In 2006, NASA said that SpaceX had won a NASA Commercial Orbital Transportation Services (COTS) Phase 1 contract to s show cargo delivery to the ISS, with a possible contract option for crew flight. This contract, designed by NASA to provide "seed money" through Space Act Agreements for developing new space opportunities, NASA paid SpaceX $396 million to work on the cargo configuration of the Dragon spacecraft, while SpaceX spent more than $500 million to develop the Falcon 9 launch vehicle. These Space Act Agreements have been shown to have saved NASA millions of dollars in development costs, making rocket development ~4-10 times cheaper than if produced by NASA alone.