“ULA is the only government certified launch provider that meets all of the unique EELV requirements that are critical to supporting our troops and keeping our country safe. That is the case today, when the acquisition process started in 2012 and at the time of the contract award in December 2013.
In announcing this suit, your question that you have just posed to the air force was, why not wait a few months before awarding ULA the contract? Well, the air force awarded ULA the contract a few months ago, back in December, so why are you waiting to file this suit now?
We only learnt about the big sole-source award in March. It may have been signed in December but it only came to light, interestingly, one day after the senate hearing on EELV launch costs, which seems remarkably coincidental to me. I don't think that's an accident. We've really just had about a month of awareness and we've been somewhat reeling from that news and trying to see, is this real? Is this actually what's going to be the case? When we basically made no progress with discussions with the air force, we thought we have basically no choice but to file the protest. - transcript (http://)
I suppose ULA would counter that losing a single billion(s) of dollars payload would ruin any calculation of savings on Spacex part.
On April 17, 2014, the Department of Defense’s (DoD’s) 2014 Selective Acquisition Report (SAR) on the Air Force’s Evolved Expendable Launch Vehicle (EELV) stated that the Block Buy provided more than $4 billion in savings from the President’s FY15 Budget.
The “Block Buy” contract is a commitment of 35 launch vehicle cores to achieve the economy of scale savings. The contract procures the hardware for 35 new cores and the capability to launch those and previous cores procured in prior year contracts (as early as 2002).
Defense Department officials have recently stated that cancelling the contract and terminating the block buy – which involves hundreds of suppliers and is enormously complex – would cost billions.
ULA says it would cost $4 billion more if the block buy didn't happen. Ask yourself why that is.
If ULA was confident that without the block buy they would still win all 35 cores, then the costs would be exactly the same. That $4 billion difference must mean ULA expects that without the block buy they'll lose a lot of those 35 cores.
So the question is how many cores would be lost for ULA to have to charge $4 billion more for the remaining cores, and how much would the government save by paying less to SpaceX for those missions.
A rebuilt engine is a new configuration.....it would not be certified to fly payloads per the new NASA/NRO/Air Force certification standard (http://forum.nasaspaceflight.com/index.php?topic=34573.msg1189798#msg1189798) however. Why lock into a 5 year deal with a LV that will not be certified? when the number of heavy flights has not been determined? deju vu?Quote from: Garrettand an interesting, related article from Doug:... Or would they pay ULA to fund Aerojet to built a US built RD-180 and still support both EELV's?
ULA Speeds Up Engine Deliveries as House Mulls Ban on Russian Motor Use
http://www.parabolicarc.com/2014/04/28/52226/
I wonder, as brought up by the article, how all this will play out for Orbital as well?
Not strange at all. SpaceX expected to compete for 14 launches. Back in 2011,the "point of contention is whether the Air Force will proceed with a proposed “block” purchase from ULA, or will it allow new entrants to bid on medium- and heavy-lift launches" (http://www.thespacereview.com/article/1990/1), not a mix of both. Further, the 37.B over 5 years for 60 flights that would have been 41.5B was also surprising.Quote from: Elon MuskWe only learnt about the big sole-source award in March. It may have been signed in December but it only came to light, interestingly, one day after the senate hearing on EELV launch costs, which seems remarkably coincidental to me. I don't think that's an accident. We've really just had about a month of awareness and we've been somewhat reeling from that news and trying to see, is this real? Is this actually what's going to be the case? When we basically made no progress with discussions with the air force, we thought we have basically no choice but to file the protest. - transcript (http://)This reply from Musk is so strange than I actually went back and transcribed the question, something I typically don't do. I mean, we all heard about it back in January.
especially with a rebuilt RD-180 leads to a new configuration requiring new certification,
If ULA believed the U.S. government felt the risk of SpaceX wasn't worth the cost...
...then ULA would be confident they wouldn't lose any of the 35 cores to SpaceX even without the block buy, and they wouldn't have to charge $4 billion more without the block buy.
Not strange at all. SpaceX expected to compete for 14 launches. Back in 2011,the "point of contention is whether the Air Force will proceed with a proposed “block” purchase from ULA, or will it allow new entrants to bid on medium- and heavy-lift launches" (http://www.thespacereview.com/article/1990/1), not a mix of both. Further, the 37.B over 5 years for 60 flights that would have been 41.5B was also surprising.
The key is five years and 36 cores....especially with a rebuilt RD-180 leads to a new configuration requiring new certification, and the competition term was 2015 to 2017, not 2014+ 5 years = 2019.
Exactly! Buy more engines now to ensure you have 5 years of engines for the new contract. Its cheaper to buy the engines up front, have extra cores for COTS, and not take a risk on "its not a new configuration" with a five year contract in hand. Cost reductions? always 20 years away.especially with a rebuilt RD-180 leads to a new configuration requiring new certification,
What rebuilt RD-180? And even so, re-certification is not necessarily required.
4B over 40B is a 10% discount to provide more cores than the demand requires, takes forecasted orders from the competition (14 down to 7), and keeps the business in place for 5 years.Quote...then ULA would be confident they wouldn't lose any of the 35 cores to SpaceX even without the block buy, and they wouldn't have to charge $4 billion more without the block buy.We don't know what the real price breaks are for the block buy, and whether the Air Force could get the same pricing with, say, a ULA block buy of 20 as they would with 36. But in the realm of government contracting, where you don't take risks on future customer orders, ULA has no incentive to try to lower customer prices if there is a risk they have to absorb lower profits because of future customer order changes.
In contrast, SpaceX no doubt is buying in economic order quantities based on forecasted order demand, and not based on actual orders. There is risk for such a strategy, but if you are in a business where you feel assured of continued future demand, then it's not a high risk.
