DoD awards $101.4M for National Security Space Launch Services Phase 2 to United Launch Services, LLC
Contract Overview
Contract Amount: $101,378,261 ($101.4M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-20
End Date: 2028-01-28
Contract Duration: 1,683 days
Daily Burn Rate: $60.2K/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 $101.4 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICES PHASE 2 Key points: 1. Contract aims to ensure reliable access to space for national security missions. 2. Focus on launch services suggests a critical component of defense infrastructure. 3. Long-term contract duration indicates sustained demand for these capabilities. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. Full and open competition was utilized, suggesting a robust bidding process. 6. The contract is a delivery order, implying it's part of a larger framework.
Value Assessment
Rating: good
The contract value of $101.4 million for National Security Space Launch Services Phase 2 appears reasonable given the critical nature of space access for national security. Benchmarking against similar large-scale launch service 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 ensure predictable spending for the Department of Defense. The specific services procured under this delivery order will determine the precise value-for-money assessment, but the competitive award process provides a baseline for fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of full and open competition generally suggests a healthy level of market interest and potential for competitive pricing. This approach allows the government to solicit proposals from a wide range of qualified contractors, fostering a more dynamic marketplace and potentially leading to better value.
Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible pricing and technical solutions through a broad competitive process, minimizing the risk of overpayment.
Public Impact
The primary beneficiaries are national security agencies requiring reliable access to space for critical missions. Services delivered include launch support and related activities for space assets. The geographic impact is national, supporting defense operations across various domains. Workforce implications include specialized roles in aerospace engineering, launch operations, and program management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise, despite fixed-price structure.
- Dependence on a single contractor for critical launch services could pose supply chain risks.
- The long duration may require continuous monitoring to ensure performance remains optimal.
Positive Signals
- Firm fixed-price contract aligns incentives for contractor efficiency.
- Full and open competition suggests a competitive environment leading to potentially better value.
- Long-term award provides stability and predictability for critical national security space capabilities.
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 payloads. This sector is characterized by high barriers to entry, significant technological complexity, and substantial government investment. The market is dominated by a few key players capable of meeting the stringent requirements for reliable and secure space launches. This contract fits within the broader NSSL framework, which aims to maintain assured access to space while fostering a competitive launch services market.
Small Business Impact
The provided data indicates that small business participation (sb: false) and set-asides (ss: false) were not explicitly utilized for this specific contract award. This suggests that the primary award was made to a large business entity. However, the prime contractor, United Launch Services, LLC, may engage small businesses as subcontractors to fulfill portions of the contract requirements. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, under the broader Department of Defense. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to meet specific performance standards and delivery schedules. Transparency is generally limited for national security contracts, but reporting requirements within the contract and potential oversight by the Government Accountability Office (GAO) and relevant Inspector General offices would ensure accountability.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Defense Satellite Programs
- Orbital Launch Services
Risk Flags
- Long-term contract duration
- Critical national security function
- Potential single-source reliance for future needs
Tags
defense, space, launch-services, national-security, united-launch-services, department-of-defense, air-force, firm-fixed-price, full-and-open-competition, delivery-order, colorado, aerospace
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.4 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 $101.4 million.
What is the period of performance?
Start: 2023-06-20. End: 2028-01-28.
What is the historical spending trend for National Security Space Launch Services under the Department of Defense?
Historical spending on National Security Space Launch (NSSL) services has been substantial, reflecting the critical need for reliable access to space for defense and intelligence missions. The NSSL program itself has evolved over time, with previous phases and contracts supporting the transition from legacy systems to more modern launch capabilities. While specific dollar amounts fluctuate year-to-year based on launch schedules and program requirements, the overall trend indicates a sustained and significant investment in ensuring assured access to space. For instance, prior NSSL contracts have involved multi-billion dollar commitments over several years to secure launch services from qualified providers. This $101.4 million award represents a portion of that ongoing investment, likely for specific launch missions or phases within the broader NSSL architecture. Analyzing past NSSL contract awards, including those for Phase 1 and earlier iterations, would provide a clearer picture of the average annual spend and the trajectory of investment in this vital capability.
