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Government Space The Almighty Buck United States Politics

Taxpayer Subsidies To ULA To End 42

schwit1 writes Because it has concluded that they make it impossible to have a fair competition for contracts, the Air Force has decided to phase out taxpayer subsidies to the United Launch Alliance (ULA). The specific amounts of these subsidies have been effectively buried by the Air Force in many different contracts, so we the taxpayers really don't know how much the are. Nonetheless, this decision, combined with the military report released yesterday that criticized the Air Force's over-bearing and restrictive certification process with SpaceX indicates that the political pressure is now pushing them hard to open up bidding to multiple companies, which in turn will help lower cost and save the taxpayer money.
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Taxpayer Subsidies To ULA To End

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  • by Trepidity ( 597 ) <[delirium-slashdot] [at] [hackish.org]> on Saturday March 28, 2015 @05:57AM (#49360371)

    political pressure is now pushing them hard to open up bidding to multiple companies, which in turn will help lower cost and save the taxpayer money

    That's certainly a possible outcome, and hopefully the one we will see, but I think it's a bit optimistic to say that it will do this. It may do that, but a new contract process may also be a total clusterfuck, depending on how it's structured and overseen. The Air Force might get twice as good things for half the price, or it might get something that doesn't work for half the price, or four things that sort of work for twice the price.

    • by DamonHD ( 794830 )

      Hi,

      I'm certainly NOT in the "government is always worse that private corporations" camp, but it is indeed perfectly possible to create replacements worse than the original, and governments of all colours and countries remind us of this from time to time, even when all their intentions are good.

      Rgds

      Damon

    • Considering how quickly SpaceX is leapfrogging the ULA, I'm inclined to suspect that a more open bidding process will end up saving the government a fair amount of money in the long run. It does seem that the ULA has been mostly sitting on their laurels sucking at the government teat for a long while now. Why should they improve efficiency when it will only reduce profits?
      My own objection is that saving the government money is a *very* different thing than saving the taxpayer money. What's your bet, will

      • I don't know if SpaceX is leapfrogging ULA. The Alliance (why does that just sound wrong?) is responsible for a number of different booster programs spread out over time and territory. It never really was supposed to be efficient - except perhaps in the mind of a bunch of MBAs. SpaceX has narrower, more clearly defined goals.

        That said, some pressure on the behemoths to tighten up their act might be helpful - but remember although the ULA is presumably private, it is very much beholden to the Military Ind

        • by tsotha ( 720379 )
          I have believed for some time now SpaceX is going to lose its big commercial advantage over time. Congress views these kinds of contracts as political plums to be parceled out on a district-by-district basis - the company is not going to be able to continue manufacturing everything in Hawthorne without losing government contracts.
          • by Trepidity ( 597 )

            Yeah I think that's likely: if they become a large company with multiple large contracts, they'll end up spread over the US.

            Heck they're already doing a little bit of spreading out. They have a significant test facility in Texas along with some engineering offices, and are building a new facility in Seattle [spacenews.com] to build satellites. I don't know if this is strategic/political or just happenstance at this point though. For example I believe a big motivation for the Texas site was that they were able to buy facili

        • I don't know if SpaceX is leapfrogging ULA. The Alliance (why does that just sound wrong?) is responsible for a number of different booster programs spread out over time and territory.

          Yeah, and was so "successful" at it that when there were problems getting Russian engines, they were temporarily grounded.

          That said, some pressure on the behemoths to tighten up their act might be helpful - but remember although the ULA is presumably private, it is very much beholden to the Military Industrial Complex which means it is very much beholden to the Congress which means different booster programs spread out over time and territory as much time and territory as is possible.

          Then where are they?

          Granted, they are starting to produce some decent stuff again, but only really started doing so when SpaceX and a couple of other upstarts threatened their warm fuzzy government cocoon.

          NASA has become too big and bureaucratic to get much done in any kind of hurry. Yes, that is partly, or perhaps even mostly, Congress' fault with its budget shenanigans. But it ha

      • > It does seem that the ULA has been mostly sitting on their laurels sucking at the government teat for a long while now.

        Let me explain how this works. At the start of the Sea Launch program, which Boeing was a partner of, and I was working on, our program manager was an ex-Air Force officer who was a launch director from Vandenberg (where the Air Force launches polar satellites). He was a smart and competent guy, but the main reason Boeing hired him is *he knew all the right players on the Air Force

        • From my own time working on government contracts, I have a similar experience, but a substantially different perspective.

