Other private companies have been building rockets for over 50 years. Currently, Boeing builds Delta. Lockheed builds Atlas. ATK builds motors used by other commercial firms. Orbital builds rockets based on decommissioned ICBM motors, built by private companies. SpaceX is selling to the same commercial and government customers as these other firms.
The main difference between them and SpaceX is that SpaceX offers it products & services at fixed price contracts rather than the cost plus contracts used by the competition. That and SpaceX is developing the rocket with its own money rather than on contract.
Cost plus contracts guarantee a fixed profit above whatever cost the contractor incurs building and flying the rocket. SpaceX profit is not guaranteed, but if they do their job well their profit margins could be greater than their competitors margins -- or worse if things go badly. It's that risk/reward balance.
Isn't the difference that SpaceX builts the rockets but also does most of the rest too? You pay they and they get your stuff to orbit. With the others, you can buy a rocket, but if you aren't NASA, you probably can't get it to orbit.
They all do it the same way. The launch vehicle provider is responsible for deploying the customer's payload to a given orbit. They work side by side with the customer at the range and in mission control. But they are on the hook to deliver the payload to orbit.
The range operator is the principle gatekeeper. You may have noticed that the final delays on the first Falcon 9 launch were related to preparing data for the range safety officer. You don't need NASA or the air force to get to orbit, Telecomm and sattelite tv firms get their satellites to orbit. They work with the ranges for approvals and safety.
The delay was actually because the Range hadn't approved the Flight Termination System on board F9. The Range is really not the gatekeeper for orbit, their job is to protect the public and ensure that the rocket doesn't harm the uninvolved public. Thus the sea lane closures, airspace clearance, clearing of the immediate area, and FTS in case the rocket deviates from it's proper course (within margins, of course).
Thanks for the correction. I wasn't sure what the range issue was. I wonder if it was because the FTS was different than the one they flew on Kwajalein on the Falcon 1's or due to different range requirements.
The main difference between them and SpaceX is that SpaceX offers it products & services at fixed price contracts rather than the cost plus contracts used by the competition. That and SpaceX is developing the rocket with its own money rather than on contract.
Cost plus contracts guarantee a fixed profit above whatever cost the contractor incurs building and flying the rocket. SpaceX profit is not guaranteed, but if they do their job well their profit margins could be greater than their competitors margins -- or worse if things go badly. It's that risk/reward balance.