Congress demands Air Force spend less and more at the same time

A House budget report has cut the Air Force launch budget while simultaneously requiring the Air Force to favor more expensive launch companies.

In addition to cutting the funding available for new launch contracts, House appropriators also want the Air Force to consider “the best value to the government” in evaluating bids.

ULA has been pushing for the best-value approach since it sat out last fall’s GPS-3 launch competition saying it couldn’t win a price shootout against SpaceX, which will launch the satellite which was awarded an $82.7 million contract last month for a May 2018 launch of a GPS-3 satellite. That contract was awarded as part of a best value source selection. “We do not yet feel we are in a position to win price-only competitions with our competitor,” Tory Bruno, ULA president and chief executive, said in a March interview with SpaceNews. “We believe we have better performance, reliability and schedule certainty.” Those traits would carry greater weight in a best-value competition.

Only our precious Congress. On one hand they cut the budget for launches because they think the Air Force is wasting money On the other they demand that the Air Force spend extra millions on launch contracts so that the company they favor, ULA, gets the work. One would almost think they do not have the nation’s interests in mind..

SpaceX gets its first official Air Force contract

The competition heats up: On April 27 the Air Force made it official and announced that SpaceX has won its first military contract, breaking ULA’s launch monopoly.

This contract award really isn’t a surprise, as SpaceX had been certified by the Air Force as a qualified bidder, and ULA had declined to bid on this particular contract, leaving SpaceX as the Air Force’s only possible contractor.

Update: The Air Force has admitted that SpaceX’s $83 million price is 40% less than what ULA has typically charged for a comparable launch, confirming what Elon Musk and SpaceX (and many others, including myself back in 2005) have claimed all along, that the Air Force’s EELV bulk buy (giving ULA an Air Force launch monopoly) was a bad idea, discouraging innovation, forcing costs up, and guaranteed to force the government to spend a lot of unnecessary extra money.

I must add that it is definitely worthwhile reading my UPI column from 2005 again, now, more than a decade later. I predicted quite accurately what has subsequently happened following the merger of Lockheed Martin and Boeing to form ULA.

Congress micro-manages rocket engineering again

In an effort to funnel money to Aerojet Rocketdyne at the cost of every other rocket company in the nation, the House Armed Services Committee has written a bill that tells the Air Force exactly how it will build its future rockets.

“The Committee shares the concern of many members that reliance on Russian-designed rocket engines is no longer acceptable,” the committee said April 25. “The Chairman’s Proposal, as recommended by Chairman Rogers of the Subcommittee on Strategic Forces, denies the Air Force’s request to pursue the development, at taxpayer expense, of new commercial launch systems. It instead focuses on the development of a new American engine to replace the Russian RD-180 by 2019 to protect assured access to space and to end reliance on Russian engines. The Mark also holds the Air Force accountable for its awards of rocket propulsion contracts that violated the FY15 and FY16 NDAAs.”

…“The funds would not be authorized to be obligated or expended to develop or procure a launch vehicle, an upper stage, a strap-on motor, or related infrastructure,” says a draft of the 2017 defense authorization bill.

As presently written, the bill would leave the Air Force only one option: use engines built by Aerojet Rocketdyne.

If anything demonstrates the corruption or foolishness of our elected officials, it is this proposal. Not only are they telling the Air Force how to design rockets, they are limiting the options so much that they are guaranteeing that it will either cost us more than we can afford, or it won’t be doable at all. As I say, either they are corrupt (working to benefit Aerojet Rocketdyne in exchange for money), or they are foolish, (preventing the Air Force from exploring as many inexpensive future options as possible).

Orbital ATK negotiating lease for part of VAB

The competition heats up: Orbital ATK has begun negotiations with NASA for possibly leasing part of the Vehicle Assembly Building (VAB) for use in connection with a military rocket.

Virginia-based Orbital ATK is one of two rocket companies that launch resupply missions to the International Space Station, but this deal would not involve those missions or that rocket, the company’s Antares. The Antares launches from NASA’s space port at Wallops Island, Va., carrying the Orbital ATK Cygnus capsule.

The new rocket that Orbital ATK hopes to develop and one day assemble in the VAB would be a medium- to heavy-lift rocket.The planned rocket currently referred to by the name the Air Force set for it, the Evolved Expendable Launch Vehicle-class rocket.

It sounds like Orbital ATK is putting together a bid to compete for the Air Force rocket contract, and needs to get a handle on the costs for using the VAB at Kennedy in order to make the offer credible.

