DoD's $116M National Security Space Launch contract awarded to United Launch Services, LLC
Contract Overview
Contract Amount: $116,025,467 ($116.0M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2026-08-13
Contract Duration: 1,540 days
Daily Burn Rate: $75.3K/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 $116.0 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract is for delivery orders under a larger program, indicating ongoing needs. 3. Fixed-price contract type aims to transfer cost risk to the contractor. 4. The duration of the contract suggests a long-term strategic need for these services. 5. The North American Industry Classification System (NAICS) code 481212 points to specialized air transportation services. 6. The contract is a delivery order, not a new award, implying it's part of an existing framework.
Value Assessment
Rating: good
Benchmarking the value of this specific delivery order is challenging without knowing the scope of the underlying National Security Space Launch Phase 2 program. However, the firm fixed-price structure is generally favorable for the government, as it caps costs. The award to United Launch Services, a known entity in the space launch sector, suggests a degree of market validation. Further analysis would require comparing the unit costs of specific launch services within this order to historical data and industry benchmarks for similar missions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of multiple bidders typically leads to more competitive pricing and a wider range of technical solutions being considered.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among contractors vying for the business.
Public Impact
This contract supports the Department of Defense's national security space launch capabilities, ensuring the reliable deployment of critical assets. It facilitates the delivery of space-based services essential for intelligence, surveillance, and reconnaissance operations. The services provided are crucial for maintaining U.S. technological superiority in space. The contract's execution impacts the aerospace and defense industry workforce, particularly in specialized engineering and launch operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges or market fluctuations in launch services.
- Dependence on a single contractor for critical launch services could pose a risk if performance issues arise or if the contractor faces financial instability.
- The long-term nature of the contract may limit flexibility in adopting newer, potentially more cost-effective launch technologies if they emerge during the contract period.
Positive Signals
- The use of a firm fixed-price contract shifts cost risk to the contractor, providing budget certainty for the government.
- Awarding under full and open competition suggests a robust selection process that likely identified a capable and competitive provider.
- The contract is a delivery order under an existing program, indicating a structured approach to fulfilling ongoing national security requirements.
- The contractor, United Launch Services, LLC, is an established player in the space launch industry, suggesting a track record of performance.
Sector Analysis
The National Security Space Launch (NSSL) program is a critical component of the U.S. defense industrial base, focused on ensuring reliable access to space for national security payloads. This sector is characterized by high barriers to entry, significant technological complexity, and substantial government investment. Spending in this area is driven by the need to maintain a robust constellation of satellites for communication, navigation, intelligence, and missile warning. The market is dominated by a few key players capable of meeting the stringent requirements for national security launches.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it explicitly mention subcontracting goals for small businesses. Given the specialized nature of space launch services, it is possible that the prime contractor relies on a supply chain that includes small businesses for components or specialized services. However, without further information, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force, which manages the National Security Space Launch program. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and program reporting, though specific payload details may remain classified. The Inspector General's office would have jurisdiction to investigate any allegations of fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch Phase 1
- Space Force Launch Services
- Orbital Launch Services
- Satellite Deployment Contracts
- Defense Space Acquisition Programs
Risk Flags
- Potential for schedule delays impacting national security operations.
- Risk of launch failure leading to loss of payload and mission objectives.
- Dependence on a limited number of highly specialized contractors.
- Cost volatility in the space launch market could impact fixed-price contract value over time.
Tags
defense, space-launch, national-security, department-of-defense, air-force, united-launch-services, firm-fixed-price, full-and-open-competition, delivery-order, aerospace, colorado, non-scheduled-chartered-freight-air-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.0 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 $116.0 million.
What is the period of performance?
Start: 2022-05-26. End: 2026-08-13.
What is the historical spending trend for the National Security Space Launch program?
The National Security Space Launch (NSSL) program has seen significant and consistent government investment over the years, reflecting its critical role in national defense and security. While specific figures for Phase 2 are detailed in this award, the overall program budget has historically been in the billions of dollars annually. This spending is driven by the need to replace aging satellite constellations, deploy new capabilities, and ensure redundancy in space-based assets. The program has evolved through different phases, with each iteration aiming to foster competition and leverage technological advancements to reduce costs while maintaining reliability and mission assurance. Analyzing historical spending patterns reveals a long-term commitment to maintaining U.S. dominance in space and a strategic shift towards more competitive contracting approaches over time.
How does the pricing of this contract compare to similar space launch contracts?
Directly comparing the pricing of this specific delivery order ($116 million) to other space launch contracts requires detailed knowledge of the services rendered, payload mass, orbital destination, and launch vehicle used. However, the NSSL program, in general, has aimed to achieve cost efficiencies through competition. United Launch Services, LLC, as a major provider, operates within a market where pricing is influenced by factors such as launch cadence, vehicle reusability, and the specific mission requirements. Benchmarking would involve analyzing the cost per kilogram to orbit for similar national security payloads launched by different providers or under different contract vehicles. The firm fixed-price nature of this award suggests that the government has negotiated a price that includes profit and assumes cost risks, which is a standard practice for mature launch services.
What are the primary risks associated with this contract for the government?
The primary risks for the government in this contract revolve around performance, cost, and schedule. Despite the firm fixed-price structure, there's a risk of contractor underperformance leading to launch failures or delays, which could have significant national security implications. While the price is fixed, unforeseen technical challenges or external factors (like supply chain disruptions or regulatory changes) could still lead to requests for contract modifications or claims, potentially increasing the overall cost. Schedule slippage is another major risk, as delays in launching critical national security payloads can impact intelligence gathering, communications, and strategic positioning. Furthermore, reliance on a limited number of qualified launch providers, even with competition, can create vulnerabilities if a key contractor faces operational issues or financial instability.
How effective has the National Security Space Launch program been in achieving its objectives?
The National Security Space Launch (NSSL) program has been largely effective in achieving its core objectives of providing reliable and assured access to space for critical national security payloads. The program has successfully facilitated the launch of numerous vital satellites, supporting intelligence, reconnaissance, communication, and missile warning missions. By fostering competition, particularly in Phase 2, the program has also driven innovation and contributed to cost efficiencies compared to previous sole-source or less competitive acquisition approaches. While occasional launch failures or delays can occur in any complex aerospace endeavor, the overall success rate and mission assurance provided by NSSL contractors have been high. The program's continued evolution reflects an ongoing effort to adapt to changing technological landscapes and maintain U.S. strategic advantage in space.
What is the contractor's track record with similar government contracts?
United Launch Services, LLC (ULS) has a substantial and generally strong track record with government contracts, particularly within the space launch domain. As a joint venture formed by major aerospace companies, ULS has been a primary provider for the NSSL program and its predecessors for many years. They have successfully executed numerous launches for critical national security payloads for the Department of Defense and other government agencies. Their performance history includes a high success rate for launches, demonstrating technical proficiency and reliability. While specific contract performance metrics are often proprietary, ULS is recognized as a key player capable of meeting the stringent requirements of national security space missions, often competing against other established providers in this specialized sector.
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: $116,025,467
Exercised Options: $116,025,467
Current Obligation: $116,025,467
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: 2026-08-13
Potential End Date: 2026-08-13 00:00:00
Last Modified: 2026-01-14
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