The US Space Force has increased the value of its launch contracts with SpaceX and United Launch Alliance (ULA) by nearly $1.8 billion, following a significant increase in estimated missions under five-year agreements signed in 2020.
SpaceX’s contract will increase by $661 million, bringing the total to $4 billion. ULA’s contract will increase by $1.1 billion, bringing the total to $4.5 billion over the five-year period. The increase in contracts is due to a sharp increase in demand for launches under the National Security Space Launch (NSSL) Phase 2 program, according to the US Space Force (via SpaceNews).
“These contract modifications are necessary to increase the estimated total contract dollar value due to the increase in estimated mission quantities that will be ordered under the Phase 2 contract,” said the spokesperson for the Space Force’s Space Systems Command.
The NSSL Phase 2 contract was originally laid out in 2019 and was expected to include 34 missions. These were to be split 60/40 between ULA and SpaceX, respectively. However, that has since changed. The program is now expected to include 49 missions. While ULA won 60% of the Phase 2 missions and SpaceX won 40%, Space Systems Command has said that ULA will ultimately receive 54% and SpaceX 46%. The change was due to delays in the launch schedule for ULA’s Vulcan rocket. A spokesperson for the Space Force’s Space Systems Command emphasized that the contract change announced on July 19 will not impact the upcoming NSSL Phase 3 manifest. All 49 Phase 2 missions will be ordered before the Phase 3 Lane 2 contract begins.
ULA and SpaceX were the sole suppliers for the NSSL Phase 2 program. Blue Origin is expected to compete for the NSSL mission in the Phase 3 procurement beginning in fiscal year 2025. The Space Force structured Phase 3 to allow new entrants the opportunity to challenge ULA and SpaceX for national security launches.