Government agencies must send official notices.Not strange at all. SpaceX expected to compete for 14 launches. Back in 2011,the "point of contention is whether the Air Force will proceed with a proposed “block” purchase from ULA, or will it allow new entrants to bid on medium- and heavy-lift launches" (http://www.thespacereview.com/article/1990/1), not a mix of both. Further, the 37.B over 5 years for 60 flights that would have been 41.5B was also surprising.
The key is five years and 36 cores....especially with a rebuilt RD-180 leads to a new configuration requiring new certification, and the competition term was 2015 to 2017, not 2014+ 5 years = 2019.
SpaceX isn't contesting the reduction of the 14 launches. They're contesting the 36 core block buy. That's why the journalist asked Elon why SpaceX had taken so long to respond.
Perhaps you're thinking that it was in March that the air force announced the reduction of the 14 competed launches to 7. That announcement didn't happen "one day after the senate hearing on EELV launch costs", it happened on March 4, the day before the senate hearing. Maybe Elon didn't hear about it until 2 days later, but that's just more evidence that SpaceX doesn't keep up with the news. In any case, it's not relevant to the 36 core block buy.
One thing I don't quite understand is when to when are the nominal launch dates. Because a fast DoD launch campaign is 36 months, and 60months is par. Since Falcon 9 can't compete until It gets certified (July?). And assuming that mythical 60% of missions, they could compete, at best, on 6 or seven of those missions. And that's assuming that the 14 that were left out to compete we're not those that they could do in 42months since Dec-2013. Thus, the block buy might be the correct decision.
Now, as an economist, if they left just one mission in the block buy that might have been reasonably expected to be compete by SpaceX (say a mission in FY2017 or later). Then this block buy might perfectly be open to scrutiny. Since I don't have access to the details, I can't make further comments.
Perhaps you're thinking that it was in March that the air force announced the reduction of the 14 competed launches to 7. That announcement didn't happen "one day after the senate hearing on EELV launch costs", it happened on March 4, the day before the senate hearing. Maybe Elon didn't hear about it until 2 days later, but that's just more evidence that SpaceX doesn't keep up with the news. In any case, it's not relevant to the 36 core block buy.
Government agencies must send official notices.
I'm just feeling for the guys doing all the heavy lifting who are going to get caught in the middle of all this crap through no fault of their own.
We only learnt about the big sole-source award in March. It may have been signed in December but it only came to light, interestingly, one day after the senate hearing on EELV launch costs, which seems remarkably coincidental to me. I don't think that's an accident. We've really just had about a month of awareness and we've been somewhat reeling from that news and trying to see, is this real? Is this actually what's going to be the case? When we basically made no progress with discussions with the air force, we thought we have basically no choice but to file the protest. - transcript (http://)
This reply from Musk is so strange than I actually went back and transcribed the question, something I typically don't do. I mean, we all heard about it back in January.
Now here's a crazy scenario that one should think about: what if ULA doesn't bid on the launches that F9 can lift? Basically, they say to USAF and SpaceX, put up or shut up.
ULA Release. No direct reference to SpaceX. Follows a very similar line to what Mr. Gass said at the hearing ( http://www.nasaspaceflight.com/2014/03/spacex-and-ula-eelv-contracts/ )ULA (or at least their PR department) has one very distorted view on reality.
United Launce Alliance (ULA) Statement in Response to SpaceX Lawsuit
April 28, 2014
“ULA is the only government certified launch provider that meets all of the unique EELV requirements that are critical to supporting our troops and keeping our country safe. That is the case today, when the acquisition process started in 2012 and at the time of the contract award in December 2013.
“The recent 5-year block buy contract was the result of a best practice acquisition process that enabled the government to negotiate a block of launches in advance that enabled significant operations efficiency and created the needed stability and predictability in the supplier and industrial base, while meeting national security space requirements.
“This disciplined approach saved the government and taxpayers approximately $4 billion while keeping our nation’s assured access to deliver critical national security assets safely to space.
“Space launch is one of the most risk-intolerant and technologically advanced components of our national security. That is why new entrants must meet rigorous certification criteria of vehicle design, reliability, process maturity and safety systems in order to compete, similar to the process that ULA’s Atlas and Delta products and processes have met.
“ULA now provides Atlas and Delta EELV rockets that have complimentary capabilities that assure our customers that their mission needs are met. ULA has purchased a first stage engine built in Russia for the past 20 years for the Atlas rocket and has always maintained contingency capabilities if the supply was interrupted to ensure our customers mission needs are met. ULA maintains a two-year inventory of engines in the U.S., and would be able to transition other mission commitments to our Delta rockets if an emergent need develops.
“Since its inception in 2006, ULA has consistently exceeded EELV cost reduction goals. At the same time, we have conducted 81 consecutive launches, achieving 100% mission success.
“EELV continues to be the most successful DOD acquisition program of the past few decades. Launches have been delivered on schedule, meeting or exceeding all performance requirements, and exceeding cost reduction goals.”
Background
On April 17, 2014, the Department of Defense’s (DoD’s) 2014 Selective Acquisition Report (SAR) on the Air Force’s Evolved Expendable Launch Vehicle (EELV) stated that the Block Buy provided more than $4 billion in savings from the President’s FY15 Budget.
http://www.defense.gov/pubs/SAR_SUMMARY_TABLES_FINAL.pdf
The “Block Buy” contract is a commitment of 35 launch vehicle cores to achieve the economy of scale savings. The contract procures the hardware for 35 new cores and the capability to launch those and previous cores procured in prior year contracts (as early as 2002). The missions ULA supports for the U.S. Government and commercial customers have a wide range of capabilities, some of which have three times the lift capability of any of the new entrants advertised performance capability. ULA provides unique ground and orbital insertion capabilities that are included in the contract that are unique to national security missions.
