SpaceX secures $733M launch contract from U.S. Space Force

SpaceX has been awarded a $733 million contract for eight launches by the U.S. Space Force as part of a broader initiative to promote competition among launch providers.

The contract includes seven launches for the Space Development Agency and one for the National Reconnaissance Office, all expected to use Falcon 9 rockets, with launches set to begin no earlier than 2026.

This significant contract is part of the U.S. Space Force’s Space Systems Command (SSC) initiative, called “National Security Space Launch Phase 3 Lane 1.” Last year, the program was divided into two categories: Lane 1, for lower-risk missions to near-Earth orbits, and Lane 2, for more complex heavy-lift missions to challenging orbits.

Earlier this summer, SpaceX, United Launch Alliance, and Blue Origin (despite not having reached orbit yet) were chosen to compete for Lane 1 missions. While the number of awardees is limited, the Space Force aims to increase competition by allowing companies to bid for Lane 1 annually, with the next opportunity slated for late 2024. Lane 1 has an anticipated total value of $5.6 billion over five years.

In a press release, Lt. Col. Douglas Downs, SSC’s leader for space launch procurement, said the Space Force expects “increasing competition and diversity” as new providers enter the market.

The Phase 3 Lane 1 award covers fiscal years 2025 to 2029, with the possibility of a five-year extension, during which the Space Force plans to award at least 30 missions. Although SpaceX’s success may seem certain for now, competition could intensify as new launch companies and technologies emerge in the coming years.