Tag: ULA

Two additional Russian rocket engines arrive in the U.S.

9:38 am

Despite tensions over the Ukraine, a Russian cargo plane on Wednesday delivered two more Russian rocket engines to Alabama for their refurbishment and use in ULA’s Atlas 5 rocket.

This delivery gives ULA some additional breathing room. It the additional deliveries scheduled for later this year and early in 2015 happen, they will have even more breathing room for more Atlas 5 launches. Even so, their dependence on Russian engines is something that limits the company’s competitiveness in the emerging aggressive launch market.

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Competition with SpaceX forced ULA CEO out

8:59 am

A news story today in Defense News speculates that the competitive pressure from SpaceX is what forced ULA’s CEO to step down.

Changes at the CEO level are usually accompanied by a change in how business is done, said Byron Callan, an analyst with Capital Alpha Partners. “Generally, when you see abrupt leadership changes, there’s an abrupt change of strategic or tactical course needed,” Callan said. “You don’t make those changes unless you see something that needs fast corrective action.”

Caceres said he expects to see layoffs and a streamlining of ULA to find all possible cost savings. “My sense is you’re going to see at ULA a restructuring of some sort, because ultimately they’re going to have to find a way to be a lot more competitive on price,” he said.

This restructuring is entirely the result of the new competition from SpaceX, as repeatedly noted by the article.

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Another look at why ULA’s CEO stepped down

9:52 am

Why did ULA’s CEO step down, and did SpaceX or the Atlas 5’s dependence on Russian engines play a part?

Very worthwhile reading, as it suggests that not only is the competition from SpaceX a major factor, so was ULA’s effort to monopolize the military launch industry as well as monopolize its access to the Russian engines, denying their use by Orbital Sciences.

And to this I say, thank god for competition. It always shakes things up in a good way.

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ULA CEO steps down

4:24 pm

Faced with stiff competition from SpaceX, United Launch Alliance (ULA) announced today a change in leadership.

United Launch Alliance has named a new president and chief executive to replace Michael Gass, who led the Atlas and Delta rocket company since its inception in 2006. Gass will be replaced effective immediately as president and CEO by Tory Bruno, an executive at Lockheed Martin Corp., which formed ULA in December 2006 in a 50-50 joint venture with Boeing Co., ULA said in a statement Tuesday. Gass is retiring at the end of the year, according to ULA.

Despite Gass’s planned retirement, the abrupt nature of his departure has everything to do with the competition from SpaceX, something that every single article about this change at ULA noted.

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Congress applies pressure to ULA and the Air Force

8:58 am

Two congressional committees are holding up approval of a budget revision for the Air Force’s launch program because of concerns about cost overruns and the program’s dependency on a Russian rocket engine.

Such requests must be approved by each of the four congressional defense committees, and so far, the EELV proposal has won the support of only two. The Senate Appropriations Defense subcommittee and the House Appropriations Defense subcommittee have green-lighted the plan, while the House and Senate Armed Services committees have deferred approval, according to budget documents dated July 25 and July 31, obtained by Defense News.

[The Senate Armed Services Committee] (SASC) asked the Air Force to draw up a plan, by Sept. 30, “that leads to the production of a liquid rocket engine by 2019,” according to one of the documents, sent to Pentagon Comptroller Michael McCord by SASC Chairman Carl Levin, D-Mich.

Meanwhile, others legislators are questioning the program’s cost overruns. Though only hinted at in the article, this hold up is also related to SpaceX’s demand that the bidding for Air Force launches be opened up to competition.

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SpaceX scores first in its suit against the Air Force

11:12 pm

A federal judge has denied the motion of the Air Force and ULA to dismiss SpaceX’s suit against their block buy launch contract that excludes competition from any other company.

The judge also required the parties go to mediation to settle their differences. Both rulings give added weight to SpaceX’s main complaint, that the company as well as others should have the right to compete for this Air Force launch work.

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OCO-2 in orbit

9:16 am

Second time’s the charm: A Delta 2 rocket successfully launched the Orbiting Carbon Observatory 2 (OCO-2) into orbit on Wednesday, five years after the first OCO was lost at launch when its Taurus XL rocket fell into the ocean.

The Earth-observing satellite is designed to globally track the amount of carbon dioxide in the atmosphere.

I have to note that if the science of climate change was so “settled,” as President Barack Obama keeps insisting, why did we then spend half a billion dollars on this satellite? Wouldn’t it make more sense to drop the research and focus entirely on saving the planet?

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On Monday ULA signed contracts with several American companies to begin development of an engine to replace the Russian built first stage engine used by the Atlas 5.