The DOD acquisition strategy enabled new entrants – if certified – to compete for up to 14 missions in the FY’15–17 period. The goal of this element of the acquisition strategy was to demonstrate New Entrants ability to compete, with expectation that full and level competition would be enabled by FY’18.
Defense Department officials have recently stated that cancelling the contract and terminating the block buy – which involves hundreds of suppliers and is enormously complex – would cost billions. Additionally, it could put critical mission schedules at risk that would have impact on operational capabilities and the satellite program costs. ULA is focused on delivering on all of its mission assurance and cost reduction commitments that support its customers.
Since its inception, ULA’s commercially-developed Atlas and Delta rockets have executed an unprecedented 81 consecutive successful launches for the Air Force, National Reconnaissance Office, NASA and commercial customers, a 100 percent mission success standard unmatched in the U.S. launch industry.
###
How much cheaper would ULA prices been if they had to bid for each of bulk buy launches, knowing that SpaceX could also bid.Bingo.
and? Elon's trying to imply that the announcement was a retaliation for the senate hearing. The facts don't fit his version of events.The impression I got was that the disclosure was timed to avoid having to talk about it at the senate hearing, not that it was retaliation.
and? Elon's trying to imply that the announcement was a retaliation for the senate hearing. The facts don't fit his version of events.The impression I got was that the disclosure was timed to avoid having to talk about it at the senate hearing, not that it was retaliation.
especially with a rebuilt RD-180 leads to a new configuration requiring new certification,
What rebuilt RD-180? And even so, re-certification is not necessarily required.
It's not my logic. Is economic analysis. Commercial launches are usually done in 24 months. DoD, as stated previously, are 36 to 60. And you need to know the launch vehicle. For analysis, launch environment, certification, etc. DoD also wants to look at the certificate or the rocket production.One thing I don't quite understand is when to when are the nominal launch dates. Because a fast DoD launch campaign is 36 months, and 60months is par. Since Falcon 9 can't compete until It gets certified (July?). And assuming that mythical 60% of missions, they could compete, at best, on 6 or seven of those missions. And that's assuming that the 14 that were left out to compete we're not those that they could do in 42months since Dec-2013. Thus, the block buy might be the correct decision.
Now, as an economist, if they left just one mission in the block buy that might have been reasonably expected to be compete by SpaceX (say a mission in FY2017 or later). Then this block buy might perfectly be open to scrutiny. Since I don't have access to the details, I can't make further comments.
In September 2013 ULA won a contract to launch the Mexican Morelos-3 mission, which is scheduled to launch as early as 2015 on an Atlas V. So ULA only needs a bit more than 2 years notice, at most, not 5 years, to build an Atlas V.
So a block buy covering the next 2 years is defensible by your logic. A block buy extending beyond 2 years is not.
and? Elon's trying to imply that the announcement was a retaliation for the senate hearing. The facts don't fit his version of events.The impression I got was that the disclosure was timed to avoid having to talk about it at the senate hearing, not that it was retaliation.
The block buy is especially relevant if the core numbers include the RD-180, if a replacement is a new configuration, or if the RD180 is banned--> at least 9 cores are required for certification.
Do you have a link that specifically states 36 cores, not 14 for Dec?and? Elon's trying to imply that the announcement was a retaliation for the senate hearing. The facts don't fit his version of events.Perhaps you're thinking that it was in March that the air force announced the reduction of the 14 competed launches to 7. That announcement didn't happen "one day after the senate hearing on EELV launch costs", it happened on March 4, the day before the senate hearing. Maybe Elon didn't hear about it until 2 days later, but that's just more evidence that SpaceX doesn't keep up with the news. In any case, it's not relevant to the 36 core block buy.Not strange at all. SpaceX expected to compete for 14 launches. Back in 2011,the "point of contention is whether the Air Force will proceed with a proposed “block” purchase from ULA, or will it allow new entrants to bid on medium- and heavy-lift launches" (http://www.thespacereview.com/article/1990/1), not a mix of both. Further, the 37.B over 5 years for 60 flights that would have been 41.5B was also surprising.
The key is five years and 36 cores....especially with a rebuilt RD-180 leads to a new configuration requiring new certification, and the competition term was 2015 to 2017, not 2014+ 5 years = 2019.
Government agencies must send official notices.
14 launches vs 7 for small company at 60M, call it $100M is 1.4B vs 700M, quite the difference from 36.7B.
If the AF signed a core order back in Dec and knew of a reduced demand, did not inform until March, then that's a crime, plain and simple.
Air Force announcement in Dec that contracts cover 14 of the 36 EELV cores anticipated in the multiyear block buy
AF is expected to begin awards for the competitively bid launches in 2015 for missions launching in 2017.
An additional 14 missions will be awarded competitively, giving upstarts like Space Exploration Technologies Corp. of Hawthorne, Calif., a crack at the market.
- The Air Force plan entails buying the 36 rocket cores from ULA on a sole-source basis.
- An additional 14 missions will be awarded competitively, giving upstarts like Space Exploration Technologies, a crack at the market.
- ULA in 2010 quoted prices for an Atlas 5 launch to NASA that ranged from $104 to $334 million
“SpaceX expects the billion dollar plus fixed payment subsidy (aka the ELC) to ULA to be phased out over time, as that is obviously contrary to fair and open competition,” Elon Musk, the company’s chief executive, said in an email.
The Air Force is expected to begin awards for the competitively bid launches in 2015 for missions launching in 2017.
How much cheaper would ULA prices been if they had to bid for each of bulk buy launches, knowing that SpaceX could also bid.Bingo.
With ULA, if more government launches are opened up to bid and they start loosing launches to SpaceX, they will need to get more money from the government for the launches they do get in order to maintain their capabilities.
