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Capitalism in space: The Government Accountability Office (GAO) has sustained Blue Origin’s protest against the Air Force’s launch procurement rules that would have limited bidding on all launch contracts for the first half of the 2020s to only two companies.
In a “pre-award” protest, Blue Origin challenged the terms of a request for proposals (RFP) issued by the Air Force earlier this year for the National Security Space Launch (NSSL) Phase 2 Launch Service Procurement, which aims to award two contracts next year expected to cover 30 or more medium- and heavy-lift satellite launches the Air Force plans to conduct between 2022 and 2026.
Blue Origin, owned by Amazon.com founder Jeff Bezos, is one of four companies that submitted bids for the contracts by the Air Force’s Aug. 1 proposal deadline. The other three companies bidding for the contracts are Northrop Grumman and incumbents United Launch Alliance and SpaceX.
After submitting its bid, Blue Origin filed a formal protest with the GAO arguing that several terms of the RFP unduly restrict competition, are ambiguous, or are inconsistent with customary commercial practice.
The GAO agreed.“GAO sustained the protest, finding that the RFP’s basis for award is inconsistent with applicable procurement law and regulation, and otherwise unreasonable,” Patton said in the statement.
The Air Force’s plan here never made any sense at all. Why put a limit now on the companies that can bid on launches as far in the future as 2026? Why not instead allow all the launch companies, already certified by the Air Force, to bid when the time comes, thus increasing competition while providing the Air Force the most options?
This is good news for the entire American launch industry. It means they will all have the Air Force as a potential customer. It is also good news for the taxpayer, as the competition for business will certainly drive innovation and the lowering of launch prices.