8:43 am

The competition heats up: On Monday ULA signed contracts with several American companies to begin development of an engine to replace the Russian built first stage engine used by the Atlas 5.

The commercial contracts between ULA and prospective U.S. engine builders cover technical feasibility analyses, high-fidelity planning, schedule, cost and technical risk assessments, and cost estimates, ULA said in a statement released Monday. … ULA did not identify which companies will undertake the engine studies. Jessica Rye, a ULA spokesperson, also declined to say how many companies signed the contracts with the launch provider. The contracts are for early-stage studies of a hydrocarbon-fueled engine optimized for first stage propulsion with “aggressive recurring cost targets,” according to ULA.

All the engine concepts will support a first launch by 2019, and ULA expects to select a future concept and engine supplier by the fourth quarter of this year, the company said. ULA will evaluate the feasibility of the new engine concepts for both private investment and the potential for government-industry investment.

For the American rocket industry this is good. The only negative I can see is the possibility that Congress will allocate a lot of cash and requirements for building the new engine, which will increase its cost, slow its development, and make it less competitive. If they instead do it like NASA has done with its commercial crew development and let companies compete to build it, they will get it sooner and cheaper, and the industry will develop more options.

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Elon Musk and another watchdog group suggested on Friday that there was a quid pro quo in the awarding ULA its bulk buy military launch contract.

9:42 am

Elon Musk and another watchdog group suggested on Friday that there was a quid pro quo in the awarding ULA its bulk buy military launch contract.

Musk, citing an article by the Washington-based National Legal and Policy Center, suggested Thursday night on Twitter that the Pentagon inspector general should investigate the actions of former Air Force civilian Roger “Scott” Correll. Earlier this year, Correll retired from his post as the Air Force’s program executive officer for space launch, where he wielded enormous influence in awarding a multibillion-dollar contract for 36 rocket launches over the next several years, shooting sensitive national security equipment into space.

The contract went to a company called United Launch Alliance, a joint venture of the nation’s two biggest weapons contractors — Chicago-based Boeing and Bethesda, Md.-based Lockheed Martin Corp. Earlier this month, Correll took a job as vice president of government acquisition and policy with Aerojet Rocketdyne, the company that supplies the rocket engines used by United Launch Alliance.

Correll’s hiring certainly illustrates the “old boys” network in operation here. Whether there was direct corruption is not clear. Nonetheless, the bulk buy contract is not in the interests of the taxpayer or the Air Force, at least not at the prices announced.

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Replacing the Russian-made rocket engines used by the Atlas 5 and Antares rockets would take about four years, according to a industry analysis.

9:03 am

Replacing the Russian-made rocket engines used by the Atlas 5 and Antares rockets would take about four years, according to Aerojet Rocketdyne.

The company presently refurbishes the Russian engines used by Antares, and is building a host of other engines for other rockets.

In related news, ULA has begun considering shifting some of its military launches from the Atlas 5 to the Delta family of rockets. The company has also released previously undisclosed pricing information for its bulk buy military launches.

Michael Gass, chief executive of Denver-based ULA, said the company’s average per-launch price to the U.S. government is $225 million, a figure that includes the block buy contract as well as pre-existing launch backlog. That figure represents the combined value of the contracts divided by the number of missions.

That $225 million figure, though far less than previously believed, is a little more than twice what SpaceX says it would charge for a comparable launch.

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In response to the Obama administration’s request a judge has lifted her injunction against the purchase of Russian rocket engines for the Atlas 5 rocket.

7:27 pm

In response to the Obama administration’s request a judge has lifted her injunction against the purchase of Russian rocket engines for the Atlas 5 rocket.

More here. It appears that, at least for the moment, the Atlas 5 rocket will be allowed to buy these engines. Whether the Russians will continue to allow them to buy them however remains an open question, especially if things in the Ukraine get worse.

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SpaceX has won an injunction from a federal judge, preventing ULA from buying any further Russian engines.

9:03 am

SpaceX has won an injunction from a federal judge, preventing ULA from buying any further Russian engines.

Federal Claims Court Judge Susan Braden said her preliminary injunction was warranted because of the possibility that United Launch Alliance’s purchase of Russian-made engines might run afoul of the sanctions. NBC News’ past coverage of the issue was cited in Braden’s ruling.

Wednesday’s injunction prohibits any future purchases or payments by the Air Force or United Launch Alliance to NPO Energomash, unless and until the Treasury Department or the Commerce Department determines that the deal doesn’t run counter to the U.S. sanctions against Russian officials. Braden stressed that her ruling does not affect previous payments to the Russians, or purchase orders that have already been placed. United Launch Alliance says it already has some of the engines on hand.

