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Blue Origin Sues NASA Over Lunar Lander Contract That Went to SpaceX

Last month, the US Government Accountability Office denied Blue Origin's initial attempt to halt the NASA contract given to SpaceX, which will build a lunar lander for a 2024 moon mission.

 & Michael Kan Principal Reporter

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Jeff Bezos' Blue Origin is suing to stop NASA from awarding SpaceX a lunar lander contract.

“Blue Origin filed suit in the US Court of Federal Claims in an attempt to remedy the flaws in the acquisition process found in NASA’s Human Landing System,” the company told PCMag on Monday. CNBC was first to report the news. 

Blue Origin secured a court order to seal the complaint, citing the confidential information at stake. Nevertheless, a separate court filing from the company claims NASA engaged in “unlawful and improper evaluation” during the bidding process for the lunar lander project, which aims to deliver a man and woman on the moon in 2024.  

“We firmly believe that the issues identified in this procurement and its outcomes must be addressed to restore fairness, create competition, and ensure a safe return to the Moon for America,” Blue Origin added in a statement. 

Illustration of SpaceX Starship human lander design.
Illustration of SpaceX Starship human lander design.

In April, NASA awarded the $2.9 billion contract for the lunar lander solely to SpaceX, rather than offer it to multiple companies. The decision sparked rival bidders Blue Origin and Dynetics to file complaints with the US Government and Accountability Office (GAO) over the alleged irregularities in the bidding process.

Last month, Bezos himself also published a letter to NASA protesting the agency’s approach to awarding the contract to a single party. “Instead of investing in two competing lunar landers as originally intended, the agency chose to confer a multi-year, multi-billion-dollar head start to SpaceX. That decision broke the mold of NASA’s successful commercial space programs by putting an end to meaningful competition for years to come,” he wrote. 

“Only one HLS (Human Landing System) bidder, SpaceX, was offered the opportunity to revise their price and funding profile, leading to their selection,” he added. “Blue Origin was not offered the same opportunity. That was a mistake, it was unusual, and it was a missed opportunity.” 

However, last month the GAO denied the protest petitions from Blue Origin and Dynetics. According to the office, NASA was under no obligation to award the bid to multiple parties. 

“In reaching its award decision, NASA concluded that it only had sufficient funding for one contract award,” the office added. “GAO further concluded there was no requirement for NASA to engage in discussions, amend, or cancel the announcement as a result of the amount of funding available for the program.”

Following the denial, NASA paid $300 million to SpaceX for work for the lunar lander. However, the lawsuit from Blue Origin could threaten to delay the contract if a federal judge decides to hear the case.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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