Space Force, the new branch of the U.S. military dedicated to space operations, has announced its plans to increase the number of rocket launches it will purchase from companies in the coming years. The move comes as a response to the growing need to enhance the country’s military capabilities in space.
Under its National Security Space Launch (NSSL) Phase 3 program, the Space Force initially intended to buy five years’ worth of launches. However, the agency now aims to almost triple the number of launches over a five-year period compared to the previous phase. This expansion opens up opportunities for more companies to compete for lucrative contracts worth billions of dollars.
Elon Musk’s SpaceX and United Launch Alliance, a joint venture of Boeing and Lockheed Martin, were initially expected to be the top contenders for Lane 2, which represents the existing approach with the most demanding requirements. However, the recent developments now also present an opportunity for other companies, such as Jeff Bezos’ Blue Origin, to enter the competition.
“This is a huge deal,” said Col. Doug Pentecost, the deputy program executive officer of the U.S. Space Force’s Space Systems Command, during a briefing. The Space Force hosted an industry day in February, where 22 companies showed up to learn about the program’s details. Since then, the Space Force has made several adjustments to Phase 3, including adding more missions, introducing a price cap, expanding Lane 2, and setting an annual schedule for mission assignments.
The bidding process for the contracts will evaluate the “Total Evaluated Price” per launch offered by each company. This price includes the cost of building and launching the rocket (Launch Service) as well as any special requirements the military may have for the launch (Launch Service Support). The Launch Service Support amount is capped at $100 million per year per company to ensure cost control and foster competition.
Notably, Lane 2 is where the most valuable contracts will be awarded for launching national security satellites with high stakes. Space Force intends to assign 60% and 40% of the 51 missions to the top two bidders, respectively, while the remaining launches will go to the third-place bidder. Regardless of ranking, companies must demonstrate their ability to meet all Lane 2 requirements, including having launch sites on both the east and west coasts and the capability to reach various unique orbits accurately.
While Space Force declined to specify the number of companies developing rockets that meet these requirements, the agency expressed hope that competition would go beyond SpaceX and United Launch Alliance. The annual Oct. 1 deadline for assigning missions to contractors will ensure Space Force has guaranteed capacity and secures its orders. The final request for bidders is set to be released in September, with proposals due by December, and contract awards expected in October 2024.
As the demand for launches increases, Space Force is eager to ensure capacity and competitive pricing, while also promoting the development and readiness of rockets by various companies. The agency believes that 2026 will be a significant year when many companies’ rockets are expected to be completed and ready to fly, giving them a competitive advantage in the NSSL Phase 3 competition.
Overall, the Space Force’s decision to expand the number of rocket launches and introduce more competition reflects the growing importance of space capabilities in the U.S. military and its commitment to fostering innovation and efficiency in this domain.