By Doug Cameron
Elon Musk's space venture suffered a double setback Tuesday
after it postponed a high-profile launch of a reusable rocket and
faced a further delay in its bid to launch satellites for the
Pentagon.
Mr. Musk's Space Exploration Technologies Corp., or SpaceX,
scrubbed the launch of a rocket carrying cargo to the International
Space Station just before it was due to blast off from Cape
Canaveral Air Force Base in Florida because of a technical glitch.
SpaceX had planned to land part of the used rocket on a platform in
the Atlantic, a first for the industry designed to show it could
dramatically cut the cost of space launches.
Hours later, the U.S. Air Force said it hadn't certified a new
entrant to challenge the near monopoly for national security
satellite launches enjoyed since 2006 by a joint venture between
Boeing Co. and Lockheed Martin Corp. SpaceX has aggressively
pursued the military market. However, the Air Force said it was
"close" to approving a competitor having previously flagged the
process could be completed by December.
SpaceX is the only firm to seek the military work and has been
involved in a fierce lobbying battle with the joint venture, known
as United Launch Alliance LLC, and the Pentagon to win military
work. It sued both earlier last year in an effort to break up an
existing multiyear deal involving ULA and enter the market itself
more quickly. A Pentagon spokeswoman declined to identify the new
entrant.
The prospect of competition in space launches has been energized
by concerns that ULA's reliance on Russian-made rocket engines
could leave some U.S. military and spy satellites grounded if the
venture can't secure more supplies or spares. ULA has said it has
enough engines to last two years, and is developing a new, totally
U.S.-made rocket engine in partnership with Blue Origin LLC, a
venture founded by Amazon.com Chief Executive Jeff Bezos.
In July, the Air Force opened a contest to launch one satellite
in 2016 that could pit ULA against SpaceX, and the 2015 defense
bill passed by Congress opens the way to a competition for a second
launch.
The Air Force has said it is spending $60 million to certify the
SpaceX rockets, but Gen. John Hyten said he wouldn't hesitate to
preserve the existing monopoly if Mr. Musk's venture failed to
satisfy the technical criteria.
"Although no new entrants were able to be certified by December
2014, a new entrant is close and we will continue to invest
significant resources in a close collaborative effort on the
certification process in 2015," Lt. General Samuel Greaves,
Commander of the Air Force Space and Missile Systems Center, said
in a statement.
The Air Force added it would take a closer look at its
certification process for the future.
"I am directing a review of our new entrant certification
process by an independent team to capture the lessons learned so we
can enhance competition for launch services," said Secretary of the
Air Force Deborah Lee James in a statement.
SpaceX had no immediate comment on the Air Force announcement.
The firm said the postponed commercial launch from Florida could be
rescheduled for Friday if the technical problems can be
resolved.
Write to Doug Cameron at doug.cameron@wsj.com
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