DoD Awards $98M for Atlas V Launch Support, Lacking Competition
Contract Overview
Contract Amount: $98,005,865 ($98.0M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2019-10-01
End Date: 2020-11-30
Contract Duration: 426 days
Daily Burn Rate: $230.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PHASE 1 ATLAS V COMPLETION LAUNCH OPERATIONS SUPPORT.
Place of Performance
Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $98.0 million to UNITED LAUNCH SERVICES, LLC for work described as: PHASE 1 ATLAS V COMPLETION LAUNCH OPERATIONS SUPPORT. Key points: 1. Significant contract value for launch operations support. 2. Sole provider for Atlas V launch services. 3. High risk due to lack of competitive bidding. 4. IT/Aerospace sector with specialized support needs.
Value Assessment
Rating: questionable
The contract value of $98M for launch operations support is substantial. Without competitive data, it's difficult to assess if this price is optimal compared to similar specialized aerospace support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Ensures continued support for critical national security space launches. Potential for increased costs due to sole-source nature. Reliability of Atlas V missions is paramount for defense and civilian payloads.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Limited transparency on pricing
Positive Signals
- Essential service for national security
- Experienced provider
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting launch operations. Spending in this area is critical for national security and scientific advancement, often involving high-value, specialized services.
Small Business Impact
The contract was awarded to United Launch Services, LLC, which is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Future procurements should explore competitive strategies where feasible.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in cost justification.
- Dependency on a single contractor.
- No small business participation noted.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.0 million to UNITED LAUNCH SERVICES, LLC. PHASE 1 ATLAS V COMPLETION LAUNCH OPERATIONS SUPPORT.
Who is the contractor on this award?
The obligated recipient is UNITED LAUNCH SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $98.0 million.
What is the period of performance?
Start: 2019-10-01. End: 2020-11-30.
What is the justification for the sole-source award, and has an alternatives analysis been performed?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other responsible sources. An alternatives analysis would assess if other contractors could meet the requirements and if competition was truly not feasible. Without this documentation, it's difficult to validate the necessity of a sole-source approach.
How does the per-unit cost of launch operations support compare to historical data or industry benchmarks?
Benchmarking the per-unit cost is challenging without specific cost breakdowns and comparable contract data. However, given the sole-source nature, there's an inherent risk that the price may exceed what could be achieved through competition. A thorough cost analysis by the agency is crucial to ensure reasonableness.
What are the long-term implications of relying on a single provider for critical launch support services?
Long-term reliance on a single provider can create vendor lock-in, reduce negotiating leverage, and potentially stifle innovation. It also poses a risk if the provider experiences financial difficulties or operational issues. Diversifying support or fostering competition in future procurements could mitigate these risks.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
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 (UEI: 601307601)
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: $98,005,865
Exercised Options: $98,005,865
Current Obligation: $98,005,865
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-01
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2020-02-18
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