McCain and Air Force question ULA military arrangement

On Wednesday, the military arrangement between the Air Force and ULA came under strong attack.

First, Senator John McCain (R-Arizona) and House Majority Leader Kevin McCarthy (R-California) introduced a bill in Congress that would re-instate the ban on ULA’s use of Russian engines in the Atlas 5 rocket. The ban had been lifted when Senators Richard Shelby (R-Alabama) and Richard Durbin (D-Illinois) snuck language doing so into the giant omnibus budget bill in December.

Second, at a hearing in the Senate on Wednesday, Air Force, under attack by Senator McCain for its sweetheart deal which gives ULA $800 million annually whether or not it launches anything regardless, admitted that it is thinking of terminating that deal early.

Air Force Secretary Deborah Lee James told the Senate Armed Services Committee during a Wednesday hearing the service is considering early termination of the current EELV Launch Capability (ELC) contract, a unique arrangement set up in 2006 to fund the cost of maintaining ULA launch infrastructure. At the time, the arrangement made sense because ULA was the Pentagon’s sole source for military space launch. β€œI was very surprised and disappointed when ULA did not bid on a recent GPS competitive launch opportunity,” James said. β€œAnd given the fact that there are taxpayer dollars involved with this ELC arrangement I just described to you, I’ve asked my legal team to review what could be done about this.”

The McCain bill is not likely to pass. However, the pressure he is putting on the Air Force, combined with the renewed and cheaper competition being offered by SpaceX, could very well lead to the ending of ULA’s EELV deal.

I expect to see a similar scenario play out in connection with Orion/SLS sometime in the next two years. When SpaceX and others begin to fly manned capsules and big rockets for relatively little money, our elected officials are eventually going to notice how much more expensive that bloated government program is, even as it doesn’t accomplish much. Some of them will suddenly realize the political advantage in attacking SLS, and begin to do so.

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ULA buys 20 more Russian engines for Atlas 5

With the Congressional ban on buying Russian rocket engines lifted, ULA today wasted no time and immediately purchased 20 more engines from its Russian supplier to use in its Atlas 5 rocket.

I could also title this post “The Death of the Vulcan Rocket”. With at least 20 engines available, ULA no longer has any need to develop that new rocket. The Air Force is still willing to overpay for Atlas 5 launches, and they will now have enough engines to fly that rocket for probably 5 to 10 more years. Since there have already been indications that the bean-counters at ULA have been reluctant to fund Vulcan’s development, I expect them to now kill it.

This of course will be a very short-sighted decision. They might get some business with the Altas 5 and the Delta from the government for those few years, but this will not make them competitive in the new rocket industry. Eventually, they are going to go the way of the American steel industry, which failed to innovate and compete with foreign companies, and in the end lost its business to those foreign companies.

In the case of aerospace, however, the competition is coming from American companies. And that is wholly to the good.

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Budget bill lifts ban of Russian engines on Atlas 5

The giant omnibus budget bill negotiated and announced by Congress today includes language that effectively lifts the limit on the number of Russian engines that ULA can use in its Atlas 5 rocket.

John McCain (R-Arizona) is very unhappy about this, and is threatening to ban the use of any Russian engines on any further Atlas 5 in future bills.

On the record, I make this promise. If this language undermining the National Defense Authorization Act is not removed from the Omnibus, I assure my colleagues that this issue will not go unaddressed in the Fiscal Year 2017 National Defense Authorization Act. Up to this point, we have sought to manage this issue on an annual basis, and we have always maintained that, if a genuine crisis emerged, we would not compromise our national security interests in space. We have sought to be flexible and open to new information, but if this is how our efforts are repaid, then perhaps we need to look at a complete and indefinite restriction on Putin’s rocket engines.

Whether McCain will be able to do this however is somewhat questionable. He is up for election next year, is very disliked in Arizona, and is likely going to face a very tough primary battle that he very well might lose. Even so, it really won’t do ULA much good if they get the right to keep using Russian engines. As I said earlier today, ULA’s future as a rocket company is extremely limited if it doesn’t develop a cheaper rocket. Continued use of the Atlas 5 and these Russian engines does nothing to get that cheaper rocket built.

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ULA’s fight to use Russian engines continues

This article provides a detailed account of the political battle between ULA and Congress of its future use of Russian engines in its Atlas 5 rocket.

Congress has imposed a strict limit on the number of engines the company can use. ULA is still lobbying for an increase, claiming that the limit will mean that they will not be able to meet the government military launch needs for a few years when the engines on hand run out and its new American-built engines are not yet available.

