DoD Awards $114.5M for National Security Space Launch Phase 2 to United Launch Services
Contract Overview
Contract Amount: $114,499,000 ($114.5M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2029-02-28
Contract Duration: 2,470 days
Daily Burn Rate: $46.4K/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 $114.5 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant contract for critical national security space launch capabilities. 2. United Launch Services is a key player in the space launch sector. 3. Potential risks include launch failures, schedule delays, and cost overruns. 4. Spending aligns with the defense sector's focus on advanced space technology.
Value Assessment
Rating: good
The award amount of $114.5 million for a delivery order under a larger contract appears reasonable given the complexity and criticality of national security space launches. Benchmarking against similar large-scale launch service contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method is expected to yield competitive pricing for the services rendered.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for essential national security capabilities.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological capabilities for defense and intelligence agencies. Contributes to the readiness and operational effectiveness of U.S. space assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single provider for critical launch services.
- Potential for schedule slippage impacting national security timelines.
- Geopolitical risks affecting supply chains or launch operations.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Long-term contract ensures sustained capability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services for national security payloads. Spending in this area is driven by the need for reliable and secure access to space for military and intelligence operations.
Small Business Impact
The prime contractor, United Launch Services, LLC, is a large business. There is no explicit indication of small business subcontracting in the provided data, which warrants further investigation to ensure small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight will be crucial to manage performance, ensure adherence to schedule, and control costs throughout the contract duration.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High reliance on a single contractor for critical national security assets.
- Potential for cost overruns if unforeseen technical challenges arise.
- Schedule delays could impact national security readiness.
- Limited visibility into small business subcontracting opportunities.
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 $114.5 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 $114.5 million.
What is the period of performance?
Start: 2022-05-26. End: 2029-02-28.
What is the total value of the underlying contract from which this delivery order was issued, and how does this $114.5M award represent the overall investment in National Security Space Launch Phase 2
The provided data only details a specific delivery order valued at $114.5 million. To understand the full scope of the National Security Space Launch Phase 2 investment, information on the base contract's total value and duration is necessary. This single award represents a portion of the broader program's funding, which likely encompasses multiple launch services and associated support over several years.
What are the specific performance metrics and risk mitigation strategies in place to address potential launch failures or schedule delays for these critical national security missions?
Detailed performance metrics and risk mitigation strategies are typically outlined in the full contract documentation. For national security space launches, these often include stringent testing, redundancy in systems, contingency planning for launch anomalies, and contractual penalties for delays. The firm fixed price nature of the contract incentivizes the contractor to meet schedule and performance requirements.
How does the cost of this launch service compare to commercial launch providers, and what justifies any potential premium for national security requirements?
Direct cost comparisons between national security launch services and commercial offerings are complex due to differing requirements for security, reliability, and mission assurance. National security launches often involve higher assurance levels, specialized integration, and classified payloads, which can lead to higher costs. The firm fixed price contract aims to manage these costs, but a detailed cost-benefit analysis would be needed to assess value against commercial alternatives.
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: $114,499,000
Exercised Options: $114,499,000
Current Obligation: $114,499,000
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: 2029-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2025-09-30
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