I’m kind of worried about the maiden launch with the SSN sats onboard because if OmegA fails at any point, not only will NG lose the money put into that first rocket, but SSN will lose their sats too.
My point is that using a payload simulator for a rocket’s maiden launch would be the right choice so that expensive sats won’t be destroyed during a launch failure.
They likely got a
substantial discount for agreeing to be on the test launch. Satellites are commonly insured against risks during launch (and post-launch), so they're likely prepared for the possibility it won't make it. Their insurance provider has no doubt estimated the risk and boiled it down to a dollar amount that they have to pay in higher premiums - which is primarily what the discount from the launch provider for accepting a risky flight is compensation for.
Ultimately it comes down to a) how much riskier the customer and the insurance provider expect the first flight to be, b) how much damage the "intangible" impacts of failing to get their satellites into orbit would do to the customer even after getting the insurance money, and c) whether, with all of that factored in, they expect to come out ahead on their bottom line.
The same principle has applied to SpaceX customers agreeing to fly on "pathfinder" flights pushing first-stage reuse to new levels. The most dramatic example of this was with SES-10, which flew on the first reused core. In that case, the risk was considered high enough that SES
didn't consider the cash discount sufficient to cover it. They chose to accept the risk anyway because they occupy a large enough portion of the comsat market that they considered it in their interest to subsidize the development of reuse to improve the market for themselves in the future. Subsequent to that, we have seen commercial customers express reluctance about being the first to fly on a core that's pushing to a new "level of reuse" (e.g. the first third or fourth flight of a core). The first third flight was taken by Spaceflight Industries for a smallsat rideshare filled with customers desperate for a cheap launch and willing to take on quite a bit of risk - either because their business model is "lots of cheap satellites" (i.e. they can afford to lose a few) or because they're a startup that can barely afford their first launch and are betting the company on it anyway, often without insurance. It's notable that SpaceX took the first fourth flight itself with Starlink-1 (which fits the "can afford to lose a few" model) rather than finding a customer willing to do it.
I've never heard of Saturn Satellite Networks before so I'm guessing they're not a huge player in the satellite industry yet. They are likely agreeing to fly on OmegA's first flight because they're willing to bet their business (or at least this product line) on a high-risk flight in exchange for getting it cheap.
It's also worth noting that if OmegA doesn't win in NSSL Phase 2 (which is likely), it's going to get the unspent portion of its Phase 1 development funding pulled out from under it. The general expectation is that that'll lead to OmegA's cancellation without ever making it to the first flight. SSN undoubtedly knows that and is likely prepared to seek other arrangements in that case.
Although, personally, I suspect NG has a plan to finish OmegA and bring it to market anyway even if they lose NSSL Phase 2. Despite the tears they've shed in their Air Force bid about how NSSL is critical to OmegA's commercial viability, they've also leaned heavily on the claim that they only need a few launches a year to make it viable, thanks to its shared economies of scale with their other solid-fuel product lines (ICBMs, SLS boosters, Atlas/Vulcan boosters, kick stages, etc.) They seem to be quite close to the finish line on OmegA's development, at least for the solid stages; they've already static-fired the first stage (which is essentially the same as the second stage), as well as the side boosters which are shared with Atlas/Vulcan. All that's left is the upper stage, which is basically a DCSS clone that seems to be utilizing existing production infrastructure at Michoud. There's honestly not much left to
do at this point except build the thing and fly it. (Undoubtedly there are still engineering challenges to address but they're likely far less than those remaining for their competitors at this stage, like Blue Origin or even ULA with Vulcan. Neither New Glenn nor Vulcan has had a first stage fired yet; BE-4's had engine firings but still seems to be a work in progress. OmegA's first stage hot fire was much closer to a full vehicle test than just an engine firing.)
I think they can get there on their own without NSSL if they're willing to put a bit of private capital in the game (which they've demonstrated they are - they were already well underway on OmegA's development before they got NSSL funding). It might be delayed by a year or two* but I think it'll happen. And while OmegA will have a hard time competing in the long run against fully reusable rockets, they seem to have figured out how to make the business case close for competitive pricing in
today's commercial market against Falcon/Vulcan/New Glenn. If they can muster 3-4 launches a year - some of which they can provide as their own customer for cislunar Cygnus and Gateway modules for Artemis - they'll have a viable product. I've said before that I'm convinced the only reason they keep flying Antares is because it's an excuse to sell a Castor SRB (nearly everything else in the rocket is outsourced), and OmegA will be that times ten. Ditto their other rockets like Pegasus and Minotaur which are laughably uncompetitive but somehow still turn a profit on
de minimis launch manifests. I don't think they're so concerned about long-term competitiveness since most of the development and infrastructure costs have already been amortized across all their solid rocket programs.
*In fairness, delaying OmegA by a year or two could mean the difference between getting a few years of profitable business versus none at all before Starship comes in and steals everyone's lunch. I'm not sure how seriously NG is taking that but even if Starship is delayed and doesn't start launching basic commercial payloads until 2023-24, OmegA doesn't have any time to lose. Vulcan will likely be able to lean on NSSL to stay afloat despite Starship, and Blue is lining up a good manifest of customers to sustain them until they can develop something fully reusable, but OmegA doesn't have that upgrade path and will be fighting for the table scraps of the commercial market if they don't get NSSL, so those couple of years could make all the difference.