ULA is a private company, with the same obligation as any other company: to maximize value for the share holders. They happen to have a cost-plus contract with government.
With ULA, if more government launches are opened up to bid and they start loosing launches to SpaceX, they will need to get more money from the government for the launches they do get in order to maintain their capabilities.
With ULA, if more government launches are opened up to bid and they start loosing launches to SpaceX, they will need to get more money from the government for the launches they do get in order to maintain their capabilities.
If you include LM and Boeing profit margin from ULA as a "capability", then yes.
Welcome to capitalism and the open market. If SpaceX cannot provide the same technical capability as ULA, they will still get the business, and they can charge as much as they want. But if they can... USAF will likely still require that two providers are a part of the process. ULA might be forced to down-select their internal assured access from two LV's.
TWo points, lobo:
1. ULA is not a government organization, it is just a commercial entity with deep ties to the government. Not the same thing.
2. They certainly could eliminate AV or DIV if they wanted to - or more correctly, if their owners (Boeing and LM) wanted to. SpaceX entering the EELV market removes any remaining legal hurdle, if there ever was one.
I wonder about the "over 80 consecutive launches" part, though. Is there any other way to do launches other than consecutively? ;)
Quote from: Elon MuskWe only learnt about the big sole-source award in March. It may have been signed in December but it only came to light, interestingly, one day after the senate hearing on EELV launch costs, which seems remarkably coincidental to me. I don't think that's an accident. We've really just had about a month of awareness and we've been somewhat reeling from that news and trying to see, is this real? Is this actually what's going to be the case? When we basically made no progress with discussions with the air force, we thought we have basically no choice but to file the protest. - transcript (http://)Quote from: QuantumGThis reply from Musk is so strange than I actually went back and transcribed the question, something I typically don't do. I mean, we all heard about it back in January.
Maybe Mr. Musk needs to become a member of NSF?
Quote from: Elon MuskWe only learnt about the big sole-source award in March. It may have been signed in December but it only came to light, interestingly, one day after the senate hearing on EELV launch costs, which seems remarkably coincidental to me. I don't think that's an accident. We've really just had about a month of awareness and we've been somewhat reeling from that news and trying to see, is this real? Is this actually what's going to be the case? When we basically made no progress with discussions with the air force, we thought we have basically no choice but to file the protest. - transcript (http://)Quote from: QuantumGThis reply from Musk is so strange than I actually went back and transcribed the question, something I typically don't do. I mean, we all heard about it back in January.
Maybe Mr. Musk needs to become a member of NSF?
Maybe he is?
As I understand it, the injunction that has prohibited fresh purchase of RD-180s from Russia is associated with an Executive Order rather than the SpaceX lawsuit. If that's correct then it's going to be a lot harder to shift than any consequence of the lawsuit, irrespective of who wins.
ULA has a large stockpile of RD-180's.
As I understand it, the injunction that has prohibited fresh purchase of RD-180s from Russia is associated with an Executive Order rather than the SpaceX lawsuit. If that's correct then it's going to be a lot harder to shift than any consequence of the lawsuit, irrespective of who wins.
That is correct. The temporary injunction now requires opinions from State, Commerce, and Treasury Departments as to whether the payments to Energomash contravene the executive order.
It's hard to see how State Department would give ULA and Rogozin a pass on this issue given the Administration's bluster over the Russian Crimea action. I expect State Department to give an opinion that the engine buy does contravene the executive order, thus temporarily blocking payments to Energomash.
The executive order is not permanent and will be rescinded down the road, at which time ULA will again be able to pay Energomash. Meanwhile, the Administration will look tough on Russia without having done any real damage, since ULA has a large stockpile of RD-180's.
It's good to know that ULA's yearly $1B stipend for assured access actually was spent on assured access, and that RD-180 domestic production was nearing reality.
It's good to know that ULA's yearly $1B stipend for assured access actually was spent on assured access, and that RD-180 domestic production was nearing reality.
That is an unfair and inaccurate portrayal of the ELC. It's a bogus subsidy, but you misportray the purpose of ELC.
And NASA can still pay RSA, who then pays Energomash also ok?
ULA calling SpaceX a traitor, essentially. Ugly.
ULA calling SpaceX a traitor, essentially. Ugly.
Not quite. Taking the second bit first:
This opportunistic action by SpaceX appears to be an attempt to circumvent the requirements imposed on those who seek to meet the challenging launch needs of the nation and to avoid having to follow the rules, regulations and standards expected of a company entrusted to support our nation's most sensitive missions.
ULA is essentially saying,
"SpaceX [does not] meet the [...] standards expected of a company entrusted [with national security] missions."
The first bit is stronger, describing this as: SpaceX's attempt to disrupt a national security launch contract.
Disrupting a national security launch would be treasonous. But ULA doesn't quite accuse SpaceX of that. Even so, for a conservative "Old Space" company this is about as strong a statement as they could possibly make!
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
They may need to get a bigger flag to wrap themselves in.
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
This is mostly bluster and not a lot of logic from ULA.
Their customer, the US Government, is the entity that (a) concerns itself with national security and (b) will make the final determination on the RD-180. Said Government is not going to put itself in a box re national security launches. They can allow resumption of RD-180 buys any time they deem necessary...assuming the temporary injunction is upheld, which it may not even be.
and assuming Russia doesn't refuse to sell them, just to make a point. it must be abundantly clear how much ULA wants them, now, which makes them prime candidates for retaliatory sanctions.
and assuming Russia doesn't refuse to sell them, just to make a point. it must be abundantly clear how much ULA wants them, now, which makes them prime candidates for retaliatory sanctions.
And that is, ironically, the more dangerous possibility for ULA. Who will they blame then? President Obama?
