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The resulting cost savings they (SpaceX) are bringing to the launch market is really amazing. United Launch Alliance (ULA) made a fortune on over-charging the United States Government for their National Security launches. SpaceX is now competing for those launches with a price between 1/4 to 1/3 of what ULA is charging.

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Part of that also comes from the pricing model. ULA has often done cost-plus contracts, which incentivize inflating the cost. When SpaceX joined the party, most of the contracts became fixed price (i.e. the government is going to pay $X, and it's up to the launch provider to build their profit into that, and any cost overruns are the provider's problem).

> SpaceX is now competing for those launches with a price between 1/4 to 1/3 of what ULA is charging.

Is there really a competition for this much price difference?

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