SpaceX Settles Charges Against the US Air Force

In a statement last week, SpaceX said:

Under the agreement, the Air Force will work collaboratively with SpaceX to complete the certification process in an efficient and expedient manner. This collaborative effort will inform the [Secretary of the Air Force] directed review of the new entrant certification process. The Air Force also has expanded the number of competitive opportunities for launch services under the [Evolved Expendable Launch Vehicle (EELV)] program while honoring existing contractual obligations. Going forward, the Air Force will conduct competitions consistent with the emergence of multiple certified providers. Per the settlement, SpaceX will dismiss its claims relating to the EELV block buy contract pending in the United States Court of Federal Claims.

The contract was worth $11 billion over five years and was awarded to ULA with no competitive bidding. A further 14 launch rockets for fiscal years 2015 through 2017 were to be competitively bid on, but the Air Force has now proposed cutting that number in half.

At the time the dispute was made public, an Air Force official said that SpaceX was likely to achieve certification in December or January and that the company could compete for seven or eight launches before it is certified with any contract awards contingent on certification.

Last week SpaceX announced that Google Inc. (NASDAQ: GOOG) and Fidelity have invested $1 billion in the company in exchange for just less than 10% of the rocket company.

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