DoD's $107M National Security Space Launch Phase 2 contract awarded to United Launch Services, LLC
Contract Overview
Contract Amount: $107,276,164 ($107.3M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2027-09-29
Contract Duration: 1,952 days
Daily Burn Rate: $55.0K/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 $107.3 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant investment in national security space capabilities. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Contract duration is substantial, spanning over 5 years. 4. Focus on space launch indicates a critical and evolving sector.
Value Assessment
Rating: fair
The total award amount is $107,276,164. Without specific unit costs or delivery schedules, a direct comparison to similar contracts is difficult. However, the duration and scope suggest a significant investment in space launch services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', which typically allows for the widest possible range of bidders. This method is intended to foster price discovery and ensure the government receives competitive pricing.
Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by encouraging multiple bids and potentially lowering costs for essential national security space launch services.
Public Impact
Ensures continued access to space for critical national security missions. Supports the development and deployment of advanced satellite technology. Contributes to the U.S. dominance in space-based intelligence and communication.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation risks.
- Dependence on a single contractor for critical launch services.
- Potential for scope creep over the 5-year period.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Supports critical national security objectives.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space launch services. Spending in this area is driven by national security requirements, technological advancements, and geopolitical considerations. Benchmarks for similar large-scale launch contracts are highly variable based on payload size, launch vehicle, and mission complexity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, United Launch Services, LLC, is a major player in the aerospace industry, suggesting this contract is likely focused on large-scale capabilities rather than small business participation.
Oversight & Accountability
The Department of the Air Force is the contracting agency, responsible for overseeing the execution of this National Security Space Launch Phase 2 contract. Oversight will likely focus on mission success, adherence to schedule, and cost control 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
- Long-term contract duration.
- Potential for sole-source dependency.
- Complexity of space launch operations.
- National security implications of launch failures.
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 $107.3 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 $107.3 million.
What is the period of performance?
Start: 2022-05-26. End: 2027-09-29.
What is the projected cost per launch or per kilogram to orbit under this contract, and how does it compare to industry benchmarks?
The provided data does not include specific cost breakdowns per launch or per kilogram. To assess value, a detailed analysis of the contract's pricing structure against comparable commercial and government launch services would be necessary. Benchmarking would require access to detailed cost data for similar payloads and mission profiles.
What are the specific risks associated with relying on United Launch Services, LLC for critical national security space launches over a five-year period?
Risks include potential launch failures, schedule delays impacting national security operations, contractor performance issues, and the long-term financial stability of the sole provider. Mitigation strategies might involve robust performance monitoring, contingency planning for alternative launch providers or capabilities, and clear contractual remedies for non-performance.
How effectively does this contract support the evolving requirements of national security space missions, considering technological advancements?
The effectiveness hinges on the contract's flexibility to adapt to new technologies and evolving mission needs. While a firm fixed price contract offers cost certainty, it can sometimes limit adaptability. The Air Force's oversight and potential for contract modifications will be crucial in ensuring the contract remains aligned with technological advancements and strategic objectives.
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: $110,954,089
Exercised Options: $110,954,089
Current Obligation: $107,276,164
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: 2027-09-29
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-07-01
More Contracts from United Launch Services, LLC
- Eelv FY13 + Phase I BUY — $9.5B (Department of Defense)
- 200610!000002!5700!fa8816!smc/Evk !FA881606C0002 !A!N! !N! ! !20060228!20070930!926784042!834951691!834951691!n!lockheed Martin Corporation !12257 Highway 121 !littleton !co!80125!45255!005!08!littleton !arapahoe !colorado !+000335912412!n!n!000815040082!1810!space Vehicles !A2 !missile and Space Systems !176 !eelv !336414!E! !3! ! ! ! ! !99990909!B! ! !A! !d!n!r!1!001!n!1g!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! !Y! ! !0001! ! — $3.6B (Department of Defense)
- Delta IV Heavy Launch Services — $1.7B (Department of Defense)
- Boeing Launch Services, Inc — $1.5B (National Aeronautics and Space Administration)
- Nasa Launch Services — $1.5B (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)