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Northrop Grumman has become the first private company to lease a bay of the Vehicle Assembly Building at the Kennedy Space Center, where it will its new OmegA rocket.
Northrop Grumman will assemble and test its new OmegA rocket inside the massive facility’s High Bay 2, one of four high bays in the building. … The company also is modifying mobile launcher platform-3 (MLP-3) to serve as the launch vehicle’s assembly and launch platform. Both the VAB and MLP-3 were originally built for the Apollo Program and went on to enable the three-decade Space Shuttle Program.
OmegA’s development is being funded by an $800 million contract with the Air Force.
In many ways, I could ask the exact same question here as I just did in the post below about the Chinese government’s pseudo private launch industry: From an American private enterprise perspective, this Air Force attempt to create a commercial launch industry using government funds but tight government supervision and control is very puzzling. OmegA will be competing directly with other American launch companies that are privately funded, owned, and run by private corporations (though also getting significant government contracts for their already operational products). How the federal government prevents its government agencies (NASA, the Air Force) from putting their thumbs on the scale to favor one over the other I do not understand.