The U.S. Space Force has awarded SpaceX a large contract for $733 million for eight flights. The agreement is a part of the “National Security Space Launch Phase 3 Lane 1” initiative of the Space Systems Command, which seeks to increase competition among launch providers. Falcon 9 rockets will be used for these flights, which are anticipated to start no earlier than 2026. They will support seven missions for the Space Development Agency, including one for the National Reconnaissance Office.
The Space Force’s Phase 3 program, which is designed for lower-risk missions aimed at near-Earth orbits, includes this most recent contract under Lane 1. Last year, the program’s structure was split into two lanes, with Lane 1 designated for these easier missions and Lane 2 handling more difficult orbital deliveries and bigger, more complicated payloads.
Blue Origin, United Launch Alliance, and SpaceX were all selected by the Space Force earlier this summer to compete for flights under Lane 1, even though Blue Origin was still striving to get into orbit. While the Space Force has acknowledged that the present pool of bidders is small, it has plans to acquire more bidders every year. The initiative is anticipated to achieve a total value of $5.6 billion over the following five years, and the next chance for businesses to bid under Lane 1 will be in late 2024.
In a recent press statement, Lt. Col. Douglas Downs, who leads the Space Force’s procurement team for space launches, expressed optimism, saying the Force hopes to see “increasing competition and diversity” as additional launch providers are incorporated into the program. With a five-year extension possible, the Phase 3 Lane 1 contract is valid from fiscal year 2025 to fiscal year 2029. The Space Force intends to award at least 30 launch missions throughout this period. Although SpaceX may appear to be the market leader right now, new businesses and technological advancements may cause the market to change in the upcoming years, resulting in fiercer competition.