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After considering an alternative bid by Blue Origin to build a less expensive upper stage for NASA’s SLS rocket, replacing the stage that Boeing is building, NASA has decided to reject that bid and stick with Boeing.
NASA sets out three reasons for not opening the competition to Blue Origin. In the document, signed by various agency officials including the acting director for human spaceflight, Ken Bowersox, NASA says Blue Origin’s “alternate” stage cannot fly 10 tons of cargo along with the Orion spacecraft.
Moreover, NASA says, the total height of the SLS rocket’s core stage with Blue Origin’s upper stage exceeds the height of the Vertical Assembly Building’s door, resulting in “modifications to the VAB building height and substantial cost and schedule delays.” Finally, the agency says the BE-3U engine’s higher stage thrust would result in an increase to the end-of-life acceleration of the Orion spacecraft and a significant impact to the Orion solar array design.
The article notes that there were also significant political reasons as well that pushed NASA to favor Boeing.
The article also states that SLS’s cost per launch will be about $2 billion. Though I think that number is probably low because it does not include any of the $25 billion spent for development, it does compare badly with SpaceX’s Falcon Heavy, which costs about $100 million per launch.