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Wed, May 07, 2014

SpaceX Wins Court Round Against ULA

Judge Prohibits LMC, Boeing From Purchasing Rocket Engines From Russia

A federal judge will prevent ULA from purchasing rocket engines from Russia following a protest lodged by SpaceX of a no-bid contract that was awarded to the Boeing/Lockheed Martin joint venture by the U.S. Air Force.

SpaceX CEO Elon Musk had filed a lawsuit in federal court saying the contract should have been put out for competitive bid, according to a report from The Washington Post. In the suit, Musk and SpaceX said that the purchase of Russian-build rocket cores for U.S. launches could be a violation of sanctions put in place against Russia following its annexation of Crimea and the appearance of preparing to invade Ukraine.

The Air Force had awarded a sole-source contract to ULA for 36 rocket cores for upcoming missions. The deal is estimated to be worth about $70 billion over the next 16 years.

In her injunction, judge Susan Braden said that the Air Force and ULA are prohibited "from making any purchases from or payment of money to NPO Energomash or any entity, whether governmental, corporate or individual, that is subject to the control of Deputy Prime Minister Rogozin, unless and until the court receives the opinion of the United States Department of the Treasury, and the United States Department of Commerce and United States Department of State, that any such purchases or payments will not directly or indirectly contravene Executive Order 13,661.”

FMI: Full text of the injunction

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