DoD's $170.7M National Space Security Launch contract awarded to United Launch Services for air transportation
Contract Overview
Contract Amount: $170,743,415 ($170.7M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-08-19
End Date: 2025-08-19
Contract Duration: 365 days
Daily Burn Rate: $467.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SPACE SECURITY LAUNCH PHASE 2
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $170.7 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SPACE SECURITY LAUNCH PHASE 2 Key points: 1. Contract value represents a significant investment in national space security infrastructure. 2. Awarded under full and open competition, suggesting a robust market for launch services. 3. The firm-fixed-price structure aims to control costs and provide budget certainty. 4. Performance period of one year indicates a focus on immediate operational needs. 5. The contract's scope covers critical air transportation for space launch missions. 6. This award aligns with broader defense strategies for maintaining space superiority.
Value Assessment
Rating: good
The contract value of $170.7 million for one year of air transportation services appears reasonable given the specialized nature of national space security launches. Benchmarking against similar, highly specialized aerospace logistics contracts is challenging due to limited public data. However, the firm-fixed-price nature suggests that the government has negotiated a set price, which can be advantageous for cost control. The absence of extensive modifications or change orders, if observed over the contract's life, would further indicate good value.
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 allowed to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive more favorable pricing and service offerings for the government. The open competition suggests that the market for these specialized launch support services is sufficiently developed to support multiple providers.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices through market forces and encourages innovation among contractors vying for the award.
Public Impact
The primary beneficiaries are national security agencies requiring reliable access to space for critical missions. Services delivered include essential air transportation for components or personnel related to space launches. The geographic impact is likely concentrated around launch facilities and associated logistical hubs. Workforce implications may include specialized roles in aerospace logistics, air cargo management, and mission support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen logistical challenges arise during the contract period.
- Dependence on a single contractor for critical launch support could pose a risk if performance falters.
- Ensuring continued competition for future phases or similar contracts is important for long-term value.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
- Firm-fixed-price contract type provides cost certainty and limits the government's exposure to price increases.
- The contract supports critical national security space launch missions, aligning with strategic defense objectives.
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and stringent regulatory requirements. This contract falls within the specialized niche of launch support services, which is a critical component of the broader space industry. The market size for such specialized launch logistics is difficult to quantify precisely but is intrinsically linked to government and commercial space launch activities. Comparable spending benchmarks are scarce due to the unique nature of national security space missions.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Given the specialized and high-value nature of national space security launch support, it is less likely that small businesses would be primary awardees for the prime contract, though they may participate as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within the performance of this contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are embedded within the firm-fixed-price contract structure, which incentivizes the contractor to meet performance standards within the agreed-upon budget. Transparency may be limited due to the sensitive nature of national security space missions, but standard contract reporting and performance reviews should be in place. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch (NSSL)
- Space Force Launch Services
- Aerospace Logistics Support
- Defense Transportation Services
Risk Flags
- Potential for schedule delays impacting launch operations.
- Security risks associated with transporting sensitive space-related materials.
- Dependence on specialized air assets and personnel.
Tags
defense, department-of-defense, air-force, space-launch, air-transportation, freight-transportation, firm-fixed-price, full-and-open-competition, national-security, colorado, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $170.7 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SPACE SECURITY 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $170.7 million.
What is the period of performance?
Start: 2024-08-19. End: 2025-08-19.
What is the historical spending pattern for similar national space security launch air transportation contracts awarded by the Department of Defense?
Analyzing historical spending for 'NATIONAL SPACE SECURITY LAUNCH PHASE 2' and similar contracts requires access to detailed procurement databases. However, the Department of Defense, particularly through the Space Force and Air Force, has consistently invested billions in space launch capabilities. This includes contracts for launch vehicles, ground support, and critical mission assurance services. Spending in this area fluctuates based on geopolitical factors, technological advancements, and the cadence of satellite deployment. The 'NATIONAL SPACE SECURITY LAUNCH PHASE 2' contract, valued at $170.7 million over one year, represents a significant, albeit specific, portion of this broader investment. Without specific historical contract data for comparable air transportation services directly tied to launch phases, it's difficult to establish a precise trend. However, the consistent need for secure and reliable space access suggests ongoing, substantial budgetary allocations for related support services.
