SpaceX won an eight-launch, $733 million contract from the U.S. Space Force on Friday as part of an ongoing program to foster competition among launch providers.
The award includes seven launches for the Space Agency and one launch for the National Reconnaissance Office, all of which are expected to use the Falcon 9 and are expected to launch no later than 2026.
This massive new contract is part of the U.S. Space Force’s Space Systems Command (SSC) program with the catchy name “National Security Space Launch Phase 3 Lane 1.” This third contract was split into two lanes last year. Lane 1 is for low-risk missions and near-Earth orbit. And Lane 2 is for heavy load carrying missions and more demanding orbits.
The Space Force selected SpaceX, United Launch Alliance, and (even though it has not yet entered orbit) Blue Origin to compete for a launch from Lane 1 earlier this summer. At the time, the Space Force acknowledged that the pool of awardees was small, but the goal was to allow companies to bid on the first lane each year to make up for this. The next opportunity to join Lane 1, which has a total expected value of $5.6 billion over five years, will be in late 2024.
In a press release announcing the contract, Lt. Col. Douglas Downs, chief of logistics for SSC’s Space Launch Procurement Division, said the military expects “increased competition and diversity” through the ability to enter new providers.
The Phase 3 Lane 1 grant period runs from FY 2025 to FY 2029, with a five-year extension possible. The Space Force expects to conduct at least 30 missions during that period. SpaceX’s victory may seem like a foregone conclusion this time around, but the competition could soon heat up as new launch companies and vehicles come online in the next few years.
