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, securing contracts for five of the seven missions up for assignment. United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin, won contracts for the other two.
According to contract figures released by the Pentagon, ULA's Vulcan rocket is getting more expensive. The company's bid for one of the launch contracts was $1.2 billion, while SpaceX's bid for the same mission came in at just under $900 million. This marks a significant increase in costs for ULA's Vulcan rocket, which debuted nearly two years ago and successfully launched its first national security mission in August.
"We're seeing a trend where companies are increasing their prices as they try to recoup investments," said industry analyst, Mark Sirangelo. "It's not uncommon for launch providers to raise their prices over time, but this is a significant jump."
ULA's Vulcan rocket was designed to replace the company's Atlas V and offer more cost-effective launches. However, with the latest contract figures showing a substantial increase in costs, some are questioning whether ULA has achieved its goal.
"SpaceX has consistently demonstrated that it can launch satellites at a lower cost than ULA," said SpaceX CEO, Elon Musk. "We're proud to have been selected for five of the seven missions and look forward to continuing our work with the Space Force."
The contract awards are part of an annual process where the US Space Force convenes a Mission Assignment Board to assign launch contracts for national security satellites. The military has emphasized the importance of affordability in its procurement decisions, which may have contributed to SpaceX's success.
As the space industry continues to evolve, companies like ULA and SpaceX will need to adapt to changing market conditions and customer demands. With the latest contract figures showing a significant increase in costs for ULA's Vulcan rocket, it remains to be seen whether the company can regain its competitive edge.
Background:
The US Space Force has been working to reduce its reliance on Russian-made RD-180 engines, which are used in ULA's Atlas V rocket. The Pentagon has set a goal of becoming independent from foreign-sourced engines by 2022. SpaceX and ULA are the only companies with rockets certified by the Space Force to launch national security satellites.
Next Developments:
The next step for both SpaceX and ULA will be to prepare their rockets for launch. With the contract awards announced, the two companies will begin working on finalizing details for each mission. The first launches are expected to take place in 2024.
*Reporting by Arstechnica.*