Iron Man wins again

Elon Musk makes peace with U.S. Air Force over satellite contracts

In a busy year where he retooled his Tesla fleet and launched reusable rockets, Elon Musk also found time to pick a major fight with the defense industry: he sued the Air Force last April, claiming his company SpaceX had been wrongfully shut out from lucrative contracts to launch satellites.

According to Musk, the Air Force had breached procurement policies by giving an exclusive deal to a consortium run by Lockheed Martin and Boeing without giving [company]SpaceX[/company] the time to navigate a complex certification process.

The contract in question, which involves sending up 36 rockets to deliver satellites and other payloads, is worth billions of dollars with Musk claiming that SpaceX can do it far cheaper than what the incumbents are bidding. Musk has also made provocative comments about the cozy nature of defense contracting:

“Essentially we’re asking them to award a contract to a company where they are probably not going to get a job, against a company where their friends are. So they’ve got to go against their friends, and their future retirement program. This is a difficult thing to expect,” he told Bloomberg.

Now, however, he appears to have won at least a partial concession. In a Friday news release, SpaceX said it is dropping the lawsuit as a result of the Air Force improving the competitive landscape for the Evolved Expendable Launch Vehicle program.

“The Air Force also has expanded the number of competitive opportunities for launch services under the EELV program while honoring existing contractual obligations,” the release added.

The resolution comes at a time that SpaceX appears to have made major progress in developing reusable rockets and booster stages, which could significantly lower the cost of sending objects and people into space.

2 Responses to “Elon Musk makes peace with U.S. Air Force over satellite contracts”

  1. LordJohn

    Sorry, I don’t think that is really a helpful answer. If SpaceX is no good, then why are they flying to the ISS? The current EELV firms already have rockets built and missions agreed. That I am afraid so often means that anyone else is shut out. Given a level playing field we may then see who is really the best choice.Perhaps someone should look at ESA and Ariane 5 or Vega – after all they are launching a lot of the worlds comsats.