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NASA's RS-25 Engine Contract With Aerojet Rocketdyne Tops $3.38B in Obligations

Production-restart deal for Space Launch System engines, now held by L3Harris subsidiary, runs through 2029

FMG Newsroom

BLUF: NASA has obligated $3,384,867,722 to date under its RS-25 engine production-restart contract with Aerojet Rocketdyne of DE, Inc.

Federal spending records show the National Aeronautics and Space Administration has obligated more than $3.38 billion under contract NNM16AA02C, a definitive, sole-source agreement with Aerojet Rocketdyne of DE, Inc. for restarting production of the RS-25 rocket engine. The contract, signed November 19, 2015, supports the Space Launch System (SLS) and is administered by NASA's Marshall Space Flight Center. Its period of performance runs from November 1, 2015 through September 30, 2029, with a potential contract ceiling of $4,143,466,817 once all options are counted.

Why it matters: The RS-25 is the core-stage engine for SLS, the rocket underpinning NASA's Artemis lunar missions, making this contract central to the program's engine supply chain. The award was issued on a sole-source, cost-plus-award-fee basis under FAR 6.302-1, reflecting Aerojet Rocketdyne's position as the only qualified RS-25 producer at time of award. Aerojet Rocketdyne was acquired by L3Harris Technologies in 2023, meaning obligations against this legacy NASA contract now flow to an L3Harris subsidiary, a detail relevant to tracking consolidated space-propulsion market share.

By the numbers

  • Total obligations to date: $3,384,867,722
  • Potential contract ceiling (base plus all options): $4,143,466,817
  • Award ID: NNM16AA02C
  • Period of performance: November 1, 2015 – September 30, 2029
  • Program: RS-25 Core Stage Engine Production Restart

Under the contract, Aerojet Rocketdyne is to deliver six RS-25 engines modified for SLS technical requirements, alongside recertification of production, manufacturing-process improvements, and flight certification. USAspending.gov classifies the procurement under NAICS code 541712, research and development in physical, engineering and life sciences, and records it as not competed, with only one qualified source identified. NASA last updated the award record on September 25, 2026.

Source: USAspending.gov

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