(Rhetorical question, of course)
and assuming Russia doesn't refuse to sell them, just to make a point. it must be abundantly clear how much ULA wants them, now, which makes them prime candidates for retaliatory sanctions.
And that is, ironically, the more dangerous possibility for ULA. Who will they blame then? President Obama?
(Rhetorical question, of course)
enough blame for this mess to go around.....sum it up well.
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
They may need to get a bigger flag to wrap themselves in.
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
This is mostly bluster and not a lot of logic from ULA.
Their customer, the US Government, is the entity that (a) concerns itself with national security and (b) will make the final determination on the RD-180. Said Government is not going to put itself in a box re national security launches. They can allow resumption of RD-180 buys any time they deem necessary...assuming the temporary injunction is upheld, which it may not even be.
and assuming Russia doesn't refuse to sell them, just to make a point. it must be abundantly clear how much ULA wants them, now, which makes them prime candidates for retaliatory sanctions.
ULA acts like D4 is a POS. Might cost more
If someone can illuminate where exactly the $1 billion per year IS spent, I would love to see it.
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
This is mostly bluster and not a lot of logic from ULA.
Their customer, the US Government, is the entity that (a) concerns itself with national security and (b) will make the final determination on the RD-180. Said Government is not going to put itself in a box re national security launches. They can allow resumption of RD-180 buys any time they deem necessary...assuming the temporary injunction is upheld, which it may not even be.
and assuming Russia doesn't refuse to sell them, just to make a point. it must be abundantly clear how much ULA wants them, now, which makes them prime candidates for retaliatory sanctions.
Why would Russia refuse to sell RD-180s to ULA? The only vehicle that uses the RD-180 is the Atlas V. Refusing to sell the RD-180 to ULA is the same as shutting down the production line. With the demise of the RUS-M there is no other customer for the RD-180. The RD-170 is in much the same boat, shut down Sea Launch, which is based in the US and there's not much of a customer base for the Ukrainian built Zenit Rocket and the RD-170. NPO Energomash is far more reliant on the US government than the other way around. The US government would be fine relying the D4 and Falcon 9 for their payloads. Energomash just has the Angara for its family RD-191 engines without US government support.
Why would Russia refuse to sell RD-180s to ULA?Have you ever dealt with Russians? Well, I have. I can tell you that Russians in general do not always act wholly rational and logical. And here is another bit of news: neither do Americans sometimes. Or Europeans for that matter. Or anyone on the planet. When national pride is involved, particularly with the Russians, irrational acts happen all the time and irrational decisions are taken all the time. If Russia would retaliate this injunction by refusing to sell RD-180's I would not be surprised at all. I fully agree with you that such an action would make no sense at all from a logical point of view, but as I explained above, logic does not always prevail in extraordinary situations.
If Russia refuses to sell RD-180, they lose one factory. The U.S. loses the launch vehicle that is currently used to launch most national security payloads. If ULA can even ramp up Delta IV in time, the additional cost to the U.S. government for Delta IV over Atlas V will be far more than the revenue from engines Russia will be forgoing. And production limitations may mean Delta IV can't even ramp up in time, leaving some heavy payloads having to be delayed unless the Falcon Heavy can be brought up in time and the government decides it can accept the risk.
The effect seems to me to be much greater on the U.S. than on Russia. If the U.S. extends sanctions and Russia hits back, I would think this one be one of the first things Russia would do.
On the other hand, in the long run this might actually help the U.S. by bringing forward the switch to Falcon Heavy, but I doubt Russia will see it that way.
In the unlikely event that the Russians do decide to stop delivering the RD-180 and Delta IV / Falcon Heavy can't make up for the slack. What are the chances that some of the payloads would be contracted to Arianespace?
Would the DoD rather face significant delays than relying on an ally?
United Launch Alliance has said it has enough rocket engines to last 2 1/2 years, but the injunction would bar it securing spare parts that could delay planned satellite launches.http://online.wsj.com/news/articles/SB10001424052702303948104579534842426028478
And let's not forget who is ultimately responsible for the decision to out source a critical national defense industrial capacity to Russia costing Americans their jobs, their country its security and making "assured access"™ a hollow marketing term. Rest assured that the corporate suit types will sell their country out if it increases their quarterly bonus at least a little bit.
and the buck is passed...
And let's not forget who is ultimately responsible for the decision to out source a critical national defense industrial capacity to Russia costing Americans their jobs, their country its security and making "assured access"™ a hollow marketing term. Rest assured that the corporate suit types will sell their country out if it increases their quarterly bonus at least a little bit.
The military OKed it
An intriguing development from the ULA side is their urgency to get the next batch of Russian engines shipped to the US. When is that batch slated to fly? If in 2017, why the urgency...
Just-in-time inventory management which is used in most modern businesses, avoids the cost of carrying inventory in a warehouse for two years (to pick a number). If ULA is using FIFO, and the next engine in the door is slated to gather dust until 2017, why the urgency? On the other hand, if using LIFO, these serial numbers could be assigned to 2015 vehicles... A check of the serial numbers/ship dates of the just-flown pair of RD-180s would illuminate this question.
First-time post, please be gentle...
Is there a thread discussing this: http://spaceflightnow.com/news/n1405/01engine/#.U2O5B1c0rOA? I checked and couldn't find one. It seems about as relevant to this thread as to any other thread, barring a new one.
First-time post, please be gentle...
Is there a thread discussing this: http://spaceflightnow.com/news/n1405/01engine/#.U2O5B1c0rOA? I checked and couldn't find one. It seems about as relevant to this thread as to any other thread, barring a new one.
An intriguing development from the ULA side is their urgency to get the next batch of Russian engines shipped to the US. When is that batch slated to fly? If in 2017, why the urgency...