DOD opens ULA investigation

The deputy inspector general of the Defense Department has notified the Air Force that he is beginning an investigation into ULA and the DOD over their relationship and contract.

He also made it clear that the investigation was sparked by last week’s comments by a ULA executive who subsequently resigned.

This is all a game. The Air Force and ULA have been colluding for years to squeeze out any competition. There is no one in Washington who needs an investigation to find this out. The inspector general will issue a report, the Air Force will admit its error and promise to do better, and they will then try to have things continue as they have.

The one difference, however, will be that SpaceX will be there, providing real competition. Thus, what matters isn’t the investigation by the inspector general. What matters is the existence of a competing company willing to put cost pressure on ULA and the Air Force.

ULA head rejects his engineer’s remarks about Aerojet Rocketdyne

The heat of competition: The head of ULA has disavowed his engineers’ remarks that plugged Blue Origin’s engine for the Atlas 5 while dissing Aeroject Rocketdyne’s.

The engineer was giving a talk at the University of Colorado this week where he made it pretty clear that ULA favors Blue Origin over Aerojet Rocketdyne, but had to make believe they were treating both companies equally in the competition to replace the Atlas 5’s Russian engines in order to keep the Air Force happy. Bruno is probably now doing some damage control, as the government still wants to justify the Aerojet Rocketdyne contract (whose only real purpose was as a government pork barrel jobs program). Considering all the money the Air Force and congressmen give to ULA, he has to keep them both happy. And telling the world that their Aerojet contract is a waste of government money is not a very good way to do this.

Nonetheless, he also admitted that Blue Origin is way ahead in development, and is thus most likely to win the competition anyway.

ULA’s parent companies express caution about Vulcan

The competition heats up? The executives in charge of ULA’s parent companies, Boeing and Lockheed Martin, today expressed mixed support for the development of the Vulcan rocket, designed to replace the Atlas 5.

For more than a year, Boeing and Lockheed Martin have been investing in the rocket on a quarter-by-quarter basis and the ULA board leaders said this week that the practice would continue. “We have to be prudent, disciplined stewards of any kind of investment,” Ambrose [Lockheed Martin] said. “Vulcan would be like any other investment decision.”

In September 2015, ULA’s leaders said a ban by Congress on the Russian RD-180 rocket engine, which powers ULA’s Atlas 5 rocket, was a leading driver behind the measured investment in Vulcan. But that issue was temporarily resolved in December, when Sen. Richard Shelby (R-Ala.) used a must-pass spending bill to eliminate the engine restrictions that had become law just weeks earlier.

Now, Ambrose pointed to “uncertainties” with launch policy, while Cooning [Boeing] said disagreements between lawmakers and the Air Force on the best approach for ending RD-180 dependence have given them pause, further justifying a “cautious and conservative approach.”

In other words, now that the law requiring a quick replacement of the Russian engine has been repealed, these executives feel less compunction to build Vulcan, something I had sensed in December and had commented on. As a result, they are telling us, in their tangled corporate ways, that they are not going to invest much of their own money on Vulcan, unless the government forks up a lot of cash for them to proceed.

Free government money for Aerojet Rocketdyne!

Crony capitalism: Even though ULA prefers Blue Origin’s engine for its Atlas 5, the Air Force continues to fund Aerojet Rocketdyne’s new engine.

The U.S. Air Force announced Feb. 29 it was investing $115 million this year, and with options, as much as $536 million over the next five years, in [Aerojet Rocketdyne’s] AR1, a new liquid oxygen- and kerosene-fueled main-stage engine. The contract award is part of an Air Force initiative to end reliance on the Russian-built RD-180 engine that powers ULA’s Atlas 5 workhorse rocket.

Aerojet says it has two potential other customers to use the engine, but will not name them. In reviewing the field, the only customer I can think of that might be interested would be Orbital ATK (for its Antares rocket), and even there I have doubts. Thus, it appears to me that these funds are really being distributed to prop up a company that is failing, not to build anything useful the government needs.

McCain and Air Force question ULA military arrangement

On Wednesday, the military arrangement between the Air Force and ULA came under strong attack.

First, Senator John McCain (R-Arizona) and House Majority Leader Kevin McCarthy (R-California) introduced a bill in Congress that would re-instate the ban on ULA’s use of Russian engines in the Atlas 5 rocket. The ban had been lifted when Senators Richard Shelby (R-Alabama) and Richard Durbin (D-Illinois) snuck language doing so into the giant omnibus budget bill in December.

