Capitalism in space: The Air Force has awarded ULA a $191 million launch contract in only the third competitively bid Air Force contract in decades.
The Air Force put the STP-3 launch up for bid in September 2016, giving SpaceX and ULA until December to submit proposals. It’s just the third competitively-bid national security space launch contract after an era where ULA — a joint venture between defense industry giants Boeing and Lockheed Martin — was the government’s sole source for launches.
The effort is part of the Air Force’s “Phase 1A,” an effort to “reintroduce a competitive procurement environment” into the Evolved Expendable Launch Vehicle (EELV) program, the service said. This particular phase is set to cover 15 competitively-bid launches through 2019, at which point the military hopes to have several launch providers as options.
SpaceX won the first two launch contracts, including a GPS 3 launch that was awarded in March.
This contract award is not as competitive as they make it seem. I suspect that if the Air Force was required to take the lowest bid, SpaceX would have won, since its launch prices are far less than $191 million. Instead, I think the Air Force gave this contract to ULA because SpaceX had won the previous two bids, and they wanted to give some business to ULA in order to keep that company viable.
In the short run, this policy will keep ULA above water. In the long run, the company is in serious trouble if it can’t lower its launch prices significantly.
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