DoD's National Security Space Launch Phase 2 contract awarded to United Launch Services for $121.6M
Contract Overview
Contract Amount: $121,583,000 ($121.6M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-20
End Date: 2026-08-30
Contract Duration: 1,167 days
Daily Burn Rate: $104.2K/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 $121.6 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant investment in critical national security space capabilities. 2. United Launch Services is a key player in the space launch market. 3. Potential risks include launch failures, schedule delays, and cost overruns. 4. Spending is concentrated in the aerospace and defense sector.
Value Assessment
Rating: good
The contract value of $121.6 million for a multi-year launch service appears reasonable given the complexity and criticality of national security space missions. Benchmarking against similar large-scale launch contracts is difficult due to unique mission requirements and evolving technology.
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 aims to ensure the government receives the best value by allowing multiple qualified contractors to bid.
Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures continued access to space for critical national security assets. Supports advanced technological development in the space launch industry. Contributes to the readiness and operational capabilities of the U.S. military.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single provider for critical launches.
- Potential for cost escalation over the contract duration.
- Geopolitical risks impacting supply chains or launch operations.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for critical services.
- Focus on national security ensures high priority and oversight.
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 and technological advancements, with significant government investment.
Small Business Impact
While the prime contractor is a large entity, the nature of space launch services often involves a complex supply chain. Opportunities for small businesses may exist as subcontractors for specialized components or services.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the national security implications, robust oversight mechanisms are expected to be in place to monitor performance, cost, and schedule.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value.
- Critical national security reliance.
- Long contract duration.
- Potential for technological obsolescence.
- Single prime contractor for core service.
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 $121.6 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 $121.6 million.
What is the period of performance?
Start: 2023-06-20. End: 2026-08-30.
What is the projected cost per launch under this contract, and how does it compare to industry benchmarks for similar missions?
The provided data does not specify the number of launches or break down the total contract value per launch. Therefore, a precise per-launch cost cannot be calculated. Comparing this to industry benchmarks is challenging without knowing the specific mission parameters, payload mass, and orbital destinations, which significantly influence launch costs.
What are the primary risks associated with relying on United Launch Services for these critical national security launches, and what mitigation strategies are in place?
Primary risks include launch failures, technical malfunctions, schedule delays, and potential cost overruns. Mitigation strategies likely involve rigorous testing, redundant systems, performance incentives, and close monitoring by the Air Force. The contract's firm fixed-price nature also shifts some cost risk to the contractor.
How does this contract contribute to the overall effectiveness and readiness of the U.S. national security space architecture?
This contract is crucial for ensuring the continuous operation and modernization of the U.S. national security space architecture. It guarantees the reliable deployment of vital satellites and payloads necessary for intelligence, communication, navigation, and missile warning, directly enhancing military effectiveness and global situational awareness.
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: $121,583,000
Exercised Options: $121,583,000
Current Obligation: $121,583,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2023-06-20
Current End Date: 2026-08-30
Potential End Date: 2026-08-30 00:00:00
Last Modified: 2025-11-25
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