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on their own, come close to competing on price against SpaceX, the Russians, or the Chinese. “For the most part, the global commercial market is dominated by Arianespace [Europe], Long March [China] or Russian vehicles,” said Dave Bearden, the general manager of civil and commercial programs at the Aerospace Corporation. “There are just different labor rates and differences in the way they are built.” To put things more bluntly, ULA has turned into an embarrassment for the United States. In March 2014, ULA’s then CEO, Michael Gass, faced off against Musk during a congressional hearing that dealt, in part, with SpaceX’s request to take on more of the government’s annual launch load. A series of slides were rolled out that showed how the government payments for launches have skyrocketed since Boeing and Lockheed went from a duopoly to a monopoly. According to Musk’s math presented at the hearing, ULA charged $380 million per flight, while SpaceX would charge $90 million per flight. (The $90 million figure was higher than SpaceX’s standard $60 million because the government has certain additional requirements for particularly sensitive launches.) By simply picking SpaceX as its launch provider, Musk pointed out, the government would save enough money to pay for the satellite going on the rocket. Gass had no real retort. He claimed Musk’s figures for the ULA launch price were inaccurate but failed to provide a figure of his own. The hearing also came as tensions between the United States and Russia were running high due to Russia’s aggressive actions in Ukraine. Musk rightly noted that the United States could soon be placing sanctions on Russia that could carry over to aerospace equipment. ULA, as it happens, relies on Russian-made engines to send up sensitive U.S. military equipment in its Atlas V rockets. “Our Falcon 9 and Falcon Heavy launch vehicles are truly American,” Musk said. “We design and manufacture our rockets in California and Texas.” Gass countered that ULA had bought a two-year supply of Russian engines and purchased the blueprints to the machines and had them translated from Russian to English, and he said this with a straight face. (A few months after the hearing, ULA replaced Gass as CEO and signed a deal with Blue Origin to develop American-made rockets.) Some of the most disheartening moments of the hearing arrived when Senator Richard Shelby of Alabama took the microphone for questioning. ULA has manufacturing facilities in Alabama and close ties to the senator. Shelby felt compelled to play the role of hometown booster by repeatedly pointing out that ULA had enjoyed sixty-eight successful launches and then asking Musk what he made of that accomplishment. The aerospace industry stands as one of Shelby’s biggest donors and he’s ended up surprisingly pro-bureaucracy and anticompetition when it comes to getting things into space. “Typically competition results in better quality and lower-priced contracts—but the launch market is not typical,” Shelby said. “It is limited demand framed by government-industrial policies.” The March hearing in which Shelby made these statements would turn out to be something of a sham. The government had agreed to put fourteen of its sensitive launches up for bid instead of just awarding them directly to ULA. Musk had come to Congress to present his case for why SpaceX made sense as a viable candidate for those and other launches. The day after the hearing, the air force cut the number of launches up for bid from fourteen to between seven and one. One month later, SpaceX filed a lawsuit against the air force asking for a chance to earn its launch business. “SpaceX is not seeking to be awarded contracts for these launches,” the company said on its freedomtolaunch.com website. “We are simply seeking the right to compete.”* SpaceX’s main competitor for ISS resupply missions and commercial satellites in the United States is Orbital Sciences Corporation. Founded in Virginia in 1982, the company started out notPDF Image | SpaceX and the Quest
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