The Air Force contract shows there is always a willingness to pony up a little extra (from taxpayers) for another reliable launch vehicle.
Taking this thread in a slightly different direction though still on topic and somewhat relevant to the recent flurry, an interesting thought experiment is to consider why an entity such as ULA exists in the first place. IMHO, it really starts with how we (the US) have chosen to run our country. Throughout the last century and certainly since WW2, a pillar of the US has been maintaining global leadership in pretty much all areas of technological progress. There's countless examples where we've invented or appropriated technology, developed and proliferated the use case, and self-appointed ourselves as global leader.
The interesting twist is that in many if not most cases the front end activity for innovation has been state funded, because in many if not most of those cases entry has been too high/risky for any private entity to take on. Typically, as the financial opportunity of that tech becomes more clear (after maybe a few years or a decade?), some entity within the private sector more or less takes over ownership and whatever government funded entity was driving that innovation moves on to the next thing. Some times, like within the space industry and especially with rockets, the risk/reward ratio has been consistently unfavorable to the point where for decades it was basically impossible to find a champion from the private sector.
Where it gets really self-evident (at least once you noodle on it), despite the relative unprofitability of rockets and disinterest from capitalists, for various reasons--many of them obvious--the US has always wanted to remain
the global leader in Space. So in order to continue progress and innovation, continually develop new talent, and generally maintain leadership in Space, it has been imperative to continue state funding rockets. Among others, ULA has simply been one of the more recent manifestations of that approach.
Obviously a huge downside of government funded progress is that it immediately gets political (and there's plenty of criticism to go around on that front), but its hard to deny that for decades and decades that formula has worked to keep the US on top in the space industry. We could wax for a while about the Russian advantage in materials and rocketry that more or less existed until SpaceX, but I digress... Anyway, there's a constant stream of kids with Aerospace degrees coming out of school; you have to put them to work somewhere. There's specialists with years and years of experience in Space; you need to keep that competency alive by creating work for them. It really is more than just rockets and technology, it truly is a nationalistic thing. For instance, why did Wyler pick Florida to build the main OneWeb production lines? Because Florida gave him ton of money to put Space Coast people to work.
Back to rambling, Enter SpaceX, enter the singularity of Elon Musk, enter a vision that is so far beyond just rockets that even to this day it is extremely difficult for The Establishment to comprehend. In a [mostly] private funded venture, one genius was able to show that focus and persistence could step function over a lot of what has come before. It basically came out of nowhere, because for ~50 years the space industry more or less was run the same way, and there was a general assumption that it would keep going that way until some revolutionary technology in propulsion (or whatever) came along. Certainly nobody thought it would all get blown up by some guy willing to implement generally existing industrialization concepts behind a few clever tweaks to existing technological concepts (like reusability). And you can't blame that Establishment thought process either--unlike other state seeded innovations that are picked up by the private sector after a short period of time, it kinda makes sense that if something hasn't taken off after 50 years its probably not going to anytime soon.
Great. Now we have a true private sector entity as a major player in Space. The problem is that there's 50 years of state funded infrastructure in place and, not only its completely naive to expect that infrastructure to crumble quickly, it is completely short sighted to
want that infrastructure to crumble quickly. SpaceX is actually a small company. They can't employ everyone and they can't do everything required to launch rockets right now. There are of course players like BO who are inevitably going to help shape the future, but playing off
@Nikxice's quote above, The Man isn't going to ever settle for one rocket built by one company. Among other reasons, that's terrible for national security.
So the real question becomes, what does the future look like? Despite not aligning with the narrative some would prefer, I actually do NOT think ULA should remain state funded forever. Rockets are the boring and easy part of space, and in the next few years as folks like BO and the smaller launchers come online there's going to be little need for government funding in rocketry as capitalism is going to fully drive innovation. If I were King, at some point in the future any public funds earmarked for Space would be 100% directed toward launched payloads and associated systems, like science missions within and outside earth's gravitational influence, civil/secure observation (weather and spy sats), habitats (orbiting and extra terrestrial), secure comms, etc. Leave the yawner nothing-new-here part of the mission to the for-profit companies and focus state funds on innovations that have value measured in metrics other than money.
How do we get there? Short term, suck it up. Like the GOP complaining about ACA but not being able to effectively replace it, arguing that we should dump ULA [and SLS] simply doesn't hold water. They have to go on, short term. Its the way the country works. Concurrently, continue state funding SpaceX innovation in areas like human spaceflight--SpaceX obviously has it under control, but throwing The Man a bone of [the perception of] control isn't a bad thing. Next step, transition rocket funding toward the un-launched rocket companies so The Man actually has access to a real quiver of options and so The Country can sleep easy because spreading technology across a number of companies correlates to resiliency. As far s ULA goes I think you kind of have to keep Vulcan going and let the capitalist market determine ULA's fate. There's a lot of downside to defunding now and really minimal upside, though certainly I wouldn't increase funding. Let them be the masters of their own desting--they're either going to figure out how to be relevant or they will fold. Same goes with SLS. Its ridiculous to suggest defunding now 'because Starship'; it will be self-evident to defund at some point in the future...because Starship (and NG)
Do all that and you maintain leadership in rocketry, maintain your labor base, transition the boring part of space to the private sector, and focus taxpayer dollars on pure innovation.
How hard could it be?