LITTLETON, Colo. - The U.S. Air Force has awarded United Launch Alliance (ULA) a $382.9 million firm-fixed-price modification to a previously awarded launch services contract. The modification covers three launches: one Delta IV (5,4) for the Air Force, one Atlas V 551 for the Navy, and one Atlas V 401 for the National Reconnaissance Office (NRO). The launches covered by the contract will take place in 2017. The funds under the modification will be added to ULA's long-term Launch Vehicle Production Services (LVPS) contract, bringing the cumulative value up to $4.08 billion.
According to news reports, launch services provider Space Exploration Technologies (SpaceX) had hoped to compete to provide at least a few of those launches. However, the company's Falcon 9 launch vehicle has not been certified yet to carry military payloads for the U.S. government. Since launch services typically need to be ordered a few years in advance, the USAF felt justified in providing a sole-source award to ULA.
SpaceX will likely be certified to carry Defense Department satellites into orbit by the middle of this year. At that point, the company will be able to compete for, and win, contracts. SpaceX and the Air Force recently settled a lawsuit the company had brought against the service. With that lawsuit dropped, the path to certification should be clear. Once cleard, the Falcon 9's low price and launch success record should make it a strong competitor to carry military payloads to orbit.
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