Pentagon awards more than $ 2 billion worth of contracts for national security rocket launches

The Air Force awarded more than $ 2 billion in combined contracts to three companies on Wednesday to develop rockets capable of launching national security satellites.

The contracts, part of an effort to increase competition, were awarded to the United Launch Alliance (ULA), the joint venture of Lockheed Martin and Boeing, Northrop Grumman and Blue Origin. For nearly a decade, ULA has had a monopoly on Pentagon launches until it is challenged by SpaceX, which has finally obtained certification and has been competing with ULA. SpaceX was not among the winners.

With these contracts awarded, the Pentagon will seek to help two other suppliers to enter the market.

ULA has received nearly a billion dollars for its new rocket, the Centaur Vulcan. Unlike the Atlas V rocket that the company currently uses, the new rocket will use engines made in the United States. The Atlas V uses RD-180 engines manufactured in Russia.

Northrop Grumman, which recently acquired Orbital ATK, will receive nearly $ 800 million for its Omega launch system.

Blue Origin, the space company founded by Jeffrey P. Bezos, received $ 500 million for his New Glenn rocket. (Bezos owns the Washington Post.) The award is the government's first major contract for the company, which for years has relied almost exclusively on Bezos' wealth. The company also recently announced the sale of its BE-4 engine to ULA, another major source of revenue.

In a statement, Bob Smith, CEO of Blue Origin, said the contract "allows us to expand our launch manifesto beyond our existing commercial customers to achieve vital missions in the national security space. Funding provided under this agreement will be used to adapt our launch vehicle and associated facilities to the national security space requirements. "

The rewards come while the Trump administration is pushing a new branch of the army known as the Space Force. Although it remains to be seen whether Congress will approve a new bureaucracy at the Pentagon, the measure has raised concerns about the problems of the national security space.

Air Force Secretary Heather Wilson said the program "is a great example of how we are deploying tomorrow's Air Force faster and smarter. We are taking full advantage of the authorities that Congress has given us and we will no longer be relying on the Russian-made RD-180 rocket engine. "