Saturday, April 26, 2014

SpaceX to sue Air Force over lack of competition - State Column

The U.S. Air Force's no-bid contracts for rockets are coming under fire from the private sector and lawmakers.

The U.S. Air Force's decision to award a long term no-bid contract to United Launch Alliance (ULA) will cost taxpayers billions and hurt competition, according to SpaceX CEO Elon Musk. On Friday, Musk announced that his company will file a legal action and an online campaign against the Air Force in an attempt to open up bidding.

The Air Force's contract for the latest Evolved Expendable Launch Vehicle (EELV) guarantees the purchase of 36 rocket cores for national security launches. The contract represents the fourth largest procurement program in the U.S. Department of Defense's budget and the cost is 58.4 percent over the original estimate and four times the cost of a SpaceX launch, according to a statement by the company.

ULA is a joint venture between Boeing and Lockheed Martin. The partnership's launch vehicle, the Atlas V, uses the Russian made RD-180 engine. Musk also objected to the use of a rocket that is made by a company which is owned by the Russian government.

"In light of international events, this seems like the wrong time to send hundreds of millions of dollars to the Kremlin. Yet, this is what the Air Force's arrangement with ULA does, despite the fact that there are domestic alternatives available that do not rely on components from countries that pose a national security risk," Musk said.

The official complaint will be available to the public on Monday at freedomtolaunch.com.

"We are simply asking that SpaceX and any other qualified domestic launch providers be allowed to compete in the EELV program for any and all missions that they could launch," Musk explained.

Among other things, SpaceX Falcon 9 rockets are currently used to supply the International Space Station.

Senator John McCain (R-AZ) has raised concerns of his own over the cost of and apparent lack of competition in the program. According to a statement, Senator McCain has sent a letter to Secretary of the Air Force Deborah Lee James requesting additional information on testimony presented to the Senate Armed Services Committee. A letter has also been sent to Department of Defense Inspector General Jon T. Rymer requesting that his office investigate recent developments in the EELV program.

According to , the Air Force has declined comment on the lawsuit.

Source : http://www.statecolumn.com/2014/04/spacex-to-sue-air-force-over-lack-of-competition/