DoD's $112.5M National Security Space Launch contract awarded to United Launch Services, LLC
Contract Overview
Contract Amount: $112,511,401 ($112.5M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-14
End Date: 2026-05-01
Contract Duration: 1,052 days
Daily Burn Rate: $107.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
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 $112.5 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. The contract is for space launch services, a critical component of national security. 2. United Launch Services, LLC is a significant player in the space launch market. 3. Potential risks include launch failures, geopolitical instability, and technological obsolescence. 4. The IT sector is indirectly impacted through reliance on secure communication and data transmission.
Value Assessment
Rating: good
The award amount of $112.5 million for a multi-year space launch contract appears reasonable given the complexity and criticality of the service. Benchmarking against similar national security space launch contracts would provide a more precise assessment.
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 government.
Taxpayer Impact: The competitive nature of the award is likely to result in cost savings for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological capabilities for defense and intelligence agencies. Contributes to the U.S. dominance in space-based operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single contractor for critical launch services.
- Potential for cost overruns in complex, long-term projects.
- Geopolitical risks affecting launch schedules and operations.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type provides cost certainty.
- Long-term contract ensures sustained capability.
Sector Analysis
This contract falls under the broader aerospace and defense sector, specifically focusing on launch services. Spending in this area is driven by national security imperatives and technological advancements in space exploration and utilization.
Small Business Impact
The data indicates the prime contractor is United Launch Services, LLC. There is no explicit information on small business participation in this specific award, which warrants further investigation to ensure opportunities for small businesses.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight is crucial to ensure mission success, adherence to schedule, and effective use of taxpayer funds, especially given the high stakes involved.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contractor performance history
- Technological obsolescence risk
- Geopolitical instability impact
- Potential for launch failures
- Supply chain disruptions
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 $112.5 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 $112.5 million.
What is the period of performance?
Start: 2023-06-14. End: 2026-05-01.
What is the historical performance record of United Launch Services, LLC in executing similar national security space launch contracts?
A review of United Launch Services, LLC's past performance on similar contracts is essential. This includes examining their track record for on-time delivery, mission success rates, cost control, and any past issues or disputes. Understanding their historical reliability provides a strong indicator of their capability to meet the requirements of this new contract and ensures taxpayer funds are being invested wisely in a proven provider.
What are the specific risks associated with the launch vehicles and technologies utilized under this contract, and how are they being mitigated?
Identifying the specific launch vehicles and technologies is crucial to assessing associated risks, such as potential failures, obsolescence, or supply chain vulnerabilities. The government should have detailed mitigation plans in place, including contingency operations, redundant systems, and robust testing protocols. Understanding these measures is key to evaluating the overall risk profile and ensuring the continuity of critical national security space operations.
How does the pricing structure of this contract compare to industry benchmarks for similar space launch services, considering the full lifecycle costs?
A thorough price analysis comparing this contract's structure and total estimated cost against industry benchmarks for comparable space launch services is necessary. This should include evaluating the firm fixed price elements, potential for cost growth, and any associated support services. Ensuring the pricing is competitive and reflects fair market value is paramount for responsible stewardship of taxpayer resources and maximizing the value derived from this significant investment.
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: $112,511,401
Exercised Options: $112,511,401
Current Obligation: $112,511,401
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2023-06-14
Current End Date: 2026-05-01
Potential End Date: 2026-05-01 00:00:00
Last Modified: 2026-01-15
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