KEY POINTS
  • The U.S. Air Force selected Blue Origin, Northrop Grumman and United Launch Alliance on Wednesday to each develop a launch system prototype.
  • Blue Origin will receive $500 million to develop the New Glenn rocket; Northrop Grumman's Orbital ATK is slated for $792 million for its OmegA rocket, and ULA will bring in $967 million for development of the Vulcan Centaur rocket.
  • SpaceX, despite winning an initial development award in 2016, was absent from the deal.

WASHINGTON — The U.S. Air Force selected Blue Origin, Northrop Grumman and United Launch Alliance on Wednesday to each develop a domestic launch system prototype. The long-awaited Pentagon deal known as the Launch Services Agreement enables the U.S. to transition away from foreign propulsion systems such as the Russian-built RD-180 rocket engine.

Per the award, Blue Origin will receive $500 million for the development of the New Glenn rocket, Northrop Grumman's Orbital ATK is slated for $792 million for its OmegA Rocket, and United Launch Alliance will bring in $967 million for development of the Vulcan Centaur rocket.