ULA rejects Aerojet Rocketdyne $2 billion bid to buy company

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.

Aerojet Rocketdyne lobbies its rocket engines to Congress and ULA

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.

ULA and Blue Origin sign new agreement

The competition heats up: ULA and Blue Origin have signed a new agreement expanding the production of Blue Origin’s BE-4 engine for ULA’s new Vulcan rocket.

This agreement and the timing of its announcement, one day after news leaked that rocket engine manufacturer Aerojet Rocketdyne is making a bid to buy ULA, suggest that there are people in ULA that want to make sure the agreements with Blue Origin are set in stone should the purchase comes true.

Aerojet Rocketdyne makes $2 billion offer to buy ULA

The competition heats up: Rocket engine-maker Aerojet Rocketdyne has reportedly made a $2 billion offer to buy the rocket company United Launch Alliance (ULA), a partnership of Boeing and Lockheed.

If this deal goes through, it will put the squeeze on Jeff Bezos’s Blue Origin, which presently has a contract to build rocket engines for ULA. Aerojet Rocketdyne had wanted that contract and had lost out. If they buy ULA, they could then kick Blue Origin out and take on the contract themselves.

I am honestly not sure what to make of this whole thing, however. It could be that Aerojet, having lost a number of contracts and faced with a significant lose in business, has decided it needs to become a rocket company to survive. It could also be that the corporate heads of ULA have decided that the company’s effort to replace its Delta and Atlas rockets with Vulcan is too risky, and they are better off taking the cash and running.

Or it could be any number of other reasons. We shall have to wait and see how this plays out.

Atlas 5 successfully launches U.S. military satellite

The competition heats up: ULA’s Atlas 5 rocket today successfully launched a U.S. Navy military communications satellite into orbit.

ULA’s big selling point for its very high prices is its very high reliability. This was its 99th consecutive launch success for the company, going back to 2006. It was also the 127th in a row for the Atlas 5.

The problem is that a majority of these launches were government payloads, which up until now has been willing to pay top dollar. For ULA to really compete successfully, it needs private customers, and they appear unwilling to pay that top dollar, going instead to SpaceX. It is for this reason the company is pushing hard to develop a more efficient and less costly rocket.

Orbital ATK orders second Atlas 5 for launching cargo to ISS

In the heat of competition: Even as it has accepted delivery of two new Russian engines to power its Antares rocket, Orbital ATK has ordered a second Atlas 5 rocket to launch its Cygnus cargo capsule to ISS.

I suspect they want to give themselves some cushion time to test and install these new Russian engines prior to an actual launch. In order to fulfill their contract with NASA, however, they have to launch several times next year, thus requiring more replacements for Antares.

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.

ULA has dubbed its next generation rocket Vulcan

ULA has announced its plans for replacing the Delta and Atlas 5 rockets, dubbing its new rocket Vulcan.

They plan to develop Vulcan’s first stage first and use it initially on Atlas 5 rockets so they can replace the Atlas 5 Russian engines as soon as possible. Also, they plan to recover the Vulcan rocket’s engines by having them separate from the booster after use and then get captured in a mid-air before hitting the ground. (See the graphic at the link to see a launch profile.)

In watching the press conference, ULA officials made it very clear that they are focusing a lot of their effort on lowering the cost of the rocket.

ULA to trim working launchpads from 5 to 2

The competition heats up: In order to lower its fixed costs, ULA plans to reduce the number of launchpads it maintains from 5 to 2, one at Kennedy and Vandenberg respectively.

Right now they need to maintain three separate launchpads to operate the Delta 2, Delta 4, and Delta Heavy, which is the main reason the Delta family of rockets is so expensive. This is also the reason that the Delta 2 and Delta Heavy only launch from Vandenberg, as ULA has retired their launchpads at Kennedy.

It appears that ULA’s plan is to design their next generation rocket much like SpaceX’s Falcon 9, with as simple as system of launch facilities as possible.

A photo tour of Vandenberg Air Force Base

Yesterday, as part of my visit to Vandenberg Air Force Base to give a space history lecture to the local section of the American Institute of Aeronautics and Astronautics, I was given a short tour of these west coast launch facilities. While Kennedy is used for launches that circle the equator, Vandenberg, with its southern-facing coast, launches rockets that head south over the ocean for a polar orbit.

We only had time to go inside one launchpad, where unfortunately I was not permitted to take pictures. However, the images I did get will give you a reasonable sense of the layout for this spaceport, which is increasingly becoming a spaceport for private launch companies like ULA and SpaceX. Though the bulk of business for both companies here might be military and government payloads, the future is still going to include a lot of private payloads. The images also help to highlight the differences between these two companies, as well as some past history, as one of these launchpads was once intended for the space shuttle, though never used for that purpose.
» Read more

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.

Stay tuned for photo tour of Vandenberg

I am presently at Santa Barbara Airport waiting for my flight home to Tucson after spending the day at Vandenberg Air Force Base. After Steve and Jessica Tullino of the Vandenberg Section of the AIAA gave me a tour of the base, including a close look at one launchpad, I then was their speaker at their section’s luncheon meeting.

Anyway, I took a bunch of pictures and plan to post these sometime tonight or tomorrow. Stay tuned.

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.

