DoD Awards $1.2B for National Security Space Launch Phase 2 to United Launch Services
Contract Overview
Contract Amount: $120,611,091 ($120.6M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-05-23
End Date: 2026-10-31
Contract Duration: 891 days
Daily Burn Rate: $135.4K/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 $120.6 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant contract awarded to a single provider for critical space launch services. 2. High value indicates substantial investment in national security space capabilities. 3. Potential for cost efficiencies through long-term commitment, but also risk of vendor lock-in. 4. The IT sector is indirectly impacted through the reliance on secure and advanced launch infrastructure.
Value Assessment
Rating: good
The contract value of $1.2 billion over approximately 2.5 years suggests a substantial but potentially competitive price for complex space launch services. Benchmarking against similar large-scale launch contracts is necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to drive competitive pricing and ensure the government receives the best value.
Taxpayer Impact: The competitive nature of the award aims to optimize taxpayer spending on essential national security space launch capabilities.
Public Impact
Ensures continued access to space for critical national security missions. Supports the development and deployment of advanced satellite technology. Contributes to the U.S. dominance in space-based intelligence, surveillance, and reconnaissance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single provider for critical infrastructure.
- Potential for cost overruns if scope changes or unforeseen technical issues arise.
Positive Signals
- Secures vital national security capabilities.
- Leverages established provider with proven track record.
Sector Analysis
This contract falls under the aerospace and defense sector, specifically focusing on launch services. Spending in this area is critical for national security and technological advancement, with benchmarks often tied to payload mass, launch complexity, and mission assurance.
Small Business Impact
While the primary awardee is a large corporation, the execution of such a large contract likely involves numerous subcontractors, potentially including small businesses for specialized components and services.
Oversight & Accountability
The Department of the Air Force is responsible for oversight, ensuring adherence to contract terms, performance standards, and budget. Regular reporting and milestone reviews are standard for such significant procurements.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value
- Long contract duration
- Single awardee for critical service
- Potential for scope creep
- Dependence on specific technology
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 $120.6 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 $120.6 million.
What is the period of performance?
Start: 2024-05-23. End: 2026-10-31.
What is the projected cost per launch under this contract, and how does it compare to historical averages or industry benchmarks?
The total contract value is $1.2 billion over approximately 891 days. Without knowing the exact number of launches or specific mission requirements, calculating a precise per-launch cost is difficult. However, this figure represents a significant investment, and comparisons to previous National Security Space Launch (NSSL) phases or commercial launch pricing would be essential to assess value for money.
What are the specific risks associated with relying on United Launch Services for national security space launches, and what mitigation strategies are in place?
Key risks include potential launch failures, schedule delays, and vendor lock-in due to the specialized nature of the services. Mitigation strategies likely involve stringent performance requirements, independent verification and validation, contingency planning for launch anomalies, and maintaining competitive tension through future contract opportunities.
How effectively does this contract ensure the U.S. maintains its strategic advantage in space-based capabilities?
This contract is crucial for maintaining the U.S. strategic advantage by ensuring reliable and timely access to space for national security payloads. It supports the deployment of advanced communication, intelligence, and navigation systems, underpinning military operations and national security objectives.
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: $123,286,224
Exercised Options: $123,286,224
Current Obligation: $120,611,091
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2024-05-23
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-11-12
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