How does the pricing of this contract compare to similar space launch service contracts awarded by other federal agencies?
Directly comparing the pricing of this $101.4 million National Security Space Launch Services Phase 2 contract to similar space launch service contracts across federal agencies is complex due to several factors. Firstly, the specific services rendered under this contract (e.g., launch vehicle, payload integration, mission assurance) and the associated mission requirements (e.g., orbit, payload mass, launch window constraints) significantly influence cost. Secondly, the competitive landscape for national security launches is distinct from commercial or scientific launch markets, often involving fewer providers and higher assurance requirements. The Department of Defense's NSSL program, under which this contract falls, aims for competitive pricing through full and open competition, but the specialized nature of the services means benchmarks are not readily available. Contracts awarded by NASA for scientific payloads or by NOAA for weather satellites, while involving launch services, may have different cost structures and competitive dynamics. Without detailed breakdowns of the services provided and the specific performance metrics, a precise value-for-money comparison is difficult, though the firm fixed-price nature and competitive award suggest an effort to achieve fair market value within this specialized sector.
What are the key performance indicators (KPIs) expected for United Launch Services, LLC under this contract?
While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, contracts for National Security Space Launch Services typically include stringent performance requirements. These generally revolve around mission success probability, on-time launch performance, and adherence to safety protocols. For United Launch Services, LLC, KPIs would likely include achieving a high probability of mission success for each launch, ensuring payloads are delivered to the correct orbits within specified tolerances. Punctuality is also critical; launches must occur within designated launch windows to meet national security operational needs. Furthermore, adherence to rigorous safety standards throughout the launch process, from vehicle integration to final countdown, is paramount. The firm fixed-price nature of the contract implies that failure to meet these KPIs could result in financial penalties or impact future contract opportunities, underscoring the importance of robust performance management and oversight by the Department of the Air Force.
What is the track record of United Launch Services, LLC in fulfilling similar government contracts, particularly in space launch?
United Launch Services, LLC (ULS) has a significant and established track record in fulfilling government contracts, particularly within the realm of space launch services. ULS is a joint venture historically associated with the Atlas and Delta rocket families, which have been workhorses for the U.S. military and intelligence community for decades. They have been a primary provider under the previous Evolved Expendable Launch Vehicle (EELV) program and its successor, the National Security Space Launch (NSSL) program. ULS has a strong history of mission success, having launched numerous critical national security payloads into orbit. Their experience encompasses a wide range of mission types, orbital destinations, and payload complexities. While specific contract performance details are often sensitive, ULS's continued selection as a key provider in the highly competitive NSSL program indicates a consistent ability to meet stringent government requirements for reliability, performance, and security in space launch operations.
What are the potential risks associated with relying on a single contractor for National Security Space Launch Services Phase 2?
Relying on a single contractor, even one with a strong track record like United Launch Services, LLC, for critical National Security Space Launch Services Phase 2 introduces several potential risks. Firstly, there's a risk of supply chain disruption; if ULS faces unforeseen manufacturing issues, labor disputes, or natural disasters affecting their facilities, it could delay or jeopardize national security launches. Secondly, a lack of direct competition for subsequent phases or specific launch needs could potentially lead to less aggressive pricing or innovation over the long term, although this contract was awarded competitively. Thirdly, dependence on a single provider might reduce the government's leverage in negotiating future terms or addressing performance issues. While the current contract was competitively awarded, the long-term nature of space launch capabilities means that ensuring a robust and resilient launch ecosystem, potentially with multiple viable providers, remains a strategic consideration for national security.
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: $101,378,261
Exercised Options: $101,378,261
Current Obligation: $101,378,261
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: 2028-01-28
Potential End Date: 2028-01-28 00:00:00
Last Modified: 2025-09-23
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