DoD's $105.6M National Security Space Launch contract awarded to United Launch Services, LLC
Contract Overview
Contract Amount: $105,615,265 ($105.6M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-17
End Date: 2028-02-29
Contract Duration: 1,352 days
Daily Burn Rate: $78.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
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 $105.6 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Contract awarded for critical space launch services, indicating a significant investment in national security. 2. The firm-fixed-price structure aims to provide cost certainty for the government. 3. A full and open competition suggests a robust market for these specialized services. 4. The contract duration of over three years highlights the long-term nature of space launch requirements. 5. Awarded by the Department of the Air Force, this contract aligns with strategic defense objectives. 6. The North American Industry Classification System (NAICS) code 481212 points to nonscheduled chartered freight air transportation, a key component of launch logistics.
Value Assessment
Rating: good
The contract value of $105.6 million for space launch services appears reasonable given the complexity and criticality of national security missions. Benchmarking against similar large-scale launch contracts is challenging due to the unique nature of national security payloads and launch requirements. However, the firm-fixed-price nature of the contract provides a degree of cost predictability for the government, which is a positive indicator of value.
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 were likely solicited and allowed to bid. The specific number of bidders is not provided, but the designation suggests a competitive environment that should drive price discovery and potentially lead to more favorable terms for the government. This approach is generally preferred for ensuring the best value is obtained.
Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that can lead to lower prices and better service offerings.
Public Impact
This contract directly supports national security by ensuring the reliable launch of critical space assets. It enables the deployment of satellites and other payloads essential for intelligence, surveillance, and reconnaissance. The services provided are vital for maintaining the United States' strategic advantage in space. The contract's execution will likely involve a highly skilled workforce in aerospace engineering, launch operations, and related technical fields. Geographic impact is primarily concentrated around launch facilities and contractor operational centers, but the ultimate benefit is global.
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 for critical launch services could pose a risk if performance issues emerge.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Awarded through full and open competition, suggesting a competitive market.
- Long contract duration indicates a stable, long-term need for these services.
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 barriers to entry, significant technological sophistication, 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 a robust and resilient space launch capability.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the specialized and high-stakes nature of national security space launches, prime contracts are typically awarded to large, established aerospace companies. The potential for small business involvement would likely be through subcontracting opportunities, which are not explicitly detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Air Force, with specific program management offices responsible for monitoring performance, adherence to schedule, and cost control. Transparency is often limited for national security contracts due to classification requirements. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Satellite Deployment Contracts
- Aerospace Defense Contracts
Risk Flags
- Potential for launch failure
- Schedule adherence risk
- Dependence on specialized launch capabilities
Tags
defense, space-launch, national-security, air-force, firm-fixed-price, full-and-open-competition, large-contract, colorado, aerospace, satellite-deployment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.6 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 $105.6 million.
What is the period of performance?
Start: 2024-06-17. End: 2028-02-29.
What is the historical spending trend for the National Security Space Launch program?
Historical spending on the National Security Space Launch (NSSL) program has been substantial, reflecting the critical nature of maintaining assured access to space for national security. The program has evolved over time, with significant investments made in previous phases to develop and procure launch services. For instance, the NSSL Phase 1 program saw billions of dollars awarded to contractors for launch services. Phase 2, under which this contract falls, continues this trend of significant investment, aiming to ensure continued access to space through a competitive environment. Specific year-over-year spending can fluctuate based on the number and type of missions requiring launch, as well as the specific contract vehicles in place during a given period. The overall trend indicates a sustained and significant commitment by the Department of Defense to secure its space-based assets through reliable launch capabilities.
How does the pricing of this contract compare to similar space launch services?
Directly comparing the pricing of this $105.6 million contract to similar space launch services is complex due to several factors. Firstly, national security space launches often involve highly specialized payloads with unique integration and mission requirements that differ from commercial launches. Secondly, the firm-fixed-price nature of this contract provides a defined cost ceiling, which can be advantageous but may also reflect a premium for risk transfer. Benchmarking would ideally involve comparing the cost per launch or cost per kilogram to orbit for comparable national security missions. However, detailed cost breakdowns and specific mission parameters for national security launches are often not publicly disclosed. Generally, government contracts for critical national security assets tend to be priced based on rigorous cost analysis and competitive bidding, aiming for value while ensuring mission success and reliability, which can differ from commercial market pricing dynamics.
What are the primary risks associated with this contract for the government?
The primary risks associated with this contract for the government include potential launch failures, schedule delays, and cost overruns, despite the firm-fixed-price structure. Launching complex payloads into orbit is inherently risky, and a failure could result in the loss of valuable assets and significant national security implications. Schedule delays can impact the operational readiness of critical space systems. While the firm-fixed-price contract aims to cap costs, unforeseen technical challenges or changes in scope could still lead to contract modifications and increased expenditures. Furthermore, reliance on a limited number of qualified launch providers, even within a competitive framework, introduces a degree of dependency. Ensuring robust oversight and contingency planning is crucial to mitigate these risks.
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 government contracts, particularly within the space launch domain. ULS is the provider for the United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin, which has been a primary contractor for the National Security Space Launch (NSSL) program for many years. ULA, and by extension ULS, has successfully executed a large number of national security space launches, demonstrating a high degree of reliability and mission success. Their experience spans various launch vehicles and payload types, consistently meeting the stringent requirements of the Department of Defense and other government agencies for assured access to space. This extensive history of performance provides a strong basis for confidence in their ability to execute the current contract.
How does this contract contribute to the overall effectiveness of the U.S. space-based defense capabilities?
This contract is fundamental to the effectiveness of the U.S. space-based defense capabilities. It directly funds the launch services necessary to deploy and maintain critical national security satellites. These satellites provide essential functions such as intelligence gathering, missile warning, secure communications, and navigation. By ensuring reliable and timely access to space, this contract underpins the operational readiness and strategic advantage of the U.S. military. The ability to launch these assets when needed, and to replace them as necessary, is crucial for maintaining a robust and resilient space architecture that supports global 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: $105,615,265
Exercised Options: $105,615,265
Current Obligation: $105,615,265
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2024-06-17
Current End Date: 2028-02-29
Potential End Date: 2028-03-01 00:00:00
Last Modified: 2025-10-01
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