SpaceX received an eight-launch contract worth $733 million from the U.S. 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 Reconnaissance Office, all of which are expected to use Falcon 9 and not occur before 2026.
The massive new contract is part of a U.S. Space Force Space Systems Command (SSC) program with the catchy name “National Security Space Launch Phase 3 Track 1.” This third round of contracts was divided into two lanes last year: lane 1, for lower-risk missions and near-Earth orbits; and lane 2, for heavy lift missions and more demanding orbits.
The Space Force selected SpaceX, United Launch Alliance, and (somehow, despite not yet reaching orbit) Blue Origin to compete for launches in Lane 1 earlier this summer. At the time, the Space Force acknowledged that the pool of winners was small, but that its goal was to account for that by allowing companies to bid in Lane 1 annually. The next opportunity to join Lane 1, which has an expected total value of $5.6 billion over five years, will be later in 2024.
In a news release announcing the contract, Lt. Col. Douglas Downs, SSC materiel lead for space launch procurement, said the force expects to see “increased competition and diversity” with the ability to bring in new suppliers.
The Phase 3 Track 1 award period is from fiscal year 2025 to fiscal year 2029, with potential for a five-year extension. The Space Force plans to award at least 30 missions during that period. SpaceX’s victory may seem like a foregone conclusion this time, but with new companies and launch vehicles coming online in the coming years, the competition may soon intensify.