DoD's $109M National Security Space Launch contract awarded to United Launch Services for critical space access
Contract Overview
Contract Amount: $108,872,250 ($108.9M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-22
End Date: 2027-02-28
Contract Duration: 951 days
Daily Burn Rate: $114.5K/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: CENTENNIAL, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $108.9 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Contract aims to ensure reliable access to space for national security missions. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type helps mitigate cost uncertainty for the government. 4. Long duration (951 days) indicates a significant, ongoing need for services. 5. Delivery order signifies a specific task within a larger framework. 6. Focus on space launch is critical for defense and intelligence capabilities.
Value Assessment
Rating: good
The contract value of approximately $109 million for a period spanning over two years appears reasonable for specialized space launch services. Benchmarking against similar National Security Space Launch (NSSL) contracts would provide a more precise assessment, but the firm fixed-price structure is a positive indicator for cost control. The specific services rendered under this delivery order will be key to fully evaluating value for money.
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 invited to bid. The specific number of bidders is not provided, but this approach generally fosters price discovery and encourages competitive pricing. The government's ability to select from a range of providers suggests a healthy market for these critical space launch services.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.
Public Impact
Ensures continued access to space for critical national security and intelligence gathering missions. Supports the deployment and operation of vital satellite constellations. Benefits the aerospace and defense industry by providing significant contract opportunities. Contributes to maintaining U.S. technological superiority in space-based operations. Indirectly supports jobs within the aerospace sector and related supply chains.
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 structure provides cost certainty.
- Awarded through full and open competition, suggesting a competitive market.
- Long-term contract duration indicates a stable, ongoing requirement.
- Delivery order structure allows for phased execution and management.
Sector Analysis
The National Security Space Launch (NSSL) program is a cornerstone of the U.S. government's strategy to ensure reliable and affordable access to space for national security missions. This sector is characterized by high technological barriers to entry, significant R&D investment, and a limited number of highly specialized providers. Spending in this area is crucial for maintaining defense capabilities, intelligence gathering, and technological advantage in orbit. Comparable spending benchmarks are often found within the broader aerospace and defense procurement categories, but NSSL-specific data is more relevant.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting requirements for this particular contract. Given the specialized nature of space launch services, prime contracts are typically awarded to large, established aerospace companies. However, large prime contractors are often required to meet small business subcontracting goals on major defense contracts, which could indirectly benefit small businesses within the aerospace supply chain.
Oversight & Accountability
Oversight for this contract would likely fall under the Department of the Air Force, which manages the NSSL program. Mechanisms would include contract performance monitoring, milestone reviews, and potentially audits by the Government Accountability Office (GAO) or the Department of Defense Inspector General (IG). Transparency is generally maintained through contract award announcements and program-level reporting, though specific operational details may be classified.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Defense Satellite Programs
- Aerospace Procurement
- Military Satellite Communications
Risk Flags
- Potential for launch failure
- Schedule adherence risks
- Dependence on specialized infrastructure
- Geopolitical risks impacting supply chains
Tags
defense, space-launch, 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 $108.9 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 $108.9 million.
What is the period of performance?
Start: 2024-07-22. End: 2027-02-28.
What is the historical spending trend for the National Security Space Launch program?
The National Security Space Launch (NSSL) program has seen significant and consistent investment over the years, reflecting the critical importance of space-based assets for national security. While specific annual figures fluctuate based on launch schedules and program needs, the overall budget allocated to NSSL has remained substantial, often in the billions of dollars annually across multiple contracts and providers. This sustained funding underscores the long-term commitment to maintaining assured access to space for defense and intelligence purposes. The program has evolved through different phases, with increasing emphasis on competition and cost-effectiveness, driving shifts in contract awards and spending patterns over time.
How does the pricing of this contract compare to similar space launch services?
Directly comparing the pricing of this specific $109 million delivery order to other space launch services requires access to detailed cost breakdowns and market intelligence, which is often proprietary or classified for national security contracts. However, the NSSL program itself is designed to foster competition and drive down costs compared to previous sole-source or less competitive arrangements. The firm fixed-price nature of this award suggests that the contractor has committed to a specific price, which is a positive indicator for cost control. Benchmarking would ideally involve comparing the cost per kilogram to orbit or cost per launch for similar mission classes, considering factors like payload size, orbit, and launch vehicle reliability.
What are the primary risks associated with this National Security Space Launch contract?
The primary risks associated with this National Security Space Launch contract revolve around launch failures, schedule delays, and potential cost overruns, despite the firm fixed-price structure. Launching complex payloads into orbit is inherently risky, and a single failure can result in the loss of valuable assets and significant financial impact. Schedule delays can arise from technical issues, supply chain disruptions, or regulatory hurdles, impacting the timely deployment of national security capabilities. While the firm fixed-price contract aims to cap costs, unforeseen technical challenges or scope changes could still lead to contract modifications and increased expenditure. Furthermore, reliance on a limited number of launch providers, even under competition, introduces a degree of dependency.
What is the track record of United Launch Services in fulfilling similar government contracts?
United Launch Services (ULS), a joint venture between Boeing and Lockheed Martin, has a long and established track record in supporting the U.S. government's space launch needs, particularly through the NSSL program. They have successfully executed numerous national security space launches, demonstrating reliability and technical proficiency. Their experience spans a wide range of payloads and mission requirements, contributing significantly to the operational readiness of defense and intelligence satellites. While specific performance metrics for individual contracts are not always publicly disclosed, ULS's continued selection for critical NSSL missions indicates a strong performance history and a high degree of confidence from the Department of Defense.
How does this contract contribute to the overall effectiveness of national security space capabilities?
This contract is fundamental to the effectiveness of national security space capabilities by ensuring the reliable and timely delivery of critical assets into orbit. These assets, such as intelligence-gathering satellites, communication platforms, and missile warning systems, are vital for maintaining situational awareness, command and control, and strategic deterrence. By securing launch services through a competitive process, the Department of Defense aims to achieve cost-efficiency while guaranteeing access to space. The successful execution of this contract directly supports the operational readiness and technological superiority of U.S. forces in an increasingly contested space domain.
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: $115,072,250
Exercised Options: $115,072,250
Current Obligation: $108,872,250
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2024-07-22
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-07-22
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