United Launch Alliance (ULA), once the primary choice for Pentagon satellite launches, is facing tough competition from SpaceX, the company founded by Elon Musk.
Over the past decade, SpaceX has become the leading partner for U.S. military space missions, challenging ULA’s dominance.
ULA, a joint venture between Boeing Co BA and Lockheed Martin Corp LMT, is attempting to regain its status by resolving issues with its new Vulcan Centaur rocket.
Delays have put ULA years behind schedule, drawing scrutiny from Congress and the Pentagon, who seek multiple capable companies for national security launches.
ULA’s Vulcan Centaur rocket, designed to replace older Atlas V rockets, has faced numerous production setbacks. The company is pushing to ramp up production at its Decatur, Alabama factory.
SpaceX, established in 2002, has revolutionized the space launch industry with its partially reusable rockets. Winning its first military contract in 2016, SpaceX broke ULA’s monopoly and has since handled numerous sensitive space missions for the U.S. military, demonstrating reliability and cost-efficiency.
The Pentagon, represented by Air Force acquisition official Frank Calvelli, has expressed concerns about ULA’s production capabilities.
Recently, the Space Force reassigned three missions from ULA to SpaceX due to Vulcan delays. Federal lawmakers are advocating for a broader pool of rocket launch providers to ensure competitive pricing and technological advancement.
ULA is striving to complete its scheduled Vulcan launches, including a critical military demonstration in September. Meanwhile, Blue Origin, the engine supplier for Vulcan, is scaling up production to support these efforts.
Price Action: BA shares are trading lower by 0.39% at $181.30 in premarket at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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