DoD awards $87.5M for National Security Space Launch Services, with a 5-year duration
Contract Overview
Contract Amount: $87,465,000 ($87.5M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-15
End Date: 2027-08-29
Contract Duration: 1,536 days
Daily Burn Rate: $56.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH SERVICES PHASE 2
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $87.5 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICES PHASE 2 Key points: 1. Contract awarded to United Launch Services, LLC for critical space launch capabilities. 2. The contract is structured as a Firm Fixed Price (FFP) award, providing cost certainty. 3. This award represents a significant investment in national security space infrastructure. 4. The duration of over 1500 days indicates a long-term need for these services. 5. The contract is a Delivery Order under a larger program, suggesting phased execution. 6. The Air Force is the primary procuring agency for this national security initiative.
Value Assessment
Rating: good
The contract value of $87.5 million for National Security Space Launch Services Phase 2 appears reasonable given the critical nature of space launch operations. Benchmarking against similar large-scale government launch contracts is challenging due to the specialized and often classified nature of these services. However, the firm fixed-price structure suggests an effort to control costs and transfer risk to the contractor. The award amount should be viewed in the context of the overall program's strategic importance and the high barriers to entry in the space launch industry.
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 had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally favored for ensuring fair pricing and access to the best available technology and services.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is designed to drive down costs through market forces and encourage innovation among potential bidders, ultimately leading to better value for public funds.
Public Impact
This contract directly supports national security objectives by ensuring reliable access to space for critical defense and intelligence payloads. It enables the deployment and maintenance of vital space-based assets essential for communication, surveillance, and navigation. The services delivered are crucial for maintaining the United States' strategic advantage in space. The contract's impact extends to the aerospace workforce, supporting specialized engineering, manufacturing, and launch operations roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during launch operations.
- Dependence on a single contractor (United Launch Services, LLC) for this specific phase could pose supply chain risks.
- Geopolitical events could impact launch schedules or the availability of launch sites.
Positive Signals
- Award to a known entity (United Launch Services, LLC) suggests a level of confidence in their capabilities.
- Firm Fixed Price contract structure provides cost predictability for the government.
- Long contract duration allows for stable planning and resource allocation for critical national security missions.
- Full and open competition indicates a robust procurement process aimed at achieving best value.
Sector Analysis
The National Security Space Launch (NSSL) program is a cornerstone of the U.S. defense strategy, ensuring access to space for critical national security missions. This sector is characterized by high technological complexity, significant R&D investment, and a limited number of highly specialized contractors. The market is dominated by large aerospace and defense firms. Spending in this area is driven by the need to maintain and modernize space-based assets for intelligence, surveillance, reconnaissance, and communication. Comparable spending benchmarks are difficult to ascertain due to the proprietary and classified nature of many NSSL missions.
Small Business Impact
This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. 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. The extent of small business subcontracting will depend on the prime contractor's procurement practices and the specific needs of the launch services provided.
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 may include regular performance reviews, milestone tracking, and financial audits. Transparency is often limited for national security contracts, but reporting requirements are typically established to ensure accountability for mission success and responsible use of funds. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch (NSSL) Program
- Space Force Launch Services
- Defense Satellite Programs
- Military Satellite Communications
- Intelligence, Surveillance, and Reconnaissance (ISR) Payloads
Risk Flags
- Potential for schedule delays impacting national security mission timelines.
- Risk of technical failures during launch operations.
- Dependence on a single prime contractor for critical launch services.
- Cost management challenges within a Firm Fixed Price structure for complex services.
Tags
defense, space-launch, national-security, air-force, firm-fixed-price, full-and-open-competition, delivery-order, united-launch-services, aerospace, colorado, phase-2
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.5 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH SERVICES 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 $87.5 million.
What is the period of performance?
Start: 2023-06-15. End: 2027-08-29.
What is the historical spending pattern for National Security Space Launch Services Phase 2, and how does this award compare?
