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The U.S. Space Force has awarded SpaceX a contract worth $733 million for eight launches, reinforcing the organization’s efforts to increase competition among space launch providers. This deal is part of the ongoing “National Security Space Launch Phase 3 Lane 1” program, overseen by Space Systems Command (SSC), which focuses on less complex missions involving near-Earth orbits.

Under the contract, SpaceX will handle seven launches for the Space Development Agency and one for the National Reconnaissance Office, all using Falcon 9 rockets. These missions are expected to take place no earlier than 2026.

Space Force launch contract

In 2023, the Space Force divided Phase 3 contracts into two categories: Lane 1 for less risky missions and Lane 2 for heavier payloads and more challenging orbits. Although SpaceX was chosen for Lane 1 launches, competitors like United Launch Alliance and Blue Origin were also in the running. The Space Force aims to foster more competition by allowing new companies to bid for future Lane 1 opportunities, with the next bidding round set for 2024. The overall Lane 1 contract is estimated to be worth $5.6 billion over five years.

Lt. Col. Douglas Downs, SSC’s leader for space launch procurement, emphasized the Space Force’s expectation of more competitors and greater variety in launch providers moving forward. The Phase 3 Lane 1 contracts cover fiscal years 2025 to 2029, with the option to extend for five more years, and the Space Force plans to award at least 30 missions over this period.

While SpaceX has a strong position now, emerging launch providers and new technologies could intensify the competition in the near future.