DoD's $107M National Security Space Launch contract awarded to United Launch Services for vital satellite deployment
Contract Overview
Contract Amount: $107,164,540 ($107.2M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-20
End Date: 2026-05-04
Contract Duration: 1,049 days
Daily Burn Rate: $102.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH SERVICE PHASE 2
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $107.2 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICE PHASE 2 Key points: 1. This contract represents a significant investment in national security space capabilities, ensuring access to orbit for critical assets. 2. The firm-fixed-price structure aims to provide cost certainty for the government, though potential for cost overruns exists in complex launch missions. 3. Competition dynamics for space launch services are evolving, with a few key players dominating the market. 4. Performance will be closely monitored given the high stakes of national security payloads. 5. This contract falls within the broader 'Space Launch Services' category, a critical enabler for defense and intelligence operations. 6. The duration of the contract suggests a sustained need for these launch capabilities over the next few years.
Value Assessment
Rating: good
Benchmarking the value of this specific delivery order is challenging without detailed cost breakdowns. However, the overall National Security Space Launch program aims for cost-effectiveness through competition and multi-year strategies. The firm-fixed-price nature provides a degree of cost control for the government. Compared to historical launch costs, which have seen significant reductions due to increased competition and technological advancements, this contract appears to be within a reasonable range for the services provided, assuming successful mission execution.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach is generally expected to foster competitive pricing and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process was intended, which is positive for price discovery and ensuring the government receives the best value.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of providers to offer their services, potentially leading to more cost-effective solutions for national security needs.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. national security apparatus, which rely on secure and reliable access to space for intelligence, surveillance, reconnaissance, and communication. The services delivered include the launch of national security space assets, ensuring these critical capabilities are placed in orbit. The geographic impact is national, supporting U.S. defense posture globally, with specific launch sites likely in the continental U.S. Workforce implications include highly skilled jobs in aerospace engineering, launch operations, and program management within the contractor's organization and supporting industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if launch anomalies occur, despite the firm-fixed-price structure.
- Dependence on a limited number of launch providers could create future bottlenecks or price increases.
- Geopolitical events could impact supply chains for launch components or international cooperation.
- Technological obsolescence of launch vehicles or payloads over the contract's lifespan.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process aimed at achieving best value.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long-term contract duration indicates a sustained and critical need for these services.
- United Launch Services is an established provider with experience in space launch operations.
Sector Analysis
The space launch services sector is a critical component of the national security infrastructure, enabling the deployment of satellites for defense, intelligence, and communication. This market is characterized by high barriers to entry, significant technological complexity, and substantial government investment. Major players like United Launch Services compete for lucrative government contracts, often involving complex missions with high reliability requirements. Spending in this sector is substantial, reflecting the strategic importance of space-based assets.
Small Business Impact
This contract does not appear to have a specific small business set-aside. However, large prime contractors like United Launch Services are often required to meet small business subcontracting goals as part of their overall contract obligations. The extent to which small businesses will benefit depends on the subcontracting plans developed and executed by the prime contractor, potentially providing opportunities in specialized manufacturing, testing, or support services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Mechanisms would include contract performance reviews, milestone tracking, and financial audits. Transparency is typically maintained through contract award databases and reporting requirements. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- National Security Space Launch (NSSL) Program
- Space Force Launch Services
- Satellite Deployment Contracts
- Orbital Launch Services
- Defense Space Acquisition Programs
Risk Flags
- High-stakes nature of national security payloads requires exceptional reliability.
- Potential for launch failures carries significant financial and strategic risk.
- Dependence on a limited number of providers could impact future availability and cost.
- Evolving threat landscape requires adaptable and secure space capabilities.
Tags
defense, space-launch, national-security, department-of-defense, air-force, united-launch-services, firm-fixed-price, full-and-open-competition, delivery-order, colorado, aerospace, satellite-deployment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.2 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH SERVICE 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 $107.2 million.
What is the period of performance?
Start: 2023-06-20. End: 2026-05-04.
What is the track record of United Launch Services in executing similar national security space launch missions?
United Launch Services (ULS), a joint venture between Boeing and Lockheed Martin, has a long and established history in supporting U.S. national security space launch missions through its predecessor programs and current Atlas and Delta rocket families. They have successfully launched numerous critical payloads for the Department of Defense, NASA, and intelligence agencies. Their track record is generally characterized by high reliability and mission success rates, making them a trusted provider for sensitive national security assets. However, like any complex aerospace operation, they have experienced launch anomalies in the past, underscoring the inherent risks in space launch.
How does the pricing of this contract compare to other recent national security space launch awards?
Direct comparison of this specific delivery order's pricing to other national security space launch awards is difficult without access to detailed cost breakdowns and specific mission parameters (e.g., payload mass, orbit, launch vehicle). However, the National Security Space Launch (NSSL) program, in general, has aimed to drive down per-launch costs through increased competition between providers like ULA and SpaceX. The firm-fixed-price nature of this award provides cost certainty for the government. Benchmarking would require analyzing the cost per kilogram to orbit for comparable missions awarded under similar competitive conditions over the past few years.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks include launch failure, which could result in the loss of a valuable national security payload and significant financial cost. Technical issues with the launch vehicle or ground support systems, schedule delays due to technical or logistical challenges, and potential cost growth (despite the FFP structure, change orders or unforeseen issues can arise) are also key risks. Mitigation strategies typically involve rigorous testing and validation of launch vehicles, redundancy in critical systems, robust mission assurance processes, experienced personnel, and contingency planning. The government also maintains oversight and performance monitoring throughout the contract lifecycle.
How effective is the current competition landscape in the national security space launch sector?
The competition landscape in the national security space launch sector has become more robust in recent years with the emergence of new providers, most notably SpaceX, alongside established players like United Launch Services. This increased competition has generally led to more competitive pricing and innovation. However, the market still requires significant capital investment and adherence to stringent security and reliability standards, which can limit the number of viable competitors for certain types of missions. The government actively encourages competition through its acquisition strategies, such as the NSSL program, to ensure access to diverse capabilities and favorable pricing.
What is the historical spending trend for national security space launch services by the Department of Defense?
Historical spending on national security space launch services by the Department of Defense has been substantial, reflecting the critical role of space-based assets. Prior to the NSSL program's current phase, spending was often concentrated with fewer providers, leading to higher per-launch costs. Over the last decade, the NSSL program has been instrumental in fostering competition and driving down costs. While specific annual figures fluctuate based on launch schedules and program needs, the overall trend has been towards achieving greater value for money through a more competitive market, even as the overall investment remains significant due to the increasing reliance on space capabilities.
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: $107,164,540
Exercised Options: $107,164,540
Current Obligation: $107,164,540
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: 2026-05-04
Potential End Date: 2026-05-04 00:00:00
Last Modified: 2025-12-18
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