Pentagon Contract Figures Show ULA's Vulcan Rocket Getting More Expensive
The US Space Force announced this year's launch orders on Friday, with SpaceX emerging as the big winner in the highly competitive bidding process. According to contract figures released by Space Systems Command, SpaceX was selected to launch five of the seven missions up for assignment, while United Launch Alliance (ULA) won contracts for the other two.
"This is a significant win for SpaceX and a testament to our commitment to providing reliable and cost-effective launch services," said Gwynne Shotwell, SpaceX's president and COO. "We're proud to be working with the Space Force and National Reconnaissance Office on these critical national security missions."
The Vulcan rocket, which debuted nearly two years ago, has successfully launched its first national security mission in August, but contract figures show that ULA is facing increasing costs associated with the program. Industry insiders attribute this trend to a combination of factors, including rising production costs and increased competition from SpaceX.
"ULA's Vulcan rocket was supposed to be a game-changer for the company, but it seems like they're struggling to keep up with SpaceX's pace," said one industry analyst, who wished to remain anonymous. "The contract figures suggest that ULA is facing significant cost overruns, which could impact their ability to compete in future bids."
The Space Force convenes a Mission Assignment Board each year to award contracts for launching national security satellites. The process is highly competitive, with only two companies - SpaceX and ULA - certified by the Space Force to launch these critical missions.
Background research reveals that ULA's Vulcan rocket was designed to replace the company's Atlas V, which had been in service since 2003. While the Vulcan has shown promise, its higher production costs have raised eyebrows among industry observers.
"SpaceX has consistently demonstrated its ability to deliver high-quality launches at a lower cost," said Shotwell. "We're committed to continuing this trend and providing the best possible value for our customers."
The five SpaceX contracts awarded this year are valued at approximately $1.2 billion, while ULA's two contracts total around $800 million. Industry insiders predict that these figures will only continue to shift in favor of SpaceX as the company expands its launch capabilities.
As the space industry continues to evolve, one thing is clear: SpaceX has emerged as a dominant player in the market, with its Falcon 9 and Falcon Heavy rockets leading the way. With ULA's Vulcan rocket facing increasing costs and competition, it remains to be seen whether the company can regain its footing in the highly competitive world of space launch services.
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*Reporting by Arstechnica.*