SpaceX has landed a substantial contract with the U.S. Space Force, securing a whopping $733 million for eight launches. This contract is part of a program aimed at promoting competition among different launch providers in the industry. The award includes seven launches for the Space Development Agency and one for the National Reconnaissance Office, all scheduled to utilize Falcon 9 rockets and expected to take place no earlier than 2026.
The contract falls under the U.S. Space Force Space Systems Command (SSC) program known as “National Security Space Launch Phase 3 Lane 1.” This program was divided into two lanes last year, with Lane 1 focusing on lower-risk missions in near-Earth orbits, while Lane 2 handles heavy-lift missions and more challenging orbits.
Earlier this summer, the Space Force selected SpaceX, United Launch Alliance, and Blue Origin to compete for launches under Lane 1. Although Blue Origin has not yet reached orbit, it was still included in the selection process. The Space Force acknowledged the limited number of awardees but plans to address this by allowing companies to bid annually for Lane 1 opportunities. The total expected value of Lane 1 contracts over five years is $5.6 billion, with the next chance to join in 2024.
Lt. Col. Douglas Downs, SSC’s materiel leader for space launch procurement, expressed the Space Force’s anticipation of increased competition and variety with the inclusion of new providers. The Phase 3 Lane 1 contract period spans from fiscal year 2025 to fiscal year 2029, with a potential extension of five years. During this time, the Space Force plans to award at least 30 missions, showcasing the growing demand for space launch services.
While SpaceX may have clinched the recent contract, the industry is expected to see a surge in competition with the emergence of new launch companies and vehicles in the near future. This development hints at a dynamic and evolving landscape within the space launch sector, promising exciting advancements and possibilities for future missions.
