SpaceX suing Air Force due to exclusion from development contracts
SpaceX has initiated a lawsuit against the Air Force for excluding the company from the rocket development contracts totaling $2.3 billion that it issued last year to ULA, Blue Origin, and Northrop Grumman.
The full SpaceX complaint alleges that the Air Force’s Space and Missile Systems Center “wrongly awarded” the funds “to a portfolio of three unproven rockets based on unstated metrics.” Under the Launch Service Agreement (LSA) program, the Air Force awarded three SpaceX competitors funding to develop new launch systems. The LSA awards granted $500 million to Blue Origin for its New Glenn rocket, $792 million to Northrop Grumman for its OmegA rocket and $967 million to ULA for the Vulcan Centaur rocket.
“By any reasonable measure, SpaceX earned a place in the LSA portfolio,” the complaint said.
I had guessed last year that SpaceX had decided not to bid for this money because of the strings the Air Force would attach to the development of Super Heavy/Starship. According to this lawsuit, that guess was wrong. SpaceX wanted its own share in this government cash, and didn’t get it.
Considering how Air Force requirements appeared to immediately slow down the development for ULA and Blue Origin, I still think SpaceX is better off without the cash. They have had to raise money from the private sector, and so far appear to have been successful in doing so, without those strings attached.
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SpaceX has initiated a lawsuit against the Air Force for excluding the company from the rocket development contracts totaling $2.3 billion that it issued last year to ULA, Blue Origin, and Northrop Grumman.
The full SpaceX complaint alleges that the Air Force’s Space and Missile Systems Center “wrongly awarded” the funds “to a portfolio of three unproven rockets based on unstated metrics.” Under the Launch Service Agreement (LSA) program, the Air Force awarded three SpaceX competitors funding to develop new launch systems. The LSA awards granted $500 million to Blue Origin for its New Glenn rocket, $792 million to Northrop Grumman for its OmegA rocket and $967 million to ULA for the Vulcan Centaur rocket.
“By any reasonable measure, SpaceX earned a place in the LSA portfolio,” the complaint said.
I had guessed last year that SpaceX had decided not to bid for this money because of the strings the Air Force would attach to the development of Super Heavy/Starship. According to this lawsuit, that guess was wrong. SpaceX wanted its own share in this government cash, and didn’t get it.
Considering how Air Force requirements appeared to immediately slow down the development for ULA and Blue Origin, I still think SpaceX is better off without the cash. They have had to raise money from the private sector, and so far appear to have been successful in doing so, without those strings attached.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
I read it this way: SpaceX bids Falcon 9 and Heavy primarily but are left out because it’s mixed up with Starship that, under USAF criteria, is a risk that affects the whole launch vehicle portfolio. Starship’s development is a rather independent, different part. The complaint is that the USAF’s “evaluation focus [is] on current Government processes and facilities clearly favors Government-specific launch systems like ULA’s Vulcan.” SpaceX wants the USAF to extend its evaluation focus to include SpaceX’ development process as well. So they want the gov $$$ but aim to reduce the strings attached.
Think of it this way.
They (we) all want asked out on dates but still want the chance to turn them down. Even if a supermodel (space x) is in the dating pool.
By Space X not even being considered, the others needed to pass a lower hurdle to gain their grants. By adding in Space X one of the others could be left out or all their grants could be lowered or at least changed.
AF will be obligated to justify previous awards by awarding BO ULA and NG over SpaceX for future missions.
Could be a case of pay now or pay later for SpaceX. Getting in now might be a bit of a hassle but getting in on future contracts could mean jumping through similar hurdles, so might as well do it now when it is easier to make changes.