DoD's $151.8M National Security Space Launch contract awarded to United Launch Services for vital satellite deployment
Contract Overview
Contract Amount: $151,824,643 ($151.8M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2022-08-18
Contract Duration: 364 days
Daily Burn Rate: $417.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH PHASE 2 LAUNCH SERVICES
Place of Performance
Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $151.8 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 LAUNCH SERVICES Key points: 1. Contract value represents a significant investment in national security space capabilities. 2. Awarded under full and open competition, suggesting a robust market for launch services. 3. Performance period of one year indicates a focused, short-term operational need. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract supports critical satellite launches for national security objectives. 6. Geographic focus on Colorado highlights a key operational hub.
Value Assessment
Rating: good
The contract value of $151.8 million for a one-year period for launch services appears reasonable given the specialized nature of national security space missions. Benchmarking against similar large-scale launch contracts is challenging due to the unique requirements and high stakes involved. However, the fixed-price structure suggests the government has negotiated a defined cost for the services, providing cost certainty. The absence of significant modifications or overruns in the provided data implies a well-managed initial award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, encouraging providers to offer their best pricing and technical solutions to win the contract. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest and capability.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring the government secures services at a competitive price point. It also promotes innovation as contractors vie for lucrative government contracts.
Public Impact
The primary beneficiaries are national security agencies requiring reliable satellite launch capabilities. Services delivered include the launch and deployment of critical national security payloads. Geographic impact is centered around launch facilities and operational command centers, primarily in Colorado. Workforce implications include highly skilled aerospace engineers, technicians, and support staff involved in launch operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during launch operations.
- Dependence on a single contractor for critical national security launch services could pose a risk.
- Geopolitical events could impact launch schedules or the availability of necessary components.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Fixed-price contract type provides cost certainty for the government.
- Contract supports vital national security space missions, ensuring critical capabilities are maintained.
- Contractor has a track record in the space launch industry (implied by award).
Sector Analysis
The National Security Space Launch (NSSL) program is a critical component of the U.S. defense and intelligence infrastructure, ensuring the deployment of vital satellites for communication, intelligence gathering, and navigation. This sector is characterized by high barriers to entry, significant technological complexity, and substantial government investment. The market is dominated by a few key players capable of meeting stringent national security requirements. This contract fits within the broader NSSL framework, which aims to ensure assured access to space for national security payloads.
Small Business Impact
The provided data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. It is unlikely that small businesses would be the prime contractors for such a large and complex launch services contract, though they may participate as subcontractors to the prime. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force, which manages the NSSL program. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract awards and performance reporting, though specific payload details may be classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Satellite Deployment Contracts
- Defense Space Acquisition
Risk Flags
- Potential for launch delays due to weather or technical issues.
- Dependence on a limited number of qualified launch providers for national security missions.
- High cost associated with space launch services.
Tags
defense, space, launch-services, national-security, department-of-defense, air-force, colorado, full-and-open-competition, firm-fixed-price, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $151.8 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH PHASE 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 $151.8 million.
What is the period of performance?
Start: 2021-08-19. End: 2022-08-18.
What is the historical spending trend for National Security Space Launch Phase 2 services?
Historical spending on National Security Space Launch (NSSL) Phase 2 services has been substantial, reflecting the critical nature of these missions. The program aims to ensure reliable and cost-effective access to space for national security payloads. While specific year-over-year figures for Phase 2 alone are not detailed here, the overall NSSL program has seen multi-billion dollar investments over its lifecycle. The transition from Phase 1 to Phase 2 involved evolving requirements and contractor capabilities. The $151.8 million awarded in this instance represents a portion of the overall annual expenditure for these vital launch services, which can fluctuate based on the number and complexity of missions scheduled.
How does the pricing of this contract compare to other similar launch service contracts?
Directly comparing the pricing of this $151.8 million contract to other launch service contracts is complex due to the unique nature of national security payloads and the stringent reliability requirements. The NSSL program, in general, aims for cost-effectiveness through competition. However, the specific per-launch cost or cost per kilogram to orbit is highly dependent on the payload mass, orbit insertion requirements, and the specific launch vehicle used. Given this is a fixed-price contract awarded under full and open competition, it suggests the government has negotiated a price deemed competitive within the specialized market for assured access to space for national security assets. Without detailed cost breakdowns or comparable mission profiles, a precise benchmark is difficult.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Key performance indicators (KPIs) for a National Security Space Launch contract typically revolve around mission success, schedule adherence, and cost control. For this specific contract, performance would be measured against the successful launch and delivery of the designated national security payload into the specified orbit by the contracted date. Adherence to safety protocols during launch operations is paramount. The fixed-price nature of the contract incentivizes the contractor to meet these objectives efficiently. While specific KPIs are often detailed in the contract's statement of work, the overarching goal is assured access to space for critical national security assets, measured by the successful completion of the launch mission within the agreed-upon parameters.
What is United Launch Services' track record with similar national security launch contracts?
United Launch Services, LLC (ULS) has a significant track record in supporting national security space launch missions. As a key provider within the NSSL program, ULS has been responsible for numerous successful launches of critical national security payloads for the Department of Defense and other government agencies. Their experience encompasses a wide range of launch vehicles and mission profiles, demonstrating a capability to meet the stringent requirements for reliability and performance demanded by national security space programs. The award of this contract further underscores their established position and demonstrated performance in this highly specialized and critical sector.
Are there any identified risks associated with the contractor or the specific services being procured?
Risks associated with this contract are multifaceted. From a contractor perspective, United Launch Services faces the inherent risks of launch operations, including technical failures, weather delays, and schedule disruptions, which are partially mitigated by the fixed-price contract structure. For the government, risks include dependence on a limited number of providers for critical national security assets, potential cost increases if scope changes, and the possibility of launch failures impacting national security capabilities. The highly specialized nature of space launch also means that a failure could have significant geopolitical and operational consequences. Continuous oversight and robust risk management by the procuring agency are essential to mitigate these potential issues.
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: $151,824,643
Exercised Options: $151,824,643
Current Obligation: $151,824,643
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2021-08-19
Current End Date: 2022-08-18
Potential End Date: 2022-08-18 00:00:00
Last Modified: 2022-07-07
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