Importance Score: 72 / 100 🔴
WASHINGTON — In a potential strategic adjustment, the Department of the Air Force is evaluating whether to substitute planned acquisitions of military satellites from various defense contractors with SpaceX’s Starshield satellites. This possible change in approach was indicated by a U.S. senator during a congressional hearing on March 27.
Senator Kevin Cramer (R-ND) disclosed during a Senate Armed Services Committee confirmation hearing that he had been informed of the Air Force’s deliberations to potentially cancel satellite procurements for the Space Development Agency’s (SDA) Transport Layer Tranche 2 and Tranche 3 initiatives, potentially opting instead for SpaceX’s solutions.
This anticipated realignment emerges as the Pentagon thoroughly examines its budgetary proposals for fiscal year 2026.
“Do you believe that reducing opportunities like this could negatively impact innovators within the industrial base?” Senator Cramer queried Troy Meink, the nominee for the Department of the Air Force leadership position, during the session.
The Transport Layer constitutes a vital element of the Proliferated Warfighter Space Architecture (PWSA). This network is engineered to deliver high-speed, low-latency data transport capabilities worldwide via a network of interconnected satellites operating in low Earth orbit (LEO). These satellites utilize optical inter-satellite links to establish a mesh network architecture that underpins the SDA’s missile tracking functionalities.
Existing Contracts Potentially Impacted
The SDA has already awarded contracts to York Space Systems and Northrop Grumman for Tranche 2 satellites. A third contract, initially granted to Terran Orbital, was withdrawn following a bid protest by Viasat and is currently undergoing recompetition. Contracts for Tranche 3 satellites are yet to be awarded.
Senator Cramer emphasized that this prospective shift could pose a substantial setback for defense contractors who have invested resources in developing specialized capabilities for military space systems. He did not suggest that SpaceX CEO Elon Musk, who previously served as an advisor to the Trump administration, was influencing this possible alteration in the SDA’s program.
The prospect of employing SpaceX’s Starshield – a militarized variant of the company’s commercially successful Starlink internet satellites – as a transport layer for the PWSA brings forth technical considerations. The SDA had previously communicated that SpaceX satellites might not fulfill requirements. In 2023, the agency noted that SpaceX had declined to bid for SDA contracts because its commercial satellites operate at an altitude of 550 kilometers in low Earth orbit, beneath the SDA’s stipulated altitude of 1,000 kilometers.
Air Force Official’s Response
Mr. Meink responded that while he lacked specific knowledge regarding internal discussions about the SDA, he underscored his consistent support for broadened competition throughout his professional history.
“Throughout my career, I have consistently advocated for expanded competition and a more diverse industry base,” Mr. Meink stated. “This approach almost invariably yields the most favorable outcome, considering both capability and governmental expenditure.”
A Department of the Air Force spokesperson issued a statement on March 27 indicating that “no final decisions have been reached concerning Tranche 2 and 3 of the Transport Layer of the Proliferated Warfighter Space Architecture.”
The spokesperson further added that the Department of the Air Force and U.S. Space Force are actively “collaborating with the Office of the Secretary of Defense to assess all acquisition programs within the framework of the FY26 President’s Budget deliberations and the Administration’s priorities.”