Space X Filing Lawsuit Against U.S Air Force

California-based rocket company, Space X, announced Friday that it is filing a lawsuit against the US Air Force over satellite launch contracts.

According to Space X, U.S. Air Force's latest Evolved Expendable Launch Vehicle (EELV) contract with United Launch Alliance (ULA) costs billions of dollars of taxpayers' money. The company says that the U.S Air Force should allow companies to compete for these contracts rather than granting them on a sole-source basis. The contracts are for launching spy agency satellites into space.

United Launch Alliance (ULA) is a joint venture of Boeing and Lockheed Martin. The 36 rocket contract will cost the pentagon around $70 billion, The Washington Post reported.

"This exclusive deal unnecessarily costs U.S. taxpayers billions of dollars and defers meaningful free competition for years to come," said Elon Musk, SpaceX CEO and Chief Designer, according to a news release. "We are simply asking that SpaceX and any other qualified domestic launch providers be allowed to compete in the EELV program for any and all missions that they could launch."

Last year, the Air Force said that it had given ULA three contracts with a combined value of around $3 billion, Popular Mechanics reported. The Air Force had defended its move by saying that the payment saved taxpayers' money. According to Musk, the contracts are still expensive. Space X's rockets cost around $90 million per launch compared to $380 million for a rocket launch by ULA.

Space X develops and manufactures spacecrafts and rockets. The company has a 12-flight, $1.6 billion contract with NASA, nbcnews had earlier reported.

Rockets made by Space X aren't qualified for the Air Force mission. However, Musk said that the company is working on the Air Force's certification process. According to Musk, the process is "paperwork exercise."

"Since this is a large, multiyear contract, why not wait a few months for the certification process to be completed, and then do the competition?" he said, according to the Washington Post.

Space X also said that ULA's launch vehicle, the Atlas V, uses the RD-180 engine made in Russia, so the contract goes against sanctions imposed on Russia by the U.S.

"In light of international events, this seems like the wrong time to send hundreds of millions of dollars to the Kremlin," said Elon Musk in a news release. "Yet, this is what the Air Force's arrangement with ULA does, despite the fact that there are domestic alternatives available that do not rely on components from countries that pose a national security risk."

The Air Force said that they had no comment on this issue, Forbes reported.