Second, at a hearing in the Senate on Wednesday, Air Force, under attack by Senator McCain for its sweetheart deal which gives ULA $800 million annually whether or not it launches anything regardless, admitted that it is thinking of terminating that deal early.

Air Force Secretary Deborah Lee James told the Senate Armed Services Committee during a Wednesday hearing the service is considering early termination of the current EELV Launch Capability (ELC) contract, a unique arrangement set up in 2006 to fund the cost of maintaining ULA launch infrastructure. At the time, the arrangement made sense because ULA was the Pentagon’s sole source for military space launch. “I was very surprised and disappointed when ULA did not bid on a recent GPS competitive launch opportunity,” James said. “And given the fact that there are taxpayer dollars involved with this ELC arrangement I just described to you, I’ve asked my legal team to review what could be done about this.”

The McCain bill is not likely to pass. However, the pressure he is putting on the Air Force, combined with the renewed and cheaper competition being offered by SpaceX, could very well lead to the ending of ULA’s EELV deal.

I expect to see a similar scenario play out in connection with Orion/SLS sometime in the next two years. When SpaceX and others begin to fly manned capsules and big rockets for relatively little money, our elected officials are eventually going to notice how much more expensive that bloated government program is, even as it doesn’t accomplish much. Some of them will suddenly realize the political advantage in attacking SLS, and begin to do so.

Air Force certifies Falcon 9 upgrade for military launches

The competition heats up: The Air Force has approved use of SpaceX’s upgraded Falcon 9 rocket for use in military launches.

What this means is that SpaceX is increasingly considered an acceptable bidder for future military launch contracts. Moreover, it means that SpaceX will be able to use the Falcon 9 first stage that they are landing vertically, giving them more recoverable first stages for future flights.

Orbital ATK and SpaceX win Air Force contracts

The competition heats up: The Air Force has awarded Orbital ATK and SpaceX contracts to develop new rocket engines to help end the U.S.’s reliance on Russian rocket engines.

The Orbital contract is initially worth $47 million, with the company committed to spend $31 million of its own money., according to the Defense Department’s daily digest of major contract awards. Eventually the government could pay the company $180 million. SpaceX’s contract meanwhile was for $33.6 million initially for the development of its new Raptor upper stage engine, with a total government payment to be $61 million.

And that’s not all. Later today NASA will announce the winners in its second ISS cargo contract. The competitors are SpaceX, Orbital ATK, and Sierra Nevada. I am hoping the latter two win, since that would allow the construction of a fourth American spacecraft, Sierra Nevada’s Dream Chaser, capable of lifting cargo and crew into space.

Air Force asks private companies to develop new rocket engines

The competition heats up: The Air Force has issued a request for proposals for the development of new rocket engines to replace the Russian engine used on the Atlas 5 rocket.

The press release is a little vague in that it seems to be calling for the development of this new engine, but it could also be interpreted as calling for the development of an entire rocket system. The amount of money involved is too small for this, however, so I suspect we are only talking about engine development here.

Meanwhile, they will continue to issue launch contracts to ULA and SpaceX while they wait for this new engine to be developed. Note also that this sure is a good deal for ULA, getting the Air Force to pay for upgrades to its Atlas 5 rocket.

ULA to trim management by 30%

The competition heats up: In order to make itself more efficient and competitive, ULA has decided to cut its management by 30%.

ULA CEO Tory Bruno has said ULA must shrink to remain successful under reduced U.S. military budgets and with Elon Musk’s SpaceX (Space Exploration Technologies Corp.) being certified to compete against ULA for national security mission launches. “To achieve that transformation, we are reducing the number of executive positions by 30 percent and offered a voluntary layoff for those interested on the executive leadership team,” said ULA spokeswoman Jessica Rye. “It is important for ULA to move forward early in the process with our leadership selections to ensure a seamless transition and our continued focus on mission success.”

This news should be looked at in the context of a proposed Senate bill that requires the Air Force to significantly cut funding to ULA.

Not only would the bill cut an annual $1 billion payment from the Air Force to ULA, it would put severe restrictions on the number of Russian engines ULA could use in its Atlas 5, which in turn will limit the number of launches the Air Force can buy from the company.

A second experiment on the next X-37B flight revealed

NASA has outlined the materials research it will be conducting on the next X-37B flight, scheduled to launch on May 20.

