DoD awards $15M contract for space launch services to ABL Space Systems, highlighting a competitive procurement

Contract Overview

Contract Amount: $14,999,988 ($15.0M)

Contractor: ABL Space Systems Company

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2026-01-31

Contract Duration: 866 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STRATFI SBIR II ABL

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to ABL SPACE SYSTEMS COMPANY for work described as: STRATFI SBIR II ABL Key points: 1. The contract value of $15 million appears reasonable for specialized space launch services. 2. Full and open competition was utilized, suggesting a robust market for these services. 3. The contract duration of over two years indicates a sustained need for launch capabilities. 4. The firm-fixed-price structure shifts risk to the contractor, potentially benefiting the government. 5. This award fits within the broader context of increasing commercial space capabilities for defense applications.

Value Assessment

Rating: good

The $15 million contract value for space launch services is within a typical range for this type of specialized, high-risk, high-reward undertaking. Benchmarking against similar contracts for small to medium-lift launch vehicles is challenging due to the nascent and rapidly evolving nature of the commercial space industry. However, the firm-fixed-price nature of the award suggests that ABL Space Systems has confidence in its ability to meet the defined requirements within the allocated budget, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple potential offerors were considered, and the exclusion of specific sources was justified. This competitive process is designed to ensure that the government receives the best value by allowing a wide range of qualified companies to bid. The specific number of bidders is not detailed, but the designation implies a deliberate effort to maximize competition.

Taxpayer Impact: A competitive procurement process like this generally leads to better pricing for taxpayers by fostering a market where contractors must offer compelling value to win awards.

Public Impact

This contract directly supports the Department of Defense's strategic objectives for space-based capabilities. It enables the launch of critical payloads, enhancing national security and defense operations. The services provided are essential for maintaining a robust and responsive space architecture. The contract may indirectly support a specialized workforce in the aerospace and launch sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for launch delays or failures inherent in novel rocket technology.
Dependence on a single contractor for specific launch services could pose a risk if not managed.
The evolving nature of the commercial space sector may introduce unforeseen technical challenges.

Positive Signals

Firm-fixed-price contract aligns incentives and limits cost overruns for the government.
Award to a company with demonstrated capabilities in space launch technology.
Competitive procurement process suggests a healthy market and potential for future innovation.

Sector Analysis

The space launch sector is a rapidly growing and increasingly competitive market, driven by both commercial and governmental demand. This contract falls within the broader aerospace and defense industry, specifically focusing on launch services. The market is characterized by significant technological innovation, high capital investment, and a growing number of private companies vying for contracts. The Department of Defense is a key customer, seeking reliable and cost-effective access to space for national security purposes.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, ABL Space Systems, is not identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the broader ecosystem of aerospace suppliers may include small businesses that could potentially support ABL Space Systems' operations.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms, including review by the Department of Defense's contracting officers and potentially the Government Accountability Office (GAO) if protests arise. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling for costs. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Security Space Launch (NSSL)
Space Force Launch Services
Commercial Satellite Launch Contracts
DoD Space Acquisition Programs

Risk Flags

Technology Readiness Level
Schedule Risk
Performance Risk
Contractor Capability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to ABL SPACE SYSTEMS COMPANY. STRATFI SBIR II ABL

Who is the contractor on this award?

The obligated recipient is ABL SPACE SYSTEMS COMPANY.

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 $15.0 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-01-31.

What is ABL Space Systems' track record with previous government contracts, particularly for launch services?

Information regarding ABL Space Systems' prior government contract history, especially for launch services, is limited in publicly accessible databases. While this is a definitive contract award, indicating a selection based on perceived capability, a deeper dive into their performance on any previous, smaller contracts or research and development grants would provide further insight into their reliability and execution capabilities. The SBIR II designation suggests prior engagement with government R&D funding, which is a positive indicator of their technological development pathway. However, extensive experience with large-scale, operational launch contracts may still be developing for the company.

How does the $15 million contract value compare to similar space launch service contracts awarded by the DoD or other federal agencies?

Direct comparisons for space launch services are complex due to the variability in payload size, launch vehicle type, mission requirements, and the maturity of the launch provider. The $15 million figure for this contract appears to be in the mid-range for services involving smaller to medium-lift launch vehicles or specific payload integration. Larger, more established programs like the National Security Space Launch (NSSL) often involve contracts in the hundreds of millions or billions of dollars for multiple launches. This award to ABL Space Systems suggests a focus on a specific, potentially smaller-scale or developmental launch need, where the price reflects the scope of services and the technology readiness level of the provider.

What are the primary risks associated with this specific contract, and how are they being mitigated?

The primary risks associated with this contract likely stem from the inherent technical and schedule uncertainties in rocket development and launch operations. ABL Space Systems is utilizing its RS1 launch vehicle, which may still be in the process of achieving full operational capability and flight heritage. Risks include potential launch failures, delays due to technical issues or range availability, and performance shortfalls. Mitigation strategies are likely embedded in the contract's firm-fixed-price structure, which incentivizes the contractor to manage costs and risks effectively. Performance milestones, quality assurance provisions, and potentially government oversight of critical testing phases would also serve as mitigation measures.

What is the expected effectiveness of the services provided under this contract in meeting the DoD's space-related objectives?

The effectiveness of the services under this contract hinges on ABL Space Systems' ability to successfully execute launches and deliver payloads to their intended orbits as specified. For the DoD, these launches are crucial for deploying assets that support national security, intelligence gathering, and communication capabilities. The contract's success will be measured by the reliability of the launches, the accuracy of payload delivery, and the overall contribution to the DoD's space architecture. Given the competitive nature of the award and the firm-fixed-price terms, there is a strong expectation that the services will be delivered effectively to meet defined mission requirements.

How does historical spending on similar 'Nonscheduled Chartered Freight Air Transportation' services compare to this specific award?

The classification 'Nonscheduled Chartered Freight Air Transportation' (NAICS 481212) is broad and can encompass a wide range of air transport services, not exclusively space launches. While this contract involves air transportation in a sense, its primary function is space launch, which is a highly specialized segment. Historical spending under this NAICS code might show significant volumes for conventional cargo chartering. However, direct comparison to this $15 million space launch contract is difficult because the underlying service, technology, and market dynamics are vastly different. Space launch contracts are typically valued higher per operation due to complexity and risk, and are often categorized separately within defense or aerospace spending analyses.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 224 OREGON ST, EL SEGUNDO, CA, 90245

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,999,988

Exercised Options: $14,999,988

Current Obligation: $14,999,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline