Space Force amplifies competition in the NSSL race for military launches

A Falcon Heavy rocket will launch the USSF-67 mission on January 15, 2023 from NASA’s Kennedy Space Center in Florida. The US military is expanding the competition for Space Force mission contracts, planning to purchase more rocket launches from companies than previously anticipated. This opens up opportunities for more companies to secure potentially lucrative contracts. The Space Force aims to buy a total of 90 missions in Phase 3, compared to the estimated 36 missions in Phase 2. The procurement process involves two lanes: Lane 1 allows companies to compete as rockets debut, while Lane 2 selects a set number of companies for missions meeting more demanding requirements. The Space Force has made adjustments to Phase 3, including adding more missions, introducing a price cap, expanding Lane 2, and implementing an annual schedule for mission assignments. The government considers a company’s “Total Evaluated Price” per launch, including launch service costs and launch service support costs, which are capped at $100 million per year per company. Lane 2, which requires companies to have launch sites on both the east and west coasts and the ability to reach various orbits, offers the most valuable contracts. Previously, SpaceX and United Launch Alliance were considered the top contenders for Lane 2, but there is now a possibility for other companies like Blue Origin to enter the competition. Space Force will assign 60% of missions to the top bidder, 40% to the second bidder, and 7 of the remaining missions to the third-place bidder. The Space Force will finalize its request for bidders by September and aims to award the contracts in October 2024. The goal is to secure capacity amidst high demand for launches, as other companies are also vying for satellite launches. Companies that are on schedule and ready to fly by 2026 will have an advantage in the competition.

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