Air Force awards launch contracts (3 each) to ULA and SpaceX
Capitalism in space: The Air Force yesterday announced the awarding of launch contracts to both SpaceX and ULA, giving each company three launches.
ULA will receive $441.76 million under a fixed-price contract to launch SBIRS GEO-5, SBIRS GEO-6 and Silent Barker, a classified space situational awareness mission.
SpaceX will receive $297 million to launch AFSPC-44, NROL-85, and NROL-87.
Note the difference in price. While the specific missions might have requirements that make the ULA launches more expensive, I suspect that most of the difference has to do with SpaceX’s ability to simply do it cheaper. The Air Force however did not give all the contracts to SpaceX because it has strategic reasons to have two independent launch companies. It also faces political pressure to support both companies, regardless of cost, as illustrated by recent stories about the political gamesmanship between SpaceX and ULA.
This story does illustrate however how the competition from SpaceX has forced ULA to lower its prices. For these three launches they are charging an average of about $147 million. Before SpaceX’s competition, their price per launch generally averaged more than $225 million. Isn’t competition wonderful?
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Capitalism in space: The Air Force yesterday announced the awarding of launch contracts to both SpaceX and ULA, giving each company three launches.
ULA will receive $441.76 million under a fixed-price contract to launch SBIRS GEO-5, SBIRS GEO-6 and Silent Barker, a classified space situational awareness mission.
SpaceX will receive $297 million to launch AFSPC-44, NROL-85, and NROL-87.
Note the difference in price. While the specific missions might have requirements that make the ULA launches more expensive, I suspect that most of the difference has to do with SpaceX’s ability to simply do it cheaper. The Air Force however did not give all the contracts to SpaceX because it has strategic reasons to have two independent launch companies. It also faces political pressure to support both companies, regardless of cost, as illustrated by recent stories about the political gamesmanship between SpaceX and ULA.
This story does illustrate however how the competition from SpaceX has forced ULA to lower its prices. For these three launches they are charging an average of about $147 million. Before SpaceX’s competition, their price per launch generally averaged more than $225 million. Isn’t competition wonderful?
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
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Cost isn’t the only factor that these companies differ from each other. Everyday Astronaut had a good breakdown of the capabilities of the different launchers, which I can’t find now :(
For example, an Atlas V can put more mass into GTO than a Falcon 9. Also, a Falcon Heavy has the same size fairing as a Falcon 9 and will have a smaller fairing than New Glenn.
Robert wrote: “Isn’t competition wonderful?”
This is an example of one of the best parts of competition. It forces the competitors to find efficiencies that they did not previously have, allowing for reduced prices for the same product or service. (Improved products or services is another of the best parts.) Because Falcon 9 was certified for Air Force payloads, ULA found efficiencies that allowed for these reduces prices.