DoD awards $123.5M for National Security Space Launch Services Phase 2, with a 1,120-day duration
Contract Overview
Contract Amount: $123,479,172 ($123.5M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-02
End Date: 2027-07-27
Contract Duration: 1,120 days
Daily Burn Rate: $110.2K/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: CENTENNIAL, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $123.5 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH SERVICES PHASE 2 Key points: 1. This contract represents a significant investment in critical national security space launch capabilities. 2. The firm-fixed-price structure aims to provide cost certainty for the Department of Defense. 3. Competition dynamics for space launch services are complex, involving a limited number of highly specialized providers. 4. Performance will be monitored closely given the high stakes of national security missions. 5. The contract's duration suggests a long-term commitment to reliable launch services. 6. Sector positioning is within the highly specialized and strategic aerospace and defense industry.
Value Assessment
Rating: good
Benchmarking the value of this contract requires detailed analysis of launch service costs, which are highly variable based on payload, launch vehicle, and mission profile. Given the firm-fixed-price nature and the competitive award, it suggests a reasonable price was negotiated. However, without specific per-launch cost data or comparisons to similar recent awards for comparable missions, a definitive value-for-money assessment is challenging. The scale of the award indicates a substantial requirement for these services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach is generally expected to foster competitive pricing and innovation. The number of bidders is not specified, but the nature of space launch services suggests a limited pool of qualified companies.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at the best possible price through a robust bidding process.
Public Impact
The primary beneficiaries are national security agencies requiring reliable access to space for critical missions. Services delivered include the provision of launch vehicles and associated mission support for national security payloads. The geographic impact is primarily national, supporting U.S. space-based defense and intelligence capabilities. Workforce implications include supporting highly skilled jobs in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during launch campaigns.
- Dependence on a limited number of specialized launch providers could create supply chain risks.
- Geopolitical factors could impact the availability or cost of launch services.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Awarded through full and open competition, suggesting competitive pricing.
- Long contract duration indicates a stable, long-term requirement and potential for economies of scale.
Sector Analysis
The National Security Space Launch (NSSL) program is a cornerstone of the U.S. government's strategy to ensure assured access to space for national security missions. 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 reliability and performance. Spending in this area is critical for maintaining a strategic advantage in space.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions, which is typical for large, complex defense procurements requiring highly specialized capabilities. However, the prime contractor, United Launch Services, LLC, may engage small businesses as subcontractors for various components and services, contributing to the broader small business ecosystem within the aerospace industry.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, which is responsible for executing the NSSL program. Accountability measures will include performance metrics tied to launch success, schedule adherence, and cost control. Transparency is generally maintained through contract awards and program reviews, though specific mission details may be classified. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Satellite Deployment Contracts
- Aerospace and Defense Procurement
Risk Flags
- High-stakes national security missions require absolute reliability.
- Limited number of qualified providers in the space launch sector.
- Potential for schedule slips impacting critical mission timelines.
- Technological complexity of modern launch vehicles.
Tags
defense, space-launch, national-security, department-of-defense, air-force, full-and-open-competition, firm-fixed-price, delivery-order, aerospace, united-states, colorado
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $123.5 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 $123.5 million.
What is the period of performance?
Start: 2024-07-02. End: 2027-07-27.
What is the historical spending trend for National Security Space Launch Services?
Historical spending on National Security Space Launch (NSSL) services has been substantial, reflecting the critical nature of assured access to space for defense and intelligence missions. The program has evolved over time, with significant investments made in developing and maintaining robust launch capabilities. For instance, previous phases of the NSSL program and its predecessors have seen multi-billion dollar commitments over several years. The current award of $123.5 million for Phase 2, with a duration of over three years, aligns with this pattern of sustained, significant federal investment in space launch. Analyzing year-over-year spending, including contract modifications and option exercises, provides a clearer picture of the long-term financial commitment and the evolving needs of national security space operations.
How does the pricing of this contract compare to similar space launch contracts?
Directly comparing the pricing of this $123.5 million National Security Space Launch Services Phase 2 contract to similar space launch contracts is complex due to the proprietary nature of launch costs and the variability of mission requirements. Factors such as payload mass, orbit, launch vehicle type, and required mission assurance levels significantly influence per-launch costs. However, the contract's firm-fixed-price structure and award through full and open competition suggest that the Department of Defense sought to achieve competitive pricing. Benchmarking would typically involve analyzing the cost per kilogram to orbit for comparable national security payloads launched by different providers over the past few years. Without access to detailed cost breakdowns or a comprehensive database of recent NSSL awards with similar mission parameters, a precise comparison is challenging, but the scale of the award indicates a significant procurement for essential services.
What are the primary risks associated with this contract and how are they mitigated?
The primary risks associated with this National Security Space Launch Services Phase 2 contract include technical failures during launch, schedule delays impacting critical mission timelines, and potential cost overruns, although the firm-fixed-price structure aims to mitigate the latter. Geopolitical instability or supply chain disruptions in the highly specialized aerospace sector could also pose risks. Mitigation strategies typically involve rigorous testing and validation of launch vehicles, robust mission planning, performance-based incentives, and contingency planning for launch anomalies. The Department of Defense also maintains oversight and requires contractors to adhere to strict quality and safety standards. Furthermore, the competitive nature of the award encourages contractors to manage risks effectively to ensure successful mission execution and maintain future contract opportunities.
What is the track record of United Launch Services, LLC in fulfilling similar government contracts?
United Launch Services, LLC (ULS) has a significant and established track record in fulfilling complex government contracts, particularly within the realm of space launch services. As a key provider for the National Security Space Launch (NSSL) program, ULS has been responsible for numerous successful launches of national security payloads for the Department of Defense and other government agencies. Their history includes operating reliable launch vehicles and managing intricate launch campaigns from preparation through mission completion. ULS's experience encompasses meeting stringent performance requirements, adhering to demanding schedules, and operating within competitive procurement frameworks. Their long-standing involvement in the NSSL program underscores their capability and reliability in delivering critical space access capabilities to the U.S. government.
How does this contract contribute to the overall effectiveness of national security space operations?
This contract is fundamental to the effectiveness of national security space operations by ensuring assured access to space for critical defense and intelligence missions. Reliable launch services are the bedrock upon which space-based capabilities are deployed and maintained. These capabilities include communication, navigation, intelligence gathering, and missile warning systems, all of which are vital for national security. By securing launch services through a competitive process with a significant financial commitment, the Department of Defense aims to guarantee that its space assets can be launched on schedule and with high reliability. The continuity and predictability provided by this contract directly support the operational readiness and strategic advantage derived from the U.S. space architecture.
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: $123,479,172
Exercised Options: $123,479,172
Current Obligation: $123,479,172
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2024-07-02
Current End Date: 2027-07-27
Potential End Date: 2027-07-27 00:00:00
Last Modified: 2025-09-24
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