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September 28, 2018 | International, Aerospace

Jeff Bezos' space company Blue Origin just landed a major rocket deal

| @thesheetztweetz

  • Blue Origin has won a contract to supply its next-generation engines for the massive rocket United Launch Alliance is developing, a person familiar with the negotiations told CNBC
  • ULA – a joint venture of Boeing and Lockheed Martin – will announce the deal on Thursday, the person said.
  • The companies confirmed CNBC's reporting in a press release Thursday afternoon

Blue Origin, the space company founded by Jeff Bezos, has won a contract to supply its next-generation engines for the massive rocket United Launch Alliance is developing, a person familiar with the negotiations told CNBC.

The company's BE-4 engine, the thunderous staple of Blue Origin's propulsion business, will power ULA's Vulcan rocket: a new heavy lift vehicle being built to compete with SpaceX for lucrative commercial and military contracts. ULA, a joint venture of Boeingand Lockheed Martin created in 2006, will announce the deal on Thursday, the person said.

ULA confirmed CNBC's reporting in a press release Thursday afternoon.

"We are pleased to enter into this partnership with Blue Origin and look forward to a successful first flight of our next-generation launch vehicle," ULA CEO said in a statement Thursday afternoon.

Bezos is investing heavily in Blue Origin, pouring about $1 billion of his Amazon stock into the rocket venture each year. In a speech Sept. 19, Bezos said he plans to invest another $1 billion next year into the company's New Glenn rocket, which BE-4 will power. The engines of a rocket represent the majority of the cost, so the contract may be worth several billion dollars to Blue Origin. The Wall Street Journal first reported the contract win by the company.

Blue Origin has long been the front-runner in a race against Aerojet Rocketdyne, which has been developing its AR1 engine. While AR1 was still technically in the running until now, Bruno had said he would prefer BE-4 for Vulcan, with AR1 potentially becoming a backup. Aerojet was behind in the development, while Blue Origin had already completed multiple tests, firing the BE-4 engine for long durations.

Aerojet has not completely lost, even if AR1 ends up with no part in Vulcan. ULA announced in May it picked the Aerojet's smaller RL10 engine to power the upper-stage of Vulcan — the part of the rocket that places spacecraft into their intended orbits after a launch. ULA currently uses the RL10 for its Atlas V and Delta IV rockets.

All eyes on the Air Force

The deal also represents a key first step toward Blue Origin winning lucrative military contracts. The Pentagon is working to ensure that all the rockets it buys are built entirely in the U.S., making Blue Origin a potential propulsion supplier for several companies.

Congress has set a deadline of 2022 for phasing out Russian-built rocket engine, which currently power ULA's Atlas V rocket. Vulcan's development began once the Pentagon started pushing to end reliance on Russian engines.

The competition to launch U.S. military equipment is stiff. SpaceX is grabbing more and more share of the market from ULA — which was the sole provider of U.S. military launches for nearly a decade. Northrop Grumman may also get a foothold through its recent acquisition of Orbital ATK. Jefferies said on April 23 that the company's OmegA rocket "is starting at a high level of technology readiness given its leverage of current components."

The next big milestone in the rocket business is an Air Force award expected later this year, with about $1.2 billion up for grabs over the next five years. Known as the Launch Services Agreement, the Air Force is looking to narrow the field of ULA, SpaceX, Northrop Grumman and Blue Origin. Each company won an initial development award in 2016, with the next step to narrow the field to three companies for the development of system prototype.

"We have been working closely with the U.S. Air Force, and our certification plan is in place," Bruno said in his statement.

The military is then anticipated to make a final decision in 2020, picking two suppliers to compete for 28 missions over five years.

Blue Origin becoming a major player

Morgan Stanley told clients earlier this month "to take notice" of Bezos investments in the space industry through Blue Origin, pointing to him as a "force" bringing financial muscle.

"We believe investors may want to pay far more attention to another emerging force for the advancement of efforts in Space that has both the will and, increasingly, the financial muscle to put to work," Morgan Stanley analyst Adam Jonas said in a note.

