SpaceX is suing the US Air Force for awarding $2.3 billion

SpaceX accused the US Air Force of breaking contracting rules when it awarded money to three rocket makers but passed on Musk’s rival bid, and said the tender should be reopened, according to a court filing unsealed on Wednesday.

In the complaint, Space Exploration Technologies Corp said contracts were awarded for three “unbuilt, unflown” rocket systems that would not be ready to fly under the government’s timeline, “defeating the very objectives” outlined by the Air Force’s program.

SpaceX asked the court to force the Air Force to reopen the $2.3 billion Launch Service Agreements competition and reconsider the Hawthorne, California-based company’s proposal.

The agreement is part of a Department of Defense initiative to assure constant military access to space and curb reliance on Russian-made RD-180 engines.

SpaceX has sued the government over contracts before, most prominently in 2014 to protest a multibillion-dollar, non-compete contract for 36 rocket launches to United Launch Alliance. It dropped the lawsuit after the Air Force agreed to open up the competition.

To say that SpaceX was unhappy with losing out on the US Air Force’s rocket development contracts would be an understatement. The company has sued the US government under claims that the Air Force “wrongly awarded” contracts to Blue Origin, Northrop Grumman and United Launch Alliance.

The military branch handed out offers to the competition despite their “unproven rockets” and “unstated metrics,” while allegedly ignoring SpaceX’s own real-world record. The company had completed numerous missions with its Falcon rockets, according to the lawsuit, but was deemed “highest risk” because of its largely untested Starship.