead from this pandemic, but if we all work together as a community block by block, we will get through this. We have to keep holding on. We have to keep fighting for our city, state, and federal government to do the work, to help the people who are suffering, because they work for us.”

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