DoD Awards $133M for National Security Space Launch Phase 2 to United Launch Services
Contract Overview
Contract Amount: $133,223,717 ($133.2M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2026-09-24
Contract Duration: 1,582 days
Daily Burn Rate: $84.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH PHASE 2
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $133.2 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant contract value of $133.2 million awarded. 2. Competition method is 'Full and Open', indicating broad market access. 3. Risk is moderate due to long contract duration and specialized nature. 4. Sector is primarily Defense, with implications for space launch capabilities.
Value Assessment
Rating: fair
The contract value of $133.2 million for space launch services appears reasonable given the specialized nature of national security missions. Benchmarking against similar complex launch contracts is difficult without more granular data on specific services and performance requirements.
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 method generally promotes competitive pricing and innovation, though the specific price discovery achieved is not detailed.
Taxpayer Impact: Taxpayer funds are being used for critical national security space launch capabilities. The competitive award process aims to ensure value for money, but ongoing monitoring is needed to confirm cost-effectiveness.
Public Impact
Ensures continued access to space for national security missions. Supports advanced technological capabilities in satellite deployment. Impacts the aerospace and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 84 / 10
Warning Flags
- Long contract duration (over 4 years) may lead to cost overruns.
- Reliance on a single vendor for critical launch services.
- Potential for scope creep and unmanaged changes.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type limits cost risk.
- Supports critical national security infrastructure.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services for national security payloads. Spending benchmarks for such specialized contracts are highly variable, depending on payload size, launch frequency, and mission criticality.
Small Business Impact
The contract was awarded to United Launch Services, LLC, a large established provider. There is no explicit indication of small business participation in this specific award, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight will be crucial to ensure performance, manage costs, and verify that the services meet stringent national security requirements throughout the contract's duration.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration exceeds 4 years.
- Potential for sole-source follow-on contracts.
- High cost associated with specialized services.
- Limited visibility into specific performance metrics.
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 $133.2 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH PHASE 2
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 $133.2 million.
What is the period of performance?
Start: 2022-05-26. End: 2026-09-24.
What specific performance metrics are in place to ensure the effectiveness of these national security space launch services?
The contract likely includes detailed performance work statements and key performance parameters (KPPs) related to launch success rates, on-time delivery, and payload integration. The effectiveness will be measured by the successful and reliable deployment of national security payloads into their designated orbits, meeting all mission objectives without failure.
How does the firm fixed price structure mitigate risks associated with potential cost escalations in the volatile space launch market?
A firm fixed price (FFP) contract shifts the majority of cost risk to the contractor. United Launch Services is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage their expenses efficiently and limits the government's exposure to unforeseen cost increases.
What is the long-term strategic value of this contract beyond immediate launch needs?
This contract ensures the continued availability of essential launch capabilities for critical national security assets, maintaining a strategic advantage. It also fosters stability within the domestic launch industry, supporting technological advancements and workforce development necessary for future space dominance.
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: $133,223,717
Exercised Options: $133,223,717
Current Obligation: $133,223,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2022-05-26
Current End Date: 2026-09-24
Potential End Date: 2026-09-24 00:00:00
Last Modified: 2025-11-26
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