It is arguable whether NASA and the Pentagon should settle on one medium lift launch system -- be it the Delta IV, the Atlas V or the SRB derivative booster. However, there is no reason for the Delta II and Delta III to exist anymore. The Delta IV small can be used for NASA's light payloads and even though the Delta IV common core booster may be and overkill, it is not any more expensive than the Delta II. In the long run, if the EELVs are going to be kept around, it makes sense to use them to fly really light payloads anyway since they are cheaper -- especially if they get decent flight rates.<br /><br />In the Pentagon's POV, keeping both the atlas and the delta makes sense because they want to maintain a multi-source infrastructure. Low cost is nice, but ultimately it is about maintaining the defence aerospace infrastructure. To put things into perspective, consider this... the current NASA budget is roughly $15 billion a year, the annual US defence budget is $400 billion. The military guys are the gorillas here. If they want to spend some money to maintain multiple space launch options for national security they can afford it.<br /><br />As far as Space X is concerned, they should be thankful that they are allowed to play around in Vandenburg AFB. The Falcon I is not really in the class of the EELVs or even the Delta IIs. The Merlin engine is a commendable effort, but to get to the EELV payload range you will have to cluster 5 or 6 of them, I think Space X has some distance to go before they have a launcher that is seen as a viable alternative to the big boy's toys. They are budding and nobody is going to care about them until they bloom. I am all for NASA or the DOD giving them a few hundred millions to play with. In fact I think NASA should have a program where they set aside a bunch of non-so critical launches and allow startups to bid for them. But whatever NASA or DoD chooses to do with encouraging or not encouraging budding Space launch firms, nobody at this p