Capitalism in space: The Air Force announced yesterday that it has awarded launch contracts to ULA and SpaceX worth nearly $650 million.
Colorado-based ULA was awarded a $355 million contract for its launch services to deliver two Air Force Space Command spacecraft, labeled AFSPC-8 and AFSPC-12, to orbit. The missions are expected to launch from Cape Canaveral Air Force Station by June 2020 and March 2020, respectively.
…SpaceX, meanwhile, secured a $290 million contract to launch three next-generation Global Positioning System satellites for the Air Force, known as GPS III. The first is expected to launch from the Space Coast by March 2020, either from Cape Canaveral Air Force Station’s Launch Complex 40 or Kennedy Space Center’s pad 39A.
Note the price difference between the ULA and SpaceX.launches. ULA’s cost is $177.5 million per launch, while SpaceX’s is $96.7 million per launch. While it could be that the ULA launches need to cost more because of the nature of the payloads, I don’t buy it. The company simply charges too much, partly because its rockets are expensive. The Air Force however has a strategic need to have more than one launch company, so they bite their tongues and pay the larger amount.
I should add one positive aspect about ULA’s price. The price is considerably below what they used to charge, before SpaceX entered the game. Then, their lowest launch price was never less than $200 million, and usually much more. This lower price indicates they are working at getting competitive. Though SpaceX offers the Falcon Heavy at $90 million (with reused boosters) and $150 million (all new) to commercial customers, its price for the Air Force will likely be higher because of the Air Force’s stricter requirements. This means that ULA’s per launch price of $177.5 here is getting quite close to being competitive with the Falcon Heavy.
Note that the article mentions that SpaceX has also gotten two more commercial launch contracts with DigitalGlobe, so that company’s business continues to boom.
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