Just-in-time inventory management which is used in most modern businesses, avoids the cost of carrying inventory in a warehouse for two years (to pick a number). If ULA is using FIFO, and the next engine in the door is slated to gather dust until 2017, why the urgency? On the other hand, if using LIFO, these serial numbers could be assigned to 2015 vehicles... A check of the serial numbers/ship dates of the just-flown pair of RD-180s would illuminate this question.
Irrelevant. The engines are interchangeable. The urgency is that ULA sees the handwriting on the wall re Russian sourcing of the RD-180 and is trying to stockpile as many as they can before the door closes or the supply chain gets interrupted for some other reason beyond their control.
United Launch Alliance has said it has enough rocket engines to last 2 1/2 years, but the injunction would bar it securing spare parts that could delay planned satellite launches.Two and a half years worth of interchangeable engines should have lots of 'spare parts.'
If Russia refuses to sell RD-180, they lose one factory.They lose none. With the Angara build up, it was decided to modernize and increase NPO Energomash engine factory. They were supposed to manufacture RD-171M, RD-180 and RD-191 for all Zenit, Atlas V and Angara. Thus, they would lose some work, but with Angara making it up for them. Their factory would be a bit oversized, though. And all those engines probably share their tooling, so it's not like they will have un used tooling. And if they decide to re engineer the Soyuz-2.1v with an RD-193, that might offset some of the work.
QuoteUnited Launch Alliance has said it has enough rocket engines to last 2 1/2 years, but the injunction would bar it securing spare parts that could delay planned satellite launches.Two and a half years worth of interchangeable engines should have lots of 'spare parts.'
Obviously ULA needs something from Russia that they don't have... any ideas?
ULA is making it seem as if down-selecting to Delta IV would be a national security crisis of epic proportions. You'd think that losing Delta IV (Heavy) would be more disruptive. So this is really about costs and profit margins? Or are there volume limitations on Delta IV / RS-68 production?
This is mostly bluster and not a lot of logic from ULA.
Their customer, the US Government, is the entity that (a) concerns itself with national security and (b) will make the final determination on the RD-180. Said Government is not going to put itself in a box re national security launches. They can allow resumption of RD-180 buys any time they deem necessary...assuming the temporary injunction is upheld, which it may not even be.
and assuming Russia doesn't refuse to sell them, just to make a point. it must be abundantly clear how much ULA wants them, now, which makes them prime candidates for retaliatory sanctions.
Why would Russia refuse to sell RD-180s to ULA? The only vehicle that uses the RD-180 is the Atlas V. Refusing to sell the RD-180 to ULA is the same as shutting down the production line.
An intriguing development from the ULA side is their urgency to get the next batch of Russian engines shipped to the US. When is that batch slated to fly? If in 2017, why the urgency...
Just-in-time inventory management which is used in most modern businesses, avoids the cost of carrying inventory in a warehouse for two years (to pick a number).
An intriguing development from the ULA side is their urgency to get the next batch of Russian engines shipped to the US. When is that batch slated to fly? If in 2017, why the urgency...
To build up stocks before the deadline date.Just-in-time inventory management which is used in most modern businesses, avoids the cost of carrying inventory in a warehouse for two years (to pick a number).
And if ULA were carrying only three months of stock (to pluck a number), launches would stop in three months time, not 2+ years as could potentially happen now.
cheers, Martin
Just-in-time inventory management which is used in most modern businesses, avoids the cost of carrying inventory in a warehouse for two years (to pick a number).
And if ULA were carrying only three months of stock (to pluck a number), launches would stop in three months time, not 2+ years as could potentially happen now.
cheers, Martin
The PR battle continues--this is listed as a sponsored post
http://boeing.rollcall.com/topic-a/sponsored-post/national-security-space-launch-mission-demands-precision/
"In recent weeks, a new entrant to the rocket manufacturing business has launched a campaign that distorts the truth about EELV and ULA and attempts to cite budget increases as cost overruns..." Won't even mention SpaceX by name.
full transparency into EELV’s accounting and business systemsNot what the GAO found.
While the previous two-contract structure of the Evolved Expendable Launch Vehicle (EELV) program met Department of Defense (DOD) needs for unprecedented mission success and an at-the-ready launch capability, the scope of its capability contract limited DOD’s ability to identify the cost of an individual launch, as direct launch costs were not separated from other costs. Minimal insight into contractor cost or pricing data meant DOD may have lacked sufficient knowledge to negotiate fair and reasonable launch prices.http://www.gao.gov/products/GAO-14-377R
Having trouble even finding words in response to that. Comparing the full roster of ULA's launches since its formation, vs F9v1.1 which only first launched in September of last year. ???
Know the "Facts", understand the "Truth" - maxi-FUD!
The proud boast of having over twelve hundred individual suppliers seems amusing to me. Also, weren't the two GTO launches listed here actually supersynchronous orbits? I suppose that still counts as a type of GTO.
Gwynne claimed recently that they have 3000 suppliers, of which 1100 are active enough that they accept a delivery from them weekly.
Cheers, Martin
Gwynne claimed recently that they have 3000 suppliers, of which 1100 are active enough that they accept a delivery from them weekly.
Cheers, Martin
@chronsciguy @ulalaunch @SpaceX @elonmusk I imagine the Nokia board had a similar chart when the iPhone was launched.One of the funnier responses. :)
Quote@chronsciguy @ulalaunch @SpaceX @elonmusk I imagine the Nokia board had a similar chart when the iPhone was launched.One of the funnier responses. :)
| NASA contracts 2007- now | 2.6B | 2.5B |
| NASA Launches 2007 - now | 11 | 3 |
| NASA Contracted $/Launch | $240M | $840M |
| NASA Mass Delivered to Orbit | 72,622lbs | 6671lbs |
| NASA Cost/lb | $36k | $378k |
| BLEO Launches | 6 | 0 |
Note that noone has taken a honest stab at posting a corrected table. Feel free to cherry pick the timeframes
You have to give it to them, the 109% price increase Vs. 5% cost reduction is a nice touch.I would like the GAO opinion on that. Apparently the 2012 price hike was an illusion. I'll repeat it. Having so many good things and positive comparisons where they basically show their quality and capability difference, they really didn't had to fall so low.