Morgan Stanley estimated that Bezos' Amazon shares are worth about $160 billion — "equal to around 16 years worth of NASA expenditures on Space exploration," the firm said. Morgan Stanley advised its clients to take note of that comparison as Bezos' wealth continues to grow. Blue Origin has "invested about $1 billion in the Space Coast," Bezos said in his recent speech, with funds going to the company's manufacturing facility and Launch Complex 36, which Blue Origin leased at the Cape Canaveral Air Force Station in Florida.

Blue Origin has spent "over seven years developing this engine to make it reusable," CEO Bob Smith told CNBC on April 18. At the time, Smith said the company was "excited about the commercial opportunities" that BE-4 will provide.

"United Launch Alliance is the premier launch service provider for national security missions, and we're thrilled to be part of their team and that mission," Smith said in a statement Thursday.

Smith has also said before that the engine was "certainly demonstrating all the technical characteristics" that ULA needs for Vulcan – but Blue Origin expects to be able to sell BE-4 to other rocket companies, too.

"We're going to offer it to whoever else will come out and say they need a new engine," Smith said at the time.

Reusability remains the emphasis of Blue Origin, which already has launched and landed its smaller New Shepard rocket multiple times.

Each BE-4 engine is designed to complete "100 full missions," Smith said in April. Reusability provides tremendous cost savings of 50 to 75 percent, Smith said — a claim made more believable by SpaceX's massive Falcon Heavy rocket coming with a price tag of just $150 million, at most.

The first launches of New Glenn and Vulcan are not expected before 2020, the companies have said. Vulcan and New Glenn are expected to compete with Falcon Heavy on cost and power – but SpaceX remains undaunted.

New Glenn will be a monstrous vehicle, standing as high as 313 feet, with seven BE-4 engines powering each rocket. The Vulcan rocket is 191 feet and capable of launching a more than 7 tons of payload into orbit. Falcon Heavy, on other hand, stands 230 feet tall and, after its launch in February, is the world's most powerful rocket since NASA's Saturn V.

The space race is on

After Falcon Heavy launched successfully, SpaceX CEO Elon Musk told reporters he thinks the historic flight will "encourage other companies and countries" to be ambitious in the same way as SpaceX. Musk's company helped the United States reclaim not just a portion but a majority in the global launch market in 2017 and represented more than 60 percent of U.S. launches while doing so.

Bezos has said Blue Origin is "the most important work" he's doing. He also has said there should be "a permanent human settlement on one of the poles of the moon" and thinks it's not just time for humans to return to the moon, it's "time to stay."

While SpaceX may be out to an earlier lead in the development of next-generation rockets, Blue Origin solidified itself as a true competitor with this BE-4 contract — one that may help ULA keep its competitive edge.

https://www.cnbc.com/2018/09/27/blue-origin-lands-major-rocket-engine-deal-with-ula-source.html

On the same subject

  • Lockheed to double Patriot missile production as orders explode

    July 12, 2018 | International, Aerospace

    Lockheed to double Patriot missile production as orders explode

    By: Jen Judson WASHINGTON — Lockheed Martin is planning to double its most advanced Patriot missile's production in the coming years to deal with exploding orders of the weapon from the U.S. Army and its allies, according to a company executive. The U.S. Army has dramatically increased its Patriot Advanced Capability-3 Missile Segment Enhancement, or PAC-3 MSE, orders to not just account for full-rate production of the missile but to increase the stockpile on hand as operations overseas continue to eat up the inventory. The MSE version has a larger, dual-pulse solid-rocket motor and larger control fins that double the missile's reach and improve performance against evolving ballistic and cruise missiles. Meanwhile, several new customers abroad have joined the ranks of Patriot air and missile defense owners to include Poland, Romania and Sweden this year. This includes the purchase of a number of the MSE missiles as part of the initial order. For example, Lockheed would build 576 PAC-3 MSEs just for the three European countries that recently signed on to buy Patriot. Romania plans to buy 168 PAC-3 MSEs for its Patriot system as part of its order. Poland wants to buy 208 of them. Sweden intends to buy 200. The reason for such an explosion in PAC-3 MSE buys is due to the proliferating threat both in the Middle East and in Europe as the U.S. and its allies remain embroiled in conflict in the Gulf region, and as European countries work to build up robust air defenses to deter Russia. By: Aaron Mehta A comparison of the U.S. Army's fiscal 2018 and fiscal 2019 budget justification documents show the service drastically increased its planned buys — in some cases more than doubling — across FY18 through FY22. The Army had planned to buy roughly 95 missiles per year from FY18 through FY22, but a year later the service increased the 2018 order from 93 to 240 to include those bought with overseas contingency operations funds. In FY19, the Army asked for 240 missiles again. And the base orders for the missile in FY21 and FY22 total 160 each year. The Army's plans to dramatically increase its PAC-3 MSE production going forward has seen unanimous congressional approval, although the final FY19 defense appropriations bill has yet to become law. House and Senate appropriators are fully funding the production of 179 MSE missiles in FY19 in the base budget. Lockheed is no longer selling its original PAC-3 missiles, but it is still producing them for one customer, according to Bob Delgado, director of international business development for integrated air and missile defense at Lockheed Martin, who spoke to Defense News in a recent interview at the defense conference Eurosatory in Paris. This means Lockheed can make room for PAC-3 MSE production, which received the go-ahead to move into full-rate production by the U.S. Army in April. “There is a lot of interest in [PAC-3 MSE], so much so we are doubling our capacity,” which equates to up to 500 of the missiles per year, Delgado said. This will likely mean adding an extra production line, he added. Lockheed is currently meeting the demand, Delgado said, “however, it is getting more difficult as more orders come in, and that is why we are foreseeing, along with the U.S. government, a point where we need to increase our capacity.” https://www.defensenews.com/land/2018/07/11/lockheed-to-double-patriot-missile-production-as-orders-explode/

