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SpaceX calls ULA NASA launch contract “vastly” overpriced in official protest

Falcon 9 B1054 lifts off on SpaceX's first expendable Block 5 launch. (SpaceX)

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SpaceX has filed an official protest with the US Government Accountability Office (GAO) after NASA awarded competitor United Launch Alliance a launch contract for Lucy, an interplanetary probe meant to explore a belt of unique asteroids clustered around Jupiter’s orbital swath.

Announced on January 31st, SpaceX believes that NASA made a decision counter to the best interests of the agency and US taxpayers by rewarding ULA the Lucy launch contract at a cost of $148M, a price that the company deemed “vastly more [expensive]” than the bid it submitted for the competition.

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With performance roughly equivalent to SpaceX’s Falcon 9 Block 5 rocket in a reusable configuration when launching from low Earth orbit (LEO) up to geostationary transfer orbit (GTO), ULA’s Atlas V 401 variant is the simplest version of the rocket family with the lowest relative performance, featuring no solid rocket boosters. According to the company’s “RocketBuilder” tool, Atlas V 401 was listed with a base price of $109M in 2017. SpaceX’s Falcon 9 is listed with a base price of $62M for a mission with booster recovery, while the rocket’s highest-value expendable launch (for a USAF GPS III satellite worth ~$530 million) was awarded at a cost of $83M, with three subsequent GPS III launch contracts later awarded for ~$97M apiece.

Relative to almost any conceivable near-term launch contract on the horizon, SpaceX’s GPS III launch contracts act as a sort of worst-case price tag for Falcon 9, where the customer requires extraordinary mission assurance and the entire rocket has to be expended during the launch. Put in another way, NASA would likely be able to get the reliability, performance, and mission assurance it wants/needs from Falcon 9 for perhaps $50M less than the cost of ULA’s proposed launch, equivalent to cutting more than a third off the price tag. Part of NASA’s Discovery Program, the Lucy spacecraft will be capped at $450M excluding launch costs, meaning that choosing SpaceX over ULA could singlehandedly cut the mission’s total cost by a minimum of 8-10%.

 

“Since SpaceX has started launching missions for NASA, this is the first time the company has challenged one of the agency’s award decisions. SpaceX offered a solution with extraordinarily high confidence of mission success at a price dramatically lower than the award amount, so we believe the decision to pay vastly more to Boeing and Lockheed for the same mission was therefore not in the best interest of the agency or the American taxpayers.”  – SpaceX, February 13th, 2019

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The fact remains that the Lucy mission does face a uniquely challenging launch trajectory, offering just a single launch window of roughly three weeks, after which the mission as designed effectively becomes impossible. Missing that window could thus end up costing NASA hundreds of millions of dollars in rework and delays, if not triggering the mission’s outright cancellation. NASA and ULA thus couched the launch contract award and ~50% premium in terms of what ULA argues is Atlas V’s “world-leading schedule certainty”. Excluding ULA’s other rocket, Delta IV, Atlas V does have a respectable track record of staying true to its contracted launch targets. However, SpaceX’s Falcon 9 “schedule certainty” continues to improve as the launch vehicle matures.

Admittedly, while Falcon 9 has gotten far better at reliably launching within 5-10 days of its on-pad static fire test, SpaceX has continued to struggle to launch payloads within a week or two of customer targets. Regardless, October 2021 is more than two and a half years away, giving SpaceX an inordinate amount of time and dozens upon dozens of manifested Falcon 9 launches to reach a level of operational maturity and design stability comparable to Atlas V, a rocket that has changed minimally over the course of 16+ years and 79 launches.

 

In October 2010, NASA awarded ULA a contract valued at $187M to launch its MAVEN Mars orbiter on Atlas V 401. In December 2013, ULA won a $163M contract to launch NASA’s InSight Mars lander on Atlas V 401. In January 2019, ULA was awarded a contract for NASA’s Lucy spacecraft, priced at $148.3M for a 2021 Atlas V 401 launch. Put simply, barring ULA using a dartboard and blindfold to determine launch contract pricing or aggressive reverse-inflation, SpaceX’s very existence already stokes the flames of competition, particularly when launch contracts are directly competed by their parent agencies or companies.

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Whether or not SpaceX’s protest is entirely warranted or ends up amounting to anything, it can be guaranteed that the fact that SpaceX was there to compete with ULA at all forced the company to slash anywhere from $20-40M from the price it would have otherwise gladly charged NASA. Another ~$50M saved would certainly not be the worst thing to happen to the US taxpayer, but it’s also not the end of the world.


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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Starlink powers Europe’s first satellite-to-phone service with O2 partnership

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.

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Credit: SpaceX

Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.

The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.

Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.

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By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.

Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.

Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.

For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.

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Elon Musk’s Starbase, TX included in $84.6 million coastal funding round

The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.

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Credit: SpaceX/X

Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.

Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.

“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release

“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”

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The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”

The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.

CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.

Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.

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SpaceX targets 150Mbps per user for upgraded Starlink Direct-to-Cell

If achieved, the 150Mbps goal would represent a significant jump from the current performance of Starlink Direct-to-Cell.

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Credit: SpaceX/X

SpaceX is targeting peak download speeds of 150Mbps per user for its next-generation Direct-to-Cell Starlink service. The update was shared by SpaceX Spectrum & Regulatory Affairs Lead Udrivolf Pica during the International Telecommunication Union’s Space Connect conference.

“We are aiming at peak speeds of 150Mbps per user,” Pica said during the conference. “So something incredible if you think about the link budgets from space to the mobile phone.”

If achieved, the 150Mbps goal would represent a significant jump from the current performance of Starlink Direct-to-Cell.

Today, SpaceX’s cellular Starlink service, offered in partnership with T-Mobile under the T-Satellite brand, provides speeds of roughly 4Mbps per user. The service is designed primarily for texts, low-resolution video calls, and select apps in locations that traditionally have no cellular service.

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By comparison, Ookla data shows median 5G download speeds of approximately 309Mbps for T-Mobile and 172Mbps for AT&T in the United States, as noted in a PCMag report. While 150Mbps would still trail the fastest terrestrial 5G networks, it would place satellite-to-phone broadband much closer to conventional carrier performance, even in remote areas. 

Pica indicated that the upgraded system would support “video, voice, and data services, clearly,” moving beyond emergency connectivity and basic messaging use cases.

To reach that target, SpaceX plans to upgrade its existing Starlink Direct-to-Cell satellites and add significant new capacity. The company recently acquired access to radio spectrum from EchoStar, which Pica described as key to expanding throughput. 

“More spectrum means a bigger pipeline, and this means that we can expand what we can do with partners. We can expand the quality of service. And again, we can do cellular broadband basically, cellular broadband use cases, like AI or daily connectivity needs,” he stated.

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SpaceX has also requested regulatory approval to deploy 15,000 additional Direct-to-Cell satellites, beyond the roughly 650 currently supporting the system. The upgraded architecture is expected to begin rolling out in late 2027.

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