SpaceX drops Air Force lawsuit in new deal

The competition heats up: SpaceX has dropped its lawsuit against the Air Force in exchange for the opportunity to bid on more military launch contracts.

“Under the agreement, the Air Force will work collaboratively with SpaceX to complete the certification process in an efficient and expedient manner,” the statement from the two parties said. “The Air Force also has expanded the number of competitive opportunities for launch services under the EELV program while honoring existing contractual obligations.” The statement did not make clear how many competitive launch opportunities would be available or when. The Air Force has committed to seven launch awards by late 2017, but has said that number could grow to at least eight.

Each additional launch contract the Air Force puts out for competition gives SpaceX or ULA another opportunity to win about $100 million or more in business.

This is a big win for SpaceX. It is also not a surprise. As much as some Air Force officials have wanted to maintain the ULA monopoloy, their position has been weak, for both political and economic reasons. SpaceX’s costs are just too much lower, and the company continues to demonstrate its reliability and competence in launch after launch. Thus, it was practically impossible for Air Force officials to justify maintaining the block buy non-competitive contract award to ULA.

No more Russian engines for ULA

The heat of competition: The new budget, passed by the House yesterday, includes a provision both banning ULA from buying any more Russian engines for its Atlas 5 rockets as well as providing $220 million to help develop a new engine.

Combined with the likely approval of SpaceX to also launch military payloads, ULA is under significant pressure to get those Russian engines replaces as quickly as possible.

Solid rocket motors for American rockets?

The competition heats up: Even as ULA and Blue Origin begin work building an American engine to replace the Russian engines on the Atlas 5 rocket, ATK is offering its solid rocket motors for both Atlas 5 as well as Antares.

The company’s sales pitch is that they can get their product ready faster and cheaper. And since they are merging with Orbital Sciences anyway, I will not be at all surprised if Antares ends up with ATK solid rocket motors for its first stage.

As for Atlas 5, this sales pitch is actually aimed at Congress, which could step in and force ULA to buy ATK motors instead of Blue Origin’s new engine, even if this switch is against the wishes of ULA. As foolish as this might seem, the politics of pork (ATK provides more jobs than Blue Origin) could make it happen.

New rocket coming from ULA?

The competition heats up: The head of ULA hints that the company is developing a new rocket.

“Today, we have Atlas and Delta,” Bruno said of ULA’s product line. The company is completing studies leading to an announcement early next year of “what we will have next.” He confirmed, “It could be a new rocket.”

It could be that they have seen the writing on the wall and realize that Atlas and Delta are simply too expensive to compete with SpaceX and have decided they need to come up with something better. I hope so.

Atlas 5 successfully launches GPS satellite

ULA’s Atlas 5 rocket today successfully launched an Air Force GPS satellite.

The article is worth reading because it does a nice job of summarizing the launch history of the Atlas 5, first introduced in 2002. The key quote, however, is this:

All of the rocket’s early flights carried commercial communications satellites, with the next few launches orbiting HellasSat-2, Rainbow 1, AMC-16 and Inmarsat-4F1. In August 2005 the sixth Atlas V embarked on the type’s first mission for the US Government, deploying NASA’s Mars Reconnaissance Orbiter on the first leg of its mission to the Red Planet.

In other words, the first six flights were commercial, with every flight since 2005 for either NASA or the military. What this suggests to me is that the Atlas 5 is not competitive in the commercial market. It is too expensive, and commercial customers can’t afford it. In contrast, the federal government hasn’t been interested in saving the taxpayer money for years, and pays for this overpriced rocket in order to keep its builders employed.

Congress demands American rocket engines for military launches

In a letter written by a bi-partisan group of California legislators, Congress is pressuring the Air Force to replace the Russian engines on its Atlas rocket, and do to it competitively.

“While it is important that we invest in new technology, the problem of Russian reliance calls for an immediate solution,” states the Sept. 22 letter, which was signed by 32 of California’s 53 members of the U.S. House of Representatives. … In the letter, the House members said they are “troubled by the Department’s willingness to continue sourcing this engine from the Russian government, apparently in the hope that the situation with Russia does not deteriorate further, and that Russia chooses to continue supporting U.S. military launches — while it ignores American sources of engine technology. “We strongly encourage you to recognize that the United States — and specifically, California — today produces technology that exceeds any capability offered by Russian systems,” the letter said. “It is time for the Department to look to these existing U.S. engine manufacturers and launch vehicle providers.”

This letter suggests to me that SpaceX has won its battle with the Air Force and is going to get some launch contracts. It also suggests that ULA and Blue Origin will likely be able to get the funding from Congress to finance the design and construction of the replacement engine they have jointly proposed.

Blue Origin to build rocket engine for Atlas 5

The competition heats up: Jeff Bezos’s company Blue Origin has signed a contract with the United Launch Alliance to build a rocket engine for the Atlas 5 rocket so that it will no longer have to depend on Russian engines.

Neither executive [of either company] would discuss a dollar figure, although it’s likely somewhat less than $1 billion. Bruno said a typical liquid-fueled rocket engine takes seven years and $1 billion to develop, but Blue Origin is already several years along on the BE-4. Bruno said the engine could be ready within four years to serve as the main engine on the company’s Atlas V rockets.

This is excellent news, because it shows that ULA is being pro-active in solving this problem, rather then waiting for Congress to act.

1 9 10 11 12