  • 5 takeaways: Top US Navy officer releases updated strategy document

    December 19, 2018 | International, Naval

    5 takeaways: Top US Navy officer releases updated strategy document

    By: David B. Larter WASHINGTON — The U.S. Navy's top officer released an updated version of his strategy document Monday, an expanded version heavy on goals for specific programs that extend beyond his tenure as chief of naval operations. Almost twice the length of the first edition, Adm. John Richardson's Design for Maintaining Maritime Superiority version 2.0 expands on some of the concepts laid out in 2016, and functions as a to-do list for both the fleet and the Office of the Chief of Naval Operations staff. Here are five takeaways: 1) Adversaries Design 2.0 is still aimed squarely at competing with China and Russia. “China and Russia seek to redefine the norms of the entire international system on terms more favorable to themselves,” the document reads, and goes on to say that the U.S. “competitive advantage has shrunk and, in some areas, is gone all together.” The U.S. Navy must be agile to keep pace with technology and the tactics of adversaries, the document outlines. To do so it must compete in “gray zone” areas as well as when the shooting starts – to compete with China and Russia in scenarios short of war as well as in direct combat, Richardson writes. “Our adversaries can operate at different levels of intensity in different domains and the same time,” the document reads. 2) To-do list The middle of the document greatly expands on the CNO's “lines of effort,” or areas of focus. Under “Strengthening Naval Power,” CNO lists a number of strategic goals – including standing up the new Norfolk-based 2nd Fleet, which will control ships, submarines and aircraft based out of Norfolk; developing new concepts of operations that focus on fighting as a more spread-out force able to cover more territory through networking sensors; and continuing to apply the lessons learned from the two fatal guided-missile destroyer accidents in 2017. The document outlines award date goals for contracts to major programs, from the future frigate (2020) and Large Unmanned Surface Vehicle (2023). It identifies the requirement for the replacement to the F/A-18 Super Hornet and E/A-18G Growler by the end of 2019 – a program known as Next Generation Air Dominance – to field by 2030. Other initiatives include integrating more artificial intelligence and machine learning into warfare systems, as well as 3D printing for replacement parts. The document also establishes goals for personnel including making it easier for sailors to choose and negotiate orders and access their records on their smart phones. 3) New stuff The document calls for a new three-star command inside OPNAV that is linked to a related effort to transform the Naval War College in Rhode Island and the Naval Post-Graduate School in Monterey, California. Naval War College, combined with Naval Warfare Development Command, will support Development Group East, which will workshop and develop new concepts based on the new technologies entering the fleet. On the West Coast, Development Group West will be supported by Space and Naval Warfare Systems Command the Post-Graduate School and will serve as a “center of excellence” for capabilities development. The three-star inside OPNAV will be the coordinator for these new constructs, tasked with overseeing the Navy's “education, experimentation, exercise, and analytic efforts.” The document also calls for the development and fielding of an offensive hypersonic weapon by 2025, a move to counter China and Russia's moves with similar systems. It also references a new “large-scale exercise” planned for 2020, although details are sparse. 4) Logistics The new design puts an emphasis on what has become a glaring shortfall of the U.S. military, its logistics. “We will aim to act as early as possible to de-escalate any crisis on our terms and be ready for the next move,” the document reads. “This will require we sustain the fight with the logistics capabilities needed to refuel, rearm, resupply and, repair our operational forces” Later the document calls for the Navy to “posture logistics capability ashore and at sea in ways that allow the fleet to operate globally, at a pace that can be sustained over time.” 5) Takeaway While the document is detailed, the overall tone shift of Richardson's design from documents released a decade ago is stark, according to James Holmes, a strategy professor at the Naval War College. “The change of tone from the 2007 Maritime Strategy, our first strategy since the 1980s, is stunning,” Holmes said in an email. “The 2007 strategy was a document for a world that might turn competitive or might remain cooperative. The name China appeared nowhere, let alone as a potential foe, while there were a fair number of gauzy generalities and platitudes in there. “You could track the shift in tone from 2007 through the 2015 ‘refresh' of the Maritime Strategy through Design 1.0 in 2016 to this document. Doing so tells you the world has changed around us and we are trying to change with it – or catch up where we've fallen behind.” As for the detailed pieces of the document, they function as a good list of priorities, said Bryan McGrath, a former destroyer skipper turned consultant who worked on the last Maritime Strategy. “This is a solid statement of command intent,” McGrath said. “It is essentially a worklist for his subordinates to guide and prioritize their efforts. It seems to me that any interest to an audience broader than the Navy flag community would be in understanding CNO's priorities.” Military Times reporter Geoff Ziezulewicz contributed to this report. https://www.defensenews.com/naval/2018/12/17/top-us-navy-officer-releases-updated-strategy-document-five-takeaways/