Known as the Materials Exposure and Technology Innovation in Space, or METIS, the investigation on the X-37B will expose nearly 100 different materials samples to the space environment for more than 200 days, NASA says. METIS is building upon data obtained by several missions of the Materials on International Space Station Experiment (MISSE), which flew more than 4,000 samples in space from 2001 to 2013. For both MISSE and METIS, small samples the size of quarters are used. METIS will fly a variety of materials including polymers, composites and coatings.

Not only does this information, plus earlier information about an Air Force ion engine thruster experiment, probably describe a great deal of what the X-37B is carrying, it also tells us the probable duration of the flight.

I have no doubt there are other classified Air Force experiments on board, but like these, they are likely to be test articles, since the X-37B provides the perfect testbed for exposing new technology to space to see how it fares.

X-37B to fly again!

The May 6 Atlas 5 launch will carry one of the Air Force’s two X-37B mini-shuttles on a new mission in space.

The Air Force won’t yet confirm which of the Boeing-built spaceplanes will be making the voyage. The first craft returned in October from a 675-day mission in space following a 224 day trek in 2010. OTV No. 2 spent 469 days in space in 2011-2012 on its only mission so far. “The program selects the Orbital Test Vehicle for each activity based upon the experiment objectives,” said Capt. Chris Hoyler, an Air Force spokesperson. “Each OTV mission builds upon previous on-orbit demonstrations and expands the test envelope of the vehicle. The test mission furthers the development of the concept of operations for reusable space vehicles.”

There are indications that the Air Force wants to attempt landing the shuttle at Kennedy this time.

Air Force subsidies to ULA to end

The competition heats up: Because it has concluded that they make it impossible to have a fair competition for contracts, the Air Force has decided to phase out the subsidies it has been paying to the United Launch Alliance (ULA).

The specific amounts of these subsidies have been effectively buried by the Air Force in many different contracts, so we the taxpayers really don’t know how much the are.

Nonetheless, this decision, combined with the military report released yesterday that criticized the Air Force’s over-bearing and restrictive certification process with SpaceX indicates that the political pressure is now pushing them hard to open up bidding to multiple companies, which in turn will help lower cost and save the taxpayer money.

Air Force demanded too much in its SpaceX certification process

In the heat of competition: A military review of the Air Force’s certification process of SpaceX has found that the Air Force has demanded far more changes from the company than were justified or proper.

The report, prepared by former Air Force Chief of Staff General Larry Welch, said the Air Force treated the process like a detailed design review, dictating changes in SpaceX’s Falcon 9 rocket and even the company’s organizational structure. That approach resulted in over 400 issues that needed to be resolved, which was “counterproductive” to a national policy aimed at encouraging competition in the sector.


In fact, the process was intended to show that SpaceX met overall requirements to launch military satellites, not carry out the more detailed review required for each launch on a case-by-case basis, he said.

The review also concluded that SpaceX was too resistent to any proposed changes.

SpaceX might have been too resistent, but this report confirms my suspiciion that the Air Force purposely created hoops for SpaceX to jump through because the Air Force really didn’t want to have to deal with SpaceX and wanted to make it too difficult for them to be approved.

Air Force to open bidding on launches

The competition heats up? An unnamed Air Force official has said that they intend to open up competitive bidding on as many as 10 military launches through 2017.

This might be part of the agreement between SpaceX and the Air Force that included SpaceX dropping its lawsuit and the Air Force giving a spy satellite launch that SpaceX wanted to bid on to ULA. In exchange, the Air Force will allow SpaceX to bid on a number of GPS satellite launches.

Then again, this is not an official announcement. Until it actually happens officially, I would not trust the Air Force to do what it should or promised.

Air Force gives more launches to ULA

The heat of competition? The Air Force has added three launches to its $4 billion bulk-buy contract with ULA, including one that SpaceX had hoped to bid on.

The timing of this contract award, worth $383 million, is most intriguing, coming as it does mere days after SpaceX had dropped its lawsuit with the Air Force. It is almost as if the Air Force was waiting for that lawsuit to go away before it gave more contracts to ULA. Note also the launch cost for these three launches: $383 million for 3 launches, or about $127 million per launch. That’s more than twice what SpaceX charges for a Falcon 9 launch.

It sure looks to me like the Air Force does not have the taxpayers’ interests at heart, and instead is working an inside deal to help its buddies at ULA.

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