April 10, 2014: A commercial firm, SpaceX (Space Exploration Technologies Corporation) is trying to break the current cartel for U.S. government satellite launch services. Since 2006 all this business has gone to a government-approved monopoly of the ULA (United Launch Alliance) which is composed of Lockheed Martin (Atlas 5 rocket) and Boeing (Delta 4). These two firms have dominated U.S. space launches for over half a century. 

In 2012 SpaceX obtained its first contract to launch U.S. military cargo into space. SpaceX had earlier obtained a NASA contract which included 12 deliveries to the International Space Station (at $134 million each). What makes all this so noteworthy is that SpaceX is the first privately owned space transportation company. SpaceX developed its own launch rockets without any government help. SpaceX also developed the Dragon space vehicle, for delivering personnel and supplies to the International Space Station.

SpaceX has since proved that its rockets work and is pointing out that the SpaceX rockets can do the job cheaper. Currently ULA gets a billion dollar a year subsidy from the government that SpaceX would not require. SpaceX still has to get all the paperwork and approvals done so that they can handle classified missions. SpaceX does not see this as a problem, it’s simply going to take another year to satisfy all the bureaucrats and regulations.

The Atlas 5 is a 334 ton rocket that can 29 tons into low orbit and 13 tons into GTO orbit. One potential problem here is that Atlas 5 uses a Russian made engine and the current tensions between the U.S. and Russia could cut off that supply of engines. The Delta 4 can weigh up to 733 tons and put 22 tons into low orbit and 13 tons into GTO orbit.

SpaceX has developed three launchers. The Falcon 1 was a developmental model, used mainly for testing and was first launched in 2006. Two of its five launches were a success and the model is now retired. The Falcon 9 is a 333 ton launcher that can lift ten tons into orbit and is competitive with the older (government developed) Delta 4 and the Atlas 5 launchers. Falcon 9 first launched in 2010, and entered service in 2012. The Falcon Heavy is a 1,462 ton rocket that can 53 tons into low orbit and 21 tons into GTO orbit. Falcon Heavy is a development of the Falcon 9 and will fly for the first time in 2014.

SpaceX offers lower prices and more flexibility than most government (usually military) developed launchers. As a privately owned company SpaceX has less bureaucracy and is quicker to adapt new technology for launch services. Many existing and potential SpaceX customers see this as the future of space transportation.

While the Delta 4 and Atlas V have a proven record of reliability, SpaceX offers competition and that usually means the development of better and cheaper technology. Lockheed Martin and Boeing have lots of friends in Congress and that may prove to be the deciding factor into keeping government launch services an expensive monopoly.