          Often, the most valuable people on the team are the ones who know what to do. Every process is the result of bureaucrats getting their say, so having a manager who knows what the bureaucrats want is a good way to know what to expect. It may be just knowing that eventually you'll need this report, or as intimate as knowing that reviewer will want that level of detail, but knowing the expec

          • I have also had business experience with government contracts. One of the problems there (though it was in a somewhat different field, so doesn't apply as much here) is that those who couldn't properly make it in the engineering business ended up going to work for the government... and became the regulators. Rather the opposite of the "corporate capture" idea, but still a kind of revolving door.

            As a result, the bureaucrats and regulators were not respected by the industry they were regulating, and were w
    • by plopez ( 54068 )

      I agree. I fully expect the "conservative" US Congress to find creative ways to turn into yet another pork barrel project.

      • by phayes ( 202222 )

        Snort. Because the democrats who dominated congress up to now have done sooo well at eliminating graft & pork. Hell, we can barely remember what those are thanks to the wonderful dems taking care of all that is wrong in the world and sprinkling fairy dust in our morning cereal...

        Find a new axe to grind, your old one is worn out.

        • by osu-neko ( 2604 )

          Snort. Because the democrats who dominated congress up to now have done sooo well at eliminating graft & pork. Hell, we can barely remember what those are thanks to the wonderful dems taking care of all that is wrong in the world and sprinkling fairy dust in our morning cereal...

          Find a new axe to grind, your old one is worn out.

          Pot, meet kettle.

          The difference here, of course, is that neither side refrains from indulging in fatty pork products, but only one of them is claiming government spending is bad while doing so.

          • by phayes ( 202222 )

            The difference here being that I wasn't the one making stupid biased public comments. As for more and more and more and more government spending being "good", well let's just say that living in France under socialists has given me another perspective, one where private enterprise goes down the tubes until unemployment goes through the roof. Your nirvana, I'm sure...

  • by daveschroeder ( 516195 ) * on Saturday March 28, 2015 @06:27AM (#49360429)

    ...but they get our shit to space [youtube.com].

    • by jonwil ( 467024 ) on Saturday March 28, 2015 @06:44AM (#49360459)

      Considering how many successful launches SpaceX has had to date (including launches where the launch was successful but the land-and-reuse part of the mission failed) I recon SpaceX will be just as good at launching stuff into space as ULA is. And they (per the figures I have seen quoted) are cheaper than ULA too.

    • by Ecuador ( 740021 )

      Well, it is not THAT hard if you get cost + contracts... I mean it is not exactly unfeasible to get something to space 60 years after people started accomplishing it. Getting something safely to space for LESS is what is hard right now.

  • Good! They should be supporting the Human Volunteer Force anyway.
  • Comment removed based on user account deletion
  • I always get a little concerned when too many bits of good news come out of a sector of government that has been entrenched in a particular activity (waste, abuse, corruption, etc) for decades and suddenly they decide to "change". I hope it is true and this just a confluence of a realization that they're public servants, more transparency/competition will help not diminish their goals as public servants and a little bit of political pressure. But there is also a nasty tendency in government to notice a sh

    • by khallow ( 566160 )
      I agree, but there is a reason for it to happen. Namely, such corruption and inefficiency can get in the way of other powerful interests. My view is that there are some parties that need the Air Force to have better space capabilities and the ULA just wasn't delivering on that.
      • It sounds like a negotiating tactic. They annouce they are eliminating (unspecified) subsidies, then negotiate with the companies on a new project (then restore the subsidies).
      • by phayes ( 202222 )

        It's simpler than that. After 14 successful launches (just 2 more) Space-X is automatically certified. The forces attempting to turn Space-x into a ULA clone were betting on a launch failure or two to slow Space-X down and justify that their way was the only path to space. Space-X's pushback on the changes mean that they are extremely likely to become certified without the burocracy. These changes are just the retrograde elements changing sides before that happens In an attempt to stay relevent.

  • No wonder ULA's buddies in the Air Force have been trying to sabotage SpaceX.

    • If you are referring to the recent delay which caused SpaceX to launch almost a week late and scrap a landing attempt due to an Air Force radar station idiot being trigger happy on the "no go" call, then I agree completely.

      • It was the February 8 attempt here:
        http://en.wikipedia.org/wiki/D... [wikipedia.org]

        More details here:
        http://www.waaytv.com/space_al... [waaytv.com]

        Diagnosis: Air Force tracking radar went down 2m30s before launch.

        • Actually I was referring to the order to implement bureaucracy article from a few days ago, but this is a good point as well. I was watching that launch live when they shut it down at the last moment. I wonder how much an abort like that costs SpaceX and NASA?

          • My daughter and I were watching it live as well. I have no idea how much it costs, but I believe that they have to drain the LOx tank if the vehicle sits off countdown timer on the pad. That seems pretty expensive to me! I'm not even sure that they can reuse the cryogenics, it might be vented to atmosphere.

            I just asked here, if you are interested:
            http://space.stackexchange.com... [stackexchange.com]

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