DoD awards $92.8M for National Security Space Launch Services Phase 2 to United Launch Services, LLC
Contract Overview
Contract Amount: $92,826,681 ($92.8M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-19
End Date: 2026-12-17
Contract Duration: 1,094 days
Daily Burn Rate: $84.9K/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 $92.8 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICES PHASE 2 Key points: 1. Contract value represents a significant investment in critical national security space capabilities. 2. The firm-fixed-price structure aims to provide cost certainty for the government. 3. Competition dynamics for this contract are crucial for ensuring fair pricing and innovation. 4. Performance is tied to delivery orders, indicating a phased approach to service provision. 5. The contract duration suggests a long-term commitment to reliable launch services. 6. Geographic impact is concentrated in Colorado, a hub for space industry activities.
Value Assessment
Rating: good
The contract value of $92.8M 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 would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) contract type is generally favorable for the government in managing cost risks, provided the scope is well-defined. The award to United Launch Services, LLC, suggests a competitive process that likely yielded a fair price.
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 offers. The specific number of bidders is not provided, but full and open competition generally fosters a robust bidding environment, which is expected to drive competitive pricing and encourage innovation. This approach is designed to ensure the government receives the best value by considering a wide range of potential providers.
Taxpayer Impact: Full and open competition is the most beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring that the government is not overpaying for essential services.
Public Impact
The primary beneficiaries are national security agencies requiring reliable access to space for critical missions. Services delivered include the launch of national security payloads, ensuring the continuity of vital space-based assets. The geographic impact is primarily in Colorado, where United Launch Services, LLC is based, potentially supporting local jobs and infrastructure. Workforce implications may include specialized engineering, technical, and operational roles within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs within delivery orders.
- Dependence on a single contractor for critical launch services could pose supply chain risks.
- Ensuring continued innovation in launch technology under a long-term contract.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a competitive award process.
- Long contract duration allows for stable planning and execution of national security space missions.
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 barriers to entry, 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 sector is substantial, reflecting the strategic importance and complexity of space-based capabilities. This contract fits within the broader NSSL program, which aims to provide reliable and cost-effective launch services.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Given the specialized nature and high value of national security space launch services, it is common for prime contracts to be awarded to large aerospace corporations. However, opportunities for small businesses may exist through subcontracting with the prime contractor, United Launch Services, LLC. The extent of small business subcontracting will depend on the prime's procurement strategy and the availability of qualified small business suppliers.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, under the broader Department of Defense. Mechanisms may include regular program reviews, performance monitoring of delivery orders, and financial audits. Transparency is typically maintained through contract reporting requirements and potential public disclosures related to program milestones. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Defense Space Acquisition Programs
- Satellite Deployment Contracts
Risk Flags
- Potential for scope creep within delivery orders.
- Reliance on a single contractor for critical launch services.
Tags
defense, space, launch-services, national-security, 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 $92.8 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 $92.8 million.
What is the period of performance?
Start: 2023-12-19. End: 2026-12-17.
What is the historical spending pattern for National Security Space Launch Services Phase 2, and how does this award compare?
The provided data indicates a single award of $92,826,681 for National Security Space Launch Services Phase 2. Without historical data for this specific phase or comparable contracts within the NSSL program, it is difficult to establish a precise spending pattern or benchmark this award. However, the NSSL program itself represents a significant and ongoing investment by the Department of Defense to ensure reliable access to space. Previous phases or related contracts within NSSL have involved substantial multi-year funding to support launch vehicle development, production, and mission operations. This $92.8M award likely represents a portion of the overall NSSL budget allocated for specific launch services or mission support activities within the contract's performance period.
What is the track record of United Launch Services, LLC in performing similar government contracts?
United Launch Services, LLC (ULS) has a significant track record in supporting the U.S. government's space launch needs, particularly through its predecessor entities and its role in the National Launch System (NLS) and the National Security Space Launch (NSSL) program. ULS is a joint venture formed by Boeing and Lockheed Martin, both established aerospace giants with extensive experience in space systems. They have been responsible for launching numerous national security, civil, and commercial satellites. Their performance history includes successfully executing complex launch missions, adhering to stringent safety and reliability requirements, and managing large-scale aerospace programs. While specific performance metrics for individual contracts are often not publicly detailed, ULS's continued selection for critical government launch services suggests a generally positive performance history and a high level of confidence from agencies like the Department of the Air Force and the Space Force.
How does the firm-fixed-price contract type mitigate risks for the government in this context?
The firm-fixed-price (FFP) contract type is designed to shift cost risk from the government to the contractor, United Launch Services, LLC. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the government with significant cost certainty, making budgeting more predictable. For a service like space launch, where unforeseen technical challenges or material cost fluctuations can occur, the FFP structure incentivizes the contractor to manage their resources efficiently and control costs. The government's primary risk under an FFP contract is ensuring the contractor has accurately estimated all costs and included sufficient profit margin, and that the scope of work is clearly defined to prevent disputes. However, in high-risk, complex endeavors like space launch, the FFP provides a strong baseline for financial accountability.
What are the potential performance challenges associated with providing National Security Space Launch Services?
Providing National Security Space Launch Services involves several inherent performance challenges. These include ensuring extremely high levels of reliability and safety, as failures can have catastrophic consequences for national security missions and result in significant financial losses. The complex nature of rocket technology means that development, testing, and integration require meticulous attention to detail and adherence to rigorous standards. Furthermore, launch schedules are often subject to external factors such as payload readiness, weather conditions, and range availability, requiring sophisticated scheduling and contingency planning. Maintaining cutting-edge technology in a rapidly evolving field, managing supply chains for specialized components, and ensuring cybersecurity for launch operations are also critical performance considerations. The contractor must also navigate complex regulatory and approval processes.
Are there any specific indicators of potential cost overruns or performance issues based on the contract details?
The provided contract details for National Security Space Launch Services Phase 2 do not contain explicit indicators of potential cost overruns or performance issues. The contract is a firm-fixed-price (FFP) award valued at $92,826,681, with a duration extending to December 2026. The FFP structure itself is intended to cap costs for the government. However, potential risks for overruns or performance issues could arise if the scope of work within the 'delivery order' mechanism is not tightly managed, leading to scope creep. Additionally, the complexity of space launch means that unforeseen technical challenges could arise, potentially straining the contractor's ability to meet performance requirements within the fixed price, although the contractor would bear the primary financial risk. Without more detailed contract clauses, performance metrics, or historical data on similar contracts, it's difficult to identify specific red flags from the summary information alone.
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: $92,826,681
Exercised Options: $92,826,681
Current Obligation: $92,826,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2023-12-19
Current End Date: 2026-12-17
Potential End Date: 2026-12-17 00:00:00
Last Modified: 2025-09-22
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