DoD Awards $1.57 Billion for National Security Space Launch Phase 2 to United Launch Services
Contract Overview
Contract Amount: $156,745,867 ($156.7M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-19
End Date: 2024-08-18
Contract Duration: 365 days
Daily Burn Rate: $429.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH PHASE 2
Place of Performance
Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $156.7 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH PHASE 2 Key points: 1. Significant contract value highlights the importance of space launch capabilities. 2. United Launch Services is a key player in the national security space sector. 3. Potential risks include launch failures, technological obsolescence, and geopolitical factors. 4. Spending is concentrated in the Defense sector, specifically aerospace and launch services.
Value Assessment
Rating: good
The contract value of $1.57 billion for a one-year period suggests a substantial investment. Benchmarking against similar large-scale space launch contracts would be necessary for a precise assessment, but the scale indicates a significant but potentially competitive price point given the specialized nature of the service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to drive price discovery and ensure the government receives competitive pricing for these critical launch services.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment among qualified providers.
Public Impact
Ensures continued access to space for critical national security missions. Supports advanced technological development in the space launch industry. Contributes to the readiness and operational capabilities of the U.S. military. Potential for job creation in the aerospace and defense sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single contractor for a critical phase.
- Potential for cost overruns in complex space missions.
- Geopolitical risks impacting launch schedules or capabilities.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type provides cost certainty.
- Long-term strategic importance for national security.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space launch services. Spending in this area is crucial for maintaining national security and technological superiority in space, with significant investments typically seen in R&D and procurement of launch vehicles and related infrastructure.
Small Business Impact
While the primary contractor is United Launch Services, LLC, the contract's execution likely involves numerous subcontractors. Opportunities for small businesses may exist in specialized component manufacturing, support services, or technology development, though the prime contract is not directly awarded to an SMB.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for contract administration, ensuring compliance with terms and conditions. Oversight is critical to monitor performance, manage risks, and ensure the effective use of taxpayer funds for these high-value national security assets.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High contract value increases financial risk.
- Dependence on a single provider for critical services.
- Complexity of space launch operations introduces technical risks.
- Potential for schedule delays impacting national security operations.
- Geopolitical instability could affect supply chains or launch operations.
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 $156.7 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH PHASE 2
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $156.7 million.
What is the period of performance?
Start: 2023-08-19. End: 2024-08-18.
What is the historical cost performance of United Launch Services on similar national security space launch contracts?
Analyzing the historical cost performance of United Launch Services on comparable contracts is crucial for assessing value. Past performance data, including any instances of cost overruns or savings, can provide insights into the contractor's ability to manage complex projects within budget. This information helps determine if the current firm fixed price is realistic and if the government is likely to achieve its desired value for money.
What are the specific technological risks associated with Phase 2 of the National Security Space Launch program?
Phase 2 likely involves advanced launch systems and payloads, introducing risks such as launch failures, integration issues with new technologies, and potential obsolescence of existing systems. Understanding these specific technological risks allows for better risk mitigation strategies, contingency planning, and ensures that the program remains adaptable to evolving threats and technological advancements in the space domain.
How effectively does this contract support the long-term strategic goals of the U.S. for space dominance?
This contract's effectiveness in supporting long-term space dominance hinges on its ability to ensure reliable, timely, and cost-efficient access to space for critical national security assets. It must foster innovation and maintain a competitive industrial base. Continuous evaluation of mission success rates, technological advancements, and the overall health of the space launch sector will determine its strategic impact.
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: $156,745,867
Exercised Options: $156,745,867
Current Obligation: $156,745,867
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2023-08-19
Current End Date: 2024-08-18
Potential End Date: 2024-08-18 00:00:00
Last Modified: 2024-09-12
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