SpaceX vs. Air Force: ULA prices weren’t checked for fairness, says complaint

Jun 27, 2014
8
SpaceX vs. Air Force: ULA prices weren’t checked for fairness, says complaint

SpaceX targeted the US Air Force earlier this year, accusing it of blocking competition and costing tax payers unnecessary fees when it awarded the United Launch Alliance joint venture various contracts. That issue has persisted, with the latest being an amended complaint.

According to the amended complaint from SpaceX, evidence in favor of non-competitive accusations lies in the Air Force's research into "fair and reasonable" prices for components before awarding the contracts. SpaceX says the government failed to determine such things, and the result is excessive spending on parts.

A letter sent from Senator John McCain to the undersecretary for acquisition, technology, and logistics is the primary basis of the complaint amendment. In the letter, McCain indicates that RD Amross, a joint-venture with Russia's Energomash, is selling the ULA engines that are more than 200 times their cost.

This follows an accusation from Elon Musk back in May directed at an Air Force official. On Twitter, he'd fired off a tweet reading, "V[ery] likely AF official Correll was told by ULA/Rocketdyne that a rice VP job was his if he gave them a sole source contract."

SOURCE: Business Insider


Must Read Bits & Bytes