Tag: capitalism

Aerojet is considering increasing its $2 billion offer to buy ULA

9:29 am

The competition heats up: A news report today suggests that Aeroject Rocketdyne is considering increasing its $2 billion bid to buy ULA, thus forcing that company to use its rocket engines rather than Blue Origin’s.

The article contains a lot of information that helps explain the background behind Aerojet Rocketdyne’s offer as well as ULA’s recent switch to Blue Origin. For one thing, ULA apparently dumped Aeroject because the company refused to invest any of its own money in developing a new rocket engine.

Last summer, Aerojet’s board also rejected ULA’s request that Aerojet invest $300 million to accelerate work on the AR-1 engine it is developing as an alternative to the Russian RD-180 engine that powers ULA’s Atlas V rocket, the sources said. … Aerojet’s refusal to invest more in the AR-1 engine ultimately drove ULA to opt for the BE-4 engine being developed by privately held Blue Origin, which is owned by Amazon.com founder and billionaire Jeff Bezos, the sources said.

More significant, it appears that the Rocketdyne portion of the company is owned by the Russians!

An Aerojet takeover of ULA would also require Russia to give its regulatory approval and transfer a technology license for use of the RD-180 engines, according to two of the sources. Russia refused to transfer the license to Aerojet when it bought Rocketdyne from Pratt & Whitney, a United Technologies Corp (UTX.N) unit in 2013, forcing Pratt to retain control of a small company that brokers RD-180 sales, and could be more reluctant to do so now, the sources said.

While the quote above is somewhat confusing, it certainly suggests that, with Congress banning the use of Russian-built engines in American rockets, using Aerojet Rocketdyne engines by ULA has become problematic.

In related more bad news for Aeroject Rocketdyne, the company has just agreed to pay Orbital ATK $50 million in connection with last year’s Antares launch failure. In addition, they will take back the Russian-built engines they refurshed and sold to Orbital. The agreement also ends the company’s part in Antares.

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Boeing reveals landing sites for Starliner

11:33 pm

The competition heats up: Boeing has revealed the prime landing sites for its manned Starliner capsule.

Boeing is still finalizing a list of five candidate landing sites in the Western United States, but the U.S. Army’s White Sands Missile Range in New Mexico and the Army’s Dugway Proving Ground in Utah will initially be the prime return locations, said Chris Ferguson, deputy manager of the CST-100 Starliner program. The capsules will parachute to airbag-cushioned landings after each mission, beginning with the CST-100’s first test flights in 2017.

The article also outlines the overall status of Starliner, including what sounds to me like some scheduling and design concerns:

Boeing is taking a different approach to development of its human-rated spacecraft than SpaceX, which has already completed a pad abort test and plans an in-flight abort demo in late 2016. SpaceX is testing as it goes, while Boeing is doing more design work up front. “A lot of focus is on ensuring, at this phase, that we’ve got full rigor in all our processes and all of our designs, really trying to buy down the risk that something could come up downstream to perturbate either our design or our schedule,” Mulholland said.

Boeing plans no such in-flight escape test, and Mulholland said it can prove out the CST-100 abort system through wind tunnel analyses. “That’s our philosophy — to make sure we don’t run a test just to go run a test,” Mulholland said. “We make sure we fully understand all the requirements that we need to certify to, and we pick the best approach.”

Mulholland said the sequence of test flights in 2017 is tight, but Boeing’s schedule has margin to achieve the start of operational missions by the end of that year. Managers decided to move the pad abort test from early 2017 to August, a change that Mulholland said created more margin in the schedule leading to the first crew flight. [emphasis mine]

The lack of an in-flight test of the abort system is worrisome. This sounds just like NASA and Boeing in the shuttle era when they repeatedly made overconfident claims about the shuttle’s reliability and safety that were completely unrealistic, based not on tests but on computer simulations. The tight schedule also is a concern, especially because of the corporate culture of Boeing, which has a history of using these contracts to squeeze money from the government while putting a low priority on actually building anything.

I fear that might be what is happening here, especially since Boeing, unlike SpaceX, refused to build much of anything prior to the announcement of its Starliner contract. The company does not like to take any risks at all.

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GAO criticizes the staff and budget request of FAA’s commercial space office

11:12 pm

A GAO report has concluded that the FAA has not provided sufficient justification for its 2016 requested budget and staff increases for its Office of Commercial Space Transportation (AST).

AST requested an additional $1.5 million more plus an increase of its staff by 13 to handle what it expects to be an increase in commercial launches. However,

The GAO report cautioned about using predictions of launches as a reason for hiring additional staff because, in recent years, “the actual number of launches during those years was much lower than what FAA projected.” In one example, the FAA projected it would license more than 40 launches and reentries in 2014, but the actual number was about 20.

