Bulgaria credits SpaceX’s low costs for making its satellite possible

Capitalism in space: The CEO of the Bulgarian company that built the television satellite that SpaceX plans to launch later today said that it was SpaceX’s low costs that made the satellite possible.

Maxim Zayakov, CEO of BulgariaSat and its affiliate television provider Bulsatcom, told Spacefight Now that SpaceX’s push to reduce the cost of space transportation has yielded tangible results for his country. “People don’t realize that, for small countries and small companies like us, without SpaceX, there was no way we would ever be able to even think about space,” Zayakov said. “With them, it was possible. We got a project. I think, in the future, it’s going to be even more affordable because of reusability.”

This is what I have been saying for more than a decade. You lower the costs, you make it possible for more customers to enter the market. This increase in customer base makes it possible for more launch companies to enter the market in response, and that forces the costs to drop further, which starts the whole cycle again. In the end we not only get a robust launch industry, the human race gets to settle the solar system.

The article also confirms that, at this time, SpaceX is only offering a 10% discount for the use of a reused first stage. They say this is because they wish to recoup their $1 billion investment to develop reusability. While this might be true, the real truth is that SpaceX doesn’t need to provide a larger discount. The discounted price of $55.8 million saves satellite companies another $6.2 million, which isn’t chicken feed, and offers them the cheapest launch price anywhere by far. SpaceX in turn makes more money per launch.

Should another company begin to challenge this launch price I would then expect SpaceX to lower the price further. They have the profit margin to do this.

Note that you can watch today’s Falcon 9 launch of the Bulgarian satellite at 2:10 pm Eastern at SpaceX’s website.

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House lawmakers push Air Force to use reusable rockets

Capitalism in space: House lawmakers today added an amendment to the Air Force budget that would require the military to “move rapidly to evaluate the potential use of reusable space launch vehicles such as those being flown by SpaceX.”

The amendment was approved by a voice vote in committee.

As noted by Eric Berger at the link, this marks an amazing shift by Congress in a very short time. A few years ago, SpaceX had to sue the government for the right to bid on Air Force launch contracts. At that time Congress was exceedingly skeptical of allowing military satellites to launch on new Falcon 9 rockets, no less ones using used first stages. Moreover, Congress was then eager to protect its big buddy ULA, which then had a monopoly on military launches and was making gobs of money per launch. Now, Congress is all for re-usability and saving money and competition.

This change demonstrates the importance of success. SpaceX has been successful, and with that success the nay-sayers have suddenly vanished. Now, everyone loves them, when only a few years ago they were considered risky and unreliable.

When SpaceX’s Falcon Heavy succeeds and flies several times prior to the first launch of SLS, watch for this same process to occur there as well. SLS will no longer be sacrosanct, and Congress will suddenly discover how much a waste of money it is.

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Iridium launches might use reused Falcon 9 first stages

Capitalism in space: Iridium is considering using Falcon 9 previously flown first stages for its later already contracted launches with SpaceX.

Iridium is launching 75 of its 81 second-generation Iridium Next satellites using eight Falcon 9 launches, the first of which took place Jan. 14. In a conference call with reporters June 19, Desch said Iridium’s original contract with SpaceX calls for new Falcon 9s for each mission, but if SpaceX can improve its launch schedule with pre-flown stages, Iridium would consider them for missions in 2018. “While we are currently flying first flown launches, I’m open to previously flown launches, particularly for the second half of our launch schedule,” said Desch.

Desch said there are three criterion by which Iridium would decide whether to use a pre-flown rocket: schedule, cost and reliability — of which schedule is the most important. “Would [pre-flown rockets] improve the current launch plan that I have with brand-new rockets that I’ve basically contracted for a number of years ago and have budgeted for and have paid for?” Desch asked. “That’s the first thing: will they improve my schedule, because schedule to me is very very important.”

I think this tells us that Iridium is waiting to see if this week’s launch of a Bulgarian satellite on a reused first stage is successful. The article also also notes that they are still negotiating over price for using “flight proven” first stages.

