Boldly going: The US Space Force has awarded $13.7 billion in contracts to SpaceX, United Launch Alliance, and Blue Origin under the National Security Space Launch Phase 3 program. The contracts run through 2029 and mark the first time three companies will simultaneously handle top-priority military satellite missions – signaling a new era of competition in defense space launches.
SpaceX secured the largest share of the contracts, landing $5.9 billion for 28 launches. Meanwhile, ULA snatched $5.4 billion for 19 missions, and Blue Origin received $2.4 billion for seven. These launches will carry sensitive payloads – such as National Reconnaissance Office spy satellites – into orbits that require advanced technical precision. As its first attempt at an NSSL award, Blue Origin's inclusion alongside veteran contractors underscores the shifting dynamics of the military launch industry.
A closer look at the financials reveals notable cost differences between providers. SpaceX's average price per launch is around $212 million – well below ULA's $282 million and Blue Origin's $341 million. These figures include not just the launches themselves but also added services like fleet surveillance and mission-specific studies.
SpaceX will deploy its Falcon 9 and Falcon Heavy rockets for these missions.
The NSSL Phase 3 program splits launches into two tracks: Lane 1 for commercial-style missions and Lane 2 for high-stakes national security payloads. The recent awards fall under Lane 2, demanding rigorous performance and security standards to minimize risks. This structure opens the door for newer providers in Lane 1 while reserving Lane 2 for systems that can meet the program's most complex requirements.
Phase 3 represents a significant expansion over its predecessor, with an anticipated 84 missions scheduled between fiscal years 2025 and 2029 – nearly double the number conducted during Phase 2. Of these, 54 missions are allocated to Lane 2, underscoring the importance of this segment in maintaining national security.
ULA is using its newly certified Vulcan Centaur rocket.
Each provider will use its flagship rockets for these missions. SpaceX will deploy Falcon 9 and Falcon Heavy, while United Launch Alliance will rely on the newly certified Vulcan Centaur, phasing out its older Delta IV and Atlas V rockets. Blue Origin will use its New Glenn, which completed its maiden flight earlier this year but still needs additional certification before handling Lane 2 missions.
The competitive dynamics of military space launches have shifted significantly over the past decade. While ULA once dominated this sector, it now faces fierce competition from SpaceX's reusable Falcon boosters, which offer a more cost-effective alternative. Since gaining eligibility to bid on military contracts in 2015, SpaceX has captured over 40 percent of NSSL missions, solidifying its role as a key partner for the Pentagon.
Blue Origin's New Glenn rocket completed its maiden flight earlier this year.
Blue Origin is making strides in this domain but faces hurdles. The company needs at least one more successful flight of its New Glenn rocket to achieve full certification for Lane 2 missions, with that milestone expected by late 2026. Meanwhile, ULA certified its Vulcan rocket after two successful test flights. Designed for complex orbital maneuvers and long-duration missions, ULA hopes the rocket will differentiate it from competitors.
Winning 60% of the missions may sound generous, but the reality is that all SpaceX competitors combined cannot currently deliver the other 40%!
– Elon Musk (@elonmusk) April 4, 2025
I hope they succeed, but they aren't there yet.
In addition to Lane 2 missions, Lane 1 provides opportunities for newer players like Rocket Lab and Stoke Space to enter the military launch market with lower-risk payloads destined for low-Earth orbit. These less demanding missions have fewer certification requirements, fostering broader participation while maintaining cost efficiency.
