Two stories over the past few days indicated some shifts in the Air Force’s commercial space contracting policies.
The first story has to do with ULA’s Atlas 5 and future Vulcan rockets. The engine that Aerojet Rocketdyne has been building, AR-1, has received significant subsidizes from the government for its construction, even though its only potential customer, ULA, has said it prefers Blue Origin’s BE-4 engine. ULA has not made a decision yet on which engine to use, but my sense of the politics here is that the main reason ULA is considering the AR-1 is because of heavy political pressure. Nonetheless, it makes sense for them to hold off from a final decision when they have two competitors.
The story suggests however that Aeroject Rocketdyne itself lacks confidence in the engine. It wants to renegotiate its Air Force contract so that it doesn’t have to invest any of its own money on development. This suggests the company no longer expects to get any contracts for it, and thus doesn’t want to spend any of its own money on it. With that kind lack of commitment, the Air Force would be foolish to change the deal.
The second story outlines how the Air Force is now committing real money for buying launch contracts with smallsat rocket companies, something it has hinted it wanted to do for the past year. The idea is for them to depend on numerous small and cheap satellites, capable of quick launch, givingthem a cushion and redundancy should an enemy nation attack their satellites. It will also likely save them money in the long run.
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