GAO and SpaceX blast military’s plans to spend $15 billion for all its launches through 2018 in one purchase


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GAO and SpaceX blast the military’s plans to spend $15 billion for all its launches through 2018, in one bulk purchase.

The reason given by the military for buying all these launches up front is to save money. In reality, it is to favor the companies they want to do business with, rather than open up the business to as many competitors as possible.

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One comment

  • Kelly Starks

    To be fair, the bulk upgfrount purchase would tend to garrentee theres someone with a product later — and YES it would lower cost. Competition when the market is so small INCREASES, not DECREASES costs. The Air Force would be aware of this since congress a couple decades back orderd a competitor to be trained to compete on a jet engine contract. By doubling the fixed overhead (which like in space launches dominates costs) the cost per engine incresed dramaticly.

    Given SpaceX has shown no cost advantage on COtS, a bulk buy of EELV’s would save costs adn assure suplies.

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