NASA awards $1.48B to Boeing for launch services over 13 years under full and open competition
Contract Overview
Contract Amount: $1,479,004,527 ($1.5B)
Contractor: United Launch Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-06-16
End Date: 2013-06-30
Contract Duration: 4,762 days
Daily Burn Rate: $310.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BOEING LAUNCH SERVICES, INC.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.48 billion to UNITED LAUNCH SERVICES, LLC for work described as: BOEING LAUNCH SERVICES, INC. Key points: 1. Significant contract value of $1.48 billion highlights major investment in space launch capabilities. 2. Competition was full and open, suggesting a robust market for these services. 3. Risk appears moderate given the long duration and firm fixed-price structure. 4. Sector is aerospace/defense, a critical area for national security and scientific advancement.
Value Assessment
Rating: good
The contract value of $1.48 billion over approximately 13 years suggests a substantial but potentially competitive price point for complex launch services. Benchmarking against similar large-scale government launch contracts would be necessary for a definitive 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 competitive process is expected to drive price discovery and ensure fair market value for the services provided.
Taxpayer Impact: The competitive nature of this award likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
Supports critical national space exploration and scientific missions. Ensures continued access to space for government payloads. Contributes to the aerospace industry's technological development and workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may expose the government to evolving technological risks.
- Firm fixed-price contracts can shift cost overrun risks to the contractor.
Positive Signals
- Full and open competition promotes market efficiency.
- Award to established provider suggests reliability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on launch services. Spending in this area is often driven by national security, scientific research, and commercial satellite deployment needs. Benchmarks are highly variable based on payload size and mission complexity.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large contracts like this are typically awarded to major aerospace corporations, with small businesses often participating as subcontractors.
Oversight & Accountability
The award was managed by NASA, a civilian agency with established procurement processes. Oversight would focus on contract performance, adherence to specifications, and financial accountability throughout the contract lifecycle.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Long contract duration
- Firm fixed-price structure
- Reliance on specific launch vehicle technology
- Potential for schedule delays in complex missions
Tags
national-aeronautics-and-space-administr, fl, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.48 billion to UNITED LAUNCH SERVICES, LLC. BOEING LAUNCH SERVICES, INC.
Who is the contractor on this award?
The obligated recipient is UNITED LAUNCH SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $1.48 billion.
What is the period of performance?
Start: 2000-06-16. End: 2013-06-30.
What was the average annual cost per launch under this contract?
The total award of $1.48 billion over approximately 4762 days (about 13 years) averages to roughly $113 million per year. However, without knowing the number of launches planned within this period, a per-launch cost cannot be determined. This figure represents the total contract value, not necessarily the cost of individual launch events.
What are the primary risks associated with a 13-year launch services contract?
Key risks include technological obsolescence, as launch vehicle technology evolves rapidly. Geopolitical shifts could impact supply chains or international cooperation. Furthermore, the long duration increases the potential for unforeseen economic fluctuations or changes in mission requirements that may not be fully captured in the initial firm fixed-price agreement.
How does the firm fixed-price structure impact the effectiveness of this contract?
A firm fixed-price contract provides cost certainty for the government, as the price is set upfront. This structure incentivizes the contractor to manage costs efficiently to maximize profit. However, it can also lead to less flexibility if requirements change, and the contractor bears the risk of cost overruns, potentially impacting their willingness to absorb minor scope adjustments.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: United Launch Alliance, L.L.C (UEI: 601307601)
Address: 9100 E MINERAL CIR, CENTENNIAL, CO, 80112
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,000,000,000
Exercised Options: $1,479,004,527
Current Obligation: $1,479,004,527
Timeline
Start Date: 2000-06-16
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2015-07-01
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