Space Force awards $132M for launch services, with United Launch Services securing the contract
Contract Overview
Contract Amount: $132,169,899 ($132.2M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-08-18
End Date: 2025-09-14
Contract Duration: 1,853 days
Daily Burn Rate: $71.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UNITED STATES SPACE FORCE 106 LAUNCH SERVICES
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $132.2 million to UNITED LAUNCH SERVICES, LLC for work described as: UNITED STATES SPACE FORCE 106 LAUNCH SERVICES Key points: 1. Contract awarded to a single, established provider, indicating a focus on proven capabilities. 2. The contract's duration suggests a long-term need for reliable launch services. 3. Fixed-price contract type helps mitigate cost overruns for the government. 4. The award is a delivery order under a larger contract vehicle, implying pre-negotiated terms. 5. Geographic location of the contractor may influence logistical considerations. 6. The specific North American Industry Classification System (NAICS) code points to specialized air transportation services.
Value Assessment
Rating: good
Benchmarking the value of this specific delivery order is challenging without knowing the broader contract's scope and the specific services rendered. However, the firm fixed-price nature of the contract provides cost certainty. Comparing this to other launch service contracts would require detailed analysis of the specific launch requirements, payload mass, and destination orbits, which are not provided here. The total award amount of $132M over approximately five years suggests a significant but potentially reasonable investment for critical space launch capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster competitive pricing and ensure the government receives the best value. The fact that a specific delivery order was issued to United Launch Services, LLC, implies they were the selected winner from this competitive process. The level of competition directly influences price discovery and can lead to more favorable terms for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that public funds are used efficiently for essential services like space launches.
Public Impact
The United States Space Force benefits from reliable and consistent access to space for its missions. This contract ensures the delivery of critical launch services, supporting national security objectives. The contract's impact is primarily national, supporting the Space Force's operational capabilities. Workforce implications are likely within the aerospace and launch services industry, potentially supporting specialized engineering and technical roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if this delivery order represents a significant portion of the overall contract and future needs.
- Dependence on a single contractor for critical launch services could pose risks if unforeseen issues arise with the provider.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm fixed-price contract type offers cost predictability for the government.
- Long contract duration suggests a stable and reliable partnership for essential services.
Sector Analysis
The aerospace and defense sector, particularly the space launch segment, is characterized by high barriers to entry, significant R&D investment, and stringent regulatory requirements. This contract falls within the broader category of space launch services, which is a critical component of national security and scientific exploration. The market is dominated by a few key players capable of meeting the demanding technical and safety standards. Spending in this sector is often driven by government requirements for satellite deployment, national defense, and scientific research.
Small Business Impact
There is no explicit indication of small business set-asides for this specific delivery order. However, larger prime contractors like United Launch Services, LLC, often engage small businesses as subcontractors for specialized components or services. The extent of small business participation would depend on the subcontracting plans associated with the parent contract. Without further details, the direct impact on the small business ecosystem is unclear, but it's common for prime contractors to leverage a diverse supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force, which manages contracts for the Space Force. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Space Launch Services
- National Security Space Launch (NSSL)
- Satellite Deployment Contracts
- Aerospace and Defense Procurement
Risk Flags
- Potential for single-source dependency if this delivery order is a significant portion of a larger sole-source contract.
- Reliance on a specific launch vehicle could be a risk if that vehicle encounters issues.
- Geopolitical factors affecting the contractor or its supply chain.
Tags
space-force, defense, air-force, launch-services, full-and-open-competition, delivery-order, firm-fixed-price, united-states, colorado, aerospace, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $132.2 million to UNITED LAUNCH SERVICES, LLC. UNITED STATES SPACE FORCE 106 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 $132.2 million.
What is the period of performance?
Start: 2020-08-18. End: 2025-09-14.
What is the historical spending pattern for United Launch Services, LLC with the Department of Defense?
Analyzing the historical spending patterns for United Launch Services, LLC with the Department of Defense requires access to comprehensive contract databases. Generally, United Launch Services has been a significant provider of launch services for the U.S. government, including the Department of Defense and NASA, for many years. Their awards often span large dollar values due to the high cost of space launch missions. Historical data would likely show a consistent presence in major launch programs, reflecting their established role in the industry. Specific figures would necessitate a detailed query of federal procurement data, looking at contract awards over several fiscal years to identify trends in contract types, values, and the specific agencies they have served within the DoD.
How does the pricing of this contract compare to similar launch service contracts awarded by the Space Force or Air Force?
Direct price comparison for this specific $132 million delivery order is complex without knowing the exact scope of services, payload mass, destination orbit, and launch vehicle used. However, the Space Force's National Security Space Launch (NSSL) program, which aims to ensure reliable access to space for national security missions, involves significant investments. Contracts within NSSL are typically awarded through competitive processes, and pricing is benchmarked against market rates and previous awards. Given the firm fixed-price nature, the government has secured a defined cost. To assess value, one would compare the cost per kilogram to orbit or cost per launch against other NSSL awards or similar commercial launch contracts, considering the specific mission parameters.
What are the primary risks associated with relying on a single contractor for critical space launch services?
Relying on a single contractor for critical space launch services presents several primary risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on one provider, potentially limiting future negotiation leverage. Secondly, operational risks include potential delays or failures if the contractor experiences technical issues, production problems, or workforce disruptions. Thirdly, a lack of competition can lead to complacency and potentially higher long-term costs if the contractor faces no market pressure to innovate or optimize. Finally, geopolitical or financial instability affecting the sole contractor could jeopardize national security launch capabilities.
What is the expected effectiveness of these launch services in supporting the Space Force's overall mission objectives?
The effectiveness of these launch services is directly tied to the Space Force's mission objectives, which primarily involve ensuring freedom of action in space, providing space-related capabilities for the joint force, and protecting U.S. and allied interests. Reliable and timely access to space, facilitated by this contract, is crucial for deploying and maintaining vital assets such as communication, navigation, intelligence, surveillance, and reconnaissance (ISR) satellites. The contract's duration and firm fixed-price nature suggest a commitment to sustained operational capability, implying that these services are expected to consistently support ongoing and future Space Force operations, thereby contributing significantly to national security.
Are there any performance metrics or key performance indicators (KPIs) associated with this contract that indicate success?
While specific performance metrics are not detailed in the provided data, contracts of this nature for critical launch services typically include stringent Key Performance Indicators (KPIs). These often revolve around launch success rates (achieving target orbit), on-time launch schedules, payload integration success, and adherence to safety protocols. The firm fixed-price structure itself incentivizes the contractor to meet these performance standards efficiently to maximize profitability. Government oversight would involve monitoring these KPIs throughout the contract's lifecycle to ensure mission success and value for money. Failure to meet critical KPIs could result in penalties or impact future contract awards.
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: $132,169,899
Exercised Options: $132,169,899
Current Obligation: $132,169,899
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: 2025-09-14
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-12-10
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