According to the Santa Maria Times, SpaceX has won an "indefinite delivery, indefinite quantity" contract contract with the Air Force for launch services. This was announced about a week ago, but I missed it then. The contract, which apparently includes both Orbital Sciences and SpaceX as competitors (i.e., it is not a sole-source contract), totals up to $100 million and ends in 2010.
This is an excellent piece of business for SpaceX and goes a long way toward paying for the development of its Falcon I launcher. It also decreases the market risk of its business case substantially. It seems likely, given the $30 million list price for the Orbital Sciences Pegasus launcher versus a $6 million list price for the Falcon I, that SpaceX will win a majority of the business available under the contract. Of course, the Air Force, once it decides it likes what it is seeing from SpaceX or Orbital Sciences, can increase the amount, or let another contract.
The article also puts the date of SpaceX's test firing of the rocket at next Tuesday. I assume that the engines have passed the acceptance testing. Additionally, the article updates SpaceX's headcount at 110 among other items, which implies a modest and sustainable burn rate for Musk's cash. If SpaceX can launch its rockets safely, everything appears in place for Musk's third successful start-up in a row.
Heck, I hope SpaceX succeeds!
Posted by: Kevin Parkin | April 28, 2005 at 01:10 AM