Tag: ULA

Air Force subsidies to ULA to end

9:32 am

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.

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Air Force demanded too much in its SpaceX certification process

4:50 pm

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.

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Stay tuned for photo tour of Vandenberg

4:23 pm

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.

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Air Force gives more launches to ULA

9:30 am

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.

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SpaceX drops Air Force lawsuit in new deal

10:19 pm

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.

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No more Russian engines for ULA

10:34 am

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.

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Solid rocket motors for American rockets?

9:34 am

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.

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New rocket coming from ULA?

12:45 pm

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.

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Atlas 5 successfully launches GPS satellite

9:29 am

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.

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Congress demands American rocket engines for military launches

9:11 am

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.

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Blue Origin to build rocket engine for Atlas 5

4:36 pm

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.

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Air Force requests info for new engine

8:54 am

Corporate welfare: The Air Force on Thursday issued a request for information from industry for the replacement of the Russian-made engines used by ULA’s Atlas 5 rocket.

Companies are being asked to respond by Sept. 19 to 35 questions. Among them: “What solution would you recommend to replace the capability currently provided by the RD-180 engine?” Air Force officials have told Congress they only have a broad idea of how to replace the RD-180. Estimates of the investment in money and time necessary to field an American-built alternative vary widely. Congress, meanwhile, is preparing bills that would fund a full-scale engine development program starting next year; the White House is advocating a more deliberate approach that begins with an examination of applicable technologies.

In the request for information, the Air Force says it is open to a variety of options including an RD-180 facsimile, a new design, and alternative configurations featuring multiple engines, and even a brand new rocket. The Air Force is also trying to decide on the best acquisition approach. Options include a traditional acquisition or a shared investment as part of a public-private partnership. [emphasis mine]

The Atlas 5 is built by Lockheed Martin. This is really their problem, not the Air Force or ULA. In addition, the Air Force has other options, both from Boeing’s Delta rocket family as well as SpaceX’s Falcon 9 rocket. For the government to fund this new engine is nothing more than corporate welfare, at a time when the federal government is swimming in debt and is essentially bankrupt.

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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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