ULA concedes GPS competition to SpaceX
The competition cools down: ULA has decided against bidding on a military GPS launch contract, leaving the field clear for SpaceX.
ULA, which for the past decade has launched nearly every U.S. national security satellite, said Nov. 16 it did not submit a bid to launch a GPS 3 satellite for the Air Force in 2018 in part because it does not expect to have an Atlas 5 rocket available for the mission. ULA has been pushing for relief from legislation Congress passed roughly a year ago requiring the Air Force to phase out its use of the Russian-made RD-180 engine that powers ULA’s workhorse Atlas 5 rocket.
This decision might be a lobbying effort by ULA to force Congress to give them additional waivers on using the Atlas 5 engine. Or it could be that they realize that they wouldn’t be able to match SpaceX’s price, and decided it was pointless wasting time and money putting together a bid. Either way, the decision suggests that ULA is definitely challenged in its competition with SpaceX, and until it gets a new lower cost rocket that is not dependent on Russian engines, its ability to compete in the launch market will be seriously hampered.
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The competition cools down: ULA has decided against bidding on a military GPS launch contract, leaving the field clear for SpaceX.
ULA, which for the past decade has launched nearly every U.S. national security satellite, said Nov. 16 it did not submit a bid to launch a GPS 3 satellite for the Air Force in 2018 in part because it does not expect to have an Atlas 5 rocket available for the mission. ULA has been pushing for relief from legislation Congress passed roughly a year ago requiring the Air Force to phase out its use of the Russian-made RD-180 engine that powers ULA’s workhorse Atlas 5 rocket.
This decision might be a lobbying effort by ULA to force Congress to give them additional waivers on using the Atlas 5 engine. Or it could be that they realize that they wouldn’t be able to match SpaceX’s price, and decided it was pointless wasting time and money putting together a bid. Either way, the decision suggests that ULA is definitely challenged in its competition with SpaceX, and until it gets a new lower cost rocket that is not dependent on Russian engines, its ability to compete in the launch market will be seriously hampered.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either. IMPORTANT! If you donate enough to get a book, please email me separately to tell me which book you want and the address to mail it to.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID 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. Every one of those 2020 conclusions has turned out right.
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.
The clear perception that this day was coming to ULA is why its Board brought in Tony Bruno. No amount of lobbying could save them from the coming hiatus in military space launch revenues. They must emphasize building their new rocket over the lobbying that brought them so much in the past. Tony was and is their great hope for competing with SpaceX, rather than talking to Senators.
I think you’re right on both of your initial points. I think ULA conceded this launch internally quite some time ago and are using it to lobby not only for more RD-180 engines but also for better contract terms in future proposals. I hope they win.
The terms of this solicitation make it seem like almost a set-aside for SpaceX. That’s not a bad thing from a taxpayer’s perspective. SpaceX is certainly higher risk than ULA, but they’re also considerably less expensive. With the GPS constellation currently healthy (30 available satellites vs. a requirement for only 24) and with — by the time the GPS IIIA-4 satellite launches — an assembly line kicking out a new satellite every few months, the Air Force can afford to take a chance with a new provider to save on launch costs. In fact, it’s the perfect time to do so.
But for the expensive NRO birds — which are said to cost as much as an aircraft carrier — it makes no sense to go with a low-cost provider at the expense of reliability. Those solicitations should be Best Value, not LPTA, and ULA is right to press for that. The result for the Air Force will be a high / low split, with ULA taking the expensive missions where reliability is king and SpaceX taking the less expensive missions where it is not.
Long term, SpaceX will move up the value chain and gain ever-increasing capability and ULA will reduce their costs. If the Air Force plays their cards right they’ll end up with two providers that are both low-cost and high-capability.
That’ll be a good thing.