And here we go, a more "fair and balanced" scorecard, someone bothered
http://pic.twitter.com/pfVrqPd8or
SpaceX would argue (not unreasonably) that it's future capability that matters.
... a category dominated by ULA both past and future.
... a category dominated by ULA both past and future.
May I borrow your crystal ball? There's some stock I've been looking at.
Yes, there were many ways for them to have devised their materials without the elaborate numerical manipulations. I wish they would have. Many wonderful enabling launches for the scientific community alone. You play to your strengths.You have to give it to them, the 109% price increase Vs. 5% cost reduction is a nice touch.I would like the GAO opinion on that. Apparently the 2012 price hike was an illusion. I'll repeat it. Having so many good things and positive comparisons where they basically show their quality and capability difference, they really didn't had to fall so low.
I didn't liked the graph because they failed to pot the v1.0 on SpaceX side. But then they could have talked about then putting Delta I/II/III and Atlas (and may be even Titan). So you have to give it to them that.
They could have talked about launch scrubs. LV caused launch delays. Marginal cost of launches. They could have used a Bayesian reliability per family. They could have talked about certifications. About actual NASA missions. About DoD mission requirement compliance. Or about % of missions that they can cover. So many advantages that's incredible to go for this.
... a category dominated by ULA both past and future.
May I borrow your crystal ball? There's some stock I've been looking at.
... a category dominated by ULA both past and future.
May I borrow your crystal ball? There's some stock I've been looking at.
The future is a big place; I was referring to the next few years.
ULA has missions in this category on contract, and additional contracts likely before FH flies.
I didn't liked the graph because they failed to pot the v1.0 on SpaceX side. But then they could have talked about then putting Delta I/II/III and Atlas (and may be even Titan).United Launch Alliance was formed in December 2006, so it has only launched Atlas 5, Delta 4, and Delta 2. All of the other vehicles were retired by the time it was formed.
... a category dominated by ULA both past and future.
May I borrow your crystal ball? There's some stock I've been looking at.
The future is a big place; I was referring to the next few years.
ULA has missions in this category on contract, and additional contracts likely before FH flies.
And the Air Force and ULA have locked SpaceX out of several potential contracts for many years to come.
That's what started this whole thing.
According to SpaceX, who is not disinterested. As i read it, SpaceX will probably be certified to bid on the next round of launches in 2015, which is, by my math, less than several years away. Also, they claim that they have no idea how many of the single core launches in the previous block buy they could have launched if they had been certified, which they have not. It follows that the number may actually be zero, but this is, they claim, sufficient reason to negate all of them. This sounds like frivolous litigation to me. {emphasis added}Foremost it must be remembered that the protest filed with the Court is against USAF/USG, not ULA.
According to SpaceX, who is not disinterested. As i read it, SpaceX will probably be certified to bid on the next round of launches in 2015, which is, by my math, less than several years away. Also, they claim that they have no idea how many of the single core launches in the previous block buy they could have launched if they had been certified, which they have not. It follows that the number may actually be zero, but this is, they claim, sufficient reason to negate all of them. This sounds like frivolous litigation to me. {emphasis added}Foremost it must be remembered that the protest filed with the Court is against USAF/USG, not ULA.
SpaceX is qualified to bid now having submitted data required for certification.
Initially I kind of had the same reaction Will, as on the surface it appeared that SpaceX was not a qualified bidder.
However as I read the J&A, Court documents and regarded the commentary in other threads by those versed in federal procurement rules and laws and read the timeline it became increasingly clear that I was mistaken in some of my assumptions. If the protest were frivolous it probably would have been dismissed by now.
The first response to the SpaceX Lawsuit was rather good (see first post in this topic).
ULA's subsequent public responses to the SpaceX lawsuit is possibly doing more harm than good for ULA. The best approach- a quiet calm assertive position of confidence based upon past performance...perhaps even offering helpful advice to the newcomer, as an elder brother would. The best response to the injunction...none at all, except perhaps we have the means to provide Atlas V and all EELV launches as required. Instead of full page patriotic appeals and "SpaceX is irresponsible for requesting injunctions"...now, worst of all is the "funny arithmetic." The SpaceX information as presented above calls into question the integrity of ULA, for all of the reasons stated by others above. Fiddling with numbers was a massive blunder.
The better course if anything were to be said at all is to say: "SpaceX is involved in a lot of experimental technology that may prove to be of benefit over time. ULA has found a conservative approach is the most reliable when launching billion dollar payloads and reliability is why the USAF awarded ULA the EELV contract for critical national security launches. We wish SpaceX luck with their experimental technology, perhaps someday risk taking will pay off and their new technology will prove to be as reliable as what ULA offers today."
Instead ULA demonstrates it knows how to cook the books which is not wise when questions of price gouging have been raised.
... a category dominated by ULA both past and future.
May I borrow your crystal ball? There's some stock I've been looking at.
The future is a big place; I was referring to the next few years.
ULA has missions in this category on contract, and additional contracts likely before FH flies.
And the Air Force and ULA have locked SpaceX out of several potential contracts for many years to come.
That's what started this whole thing.
{trimmed quotes}NASA contracts brings up another factor that may be very bad for public perception of ULA;
I was talking about NASA contracts.
