In 2006, NASA announced that SpaceX had won a NASA Commercial Orbital Transportation Services (COTS) Phase 1 contract to demonstrate cargo delivery to the International Space Station (ISS), with a possible contract option for crew transport.[35][36] This contract, designed by NASA to provide "seed money" through Space Act Agreements for developing new capabilities, NASA paid SpaceX US$396 million to develop the cargo configuration of the Dragon spacecraft, while SpaceX self-invested more than US$500 million to develop the Falcon 9 launch vehicle.[37] 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.[38]