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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.

Genesis cover

On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.

 
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.


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"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News

4 comments

  • Ian C.

    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.

  • pzatchok

    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.

  • Kyle f

    AF will be obligated to justify previous awards by awarding BO ULA and NG over SpaceX for future missions.

  • wodun

    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.

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