Pentagon Contract Figures Show ULA's Vulcan Rocket is Getting More Expensive
The US Space Force announced this year's launch orders on Friday, with SpaceX emerging as the big winner in a 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.
The news is a blow to ULA's Vulcan rocket, which debuted nearly two years ago and successfully launched its first national security mission in August. However, the contract figures show that ULA's prices are increasing, with some estimates suggesting that the company may be losing as much as $100 million per launch compared to SpaceX.
"We're thrilled to have been selected for these critical missions," said Gwynne Shotwell, President and Chief Operating Officer of SpaceX. "Our team has worked tirelessly to ensure that our rockets meet the highest standards of reliability and performance, and we're proud to be a trusted partner of the US Space Force."
The contract awards are a significant development in the competitive launch services market, where companies like Blue Origin's New Glenn and Relativity Space's Terran 1 are vying for a share of the lucrative national security satellite launch business.
"ULA has been struggling to compete with SpaceX on price," said Brian Weeden, a space industry analyst at the Secure World Foundation. "The Vulcan rocket is a good vehicle, but it's not as efficient or cost-effective as the Falcon 9 and Falcon Heavy."
According to contract figures released by Space Systems Command, ULA's prices for the two missions awarded to the company are estimated to be around $150 million each, compared to SpaceX's winning bids of around $100 million per launch.
The news is a setback for ULA, which has been working to establish itself as a major player in the national security satellite launch market. The company's Vulcan rocket was designed to replace the Atlas V, but it has struggled to gain traction with customers.
"ULA needs to get its prices under control if they want to compete with SpaceX," said Weeden. "The company is taking on too much risk and paying too much for each launch."
Despite the setback, ULA remains a major player in the space industry, with a long history of launching national security satellites. The company's Vulcan rocket has shown promise, but it still needs to prove itself as a reliable and cost-effective option for customers.
The contract awards are just the latest development in a highly competitive launch services market. As the US Space Force continues to modernize its launch capabilities, companies like SpaceX and ULA will be vying for a share of the lucrative national security satellite launch business.
Background:
The US Space Force convenes an annual Mission Assignment Board to award contracts for launching national security satellites. The board selects companies based on their ability to meet the military's requirements for reliability, performance, and cost.
Context:
The contract awards are a significant development in the competitive launch services market, where companies like Blue Origin's New Glenn and Relativity Space's Terran 1 are vying for a share of the lucrative national security satellite launch business.
Next Developments:
The US Space Force has not yet announced the exact dates for the launches, but they are expected to take place over the next two years. As the industry continues to evolve, companies like SpaceX and ULA will be competing for a share of the lucrative national security satellite launch business.
*Reporting by Arstechnica.*