Another round of tit for tat press conferences recently.Thanks for sharing Ed, interesting read.
http://www.washingtonpost.com/business/economy/ula-chief-accuses-elon-musks-spacex-of-trying-to-cut-corners/2014/06/18/a7ca0850-f70d-11e3-8aa9-dad2ec039789_story.html?tid=hpModule_a2e19bf4-86a3-11e2-9d71-f0feafdd1394
Hopefully this ends soon. I'm not sure that this "publicity" approach is working for ULA. Read the last three or so paragraphs for an example.
- Ed Kyle
“We also want to make clear that there is a big distinction between a company that has a 100-year combined heritage in successfully delivering satellites into orbit and a company that is not yet even certified to conduct one launch.”"100-year combined history" doesn't convey a "state of the art, forward leaning, best practices" message to taxpayers or shareholders of parent companies. Worse yet, average readers may perceive the "combined history" statement as a blatant distortion.
Another round of tit for tat press conferences recently.
http://www.washingtonpost.com/business/economy/ula-chief-accuses-elon-musks-spacex-of-trying-to-cut-corners/2014/06/18/a7ca0850-f70d-11e3-8aa9-dad2ec039789_story.html?tid=hpModule_a2e19bf4-86a3-11e2-9d71-f0feafdd1394
Hopefully this ends soon. I'm not sure that this "publicity" approach is working for ULA. Read the last three or so paragraphs for an example.
- Ed Kyle
"100-year combined history" doesn't convey a "state of the art, forward leaning, best practices" message to taxpayers
If there is anyone from ULA's Media / PR Dept. on this site, please PM me. You're great at launching payloads, videos...not so much.
I understand the concept: Make an emotional connection between our products and services, the payloads you launch, to the impact they have on our daily lives in a very real and meaningful way. Got it. Good concept, poor execution.
You need a narrative....
Just trying to be helpful...
What says any company is doing "best practices"? Obviously many gov't customers don't (see lack of Spacex gov't contracts)
They've never been good at PR. They prefer to be quiet. Very proud and with good reason.What says any company is doing "best practices"? Obviously many gov't customers don't (see lack of Spacex gov't contracts)
I don't think that it logically follows that SpaceX lack of contracts is due to SpaceX unsuitability. After all, there is a legal action pending right now that makes far different allegations.
ULA is flailing. That WashPo interview won't score any points. They need better PR.
2. How many similar rocket launches do you need to show?
"What says any company is doing "best practices"?"
"100-year combined history" doesn't convey a "state of the art, forward leaning, best practices" message to taxpayers
What says any company is doing "best practices"? Obviously many gov't customers don't (see lack of Spacex gov't contracts)
Love that because "Quality has a real quantity all its own."2. How many similar rocket launches do you need to show?I've never felt this quote more fitting than now : "Quantity has a quality all its own"
{trimmed}I think a lot of us want to be helpful. For the most part we're like space "Sports Fans."
Just trying to be helpful...
I don't think that it logically follows that SpaceX lack of contracts is due to SpaceX unsuitability. After all, there is a legal action pending right now that makes far different allegations.
"What says any company is doing "best practices"?"
I could go on and on about QA, QC, SPC, ERP, MRP, CM, RA, PM... but "results" should be sufficient.
Results in terms of cost, quality, and development time. With best practices you optimize for all three.
Without best practices you are forced to choose any two at the expense of the third without knowing the outcome before hand. The beauty of science lies not in discovery, but in the prediction of results.
"Obviously many gov't customers don't (see lack of Spacex gov't contracts)"
What Lar and Space Ghost 1962 said.
What says any company is doing "best practices"? Obviously many gov't customers don't (see lack of Spacex gov't contracts)
I don't think that it logically follows that SpaceX lack of contracts is due to SpaceX unsuitability. After all, there is a legal action pending right now that makes far different allegations.
ULA is flailing. That WashPo interview won't score any points. They need better PR.
I'm not sure how your questions apply to the context of my original post1 and subsequent post?
"What says any company is doing "best practices"?"
I could go on and on about QA, QC, SPC, ERP, MRP, CM, RA, PM... but "results" should be sufficient.
Results in terms of cost, quality, and development time. With best practices you optimize for all three.
Without best practices you are forced to choose any two at the expense of the third without knowing the outcome before hand. The beauty of science lies not in discovery, but in the prediction of results.
"Obviously many gov't customers don't (see lack of Spacex gov't contracts)"
What Lar and Space Ghost 1962 said.
You still haven't answered it. What results? See the lack of contracts.
Another round of tit for tat press conferences recently.Thanks for sharing Ed, interesting read.
http://www.washingtonpost.com/business/economy/ula-chief-accuses-elon-musks-spacex-of-trying-to-cut-corners/2014/06/18/a7ca0850-f70d-11e3-8aa9-dad2ec039789_story.html?tid=hpModule_a2e19bf4-86a3-11e2-9d71-f0feafdd1394
Hopefully this ends soon. I'm not sure that this "publicity" approach is working for ULA. Read the last three or so paragraphs for an example.
- Ed Kyle
I hope it ends soon too. It's painful to watch ULA management caught so off balance:Quote from: (from the article) CEO Michael Gass“We also want to make clear that there is a big distinction between a company that has a 100-year combined heritage in successfully delivering satellites into orbit and a company that is not yet even certified to conduct one launch.”"100-year combined history" doesn't convey a "state of the art, forward leaning, best practices" message to taxpayers or shareholders of parent companies. Worse yet, average readers may perceive the "combined history" statement as a blatant distortion.
Are you talking lack of contracts as a function of USG consumer confidence?
NASA is trusting the lives of the ISS crew and 100b station to safe operations of the SpaceX Dragon.
I'd hypothesize Dragon deliveries require a measurable degree of mission confidence based upon a risk assessment which would provide some hard numbers.