  • To get more female pilots, the Air Force is changing the way it designs weapons

    August 20, 2020 | International, Aerospace

    To get more female pilots, the Air Force is changing the way it designs weapons

    Valerie Insinna WASHINGTON — In 2022, the U.S. Air Force will take delivery of the F-15EX, a new and improved version of the nearly 40-year-old F-15E Strike Eagle. But for all of the modern advances of the new jet, only 9 percent of women in the Air Force currently meet the body-size standards for piloting the legacy F-15 and possibly also the new EX variant, potentially blocking highly qualified pilots from flying a platform that will be in operation for decades to come. Like the vast majority of the Air Force's aircraft and aircrew equipment, the F-15 was designed to meet the anthropometric specifications of a male pilot in 1967. But in an Aug. 4 memo, the Air Force mandated that future weapons programs use current body size data that reflects the central 95 percent of the U.S. recruitment population — a move meant to make pilot and aircrew jobs more accessible to women and people of color. Air Force acquisition executive Will Roper, who signed off on the changes, said there is a strategic imperative for opening the door to a more diverse pool of pilots and aircrew. During a war with a near-peer, technologically advanced nation like China, the U.S. military will have to contend with a well-trained, highly educated force that might outnumber its own, he said. By fielding weapon systems that can only be used by a smaller portion of the U.S. population, the Air Force could be shutting out some of its most promising potential pilots or aircrew. “The human factor is a delineator and it likely will be against an adversary like China, where I believe we will have a greater propensity to trust the operator in the seat, to delegate more, to empower more and take greater risk in that delegation,” Roper told Defense News in an exclusive Aug. 6 interview. “All well and good when you're a country that's going to face a country with a population that's four times your own by the end of this decade,” he said. “But if we begin with a recruitment population that we've artificially halved because of how we design our cockpits and workstations, we've just doubled our work, and now we make every operator in the seat have to be eight times better than the counterpart they will face in a nation like China.” The new guidance directs the Air Force Lifecycle Management Center to conduct a study that will solidify a more inclusive anthropometric standard that would include 95 percent of the U.S. population eligible for recruitment in the U.S. Air Force. But until that wraps up, all new-start Air Force programs must be designed with cockpits, aircrew operating stations and aircrew equipment that accommodates eight anthropometric data sets. These eight cases use measurement data from the Centers for Disease Control and represent a range of body types including individuals who are short in stature, have short limbs or have a long torso. AFLCMC's Airman's Accommodations Laboratory will also run a three-year study that will develop separate anthropometric standards for career enlisted aviators, who perform specialized jobs onboard military aircraft including flight engineers, flight attendants and loadmasters. Currently, career enlisted aviators also must meet the 1967 anthropometric standards. ‘A hidden barrier' The legacy design parameters — which stem from a 1967 survey of male pilots and measure everything from a pilot's standing height, eye height while sitting, and reach — have effectively barred 44 percent of women from being able to fly aircraft unless they receive a waiver, with women of color disproportionately affected, the Air Force stated. Even after a waiver is granted, the pilot will remain disqualified from certain platforms regardless of his or her aptitude. Then, when future requirements are defined for new platforms or equipment, the systems are usually designed to meet the existing pool of pilots, creating a self-perpetuating problem. “It is a hidden barrier with multiple layers,” said Lt. Col. Jessica