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Space-X Breaks ULA Monopoly to Launch USAF GPS Satellite

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S'toon

Knows where his towel is
Apr 23, 2015
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The U.S. Air Force on Wednesday awarded billionaire Elon Musk’s SpaceX an $83 million contract to launch a GPS satellite, breaking the monopoly that Lockheed Martin Corp and Boeing Co have held on military space launches for more than a decade.

The Global Positioning System satellite will be launched in May 2018 from Florida, Air Force officials said.

The fixed-price award is the military’s first competitively sourced launch service contract in more than a decade. It ends the exclusive relationship between the military and United Launch Alliance, a partnership of Lockheed Martin and Boeing.

ULA did not compete for the GPS launch contract, citing accounting issues, implications of trade sanctions limiting imports of its rockets’ Russian-made engines and, according to a former ULA vice president, SpaceX’s cut-rate pricing.

“This GPS III Launch Services contract award achieves a balance between mission success, meeting operational needs, lowering launch costs, and reintroducing competition for National Security Space missions,” Lieutenant General Samuel Greaves, who heads the Air Force’s Space and Missile Systems Center, said in a statement.

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Full article at:
Elon Musk’s SpaceX breaks Boeing-Lockheed monopoly on military space launches
 
The L.A. Times reports tonight that SpaceX just won an $83 million contract to launch an Air Force GPS satellite. This is apparently the end to a monopology formerly held by Boeing and Lockheed's joint venture ULA.

ULA claims they did not bid on this launch because they didn't "have the accounting systems in place to make a compliant bid."

Wait WHAT?

I'm sure that the fact that SpaceX undercut ULA by 50% in price had nothing to do with the fact that ULA didn't bid. Nope, not at all. It's 'cause Bob in accounting didn't set up Quickbooks in time.

SpaceX wins an $82.7-million Air Force contract to launch a GPS satellite
 
This is apparently the end to a monopology formerly held by Boeing and Lockheed's joint venture ULA.

I presume that it is not in the interest of the US tax payers who are footing the bill to just replace one monopoly with another. And probably of more importance to the policy makers, there is a wish to have at least two (independent) suppliers of access to space.

So I wonder how future contracts will be awarded.

There is some signs that the US government wants to keep ULA in the business by supporting its development efforts with tax funds:

HASC Sides With Air Force, ULA on RD-180 Rocket Engines
 
Certain members of the US Congress will do whatever they can to make sure that ULA continues to get government contracts because of the economic benefits that flow to their home states.

Yes. I think it is very strange that the Defense subcommittee in front of which Elon Musk appeared and which was tasked with determining the best choices for the country as a whole had one senator (Shelby) from Alabama, where ULA has production and one from California (Feinstein), where SpaceX has production.

How can anyone believe that these two senators are going argue in the favour of the whole country?

Or maybe I just misunderstood the whole thing.