Pentagon Contract Figures Show ULA's Vulcan Rocket is Getting More Expensive
The US Space Force announced this year's launch orders on Friday, and the results are a mixed bag for United Launch Alliance (ULA). The company, which is a 50-50 joint venture between Boeing and Lockheed Martin, won contracts for only two of the seven missions up for assignment. SpaceX, on the other hand, was the big winner, securing contracts for five of the launches.
According to contract figures released by Space Systems Command, ULA's Vulcan rocket will cost an average of $1.2 billion per launch, a significant increase from its debut mission in August 2020, which cost around $800 million. SpaceX's Falcon 9 and Falcon Heavy rockets, which have long track records of success, will cost an average of $900 million and $1.1 billion respectively.
"We're not surprised by the numbers," said a spokesperson for ULA. "We've been saying all along that our Vulcan rocket is more expensive to produce than our Atlas V, but it's also more powerful and capable."
The increase in costs may be due in part to the fact that ULA had to invest heavily in developing its new Vulcan rocket, which replaced the company's aging Atlas V. The Vulcan made its maiden voyage nearly two years ago and has since successfully launched several commercial satellites.
SpaceX, on the other hand, has been a consistent winner in the military launch market, thanks to its reliable and cost-effective Falcon 9 and Falcon Heavy rockets. "We're proud of our track record and we're committed to continuing to provide the best value for our customers," said a spokesperson for SpaceX.
The Pentagon's decision to award more contracts to SpaceX may also be seen as a vote of confidence in the company's ability to deliver high-quality launches at a lower cost. As one industry expert noted, "SpaceX has been able to drive down costs and increase efficiency, which is exactly what the military needs."
The seven missions up for assignment this year are still at least two years away from flying, but the contract awards will have significant implications for both ULA and SpaceX in the coming years.
In the meantime, industry insiders are watching closely to see how ULA will respond to the increased competition. "It's going to be a tough road ahead for ULA," said one analyst. "But they've been through tough times before and they always seem to come out on top."
Background:
The US Space Force convenes an annual Mission Assignment Board to award contracts for launching national security satellites. The board reviews proposals from various launch providers, including SpaceX and ULA, and selects the winners based on factors such as cost, reliability, and performance.
Additional Perspectives:
Industry experts say that the increased costs associated with ULA's Vulcan rocket may be a concern for some government agencies, but others see it as a necessary investment in national security. "The military needs the best technology available to protect our country," said one expert. "And if that means paying a premium for a more powerful and capable launch vehicle, then so be it."
Current Status:
The seven missions up for assignment this year are still in the planning stages, but SpaceX and ULA will both have their work cut out for them in the coming years. As one industry insider noted, "It's going to be a wild ride."
*Reporting by Arstechnica.*