Ruttenber, an Air Force mobility planner and a leader of the Women's Initiative Team that advocated for the change in anthropometric standards. “People are trying to do the right thing, but the barriers are baked into legacy policy. And without even knowing it, they're kind of cut and pasting the same standard.” Ruttenber said the new guidance addresses the root of the problem by establishing new design specifications — ensuring platforms are engineered to accommodate a wide range of body sizes from the start of the development process, rather than papering over the problem with waivers after the fact. “[For] the next inter-theater airlift that is going to replace the C-130 or C-17, we can't get the anthropometric data wrong or women are still going to be eliminated 30 years from now. The C-130 and C-17 still eliminate one out of three women from flying it,” she said. For more than a year, the Women's Initiative Group worked with Chief Master Sgt. Chris Dawson, the career field manager for the Air National Guard's career enlisted aviators, on trying to garner funding for an anthropometric study for CEAs. “There were so many communities we had to coordinate with that we realized really quickly that this has to come from the top down or we're not going to be as successful,” Ruttenber said. After meeting with Roper, the Women's Initiative group was granted $4 million for the study. Ruttenber, a KC-135 pilot, remembers being pulled out of her first pilot training class in 2005 because her physical examination indicated that she didn't meet the standing height requirement of 5-foot-4 by a fraction of an inch. She then sought a waiver that would allow her to fly. “The process was different back then. I had to drive from base to base and get measured in each cockpit in an attempt to get an exception to policy. I went to Charleston and I got measured in a C-17, and then I went to Little Rock and got measured in a C-130,” she said. “I got measured in the KC-135 and so on and so on and so on.” Since then, the Air Force has made the process to obtain a waiver less arduous, and it recently removed the initial height requirement — although some platforms still require pilots to meet the 5-foot-4 standard. Newer aircraft such as the F-35 joint strike fighter and the T-7 trainer currently under development will also accommodate a wider height and weight range. However, Ruttenber pointed out that the specifications for legacy aircraft will remain a hurdle for the progression of female pilots. “Even if the F-35 is 97 percent accommodating for women, I still can't get there because the T-38,” which is used for fighter pilot training, “has a 41 percent accommodation envelope for women,” she said. Roper said he is working with defense contractors to see whether there can be modifications made to legacy platforms — or upgraded versions like the F-15EX — that will accommodate operators with a wider range of body sizes. But whether those changes are ultimately made will depend on if they are technically feasible and funding is available for design changes. At the time of the Aug. 6 interview, Roper had already spoken to some defense industry executives — including those from Lockheed Martin — about the new guidance and planned similar phone calls with Boeing and Northrop Grumman officials over the coming days. The reaction from industry so far has been “very positive” but “very surprised” that such bias still exists, he said. However, Roper acknowledged that more work has yet to be done. “Changing the policy is one thing. Changing the platforms is another. And that's going to require cost to do. My next job, aside from designing future systems differently — which we'll do — is to find options to bring systems into greater compliance with the new policy and then to advocate tooth and nail for the funding needed to do it,” he said. “The litmus test for the Air Force long term has got to be balancing accommodation with the technology for future platforms.” https://www.airforcetimes.com/news/your-air-force/2020/08/19/to-get-more-female-pilots-the-air-force-is-changing-the-way-it-designs-weapons/

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