This injunction is not directed specifically at the Air Force’s bulk buy from ULA, nor does it address the cartel-like nature of the ULA monopoly for Air Force launches that SpaceX is challenging. However, it does put a serious crimp, if temporary, on the use of Lockheed Martin’s Atlas 5 rocket, which depends on the engine for all its launches. Though the company has engines in stock, they will quickly run out with no way to immediately replace them.

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A proposed House bill would forbid use of Russian rocket engines in launching any American military payloads.

4:52 pm

A proposed House bill would forbid use of Russian rocket engines in launching any American military payloads.

This bill is being put forth partly because of the Ukrainian situation and partly to support SpaceX’s effort to break the ULA Atlas/Delta monopoly on military launches. Whether it makes any sense or not is of course beside the point.

Meanwhile, the State Department has expanded the sanctions on satellite exports to Russia, which might threaten some future commercial Proton launches.

Both actions suggest that Elon Musk’s political clout is growing. Obviously his company’s concerns are not the prime motivation behind these decisions, but we should note that both actions hurt his direct competitors, while doing little harm to SpaceX.

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ULA has accelerated delivery of its required Russian rocket engines in anticipation of worsening relations with Russia and with members of Congress.

8:53 am

The competition heats up: ULA has accelerated delivery of its required Russian rocket engines in anticipation of worsening relations with Russia and with members of Congress.

ULA presently is the only company the Air Force uses to launch its military satellites, and members of Congress are questioning this monopoly in the context of the situation in the Ukraine as well as SpaceX’s lawsuit challenging it.

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In testimony to Congress Wednesday, Elon Musk described how allowing SpaceX to compete as a military launch provider would significantly lower costs.

7:49 am

The competition heats up: In testimony to Congress Wednesday, Elon Musk described how allowing SpaceX to compete as a military launch provider would significantly lower costs.

[Senator Richard Shelby (R-Alabama)] said the Air Force EELV contracts require compliance with complex oversight and accounting practices that add costs to the program. As a result, he suggested comparing the cost of a SpaceX Falcon 9 and a ULA Atlas or Delta was comparing apples and oranges.

Musk agreed “there is additional cost for U.S. government missions due to the mission assurance process.” And he said SpaceX’s costs for launching a military mission would be 50 percent higher than for a purely commercial launch. Even so, he said, SpaceX could provide a Falcon 9 rocket for around $90 million as opposed to nearly $400 million for a ULA launcher. “Even when you add the Air Force overhead, there’s still a huge difference,” he said. [emphasis mine]

The only reason that Congress is against eliminating the military launch monopoly given to ULA and allowing SpaceX to compete is because the monopoly feeds a lot of pork to the districts of certain but powerful legislators like Shelby.

ULA and Shelby are losing the argument however. The cost differences are too high, and SpaceX has proven that it can do the job efficiently and effectively. Eventually the monopoly will die, and the sooner the better.

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The Pentagon has decided to buy its launch services from more than just Boeing and Lockheed Martin.

8:49 am

The competition heats up: The Pentagon has decided to buy its launch services from more than just Boeing and Lockheed Martin.

Under the new plan, the Air Force can buy as many as 14 launches over the next five years from possible bidders such as Space Exploration Technologies Corp, or SpaceX, and Orbital Sciences Corp . The service may also buy as many as 36 launches from United Launch Alliance, the Lockheed-Boeing venture, with an option to purchase the other 14 launches if the competitors haven’t been certified to launch military and spy satellites that can cost up to $1 billion each.

Originally the military planned to purchase all of its launches from Boeing and Lockheed. Political pressure from SpaceX has now forced them to widen the competition, or at least, make noises that they are doing so. If you read the above paragraph closely the plan still favors the original two companies and is strongly stacked to hand all the launches over to them anyway.

Update: My pessimism above was premature. SpaceX has been awarded a contract for two launches under this new policy.

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The cost of launch

5:57 pm

Two news items from NASA today:

What I find most interesting about these stories is the fees charged by the two companies. SpaceX will be paid $82 million for its one launch, while ULA will be paid $412 million for its three launches, or about $137 million per launch.
» Read more

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ULA, NASA’s prime contractor for operating the space shuttle, on Friday laid off nine percent of its work force.

10:45 am

USA, NASA’s prime contractor for operating the space shuttle, on Friday laid off nine percent of its work force.

I honestly have to ask: why did it take so long? The last shuttle flight was in July of last year. It couldn’t possibly have required that many people to prepare these spacecraft for display in museums.

Update: Typo corrected. Thank you Erik.

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