DoD's $132.7M National Security Space Launch contract awarded to United Launch Services for vital space transportation
Contract Overview
Contract Amount: $132,706,398 ($132.7M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2026-11-27
Contract Duration: 1,646 days
Daily Burn Rate: $80.6K/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 $132.7 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Contract value represents a significant investment in national security space capabilities. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Long contract duration (2026) indicates a need for sustained, reliable launch services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract supports critical space-based assets essential for national security. 6. Awarded by the Department of the Air Force, highlighting a focus on space domain dominance.
Value Assessment
Rating: good
The contract value of $132.7 million for space launch services appears reasonable given the critical nature of national security payloads. Benchmarking against similar large-scale launch contracts is challenging due to the unique requirements and high stakes involved. However, the firm fixed-price structure suggests that the government has negotiated a price that accounts for contractor risk, aiming for cost certainty. The duration of the contract also implies a stable, long-term need for these services, which can sometimes lead to more favorable pricing through economies of scale.
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 were solicited and allowed to bid. This approach is generally preferred as it fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to win the contract. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition, but the 'full and open' designation itself is a positive signal for price discovery.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation. It prevents a single provider from dictating terms and prices, leading to better value for the government and, by extension, the public.
Public Impact
Benefits national security by ensuring the reliable launch of critical space assets. Delivers essential space transportation services for the Department of Defense. Geographic impact is national, supporting space operations from launch sites. Workforce implications include highly skilled engineers, technicians, and support staff in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during launch campaigns.
- Dependence on a single contractor for critical national security launch capabilities.
- Geopolitical risks could impact supply chains or launch operations.
Positive Signals
- Firm fixed-price contract mitigates cost uncertainty for the government.
- Full and open competition suggests a robust selection process.
- Long-term contract provides stability for critical national security space missions.
Sector Analysis
The National Security Space Launch (NSSL) program is a cornerstone of the U.S. government's strategy to maintain space superiority and ensure the delivery of critical national security payloads to orbit. This sector is characterized by high barriers to entry, significant technological complexity, and substantial government investment. The market is dominated by a few key players capable of meeting the stringent requirements for reliability and performance. This contract fits within the broader NSSL framework, which aims to ensure assured access to space for national security missions.
Small Business Impact
The provided data indicates that small business participation (sb: false) was not a primary set-aside consideration for this specific contract. While United Launch Services, LLC is the prime contractor, there may be opportunities for small businesses to participate as subcontractors within the broader aerospace supply chain. However, the nature of large-scale launch services often involves specialized components and expertise that may limit direct subcontracting opportunities for smaller firms.
Oversight & Accountability
Oversight for this contract is primarily managed by the Department of the Air Force, which is responsible for ensuring adherence to contract terms, performance standards, and delivery schedules. Accountability measures are embedded within the firm fixed-price structure, incentivizing the contractor to meet objectives within the agreed-upon budget. Transparency is facilitated through contract awards and reporting requirements, though specific operational details of launch missions may be classified for national security reasons.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Military Satellite Communications
- Missile Defense Systems
Risk Flags
- High-risk industry with potential for launch failures.
- Long-term reliance on specific launch vehicles.
- Geopolitical factors impacting supply chains and international cooperation.
Tags
defense, department-of-defense, department-of-the-air-force, space-transportation, national-security, launch-services, firm-fixed-price, full-and-open-competition, united-launch-services, colorado, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $132.7 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 $132.7 million.
What is the period of performance?
Start: 2022-05-26. End: 2026-11-27.
What is the historical spending pattern for the National Security Space Launch program?
The National Security Space Launch (NSSL) program represents a significant and ongoing investment by the U.S. government, primarily the Department of Defense, to ensure reliable access to space for national security missions. Historically, the program has evolved through different phases, with substantial funding allocated to develop and procure launch services. For instance, NSSL Phase 1 saw significant contract awards to support a diverse range of missions. Phase 2, under which this contract falls, continues this trend, focusing on ensuring continued access to space with advanced capabilities. Annual spending can fluctuate based on the number of launches required, technological advancements, and the competitive landscape. While specific historical dollar amounts for the entire NSSL program are extensive, the consistent multi-billion dollar annual investment underscores its critical importance and the sustained need for these services over decades.
How does the performance of United Launch Services compare to other major launch providers in the defense sector?
United Launch Services (ULS), a subsidiary of United Launch Alliance (ULA), has a long-standing track record of reliability in supporting national security space missions. ULA, and by extension ULS, has historically achieved very high mission success rates, often cited as a key differentiator for critical national security payloads where failure is not an option. Compared to other major launch providers, such as SpaceX, ULA's approach has traditionally emphasized proven reliability and robust engineering, sometimes at a higher per-launch cost. However, the NSSL program has increasingly incorporated more competition, including awards to SpaceX, driving down costs and fostering innovation across providers. ULS's performance is benchmarked against stringent government requirements for payload integration, launch window adherence, and orbital accuracy, areas where they have consistently demonstrated strong capabilities.
What are the primary risks associated with relying on a firm fixed-price contract for space launch services?
While firm fixed-price (FFP) contracts are designed to provide cost certainty to the buyer, they can introduce specific risks, particularly in complex, high-risk endeavors like space launch. The primary risk for the government is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen technical challenges or cost increases arise. This could potentially compromise mission success or safety. Conversely, the contractor bears the risk of cost overruns. If the contractor underestimated the complexity, encountered unexpected technical issues, or faced supply chain disruptions, they could incur significant losses. For space launch, where development and execution are highly technical and subject to numerous variables, the contractor's ability to accurately estimate costs and manage risks is paramount. Robust oversight and clear performance metrics are crucial to mitigate these risks.
How does the 'full and open competition' designation impact the overall value for taxpayers?
The 'full and open competition' designation is a cornerstone of efficient government procurement and directly benefits taxpayers by fostering a competitive marketplace. When multiple qualified vendors are allowed to bid on a contract, they are incentivized to offer their most competitive pricing and innovative solutions to win the business. This competitive pressure typically drives down costs compared to sole-source or limited competition scenarios where a single or few providers may have more leverage. Furthermore, open competition can lead to better quality and more advanced services as companies strive to differentiate themselves. For taxpayers, this means their money is more likely to be spent wisely, achieving the desired outcomes at the best possible price, and encouraging a dynamic industry that can adapt to evolving needs.
What are the potential implications of the contract's long duration (ending 2026) on future space launch capabilities?
A contract duration extending to late 2026 for space launch services suggests a need for sustained, reliable access to space for national security missions over the medium term. This long-term commitment provides a degree of stability for the contractor, potentially enabling them to invest in infrastructure, workforce, and technology. For the government, it ensures continuity of critical services. However, the rapidly evolving nature of space technology means that capabilities needed in 2026 might differ significantly from those required in the subsequent years. This contract's duration might influence the pace of adoption of newer launch technologies or architectures if it locks in specific platforms or services. It also highlights the ongoing strategic importance the DoD places on assured access to space, even as next-generation launch systems are being developed.
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: $134,076,581
Exercised Options: $134,076,581
Current Obligation: $132,706,398
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: 2026-11-27
Potential End Date: 2026-11-27 00:00:00
Last Modified: 2025-09-05
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)