Blue Origin protests plan to pick 2 defense launch providers

Blue Origin engine plant

Blue Origin, the rocket company owned by Amazon owner Jeff Bezos, is building a new rocket engine plant in Huntsville, Ala., and the plant's walls are now rising on the plant site.

Billionaire Jeff Bezos’ rocket company Blue Origin filed a formal protest with the Government Accountability Office today over the Air Force’s plan for the next round of federal funding for national security satellite launches.

Under an Air Force Request for Proposals (RFP), two companies would split new five-year launch contracts worth billions of dollars to launch 34 satellites to upgrade American defense assets in space. Having that assured market will also provide financial security to the selected companies as the satellite launch market shakes out.

Competitors for the next Air Force launch contracts are expected to include United Launch Alliance (ULA), SpaceX, Blue Origin and Northrop Grumman. ULA builds its rockets in Decatur, Ala., and Blue Origin is building a massive plant in Huntsville to produce new engines for next-generation rockets made by itself and ULA.

Neither the current Air Force purchasing plan nor the Blue Origin protest is expected to affect that plant which is already rising in Cummings Research Park. The plant will produce Blue Origin’s next-generation B-4 engine.

Blue Origin filed what is called “pre-award” protest today that says the Air Force’s RFP in Phase 2 of a national security space plan is “flawed,” “unclear” and “ambiguous.” It argues that the rules set by the Air Force do not allow for a fair and open competition.

The protest also argues that picking only two contractors would put America’s long-term access to space at risk and make the government “beholden to these two (providers’) pricing and program scheduling power.”

Blue Origin also questioned whether the Air Force intends to require a backup rocket to assure launches. Requiring that would favor SpaceX and ULA.

The protest is the latest development in a long competition among American rocket companies for the growing defense space launch market. All the companies involved are also competing or preparing to compete in the commercial launch market, but the guaranteed defense work is a key to long-term success.

The GAO has up to 100 days to issue a decision, which could reject the protest or call for a change in the RFP.

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