The report also revealed a split among companies in the commercial launch business about the importance of increasing AST’s budget. While industry organizations like the Commercial Spaceflight Federation have expressed their support for the proposed budget increase, only three of the nine companies surveyed by the GAO believed the office has insufficient resources to deal with its workload. Three other companies thought the office has sufficient resources, and the remaining three expressed no opinion. The report did not identify which companies held those opinions, but did list the nine companies contacted by the GAO: Blue Origin, Boeing, Masten Space Systems, Orbital ATK, SpaceX, United Launch Alliance, Virgin Galactic, Vulcan Aerospace and XCOR Aerospace.

The second paragraph in the quote above suggests that a majority of the private companies that AST would regulate are not enthused about giving that government agency more resources or abilities. To me, I suspect that the phrase “We’re here to help you!” and what it usually signifies about the government has something to do with that lack of enthusiasm.

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ULA and Orbital ATK ink new rocket motor contract

10:55 pm

The competition heats up: ULA has signed a new contract with Orbital ATK to provide solid rocket motors for its Atlas 5 and Vulcan rockets.

This deal is another nail in the coffin of Aerojet Rocketdyne, as it strongly suggests that the corporate leadership at ULA is very uninterested in doing any business with that rocket engine builder. Recently they have been taking their business every where but to Aerojet.

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ULA rejects Aerojet Rocketdyne $2 billion bid to buy company

4:41 pm

The competition heats up: Boeing today said that it has rejected Aerojet Rocketdyne’s $2 billion bid to buy ULA, the Boeing/Lockheed launch partnership.

“The unsolicited proposal for ULA is not something we seriously entertained,” Boeing spokesman Todd Blecher said. Boeing said it remained committed “to ULA and its business, and to continued leadership in all aspects of space, as evidenced by the agreement announced last week with Blue Origin,” a company owned by Amazon.com founder Jeff Bezos that is designing the engine for a new rocket being designed by ULA.

Lockheed declined comment, saying it did not discuss transactions with other companies. A source familiar with the matter said Lockheed’s refusal to comment did not reveal any disagreement between Lockheed and Boeing, and both companies agreed to reject the bid.

This might not end the issue, as Aerojet Rocketdyne officials might still follow up with a more formal proposal.

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NASA delays first Orion manned flight two more years

4:02 pm

Surprise, surprise! NASA today announced that the first manned flight of the Orion capsule will likely be delayed two more years to 2023.

Orion has been under development since 2006, and is expected to have cost more than $17 billion when that first mission flies in 2023. SLS, once called Constellation but with a different configuration, has been under development since 2011, and has cost about that much through today. All told, I would estimate that by the time that flight occurs in 2023 (assuming it doesn’t get delayed again) NASA will have spent more than $40 billion.

This is a joke, but a very painful one. It is going to take NASA almost two decades to get one capsule off the ground. Compare that with the 1960s space race, where we went from nothing to landing on the Moon in a little more than eleven years.

If NASA had been spending this money on planetary missions, they might actually have been doing something worthwhile with it. Meanwhile, the private companies, SpaceX, Blue Origin, Boeing, Orbital ATK, are building capsules and rockets that are as capable, if not more so, and are getting them built now for less than a quarter that price, in the range of about $6 to $8 billion.

If our elected officials in Congress had any brains, they would shut Orion/SLS down now, and save the taxpayers an awful lot of money.

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Aerojet Rocketdyne lobbies its rocket engines to Congress and ULA

8:39 am

The competition heats up: Officials at Aerojet Rocketdyne yesterday lobbied hard for Congress and ULA to finance and buy their new AR-1 engine, designed to replace the Russian engines used in the Atlas 5 rocket.

More here, including the threat by those officials that the development of the engine could slip past 2019 if Congress doesn’t give the company more money.

The first comment at the bottom of the page of the first article above I think possibly outlines some of the reasons behind Aerojet Rocketdyne’s bid to buy ULA.

The development of the Blue Origin BE-4 is underway, and a launch vehicle like the proposed Vulcan would certainly be an asset to national security and commercial space development. But, as was stated, such a LNG/LO2 vehicle would need a different infrastructure to support it. ULA’s Atlas V is the most mature and reliable [launch vehicle] we have. The problem with it is a political one, because of its using the Russian RD-180 engine. From what has been published, plugging the BE-4 into an Atlas V is a non-starter; the BE-4 is meant for the Vulcan…if ULA can obtain funding on something more than a per-quarter schedule! Aerojet-Rocketdyne’s AR-1 would be a more logical choice to replace the RD-180, BUT…ULA won’t release the Interface Control Documents (ICD’s) to Aerojet-Rocketdyne. Hence, AR’s attempt to buy ULA.

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Blue Origin announces it will launch from Florida

9:34 am

The competition heats up: In a press conference today, Jeff Bezos of Blue Origin announced that his company will be making Cape Canaveral, Florida, its launchpad for their planned commercial orbital spacecraft.

Not only will they launch from a former Air Force launch complex, they will be building their production facility there for assembling their reusable ships. Bezos also said that they hope to be flying by the end of the decade.

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