DoD Awards $105M for National Security Space Launch Phase 2 to United Launch Services
Contract Overview
Contract Amount: $104,584,481 ($104.6M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-08
End Date: 2027-01-29
Contract Duration: 935 days
Daily Burn Rate: $111.9K/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 $104.6 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant contract value for critical space launch services. 2. United Launch Services is a key player in the national security space sector. 3. Potential risks include reliance on a single provider and long-term program costs. 4. Spending aligns with the defense sector's increasing reliance on space capabilities.
Value Assessment
Rating: good
The contract value of $104.6 million appears reasonable for a multi-year delivery order for complex space launch services. Benchmarking against similar large-scale launch contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and identify the most capable provider.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential national security space launch capabilities.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced satellite deployment and operations. Contributes to the U.S. strategic advantage in space.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term program dependency
- Potential for cost overruns in future phases
- Geopolitical risks impacting launch operations
Positive Signals
- Successful execution of critical national security missions
- Demonstrated capability in space launch services
- Competitive award process
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services for national security payloads. Spending in this area is driven by the increasing importance of space-based assets for intelligence, surveillance, and communication.
Small Business Impact
The provided data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract, ensuring adherence to terms and performance standards. Regular reporting and milestone reviews are expected to maintain accountability.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High cost of space launch services
- Dependence on a single contractor for critical missions
- Long-term program duration and potential for scope creep
- Geopolitical factors affecting launch availability and cost
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 $104.6 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 $104.6 million.
What is the period of performance?
Start: 2024-07-08. End: 2027-01-29.
What is the projected total cost for the entire National Security Space Launch Phase 2 program, and how does this $105M delivery order fit into that budget?
The provided data only details a single delivery order valued at $104.6 million. The total projected cost for the entire National Security Space Launch Phase 2 program is not specified here. Understanding the full program budget is crucial for assessing the long-term financial commitment and identifying potential budget risks or efficiencies across all phases.
What are the key performance metrics and risk mitigation strategies associated with this contract to ensure mission success and taxpayer value?
Key performance metrics likely include successful payload delivery, launch window adherence, and system reliability. Risk mitigation strategies would typically involve robust testing, contingency planning for launch anomalies, and clear contractual penalties for non-performance. Specific details on these are not provided but are essential for evaluating program effectiveness and accountability.
How does the pricing structure of this firm-fixed-price contract compare to industry benchmarks for similar national security space launch services?
The contract is firm-fixed-price, which shifts cost risk to the contractor. A direct comparison to industry benchmarks for similar services is needed to assess if the $104.6 million award represents good value. Factors like payload mass, orbital destination, and launch frequency influence pricing, making precise benchmarking complex but necessary for a thorough value assessment.
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: $104,584,481
Exercised Options: $104,584,481
Current Obligation: $104,584,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2024-07-08
Current End Date: 2027-01-29
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-08-21
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