The provided data indicates this is a specific award for Phase 2 of the National Security Space Launch Services, valued at $87.5 million with an end date in August 2027. Historical spending for the broader NSSL program is substantial, with previous phases and related contracts totaling billions of dollars over many years. For instance, the NSSL program has historically involved significant investments to ensure reliable launch capabilities for national security payloads. This $87.5 million award represents a portion of the ongoing investment in maintaining and evolving these critical launch services. Without access to detailed historical contract awards specifically for 'Phase 2' or comparable delivery orders under the NSSL umbrella, a precise comparison is difficult. However, the value appears consistent with the scale of individual launch service procurements within such a high-stakes program.
What is the track record of United Launch Services, LLC in fulfilling government launch contracts?
United Launch Services, LLC (ULS) has a well-established and extensive track record in supporting the U.S. government's space launch needs, particularly through the Atlas and Delta rocket families. They have been a primary provider of launch services for national security, NASA, and commercial satellites for decades. ULS has demonstrated a high mission success rate, launching numerous critical payloads for various government agencies, including the Department of Defense and the Space Force. Their experience encompasses a wide range of mission profiles and payload types, underscoring their capability to handle complex and sensitive national security space missions. This long history of performance provides a strong basis for confidence in their ability to execute the current contract.
How does the pricing structure (Firm Fixed Price) of this contract influence value for money compared to other pricing models?
The Firm Fixed Price (FFP) structure of this $87.5 million contract is designed to provide maximum cost certainty for the government. Under an FFP contract, the contractor agrees to a set price for the work, and assumes the risk of cost overruns. This contrasts with cost-plus contracts, where the government reimburses the contractor for allowable costs plus a fee. For a service like space launch, where technical complexities can lead to unforeseen expenses, an FFP contract incentivizes the contractor to manage their costs efficiently and avoid scope creep. This can lead to better value for money if the contractor is successful in controlling costs, as the government's expenditure is capped. However, if significant, unforeseen technical challenges arise that are beyond the contractor's control, the FFP structure might limit flexibility or potentially lead to disputes if contract modifications are needed.
What are the primary risks associated with this National Security Space Launch Services contract, and how are they being mitigated?
The primary risks associated with this contract include technical failures during launch, schedule delays due to technical issues or external factors (like range availability or geopolitical events), and potential cost overruns if unforeseen challenges arise within the FFP structure. Mitigation strategies likely involve rigorous testing and validation processes by United Launch Services, LLC, adherence to strict launch procedures, and contingency planning for various scenarios. The government's oversight role, including performance monitoring and milestone reviews, also serves as a risk mitigation tool. Furthermore, the selection of an experienced contractor like ULS, with a proven track record, inherently reduces technical and operational risks. The long-term nature of the contract allows for phased execution and learning, potentially mitigating risks over time.
What is the strategic importance of this contract within the broader context of U.S. national security space capabilities?
This contract is strategically vital as it directly supports the U.S. government's ability to access and operate in space, which is fundamental to modern national security. Space-based assets provide critical capabilities for intelligence gathering, global communications, missile warning, navigation (GPS), and situational awareness. Ensuring reliable and timely launch services is paramount to deploying new satellites, replacing aging ones, and maintaining the operational readiness of these essential systems. The National Security Space Launch program, of which this contract is a part, is designed to guarantee this access, even in challenging environments. Therefore, this award is not just about a single launch, but about sustaining a critical national capability that underpins a wide range of defense and intelligence operations.
How does the competition level (full and open) for this contract impact its overall effectiveness and cost-efficiency?
The 'full and open' competition for this contract is a significant factor in its potential effectiveness and cost-efficiency. By allowing all responsible sources to submit bids, the government maximizes the pool of potential providers, increasing the likelihood of receiving competitive proposals that offer the best combination of technical capability, performance, and price. This competitive pressure incentivizes bidders to offer their most advantageous terms and to innovate in their service delivery to win the contract. For taxpayers, this means a higher probability that the $87.5 million award represents a fair market price and that the chosen contractor is the most capable and cost-effective option available. While specific details on the number of bidders are not provided, the process itself is designed to foster efficiency and value.
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: $87,465,000
Exercised Options: $87,465,000
Current Obligation: $87,465,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2023-06-15
Current End Date: 2027-08-29
Potential End Date: 2027-08-29 00:00:00
Last Modified: 2025-12-14
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