Title is a little misleading. SpaceX wasn't left out of the agreement. The Air Force is providing funding to Blue Origin, Northrop Grumman and ULA to develop the next generation of rockets and motors for each of these companies. SpaceX is already years ahead in the development phase. The Air Force is just trying to get everyone else up to speed.
> The company that isn’t picked will have its funding terminated and have to return the money it spent to the government.
Wow! I’ve never heard of such terms before with a govt contract.