How does the awarded price of $170.7 million compare to market rates for specialized aerospace air cargo and logistics services?
Benchmarking the $170.7 million contract value against general market rates for specialized aerospace air cargo and logistics is challenging due to the unique requirements of national space security launches. These missions often demand highly secure, time-sensitive, and specialized handling of sensitive payloads or components, which command premium pricing compared to standard commercial air freight. Factors such as specific aircraft modifications, rigorous security protocols, expedited scheduling, and the need for experienced personnel contribute to higher costs. While specific market rate data for comparable government launch support air transportation is not publicly available, the firm-fixed-price nature of this award suggests that the government has negotiated a price deemed acceptable based on anticipated costs and competitive proposals. The value should be assessed in the context of the mission's criticality and the specialized capabilities required, rather than general air cargo rates.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure mission success?
While the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this 'NATIONAL SPACE SECURITY LAUNCH PHASE 2' contract are not detailed in the provided data, they are crucial for ensuring mission success in national security space launches. Typically, such contracts would include stringent requirements related to on-time delivery of critical components or personnel, adherence to strict security protocols during transit, maintenance of payload integrity (e.g., temperature, vibration control), and rapid response capabilities for schedule changes or contingencies. Performance metrics might also cover aircraft availability, crew qualifications, and compliance with all relevant aviation and security regulations. The firm-fixed-price structure implies that the contractor is financially incentivized to meet these KPIs and SLAs, as failure to do so could result in penalties or impact future contract awards. The Department of the Air Force would be responsible for monitoring and enforcing these performance standards throughout the contract duration.
What is the track record of United Launch Services, LLC in performing similar high-value, mission-critical air transportation contracts for the Department of Defense?
United Launch Services, LLC (ULS) has a significant track record, particularly in supporting the U.S. Air Force and Space Force with launch services. While the provided data specifies this contract is for 'Nonscheduled Chartered Freight Air Transportation' related to space launch, ULS is primarily known for its role in providing launch vehicle services through contracts like the National Security Space Launch (NSSL) program. Their experience involves managing complex launch campaigns, which inherently requires sophisticated logistical planning and execution, including air transportation of components and personnel. Assessing their specific track record for *this type* of air transportation service requires a deeper dive into their past performance on similar contracts, including on-time delivery rates, incident reports, and overall mission support effectiveness. However, their established presence and long-standing relationship with the DoD in the space launch domain suggest a foundational capability to manage such critical logistical operations.
Are there any identified risks or challenges associated with the contractor's ability to fulfill the requirements of this contract?
The primary risks associated with this contract would likely revolve around the inherent complexities of national security space launch logistics. These can include potential delays due to weather, technical issues with aircraft or launch infrastructure, or unforeseen geopolitical events impacting launch schedules. For the contractor, United Launch Services, LLC, risks might include managing the stringent security requirements, ensuring the availability of specialized aircraft and personnel, and adapting to potentially volatile launch timelines. The firm-fixed-price nature of the contract means that cost overruns due to these risks would primarily be borne by the contractor, which could incentivize meticulous planning but also potentially lead to performance compromises if margins are too thin. The government's risk is primarily centered on mission success and timely execution, which is mitigated through contract oversight and performance monitoring.
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: $170,743,415
Exercised Options: $170,743,415
Current Obligation: $170,743,415
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881120D0001
IDV Type: IDC
Timeline
Start Date: 2024-08-19
Current End Date: 2025-08-19
Potential End Date: 2025-08-19 00:00:00
Last Modified: 2025-11-20
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