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

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.

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

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.

The cost of launch

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

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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