Space Force's $152M launch services contract awarded to United Launch Services, LLC
Contract Overview
Contract Amount: $152,181,170 ($152.2M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-03-09
End Date: 2026-04-02
Contract Duration: 1,850 days
Daily Burn Rate: $82.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPACE FORCE MISSION 87 LAUNCH SERVICES AND MISSION INTEGRATION
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $152.2 million to UNITED LAUNCH SERVICES, LLC for work described as: SPACE FORCE MISSION 87 LAUNCH SERVICES AND MISSION INTEGRATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1850 days indicates a long-term commitment for critical space launch services. 3. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 4. The award to a single entity, United Launch Services, LLC, warrants scrutiny regarding market concentration. 5. This contract supports the Department of Defense's broader mission objectives in space. 6. The North American Industry Classification System (NAICS) code 481212 points to nonscheduled chartered freight air transportation, which is a broad category for launch services.
Value Assessment
Rating: good
Benchmarking the value of this contract requires detailed analysis of launch service costs over the contract period. Given the firm fixed price structure, the government has a degree of cost certainty. However, without specific details on the number and type of launches included, a precise value-for-money assessment is challenging. Comparing this to other similar launch service contracts awarded by the Space Force or other agencies 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,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process. The number of bidders is not specified, but the fact that it was competed openly is a positive sign for price discovery and potentially achieving competitive pricing.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service offerings.
Public Impact
The primary beneficiary is the U.S. Space Force, which receives essential launch services for its missions. This contract enables the deployment of critical space assets, contributing to national security and defense capabilities. The services delivered are vital for maintaining U.S. dominance in the space domain. The geographic impact is primarily national, supporting federal space operations, though launch sites may be specific locations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for market concentration if United Launch Services, LLC is a dominant player in the launch services market.
- Dependence on a single provider for critical launch services could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Firm Fixed Price contract type provides cost certainty for the government.
- Long contract duration suggests a stable, long-term partnership for essential services.
Sector Analysis
The space launch services sector is a highly specialized and critical component of the aerospace industry. It involves the design, manufacturing, and operation of rockets and spacecraft for deploying payloads into orbit. This contract fits within the broader defense and national security sector, where reliable access to space is paramount. The market is characterized by high barriers to entry due to significant R&D costs, complex technology, and stringent safety requirements. Spending in this area is often driven by government needs for communication, intelligence, surveillance, reconnaissance, and navigation capabilities.
Small Business Impact
Information regarding small business set-asides or subcontracting plans for this contract is not provided in the data. Given the specialized nature and high cost of space launch services, it is possible that opportunities for small businesses are limited to specific components or support services rather than the primary launch operations. Further investigation into subcontracting requirements would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Air Force, which is the servicing agency for the Department of Defense. Accountability measures are inherent in the firm fixed price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- National Security Space Launch (NSSL) Program
- Space Systems Command Contracts
- Launch Services Contracts
- Department of Defense Space Programs
Risk Flags
- Potential for market concentration
- Dependence on a single provider for critical services
Tags
space-force, launch-services, united-launch-services-llc, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, colorado, defense-sector, aerospace, national-security, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $152.2 million to UNITED LAUNCH SERVICES, LLC. SPACE FORCE MISSION 87 LAUNCH SERVICES AND MISSION INTEGRATION
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 $152.2 million.
What is the period of performance?
Start: 2021-03-09. End: 2026-04-02.
What is the historical spending pattern for space launch services by the U.S. Space Force and its predecessors?
Historical spending on space launch services by the U.S. Space Force and its predecessors, such as the Air Force Space Command, has been substantial and has evolved significantly over time. Early programs often involved multiple providers and different contract structures. The advent of the National Security Space Launch (NSSL) program aimed to consolidate and streamline launch services, driving competition and cost efficiencies. Spending has been influenced by the number of national security satellites requiring launch, technological advancements, and the emergence of new launch providers. The total expenditure reflects the critical nature of space access for defense and intelligence missions, with significant investments made annually to ensure reliable launch capabilities. Analyzing past NSSL procurements and other related contracts would reveal trends in pricing, award values, and the number of launches procured over different fiscal years.
How does the awarded amount of $152 million compare to the typical cost of a single space launch?
The awarded amount of $152,181,170 for SPACE FORCE MISSION 87 LAUNCH SERVICES AND MISSION INTEGRATION represents the total value of the contract over its duration, not necessarily the cost of a single launch. The cost of a single space launch can vary dramatically depending on the rocket, payload size, launch site, and mission complexity. Historically, government-funded launches have ranged from tens of millions to over $200 million per launch. For instance, launches using heavy-lift vehicles for large national security payloads can command higher prices. This contract likely encompasses multiple launches or a suite of services including mission integration, ground support, and potentially research and development related to launch operations. Therefore, comparing the total contract value to a single launch cost requires understanding how many launches or services are included within this $152 million figure.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Specific Key Performance Indicators (KPIs) for this SPACE FORCE MISSION 87 LAUNCH SERVICES AND MISSION INTEGRATION contract are not detailed in the provided data. However, for space launch services, typical KPIs would likely include launch success rate (achieving target orbit), on-time launch performance, payload delivery accuracy, adherence to safety protocols, and mission completion within specified parameters. Performance measurement would involve rigorous post-mission analysis, review of telemetry data, and assessment of whether contractual requirements were met. The U.S. Space Force would monitor these metrics closely to ensure mission objectives are achieved and to evaluate the contractor's reliability and effectiveness. Contractual clauses would outline the specific metrics, reporting frequencies, and consequences for non-performance.
What is the track record of United Launch Services, LLC in fulfilling similar government contracts?
United Launch Services, LLC (ULS) has a significant track record in providing launch services for the U.S. government, particularly through its role in the National Security Space Launch (NSSL) program. ULS is a joint venture formed by Boeing and Lockheed Martin, leveraging the extensive experience and capabilities of its parent companies. They have been responsible for launching numerous national security, scientific, and commercial payloads. Their performance history generally includes a high success rate for launches, demonstrating reliability and technical expertise. However, like any major contractor in a complex field, they may have faced challenges or delays on specific missions. A thorough review of their past performance ratings, any contract disputes, or mission failures would provide a comprehensive understanding of their capabilities and reliability for this specific contract.
What are the potential risks associated with relying on a single provider for critical space launch services?
Relying on a single provider for critical space launch services, even one as established as United Launch Services, LLC, presents several potential risks. Firstly, there's the risk of market concentration, where the absence of direct competition could lead to complacency, reduced innovation, or less favorable pricing in future procurements. Secondly, operational risks are amplified; any technical failure, production issue, or unforeseen event affecting the sole provider could halt or delay critical national security missions. This dependence can also reduce the government's leverage in negotiations and performance management. While the current contract is firm fixed price, future procurements might be less competitive. Diversification of launch providers, where feasible, is often seen as a strategy to mitigate these risks and ensure resilience in space access.
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: $152,181,170
Exercised Options: $152,181,170
Current Obligation: $152,181,170
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2021-03-09
Current End Date: 2026-04-02
Potential End Date: 2026-04-02 00:00:00
Last Modified: 2025-12-19
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