DoD awards $8.6M for launch service support, with a firm fixed price contract

Contract Overview

Contract Amount: $86,000,000 ($86.0M)

Contractor: United Launch Services, LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-19

End Date: 2021-08-18

Contract Duration: 364 days

Daily Burn Rate: $236.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LAUNCH SERVICE SUPPORT

Place of Performance

Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $86.0 million to UNITED LAUNCH SERVICES, LLC for work described as: LAUNCH SERVICE SUPPORT Key points: 1. Contract awarded to United Launch Services, LLC for launch service support. 2. The contract has a firm fixed price type, indicating predictable costs. 3. This is a delivery order under a larger contract. 4. The contract duration is 364 days. 5. The North American Industry Classification System (NAICS) code is 481212 for Nonscheduled Chartered Freight Air Transportation. 6. The contract was awarded by the Department of the Air Force. 7. The place of performance is Colorado.

Value Assessment

Rating: good

The contract value of $8.6 million for launch service support appears reasonable for a one-year duration. Without specific details on the scope of services or comparable contracts for similar launch support, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests that the government has locked in costs, mitigating the risk of cost overruns for the defined scope. Benchmarking against other launch service contracts would provide further insight into its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach maximizes the opportunity for diverse companies to participate and for the government to select the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures that the government receives competitive bids, leading to efficient use of public funds.

Public Impact

The Department of Defense benefits from reliable launch service support, crucial for national security and space-based operations. This contract ensures the availability of essential services for the Air Force's launch missions. The geographic impact is primarily in Colorado, where the services are performed. The contract supports the aerospace and defense workforce involved in launch operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's performance history.
The limited duration of the delivery order may indicate a need for ongoing, potentially fragmented, support requirements.
Without details on the specific launch services, it's hard to gauge the complexity and associated risks.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, United Launch Services, LLC, is likely experienced in this domain, though specific track record data is not provided.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex contracts often involving specialized technologies and services. Launch services are a critical component of this sector, supporting both commercial and government space initiatives. Spending in this area is driven by national security requirements, scientific research, and the growing commercial space industry. This contract fits within the broader category of space launch and support services, which can range from satellite deployment to payload integration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless United Launch Services, LLC voluntarily engages small businesses in its supply chain. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Launch Services
National Security Space Launch (NSSL)
Satellite Deployment and Support
Aerospace and Defense Contracting

Risk Flags

Potential for scope creep if not clearly defined.
Reliance on contractor for critical launch support functions.
Schedule adherence is crucial for downstream launch operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.0 million to UNITED LAUNCH SERVICES, LLC. LAUNCH SERVICE 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 $86.0 million.

What is the period of performance?

Start: 2020-08-19. End: 2021-08-18.

What is the specific scope of 'Launch Service Support' covered under this contract?

The provided data identifies the contract as 'LAUNCH SERVICE SUPPORT' with NAICS code 481212 (Nonscheduled Chartered Freight Air Transportation). This suggests the services likely encompass the logistical and operational support required for launching payloads into space. This could include ground support, transportation of launch vehicles or components, mission planning assistance, and potentially integration services. However, the exact deliverables, such as the type of launch vehicles supported, the specific payloads, or the mission objectives, are not detailed in the provided summary. A more granular understanding of the Statement of Work (SOW) would be necessary to fully define the scope.

How does the $8.6 million contract value compare to similar launch service support contracts awarded by the DoD?

Benchmarking the $8.6 million contract value requires comparing it to similar launch service support contracts, considering factors like duration, scope of services, and the specific launch missions. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, $8.6 million for a 364-day delivery order under a firm fixed-price arrangement suggests a focused scope of support rather than a large-scale, multi-year program. Larger, more complex launch campaigns or sustainment contracts for launch infrastructure would naturally command significantly higher values. This figure appears reasonable for a specific, time-bound support task within the broader DoD launch enterprise.

What is the track record of United Launch Services, LLC in providing launch services to the government?

United Launch Services, LLC (ULS) is a well-established entity in the space launch industry, often associated with the United Launch Alliance (ULA) program, which is a joint venture between Boeing and Lockheed Martin. ULA has a long history of providing reliable launch services for critical national security, scientific, and commercial missions. While this specific contract is for 'Launch Service Support' and awarded to 'United Launch Services, LLC', it's important to confirm if this entity is directly affiliated with ULA or a separate provider. Assuming a connection, their track record is generally strong, marked by high mission success rates. However, the specific performance on this particular $8.6 million delivery order would require further examination of performance reports and customer feedback.

What are the potential risks associated with this contract, given its nature and duration?

Potential risks for this $8.6 million launch service support contract include: 1) **Scope Creep:** If the definition of 'support' is not tightly controlled, the contractor might be asked to perform tasks beyond the original intent, potentially leading to cost issues if not managed under the firm fixed-price terms. 2) **Technical Performance:** Ensuring the contractor meets all technical requirements for reliable launch support is crucial. Any failures could impact the success of the actual launch missions. 3) **Schedule Delays:** Delays in support services could cascade and impact the overall launch schedule, which often has critical windows. 4) **Contractor Viability:** While ULS is generally considered stable, the long-term financial health and operational capacity of any contractor are always underlying considerations. 5) **Dependency:** The Air Force becomes dependent on this specific provider for critical support during the contract period.

How does this contract contribute to the overall mission objectives of the Department of the Air Force regarding space capabilities?

This contract for launch service support directly contributes to the Department of the Air Force's (DAF) mission objectives by ensuring the successful execution of space launch operations. The DAF relies on space-based assets for intelligence, surveillance, reconnaissance, communication, navigation, and missile warning. Reliable access to space through successful launches is fundamental to maintaining these capabilities. By securing essential support services, this contract helps mitigate risks associated with launch operations, ensuring that critical payloads are placed into orbit efficiently and effectively. It underpins the DAF's ability to project power and maintain situational awareness in the space domain.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $86,000,000

Exercised Options: $86,000,000

Current Obligation: $86,000,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA881120D0001

IDV Type: IDC

Timeline