Rocket Bound for Space Station Blows Up Just After Liftoff

Marco Caceres, senior analyst at the Teal Group, said the explosion will cause people to question whether NASA should be turning to private companies to launch spacecraft.

"There are people in Congress who say NASA should not be relying on private companies," Caceres said. "Many people will now say, 'We told you so.'"

But there's always a chance of failure with rocket launches, he said, whether it's with a private company or with NASA.

Caceres noted that Orbital has experienced several failures with its Antares and Taurus rocket vehicles. "This is not a good record for Orbital."