NASA Awards $6.27M for Space Vehicle Propulsion Units, Sole-Source Contract
Contract Overview
Contract Amount: $6,273,169 ($6.3M)
Contractor: United Launch Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2026-03-30
End Date: 2026-05-29
Contract Duration: 60 days
Daily Burn Rate: $104.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 60-DAY STUDY VC5 FOR SLS
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $6.3 million to UNITED LAUNCH SERVICES, LLC for work described as: 60-DAY STUDY VC5 FOR SLS Key points: 1. Contract awarded to United Launch Services, LLC for propulsion units. 2. Sole-source award raises questions about competition and potential cost savings. 3. Short 60-day duration may indicate urgent need or specific project phase. 4. Focus on propulsion units suggests critical component for space missions.
Value Assessment
Rating: questionable
The contract value of $6.27M for a 60-day period for propulsion units appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the price is fair and reasonable compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to United Launch Services, LLC. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Impacts NASA's space exploration capabilities through critical propulsion components. Potential for higher costs due to lack of competitive bidding. Highlights reliance on specific contractors for specialized space technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Limited transparency on pricing
Positive Signals
- Supports critical space mission needs
- Specific expertise likely required
Sector Analysis
Spending in the Guided Missile and Space Vehicle Propulsion Unit Manufacturing sector is often characterized by high R&D costs and specialized production. Benchmarks are difficult without competitive data, but significant government investment is typical for space programs.
Small Business Impact
This award does not appear to involve small businesses, as it is a sole-source contract with a large, established entity. Further analysis would be needed to confirm if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering on requirements and that the pricing is justified. NASA should document the rationale for not competing this requirement.
Related Government Programs
- Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of market comparison.
- Limited transparency on cost breakdown and justification.
- Short contract duration may indicate rushed process or specific, non-recurring need.
Tags
guided-missile-and-space-vehicle-propuls, national-aeronautics-and-space-administr, co, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $6.3 million to UNITED LAUNCH SERVICES, LLC. 60-DAY STUDY VC5 FOR SLS
Who is the contractor on this award?
The obligated recipient is UNITED LAUNCH SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $6.3 million.
What is the period of performance?
Start: 2026-03-30. End: 2026-05-29.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, critical urgency, or lack of alternative sources. NASA should have documented these reasons. Without competition, ensuring fair pricing relies heavily on the agency's negotiation skills and access to cost data from the contractor.
What are the risks associated with relying on a single supplier for critical space vehicle propulsion units?
The primary risks include supply chain disruptions, potential price gouging, and lack of innovation due to absent competition. If United Launch Services faces production issues or decides to increase prices significantly, NASA's program could face delays and cost overruns, impacting mission timelines and budgets.
How does this contract contribute to the overall effectiveness and cost-efficiency of NASA's space programs?
The effectiveness hinges on the quality and timely delivery of the propulsion units. However, the cost-efficiency is questionable due to the sole-source award. While it may ensure access to specific technology, the lack of competition suggests potential for higher overall program costs compared to a competed procurement.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: United Launch Alliance, L.L.C
Address: 9501 E PANORAMA CIR, CENTENNIAL, CO, 80112
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,273,169
Exercised Options: $6,273,169
Current Obligation: $6,273,169
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-03-30
Current End Date: 2026-05-29
Potential End Date: 2026-05-29 00:00:00
Last Modified: 2026-04-07
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