The Air Force Kicks Off a New Space Race

Since 2006, a joint venture between Lockheed Martin (LMT) and Boeing (BA) has had a monopoly on launching the biggest U.S. military and spy satellites into space. Now, at the urging of Congress, the U.S. Air Force is laying the groundwork to open the business to competition.

There's big money at stake. The Air Force is projected to spend $9.9 billion from fiscal 2012 through 2016 on its Evolved Expendable Launch Vehicle program, which covers medium- and heavy-class satellites, according to service figures. That's $3.5 billion, or 54 percent, more than a projection made last year for the same period. "We have seen a cost trend that we feel needs to be turned around," Air Force Under Secretary Erin Conaton said in an interview. "One of my goals is that, in a year from now, we don't see the same trend lines."