In the long run I think this battle is irrelevant. What really matters is what it costs to launch a satellite, and ULA is simply not focused on reducing its costs. Consider this quote from the article, emphasis mine:

ULA has designed a new rocket dubbed Vulcan that features a U.S.-made engine, but this vehicle will not be available until around 2021, assuming the project gets funded β€” which is by no means a given.

They made a big deal earlier this year about how Vulcan will soon replace Atlas 5 at a lower cost, but it now appears that this was merely a public relations event. ULA wants someone else to pay for this new rocket, and thus has not yet committed any of its own money to begin actual development.

Other companies however are funding the development of their own new American-made rockets that will also be far cheaper to fly. Sooner rather than later our spendthrift Congress is going to mandate that the military use those cheaper rockets. If ULA doesn’t get moving it will be left in the dust, whether or not Congress allows it to use more Russian engines.

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Spat between senators over Russian rockets

Pig fight! In response to Senator Richard Shelby’s (R-Alabama) effort, with the lobbying aid of ULA, to slip an amendment into a budget bill that would allow ULA to use Russian engines in its Atlas 5 indefinitely, Senator John McCain (R-Arizona) has written a scathing letter condemning the effort.

In a Nov. 19 letter, McCain asked Cochran to β€œrespect the well-informed work my committee took” and to avoid the β€œyear-over-year relitigation” of the engine issue.β€œRecent attempts by the incumbent contractor to manufacture a crisis by prematurely diminishing its stockpile of engines purchased prior to the Russian invasion of Crimea should be viewed with skepticism and scrutinized heavily,” McCain wrote in the letter, a copy of which was obtained by SpaceNews. β€œSuch efforts should not be misconstrued as a compelling reason to undermine any sanctions on Russia while they occupy Crimea, destabilize Ukraine, bolster Assad in Syria, send weapons to Iran and violate the 1987 Intermediate Range Nuclear Forces Treaty.”

McCain is no saint when it comes to pork, even if he is right on this issue. Shelby however is and has always been a pork pig. He has always put the needs of local companies ahead of the needs of the country. This story illustrates this perfectly.

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ULA is adding cubesat capability to its Atlas 5

The competition heats up: ULA has announced that they are adding a cubesat launch capability to their Atlas 5 rocket so that by 2017 they will be able to place in orbit as many as 24 cubesats per launch, as secondary payloads.

In addition, the company will offer universities to compete for six launch slots at no charge.

β€œULA will offer universities the chance to compete for at least six CubeSat launch slots on two Atlas V missions, with a goal to eventually add university CubeSat slots to nearly every Atlas and Vulcan launch,” noted Tory Bruno, ULA president and CEO. β€œThere is a growing need for universities to have access and availability to launch their CubeSats and this program will transform the way these universities get to space by making space more affordable and accessible.”

This offer is ULA’s way of trying to capture some of that growing smallsat market that companies like Rocket Labs and Virgin Galactic are trying to grab.

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ULA concedes GPS competition to SpaceX

The competition cools down: ULA has decided against bidding on a military GPS launch contract, leaving the field clear for SpaceX.

ULA, which for the past decade has launched nearly every U.S. national security satellite, said Nov. 16 it did not submit a bid to launch a GPS 3 satellite for the Air Force in 2018 in part because it does not expect to have an Atlas 5 rocket available for the mission. ULA has been pushing for relief from legislation Congress passed roughly a year ago requiring the Air Force to phase out its use of the Russian-made RD-180 engine that powers ULA’s workhorse Atlas 5 rocket.

This decision might be a lobbying effort by ULA to force Congress to give them additional waivers on using the Atlas 5 engine. Or it could be that they realize that they wouldn’t be able to match SpaceX’s price, and decided it was pointless wasting time and money putting together a bid. Either way, the decision suggests that ULA is definitely challenged in its competition with SpaceX, and until it gets a new lower cost rocket that is not dependent on Russian engines, its ability to compete in the launch market will be seriously hampered.

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ULA shuffles and trims its executive leadership

The competition heats up: In its effort to improve its efficiency and lower costs, ULA shuffled and reduced the size of its executive team.

All these changes are under the leadership of the company’s CEO Tory Bruno, who took over in 2014 with the goal of cutting what company charges for a launch while speeding up its launch prep times. The effort to launch three Atlas 5s in this month is clearly the result of this policy.

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ULA prepares Atlas 5 for its third October launch

The competition heats up: ULA will attempt its third Atlas 5 launch in October, launching a new GPS satellite for the Air Force on October 30.

In the past ULA never packed its launches in this tightly. I suspect they are now doing so because of the competition from SpaceX. They need to show their customers, both commercial and the government, that they are a reliable launch provider. Launching three Atlas 5s in one month is one way to do it.

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