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Air Force budget reveals cost differences between ULA and SpaceX

Eric Berger at Ars Technica has found that the most recent Air Force budget provides a good estimate of the price ULA charges the military for its launches.

According to the Air Force estimate, the “unit cost” of a single rocket launch in fiscal year 2020 is $422 million, and $424 million for a year later.

This is a complex number to unpack. But based upon discussions with various space policy experts, this is the maximum amount the Air Force believes it will need to pay, per launch, if United Launch Alliance is selected for all of its launch needs in 2020. ULA launches about a half-dozen payloads for the Air Force in a given year, on variants of its rockets. Therefore, the 2020 unit cost likely includes a mix of mostly Atlas V rockets (sold on the commercial market for about $100 million) and perhaps one Delta rocket launch (up to $350 million on the commercial market for a Heavy variant).

In other words, the $422 million estimate per launch is the most they will pay. Atlas 5 launches will certainly be less, about $100 to $150 million, while the Falcon 9 will likely be under $100 million. What they are doing is budgeting high so they guarantee they have the money they need to pay for the most expensive launches, usually on the Delta Heavy.

From my perspective, they are budgeting far too high, and if I was in Congress I would insist that this number be reduced significantly, especially considering this Air Force statement on page 109 of the budget document [pdf]:

The Air Force, National Reconnaissance Office (NRO), and the National Aeronautics and Space Administration (NASA) agreed to a coordinated strategy for certification of New Entrants to launch payloads in support of NSS and other USG requirements which has so far resulted in the certification of one New Entrant. The Air Force continues to actively work with potential New Entrants to reliably launch NSS requirements. The Government may award early integration contracts to ensure each potential offeror’s launch system is compatible with the intended payload. Beginning in Fiscal Year 2018, the Air Force will compete all launch service procurements for each mission where more than one certified provider can service the required reference orbit. [emphasis mine]

The “New Entrant” is of course SpaceX. They are also saying that they are going to encourage competitive bidding now on all future launch contracts.

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Air Force awards SpaceX contract to launch next X-37B mission

Capitalism in space: The Air Force has awarded SpaceX the contract to launch the next X-37B mission, presently scheduled to launch in August.

The contract amount was not announced, but it certainly is going to be less than ULA charged for its own launches of the X-37B. Also, this launch is scheduled only two months hence, which means SpaceX has to somehow wedge it into its already crowded schedule.

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NASA considering using used first stages for Dragon cargo launches

Capitalism in space: With SpaceX’s successful launch on June 3 of a used Dragon cargo capsule to ISS, NASA is now considering using used Falcon 9 first stages for later cargo missions.

“That question has been posed,” Ven Feng, manager of the ISS Transportation Integration Office at NASA’s Johnson Space Center in Houston, said during a post-launch press conference Saturday. “We are looking at it,” he added. “We’re evaluating every aspect of it very carefully, and there is no schedule yet when we might go down that path.”

NASA officials made the same kind of cautious statements several years ago when SpaceX proposed flying a used Dragon capsule. In other words, they are going to do it, it just takes the bureaucracy time to mull the idea over and finally accept it.

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SpaceX to launch Bulgarian satellite in June with used first stage

Capitalism in space: SpaceX will fly its second used first stage in June when it launches a Bulgarian communications satellite.

In a statement, BulgariaSat said its BulgariaSat-1 spacecraft is scheduled to launch in mid-June on a Falcon 9 from Cape Canaveral, Florida. The first stage of that Falcon 9 will be the same one that launched 10 Iridium Next satellites from Vandenberg Air Force Base in California in January. Maxim Zayakov, chief executive of BulgariaSat, said the use of a reused first stage lowers the launch price and “makes it possible for smaller countries and companies to launch their own satellites.”

The company did not disclose the price it is paying for the launch, including what discount it is receiving for using a “flight-proven” first stage.

Previously SpaceX had said it would charge about $40 million for a launch using a previously flown first stage, so I would suspect the discount is somewhere around that.

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