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WASHINGTON, D.C. – In a landmark move to fortify national security space launch capabilities, the U.S. Department of Defense has awarded a significant $13.7 billion in contracts to space industry leaders SpaceX, United Launch Alliance (ULA), and Blue Origin. This unprecedented decision marks the first instance of three companies sharing the crucial responsibility for deploying high-priority military and intelligence payloads into orbit.
Pentagon Awards Billion-Dollar Space Launch Contracts
Announced on April 4th by the U.S. Space Force’s Space Systems Command, these agreements fall under the National Security Space Launch (NSSL) Phase 3 Lane 2 procurement. This pivotal initiative is strategically designed to enhance the Pentagon’s assured access to space, particularly for its most critical and risk-sensitive missions.
SpaceX has emerged as the primary contractor, securing approximately $5.9 billion in anticipated awards. ULA follows with nearly $5.4 billion, and Blue Origin is allocated almost $2.4 billion. Collectively, these three companies are contracted to execute an estimated 54 launches between fiscal years 2025 and 2029.
“This award represents a strategic investment in guaranteed access to space,” stated Gen. Chance Saltzman, Chief of Space Operations for the U.S. Space Force. “A dependable and resilient space launch infrastructure is fundamental to both our economic stability and our national defense.”
SpaceX and ULA to Handle Majority of Launches
Out of the 54 planned missions, SpaceX is projected to undertake 28, constituting roughly 60% of the total. ULA is tasked with 19 missions, approximately 35%. Blue Origin, while having conducted only a single flight of its New Glenn rocket and awaiting certification, is slated for seven launches, commencing in the program’s second year, conditional on the successful certification of its launch vehicle.
The Lane 2 segment of the Phase 3 program is specifically focused on intricate launches to high-energy orbits with stringent mission assurance requirements. These encompass vital systems such as secure communications and missile warning networks, categorizing it as the most demanding tier of national security launch assignments.
Mission assignments are typically determined two years prior to their scheduled launch dates. Flights under these new contracts are anticipated to occur from fiscal year 2027 through 2032.
Blue Origin’s Inclusion Reshapes Competitive Landscape
The incorporation of Blue Origin into the NSSL program signifies a significant evolution in the Pentagon’s approach, fostering increased competition within the U.S. space launch sector. SpaceX has been a dominant force in the national security launch market since the Phase 2 contracts were awarded in 2020. This Phase 3 award is the first instance where the government has designated three primary launch service providers.
Blue Origin was selected as the “third best value provider,” despite its New Glenn rocket not yet achieving national security mission certification. Space Force officials have expressed confidence in the progress of the rocket’s development, expecting certification to be granted by the time Blue Origin’s missions are set to begin.
ULA, a joint venture of Boeing and Lockheed Martin, recently achieved a critical milestone with the certification of its Vulcan Centaur rocket on March 26. The company is preparing to commence launches for its previously awarded NSSL Phase 2 missions later in the year.
Dual-Lane Approach for Diversified Space Access
The Phase 3 acquisition strategy employs a dual-lane framework. Lane 1 is oriented towards missions with lower risk profiles and commercial parallels, encompassing approximately 30 launches. Lane 2 is dedicated to high-stakes missions demanding superior performance and heightened security protocols.
“These contract awards guarantee continuous access to the crucial space domain,” affirmed Maj. Gen. Stephen Purdy, acting Assistant Secretary of the Air Force for Space Acquisition and Integration.
Under the terms of the agreements, all three companies must adhere to rigorous mission assurance standards. This includes collaborative integration efforts with government teams to ensure mission success and reliability.
Mission assignments for the launch providers will be made on an annual basis, with the initial allocation of fiscal year 2025 missions scheduled for announcement later this year. Assignments will continue each October throughout the contract duration.
The Phase 3 contracts build upon the Pentagon’s ongoing initiatives to eliminate reliance on Russian-manufactured RD-180 engines and cultivate a competitive U.S. launch industry capable of fulfilling the evolving space requirements of national security agencies.