Air Force’s launch contracting plans under scrutiny
It appears the Air Force wants to decide now which two rocket companies it will use for its launch needs in the 2022 to 2026 time period, and this desire is raising hackles among those companies.
[T]he Air Force will choose only two companies to meet its launch needs from 2022 to 2026, with one provider winning 60 percent of the contracts and the other taking 40 percent. There is no provision to on-ramp other companies during the time frame.
This sets up a rather frantic competition between the incumbents, ULA and SpaceX, and newcomers Blue Origin (with its New Glenn booster) and Northrop Grumman (with its Omega rocket). Moreover, the timing appears to prejudice the competition in favor of the incumbents, which already have existing launch systems the government can assess.
Something is really fishy here. Why does the Air Force need to limit its services to only two companies? And why do they have to make this decision now, three to seven years before the launches will occur? Common sense says you instead issue specific contract bids, for each launch, as they are needed, thus allowing as many companies as possible to compete for the business.
In fact, this policy seems to directly contradict the Air Force’s stated goal, repeated many times in the past few years, to widen competition in the launch industry, both to lower cost and to give the military strategic redundancy in its needed launch services.
It appears the Air Force wants to decide now which two rocket companies it will use for its launch needs in the 2022 to 2026 time period, and this desire is raising hackles among those companies.
[T]he Air Force will choose only two companies to meet its launch needs from 2022 to 2026, with one provider winning 60 percent of the contracts and the other taking 40 percent. There is no provision to on-ramp other companies during the time frame.
This sets up a rather frantic competition between the incumbents, ULA and SpaceX, and newcomers Blue Origin (with its New Glenn booster) and Northrop Grumman (with its Omega rocket). Moreover, the timing appears to prejudice the competition in favor of the incumbents, which already have existing launch systems the government can assess.
Something is really fishy here. Why does the Air Force need to limit its services to only two companies? And why do they have to make this decision now, three to seven years before the launches will occur? Common sense says you instead issue specific contract bids, for each launch, as they are needed, thus allowing as many companies as possible to compete for the business.
In fact, this policy seems to directly contradict the Air Force’s stated goal, repeated many times in the past few years, to widen competition in the launch industry, both to lower cost and to give the military strategic redundancy in its needed launch services.