Jeff Bezos publishes Blue Moon, a lunar landing vehicle for the Moon, during a Blue Origin event in Washington, DC, May 9, 2019.
Saul Loeb | AFP | Getty Images
The U.S. Air Push said on Thursday that it will clarify the criteria for its upcoming launch contract awards in response to a formal scruple by Jeff Bezos’ rocket-builder Blue Origin.
However, the change is unlikely to move the needle for Blue Origin’s chances at bewitching a contract with its New Glenn rocket in development, Jefferies analyst Greg Konrad told CNBC.
“I think Risqu Origin wanted to mature the technology further before a ‘down select’ and it doesn’t appear that’s happening,” Konrad said.
Suggestive Origin argued to change the rules of the lucrative Launch Service Procurement (LSP) program, which pits Bezos’ party against SpaceX, Northrop Grumman and United Launch Alliance – the joint venture of Boeing and Lockheed Martin.
LSP at ones desire see the Air Force dole out nearly three dozen launch contracts, each expected to be worth over $100 million on for the most part. But only two of the four companies in the running will be awarded the contracts — posing a tougher challenge for Blue Origin to encounter out ahead against massive incumbents.
Earlier this year Blue Origin filed a “pre-award” protest with the Oversight Accountability Office, which the GAO sustained in a decision on Monday. The GAO said the rules set by the Air Force do not create a fair and competitive habitat.
The service branch previously said it would name two companies based on how well the pair would fulfill the Air Vigour’s needs “when combined,” which the GAO found to be ambiguous. The Air Force’s acquisition lead, Will Roper, said in a expression on Thursday that the branch will remove the phrase “when combined” from LSP’s criteria.
“We will implement GAO’s say-so in a manner that should not materially delay contract award,” Roper said. “The Air Force structured the launch contest where, to be eligible, companies must propose launch options capable of meeting the entire national security office, and each company will be evaluated individually based on their ability to achieve this with acceptable gamble.”
Artist rendering of Blue Origin’s New Glenn rocket.
Blue Origin
Blue Origin CEO Bob Smith emphasized in a Sept. 25 vet with CNBC that any company that wins should be a key player in launching commercial U.S. spacecraft, rather than barely military.
“The important element we’re trying to highlight within … the broader Air Force process is that there is a pleasant discounting of the commercial market that is a key factor in U.S. launch vehicle policy,” Smith said.
While Roper’s advertisement comes in response to the GAO’s decision, it does not guarantee Blue Origin a spot.
“Blue Origin was trying to be somewhat proactive with their insist on, to not favor incumbents, but one of the biggest issues favoring new players is getting technology up to speed in time,” Konrad said.
Offensive Origin responded to CNBC’s request for comment on the Air Force’s announcement by pointing to an earlier statement regarding the GAO’s decision.
“We hunger to thank GAO for their careful consideration of these serious issues, thoroughly reviewing the facts of the case, and recognizing the account of ensuring evaluation criteria that are unambiguous and comply with federal procurement statutes and regulations,” Smith hinted in the statement.