Space Force Awards $148.6M for Launch Services, Primarily to United Launch Services, LLC
Contract Overview
Contract Amount: $148,622,746 ($148.6M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-18
End Date: 2024-09-30
Contract Duration: 1,504 days
Daily Burn Rate: $98.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UNITED STATES SPACE FORCE - 51 LAUNCH SERVICES
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $148.6 million to UNITED LAUNCH SERVICES, LLC for work described as: UNITED STATES SPACE FORCE - 51 LAUNCH SERVICES Key points: 1. Significant contract value of $148.6 million for critical launch services. 2. Competition method is 'Full and Open', suggesting broad market engagement. 3. Risk is moderate, given the specialized nature of launch services and a single award. 4. Sector is Defense, specifically supporting the Space Force's operational needs.
Value Assessment
Rating: good
The contract value of $148.6 million appears reasonable for specialized launch services. Benchmarking against similar large-scale launch contracts would provide a more precise assessment, but the firm fixed-price structure offers cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', indicating that multiple vendors were eligible to bid. This method generally promotes competitive pricing and innovation.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by leveraging market forces.
Public Impact
Ensures critical national security space assets can be launched. Supports the operational readiness and strategic goals of the U.S. Space Force. Contributes to the broader aerospace and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if only one primary provider emerges.
- Geopolitical risks impacting launch schedules or supply chains.
- Technological obsolescence in launch capabilities over contract duration.
Positive Signals
- Clear contract award under full and open competition.
- Firm Fixed Price contract provides budget predictability.
- Supports a key national security mission.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on space launch capabilities. Spending benchmarks for national security launch services can vary significantly based on payload size, launch frequency, and technological requirements.
Small Business Impact
The data indicates the primary awardee is United Launch Services, LLC. Analysis is needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
Oversight will be crucial to ensure performance milestones are met and that the contract remains cost-effective throughout its term, especially given the long duration.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Dependence on a single primary awardee.
- Long contract duration may outpace technological advancements.
- Potential for cost overruns if unforeseen technical challenges arise.
- Geopolitical instability impacting launch operations or supply chains.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $148.6 million to UNITED LAUNCH SERVICES, LLC. UNITED STATES SPACE FORCE - 51 LAUNCH SERVICES
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 $148.6 million.
What is the period of performance?
Start: 2020-08-18. End: 2024-09-30.
What is the historical performance record of United Launch Services, LLC in fulfilling similar government contracts?
A review of United Launch Services, LLC's past performance is essential. This includes examining their track record on on-time delivery, mission success rates, and adherence to budget on previous government contracts, particularly those involving complex launch services. Understanding their history provides insight into their reliability and capability to meet the current contract's demands.
How does the per-launch cost compare to industry benchmarks for comparable missions?
Benchmarking the per-launch cost against similar government and commercial launch contracts is vital. Factors like payload mass, orbit insertion, and launch frequency influence pricing. A detailed comparison will reveal if this contract represents a fair market price or if there are opportunities for cost savings in future procurements.
What are the specific performance metrics and key performance indicators (KPIs) for this contract?
Understanding the contract's specific performance metrics and KPIs is crucial for assessing effectiveness. This includes details on launch success probability, schedule adherence, payload integration, and any mission-specific objectives. Evaluating performance against these defined standards will determine if the Space Force is achieving its desired outcomes and mission readiness.
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
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: $148,622,746
Exercised Options: $148,622,746
Current Obligation: $148,622,746
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2020-08-18
Current End Date: 2024-09-30
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2024-06-17
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