SpaceX wins $733M Space Force launch contract

SpaceX was awarded an eight-launch, $733 million contract by the US Space Force on Friday, as part of an ongoing program aimed at fostering competition among launch providers.

The award includes seven launches for the Space Development Agency and one for the National Observatory, all expected to use the Falcon 9 and take place before 2026.

The new major contract is part of a US Space Force Space Systems Command (SSC) program with the catchy name “National Security Space Launch Phase 3 Lane 1.” This third round of contracts was divided into two lanes last year: Lane 1, for low-risk equipment and roads close to land; and Lane 2, for weightlifting trips and more demanding routes.

The Space Force has chosen SpaceX, United Launch Alliance and (somehow, despite not reaching orbit yet) Blue Origin to compete for a launch under Lane 1 earlier this summer. At the time, the Space Force admitted that the pool of awardees was small, but intended to account for this by allowing companies to bid on Lane 1 every year. The next opportunity to join Lane 1, with an expected total value of 5.6 billion dollars over five years, will be later in 2024.

In a press conference announcing the contract, Lt. Col. Douglas Downs, SSC’s supply chain leader for space procurement, said the force expected to see “increased competition and diversity” and the ability to land new suppliers.

The Phase 3 Lane 1 award period is from fiscal year 2025 to fiscal year 2029, with the possibility of a five-year extension. The Space Force expects to award at least 30 missions during that time. A SpaceX win may seem like a foregone conclusion, but with new launch companies and vehicles coming online in the next few years, the competition could soon intensify.