DoD Awards $222M for National Security Space Launch Services to United Launch Services
Contract Overview
Contract Amount: $222,294,889 ($222.3M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-29
End Date: 2028-02-28
Contract Duration: 1,005 days
Daily Burn Rate: $221.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $222.3 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES Key points: 1. Significant investment in critical national security space launch capabilities. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Risk is moderate, tied to launch success and evolving space technology. 4. Sector is primarily IT and Defense, supporting satellite deployment.
Value Assessment
Rating: good
The award amount of $222.3M for launch services appears reasonable given the complexity and criticality of national security space missions. Benchmarking against similar large-scale launch contracts would provide a more 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 generally expected to drive competitive pricing and ensure fair market value.
Taxpayer Impact: Taxpayer funds are being used to secure essential launch services for national security assets, ensuring critical capabilities are maintained.
Public Impact
Ensures continued access to space for vital national security satellites. Supports the development and deployment of advanced space-based technologies. Contributes to the readiness and operational effectiveness of defense systems. Potential for technological advancements in launch vehicle capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single provider for critical launch phases.
- Potential for cost overruns in complex, high-risk missions.
- Geopolitical risks impacting supply chains or launch operations.
Positive Signals
- Commitment to full and open competition.
- Investment in advanced national security space capabilities.
- Long-term contract provides stability for service providers.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services for national security payloads. Spending benchmarks in this area are highly variable due to mission complexity and technological advancements.
Small Business Impact
The provided data does not indicate specific subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The 'Full and Open Competition' award method suggests a structured procurement process, but ongoing monitoring of performance and costs is crucial.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High-value contract for critical national security assets.
- Long-term duration increases exposure to market and technological shifts.
- Dependence on specialized launch capabilities.
- Potential for scope creep or change orders in complex missions.
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 $222.3 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES
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 $222.3 million.
What is the period of performance?
Start: 2025-05-29. End: 2028-02-28.
What is the projected cost per launch under this contract, and how does it compare to industry averages for similar missions?
The total award is $222.3 million over a period of approximately 3 years. Without knowing the exact number of launches anticipated, a precise per-launch cost cannot be determined. However, this figure should be benchmarked against historical NSSL contracts and commercial launch costs for comparable payload masses and orbital destinations to assess value.
What are the primary technical and programmatic risks associated with these launch services, and what mitigation strategies are in place?
Key risks include launch failures, schedule delays due to technical issues or supply chain disruptions, and the evolving threat landscape impacting space assets. Mitigation strategies likely involve rigorous testing, redundancy in critical systems, robust mission assurance protocols, and contingency planning by both the government and the contractor.
How effectively does this contract ensure the reliable and timely delivery of national security payloads to their intended orbits?
The contract's focus on 'Full and Open Competition' and a fixed-price structure aims to incentivize reliability and timely delivery. The long-term nature and significant investment suggest a strong commitment to ensuring these capabilities are met, though ongoing performance monitoring is essential.
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: $222,294,889
Exercised Options: $222,294,889
Current Obligation: $222,294,889
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881125DB003
IDV Type: IDC
Timeline
Start Date: 2025-05-29
Current End Date: 2028-02-28
Potential End Date: 2033-04-04 00:00:00
Last Modified: 2025-06-27
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