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Lockheed-Boeing’s ULA Under Fire As Air Force Report Slams JV’s Performance, Elon Musk’s SpaceX Stands As Sole Alternative – Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA)
The United Launch Alliance (ULA), a collaboration between Lockheed Martin Corp. LMT and Boeing Co., BA is under scrutiny following a report highlighting its inadequate performance in launching U.S. national security satellites.
What Happened: The Air Force report ranked ULA among the least effective programs, pointing to its failure to meet National Security Space Launch commitments, according to a report by Bloomberg.
The Air Force report, required by Congress, indicates the Air Force might consider reallocating ULA’s Vulcan missions to another provider, with SpaceX being the sole current alternative.
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ULA’s transition to the Vulcan rocket has encountered significant difficulties, overshadowing successful 2024 flights necessary for certification.
These challenges led to the postponement of three planned missions last year, resulting in financial penalties for ULA due to delayed military satellite launches.
The Vulcan is designed to replace the older Atlas rocket, which relies on Russian-made engines.
Why It Matters: The Air Force report attributes ULA’s poor performance to its dependence on subcontractors without sufficient oversight. Despite these challenges, ULA has increased engineering resources and management focus to address design issues, showing progress in resolving flight issues, according to the Air Force.
The performance issues at ULA come amid increasing competition from SpaceX, which has emerged as a dominant player in U.S. military space missions over the past decade.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: United Launch Alliance
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