NASA's $1.46B Launch Services Contract Awarded to United Launch Services, LLC
Contract Overview
Contract Amount: $1,463,557,456 ($1.5B)
Contractor: United Launch Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-06-16
End Date: 2015-07-13
Contract Duration: 5,505 days
Daily Burn Rate: $265.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NASA LAUNCH SERVICES
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.46 billion to UNITED LAUNCH SERVICES, LLC for work described as: NASA LAUNCH SERVICES Key points: 1. Significant contract value of $1.46 billion for launch services. 2. Competition was full and open, indicating a competitive bidding process. 3. Potential risks include reliance on a single contractor for critical services. 4. Spending falls within the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: good
The contract value of $1.46 billion over its period of performance suggests a substantial investment. Benchmarking against similar large-scale launch service contracts would be necessary for a precise pricing assessment, but the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing multiple bidders to participate. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for these critical launch services.
Public Impact
Supports critical space exploration and satellite deployment missions for NASA. Ensures continued access to space for national security and scientific endeavors. Impacts the aerospace industry by providing significant business to a key contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive (over 15 years).
- Potential for cost overruns if fixed-price contract terms are not strictly managed.
- Dependence on a single provider could lead to supply chain vulnerabilities.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type helps control costs.
- Supports vital national space programs.
Sector Analysis
This contract falls under the Guided Missile and Space Vehicle Manufacturing sector, a high-tech industry with significant R&D investment. Spending benchmarks for similar large-scale launch service contracts would indicate if this award is within typical ranges.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The nature of large-scale launch services often favors established prime contractors, potentially limiting direct small business participation unless they are subcontractors.
Oversight & Accountability
The contract was awarded by the National Aeronautics and Space Administration (NASA), a federal agency with established oversight mechanisms. The firm fixed-price structure and competitive award process contribute to accountability.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Long contract duration increases exposure to market and technological changes.
- Potential for contractor performance issues impacting mission success.
- Reliance on a single contractor for critical launch capabilities.
- Firm fixed-price contracts can be challenging to manage if scope creep occurs.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, fl, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.46 billion to UNITED LAUNCH SERVICES, LLC. NASA LAUNCH SERVICES
Who is the contractor on this award?
The obligated recipient is UNITED LAUNCH SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $1.46 billion.
What is the period of performance?
Start: 2000-06-16. End: 2015-07-13.
What specific launch services are covered under this contract, and how do they align with NASA's strategic objectives?
This contract likely covers a range of launch services, including payload integration, launch vehicle procurement, and mission operations for satellites and spacecraft. These services are fundamental to NASA's scientific research, Earth observation, and exploration missions, ensuring the agency can deploy critical assets into orbit to achieve its strategic goals.
What are the key performance indicators (KPIs) and risk mitigation strategies in place for this contract?
Key performance indicators would likely include on-time launch success rates, payload delivery accuracy, and adherence to safety protocols. Risk mitigation strategies might involve detailed mission planning, redundant system checks, contingency plans for launch delays or failures, and robust contractor performance monitoring by NASA.
How does the cost of this contract compare to historical launch service expenditures by NASA and other government agencies?
A comprehensive comparison would require detailed cost data from similar contracts. However, the $1.46 billion figure over a long period suggests a significant but potentially competitive investment, especially considering the complexity and criticality of space launches. Benchmarking against industry averages for payload mass and orbital destination is crucial.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: United Launch Alliance, L.L.C (UEI: 601307601)
Address: 9100 E MINERAL CIR, CENTENNIAL, CO, 80112
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,500,000,000
Exercised Options: $1,463,557,456
Current Obligation: $1,463,557,456
Timeline
Start Date: 2000-06-16
Current End Date: 2015-07-13
Potential End Date: 2015-07-13 00:00:00
Last Modified: 2016-03-04
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