DoD's $205M National Security Space Launch contract awarded to United Launch Services for critical satellite deployment
Contract Overview
Contract Amount: $205,327,793 ($205.3M)
Contractor: United Launch Services, LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-30
End Date: 2029-08-29
Contract Duration: 1,552 days
Daily Burn Rate: $132.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES
Place of Performance
Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $205.3 million to UNITED LAUNCH SERVICES, LLC for work described as: NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 2 LAUNCH SERVICES Key points: 1. Contract provides essential launch services for national security space missions, ensuring critical asset deployment. 2. Awarded under a full and open competition, suggesting a competitive bidding process for these vital services. 3. The contract duration of over 4 years indicates a long-term commitment to reliable space launch capabilities. 4. Fixed-price contract type helps mitigate cost uncertainty for the government. 5. The specific North American Industry Classification System (NAICS) code 481212 points to nonscheduled chartered freight air transportation, relevant for payload delivery. 6. This contract is part of a larger framework for ensuring access to space for national security objectives.
Value Assessment
Rating: good
Benchmarking the value of this specific delivery order is challenging without knowing the exact services rendered and the number of competing bids. However, the firm-fixed-price structure is generally favorable for cost control. The total award amount of $205.3 million over approximately four years suggests a significant investment in national security space capabilities. Further analysis would require comparing this to similar launch service contracts awarded under the NSSL program to assess if the pricing is competitive for the scope of services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. This approach is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The specific number of bidders and the details of the evaluation process would provide further insight into the intensity of the competition and its impact on the final award.
Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple providers to offer their best pricing and capabilities, aiming to secure the most cost-effective solution for essential government services.
Public Impact
The primary beneficiaries are agencies within the Department of Defense requiring secure and reliable access to space for national security missions. Services delivered include the launch of satellites and other space-based assets critical for intelligence, surveillance, reconnaissance, and communication. The geographic impact is national, supporting defense operations and national security interests across the globe. Workforce implications include highly skilled jobs in aerospace engineering, launch operations, and program management within the contractor's organization and supporting industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during launch campaigns.
- Dependence on a single contractor for specific launch capabilities could pose a risk if that contractor faces operational issues.
- Geopolitical events could impact launch schedules or the availability of launch sites.
Positive Signals
- Awarded under a competitive process, suggesting a strong value proposition from the selected contractor.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long contract duration indicates a stable and reliable partnership for critical national security needs.
- The contract supports the vital mission of national security space operations.
Sector Analysis
The National Security Space Launch (NSSL) program is a critical component of the U.S. space industrial base, ensuring reliable and affordable access to space for national security payloads. This sector is characterized by high barriers to entry, significant technological complexity, and substantial government investment. The NSSL program specifically aims to foster a competitive environment among launch providers to meet the diverse and demanding requirements of national security space missions. Spending in this sector is substantial, reflecting the strategic importance of space-based assets for defense and intelligence.
Small Business Impact
The provided data does not indicate any specific small business set-asides or subcontracting requirements for this particular delivery order. However, large prime contractors in the aerospace and defense sector are often required to meet small business subcontracting goals on their overall contracts. Further investigation into the prime contract's terms and conditions would be necessary to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force, which is part of the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- National Security Space Launch (NSSL) Program
- Space Force Launch Services
- Satellite Deployment Contracts
- Defense Space Acquisition Programs
Risk Flags
- Potential for launch delays impacting national security timelines.
- Technical risks associated with complex launch operations.
- Dependence on a single provider for specific launch requirements.
Tags
defense, department-of-defense, air-force, space-launch, national-security, firm-fixed-price, full-and-open-competition, delivery-order, colorado, aerospace, satellite-deployment, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $205.3 million to UNITED LAUNCH SERVICES, LLC. NATIONAL SECURITY SPACE LAUNCH (NSSL) PHASE 3 LANE 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 $205.3 million.
What is the period of performance?
Start: 2025-05-30. End: 2029-08-29.
What is the historical spending pattern for United Launch Services under the NSSL program?
Analyzing historical spending for United Launch Services (ULS) under the National Security Space Launch (NSSL) program requires access to detailed contract award data beyond this single delivery order. ULS, often operating as a joint venture or through its predecessor entities, has been a long-standing provider of launch services for national security missions. Past NSSL phases and related contracts would reveal trends in award values, frequency, and the types of missions supported. Understanding this history provides context for the current $205.3 million award, helping to assess if it aligns with previous investment levels and the evolving demands of national security space objectives. Without specific historical data points for ULS within NSSL, a comprehensive trend analysis is not possible.
How does the pricing of this contract compare to other NSSL Phase 3 launch service awards?
Directly comparing the pricing of this $205.3 million delivery order to other NSSL Phase 3 awards is difficult without knowing the specific services and number of launches included. NSSL Phase 3 is structured with multiple lanes and providers, each potentially having different pricing models based on mission complexity, payload mass, and launch cadence. To perform a valid comparison, one would need to identify awards for similar launch profiles (e.g., same payload class, similar orbital destinations) awarded to different providers or even to ULS itself under different task orders. Benchmarking would involve analyzing the cost per launch or cost per kilogram to orbit, adjusted for mission-specific factors. The firm-fixed-price nature of this award suggests a defined cost structure, but the overall value is contingent on the scope of work.
What are the key performance indicators (KPIs) used to evaluate United Launch Services' performance on this contract?
Key Performance Indicators (KPIs) for a contract like the National Security Space Launch (NSSL) Phase 3 delivery order typically focus on mission success, schedule adherence, and cost control. For launch services, mission success is paramount, measured by the successful deployment of the payload into the intended orbit. Schedule adherence involves launching within the agreed-upon timeframes, which are critical for national security operations. Cost control, while mitigated by the firm-fixed-price structure, may involve monitoring for any deviations or claims. Other potential KPIs could include safety metrics, reliability of launch vehicles, and responsiveness to government requirements. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and are crucial for assessing the contractor's performance and ensuring value for taxpayer money.
What is the risk profile associated with relying on United Launch Services for these critical launch capabilities?
The risk profile associated with relying on United Launch Services (ULS) for critical launch capabilities involves several factors. As a major provider in the NSSL program, ULS carries significant responsibility. Potential risks include technical failures during launch, which could result in payload loss and mission failure. Schedule delays, caused by technical issues, supply chain disruptions, or regulatory hurdles, can impact national security timelines. Furthermore, the financial stability and operational capacity of ULS are crucial; any significant disruption to their operations could have cascading effects. However, ULS has a long history and extensive experience, which mitigates some of these risks. The competitive nature of the NSSL program also provides some resilience, as other providers exist, though this specific award is to ULS.
How does this contract contribute to the overall capacity and readiness of the U.S. national security space launch enterprise?
This $205.3 million delivery order for National Security Space Launch (NSSL) Phase 3 services directly contributes to the operational capacity and readiness of the U.S. national security space launch enterprise by securing essential launch services. It ensures that critical satellites and space-based assets, vital for intelligence, communication, and defense, can be reliably delivered to orbit. By funding these services through a competitive process, the Department of Defense (DoD) maintains a robust and responsive launch capability. This contract helps sustain the infrastructure, workforce, and technological base necessary for frequent and successful national security space missions, thereby bolstering overall readiness and ensuring the U.S. maintains its strategic advantage in space.
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: $205,327,793
Exercised Options: $205,327,793
Current Obligation: $205,327,793
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881125DB003
IDV Type: IDC
Timeline
Start Date: 2025-05-30
Current End Date: 2029-08-29
Potential End Date: 2033-04-04 00:00:00
Last Modified: 2025-06-27
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