SpaceX wins $733 million Space Force launch contract

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SpaceX was awarded an eight-launch contract worth $733 million by the US Space Force on Friday, as part of an ongoing program aimed at boosting competition among launch service 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 aircraft and take place no earlier than 2026.

The massive new contract is part of the US Space Force’s Space Systems Command (SSC) program with the catchy name “National Security Space Launch Phase 3 Lane 1.” This third round of contracts was split into two tracks last year: Track 1, for low-risk, near-Earth orbit missions; and Lane 2, for heavy-lift missions and more demanding orbits.

The Space Force selected SpaceX, United Launch Alliance, and (somehow, though not yet in orbit) Blue Origin to compete for launches under Track 1 earlier this summer. At the time, the Space Force acknowledged that the pool of winners was small, but aimed to account for that by allowing companies to bid on Track 1 on an annual basis. The next opportunity to join Track 1, which has an expected total value of $5.6 billion over five years, will be later in 2024.

In a press release announcing the contract, Lt. Col. Douglas Downs, SSC’s materiel commander for Space Launch Procurement, said the force expects to see “increased competition and diversity” with the ability to attract new providers.

The Phase 3 Track 1 grant period extends from FY 2025 to FY 2029, with the possibility of a five-year extension. The Space Force expects to award at least 30 missions during that period. A SpaceX victory may seem like a foregone conclusion this time around, but with new launch companies and vehicles coming online in the next few years, the competition could soon be heating up.

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