US Air Force Cut Blue Origin and Northrop Rocket Development Funding

The US Air Force is ending Launch Service Agreement contracts awarded in October 2018 to Blue Origin and Northrop Grumman, as well as to ULA.

The Launch Service Agreement contracts were to help Phase 2 competitors pay for launch vehicle development and infrastructure. Blue Origin received $500 million; Northrop Grumman $792 million and ULA $967 million. The funds were to be spread out through 2024. The Air Force from the beginning said the LSAs would be terminated with those companies that did not win a Phase 2 procurement contract.

SpaceX and ULA were the only companies with phase 2 missions awards on August 7, 2020.

SpaceX got a $316 million contract to launch USSF-67, a mission scheduled for late in 2022. ULA got a $337 million contract to launch two missions — USSF-51 and USSF-106 which are also in 2022.

SOURCES- Space News
Written By Brian Wang,